Ashford Hospitality Prime | May 12, 2017

DALLAS, May 12, 2017 — Ashford Hospitality Prime, Inc. (NYSE: AHP) ("Ashford Prime" or the "Company") announced today that it has completed the acquisition of the 80-room Hotel Yountville in Yountville, California for $96.5 million ($1,200,000 per key), previously announced on March 1, 2017. Concurrent with the completion of the acquisition, the Company has financed the hotel with a $51.0 million non-recourse mortgage loan. This loan is interest only and provides for a floating interest rate of LIBOR + 2.55% with a five-year term. The property will be managed by Remington Lodging.

The purchase price for the Hotel Yountville represents, as of December 31, 2016, a trailing 12-month capitalization rate of 6.2% on hotel net operating income of $6.0 million and a trailing 12-month 14.5x hotel EBITDA multiple, according to the Company's preliminary estimates based on unaudited operating financial data provided by the sellers. On a forward 12-month basis, the purchase price represents an estimated capitalization rate of 6.8% on estimated hotel net operating income of $6.5 million and an estimated 13.4x hotel EBITDA multiple, according to the Company's preliminary estimates based on unaudited operating financial data provided by the sellers. A reconciliation of non-GAAP financial measures is included in the financial table below.

Ashford Hospitality Prime Hotel Yountville Reconciliation of Estimated Hotel Net Income to Estimated Hotel EBITDA and Estimated Hotel Net Operating Income (Unaudited, in millions)

Twelve Months Ended December 31, 2016

Estimated Twelve Months Ending December 31, 2016

Hotel Net Income

$ 4.3

$ 3.8

Adjustment:

Depreciation and amortization

$ 2.3

$ 2.3

Interest expense

$ –

$ 1.1

Hotel EBITDA

$ 6.7

$ 7.2

Adjustment:

Capital reserve

$ (0.6)

$ (0.7)

Hotel Net Operating Income

$ 6.0

$ 6.5

EBITDA is defined as net income (loss), computed in accordance with generally accepted accounting principles ("GAAP"), before interest, taxes, depreciation and amortization. Hotel EBITDA multiple is defined as the purchase price divided by the estimated trailing or forward 12 month EBITDA. A capitalization rate is determined by dividing the property's annual net operating income by the purchase price. Net operating income is the property's hotel EBITDA minus a capital expense reserve