Carey Watermark Investors Acquires Boca Raton Marriott at Boca Center Marriott's 'Room of the Future' renovations planned
NEW YORK, June 13, 2014 /PRNewswire/ -- Carey Watermark Investors Incorporated (CWI), a non-traded real estate investment trust ("REIT") focused on investing in lodging and lodging-related properties, announced that it has acquired the Boca Raton Marriott at Boca Center, a 256-room full service hotel, located at 5150 Town Center Circle in Boca Raton, FL.
- Strong market: The Boca Raton market is driven by resort, leisure and commercial business, with over 11 million square feet of office space, upscale residential communities, the main campus of Florida Atlantic University and the Atlantic Ocean beaches. Market occupancy, which is driven by both resort and commercial business, was 69% in 2013, representing a year-over-year increase of 6.1%. The larger Palm Beach market, which includes Boca Raton, achieved RevPAR growth of 10.0% in 2013, exceeding the national RevPAR growth of 5.2%. With a constrained supply pipeline and steadily increasing visitation trends, Boca's lodging metrics show positive signs of sustainable growth.
- Central location: The hotel is located in the Boca Center mixed-use development that includes 375,000 square feet of Class-A office space, 21 stores and 12 restaurants, and generates significant business from the corporate office tenants in the immediate area. Additionally, the hotel is adjacent to Town Center at Boca, the second largest mall in Florida by square footage with over 1.5 million square feet. Town Center is anchored by Saks Fifth Avenue, Neiman Marcus, Bloomingdale's, Macy's and Sears.
- Planned property enhancements: The hotel will undergo a significant renovation including guestrooms, corridors and meeting space at an estimated cost of over $7 million.
- Marriott brand affiliation: As a member of the Marriott International family, the Boca Raton Marriott at Boca Center benefits from Marriott's strong reservation system and loyalty program as well as its superior brand recognition and demand among both domestic and international travelers.
- Management: The hotel will continue to be managed by an affiliate of HEI Hotels & Resorts, a hospitality owner/operator that owns and manages over 36 full service, upper-upscale, luxury and premium select-service hotels and resorts throughout the U.S.
- Property and amenities:
- 256 rooms housed in 12 stories
- Over 13,500 square feet of meeting space
- Recently renovated public areas including the new Marriott Great Room lobby concept
- Cafe 5150 three-meal restaurant
- Two Concierge club levels, fitness center, business center, outdoor pool and spa
- Complimentary wireless internet access
Michael Medzigian, Chief Executive Officer of CWI: "The acquisition of the Boca Raton Marriott at Boca Center represented the opportunity to invest in a high quality, full service property in an established market with strong growth prospects and high barriers to entry. We believe that our planned hotel renovations—updating guest rooms to the Marriott 'Room of the future' brand standard and refreshing meeting spaces and guestroom corridors—will reinforce the hotel's status as a market leader."
Carey Watermark Investors
Carey Watermark Investors Incorporated (CWI) is a publicly registered real estate investment trust (REIT) that was formed to make investments primarily in the lodging and lodging-related sectors. Affiliates of W. P. Carey Inc. and Watermark Capital Partners advise CWI and manage its overall portfolio. www.careywatermark.com
This press release contains forward-looking statements within the meaning of the Federal securities laws. The statements of Mr. Medzigian are examples of forward looking statements. A number of factors could cause actual results, performance or achievement to differ materially from those anticipated. Among those risks, trends and uncertainties are the risks related to CWI's public offering; the general economic climate; the supply of and demand for hotels; interest rate levels; the availability of financing; and other risks associated with the acquisition and ownership of hotels. For further information on factors that could impact CWI, reference is made to its filings with the Securities and Exchange Commission
W. P. Carey Inc.
Ross & Lawrence
SOURCE Carey Watermark Investors Incorporated