Dallas REIT to buy Lakeway Resort & Spa in $33.5 million deal

Jan 13, 2015
Austin Business Journal

Ashford Hospitality Trust (NYSE: AHT), a Dallas-based real estate investment trust, is under contract to purchase the Lakeway Resort & Spa for $33.5 million


The seller is an entity formed by Dow Hotel Co. of Seattle and the Carlyle Group in Washington D.C. The joint venture recently completed a $7 million renovation that was featured in a recent Austin Business Journal report showing photos of the resort


The 168-room hotel includes 24,000 square feet of meeting space and is ranked No. 15 on ABJ's list of largest meeting facilities


The $33.5 million purchase price is sharply higher than the 2014 value assigned by the Travis Central Appraisal District, which is $23.2 million. Some real estate professionals, particularly county appraisers, are seeking mandatory price disclosure for any real estate sales because they believe they are unable to accurately value properties — particularly large commercial properties — without documentation of exact sales prices


Texas is one of 11 states that does not require mandatory price disclosure. Other real estate experts are fighting any legislative efforts to require price disclosure saying it's only one of many factors that should be used to determine property valuation and that privacy should be protected


Ashford expects to close on the property at 101 Lakeway Drive on the shores of Lake Travis within the nexT 30 days. The price equates to $199,000 per guest room


The main building, which was completed in 1999, covers 142,859 square feet on 10.6 acres. Upon closing, the hotel will be managed by Remington Lodging based in Dallas


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