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First-Ever Single-Asset Publicly Traded REIT To Hit Market In February

The St. Regis Aspen is a full-service, 179-room luxury hotel with upscale restaurants and a private spa.

Aspen REIT is poised to become the first single-asset REIT to trade on an American stock exchange. The St. Regis Aspen Resort will be the only property in its portfolio, Commercial Observer reports.

The spinoff from New York-based asset management firm Elevated Returns was approved by the Securities and Exchange Commission in January after the initial announcement in November. An initial public offering is set to launch in late February.

Shares will be $20 each with 1.675 million offered on the New York Stock Exchange under the ticker symbol AJAX. Elevated Returns will retain 51% of the shares. This will bring equity in the property to $68.4M. In combination with the $119.4M mortgage, the St. Regis is valued at $187.8M, according to Commercial Observer.

The structure will introduce a new concept that allows affordable investments in a single commercial asset. But questions remain as to what will happen once the REIT settles in for trading given that resort hotel performances can be tied to seasonal weather patterns.

Elevated Returns is banking on the popularity of Aspen as a destination, as well as the positive reputation held by the St. Regis brand, to boost the REIT's value. While occupancy at ski resorts can be highly seasonal, St. Regis witnesses strong demand both during the ski season — between December and April — and during the summer months when more adventurous travelers visit for hiking and rafting. The town also hosts a two-month-long classical music festival from late June to late August, which drives up occupancy at the resort.

During peak season, St. Regis has registered an average price of $1,665/night. Revenue has grown 14% since 2015, and in 2016 reached $29M, Commercial Observer reports.