Ashford Inc. has acquired a controlling interest in a privately held company that conducts the business of Pure Rooms for approximately $97,000 in cash consideration. Pure Rooms utilizes state-of-the-art purification technology to create allergy-friendly guestrooms.
Pure Rooms currently has contracts in place with approximately 160 hotels (approximately 2,400 rooms) throughout the United States. Pure Rooms' hypo-allergenic rooms are designed to provide a better night's sleep for all guests, especially allergy sufferers.
Pure Rooms' patented 7-step purification process treats a room's surfaces, including the air, and removes up to 99% of pollutants. Hotel rooms participating in this program typically achieve between a $20 and $30 premium per night. Based on historical performance, Ashford's asset managed hotels that have been included in the Pure Rooms program have experienced an internal rate of return of between 50% and 70% on the Pure Rooms investment.
In addition to owning a 70% interest in the common equity of Pure Rooms, Ashford owns $300,000, or 50%, of the Series B-2 Preferred Equity of Pure Rooms.
Pure Rooms has also made progress in additional vertical markets, such as assisted living, cruise ships and office buildings, to drive additional growth. Existing management for Pure Rooms will remain in place, and Brian Brault will retain the title of Chief Executive Officer.
"This transaction is the next evolution of Pure Rooms' strategy of being the leading provider of hypo-allergenic hotel rooms in the United States," commented Brian Brault, Chief Executive Officer of Pure Rooms. "We look forward to leveraging Ashford's hotel experience, operating experience and track record of success to further solidify our market position and support the tremendous potential for growth in our business."
"We continue to use our hospitality and management experience to identify and invest in unique business opportunities in the industry and are excited to integrate our deep operating experience with the innovation of Pure Rooms," said Monty J. Bennett, Ashford's Chairman and Chief Executive Officer. "There is growing demand for health and wellness offerings in the hospitality industry, and we are excited about the future of this partnership."