Carey Watermark Investors 2 Buys Renaissance Atlanta Midtown Hotel
Carey Watermark Investors 2 Incorporated, a publicly registered non-traded real estate investment trust sponsored by W.P. Carey (NYSE: WPC), purchased the Renaissance Atlanta Midtown Hotel for an undisclosed amount.
Constructed in 2009 and converted to a Renaissance in 2011, the 21-story, full-service hotel includes 304 guestrooms and is located in the Midtown submarket of Atlanta, Georgia. A member of the Marriott International family, the Renaissance Atlanta Midtown Hotel features a restaurant, 8,600 square feet of meeting space, a rooftop bar and lounge, spa/fitness center, and business center. More than $3 million in capital improvements were completed at the hotel between 2011 and 2015.
“The acquisition of the Renaissance Atlanta Midtown Hotel represents the opportunity to invest in a newly built, upper upscale hotel with a strong brand affiliation, located in one of the most significant and growing business districts in the Southeast,” said Michael Medzigian, chief executive officer of CWI 2. “In addition to generating attractive initial current cash flow, we believe the property’s ongoing performance and longer-term value can be improved through the implementation of strategic revenue enhancement and operating initiatives. Planned property improvements include a soft goods renovation of the guestrooms along with improvements to public areas and meeting space.”
The hotel will be managed by Davidson Hotels & Resorts, an Atlanta-based hotel management company that operates 38 full-service, upper upscale and premium select service hotels and resorts throughout the United States.
The company noted that RevPAR growth has been significant within the Atlanta market, experiencing 13.0 percent and 9.3 percent growth in 2014 and 2015, respectively. Year-to-date through June market RevPAR continues to trend positively, up 6.3 percent compared to the same period last year.
Carey Watermark Investors 2, which invests primarily in the lodging and lodging-related sectors, went effective in February 2015 and has raised $470 million in investor equity since inception. As of June 31, 2016, the company held ownership interests in six hotels, with a total of 2,102 rooms.
