NEW YORK, Nov. 18, 2015 /PRNewswire/ -- W. P. Carey Inc. (NYSE: WPC), a real estate investment trust specializing in corporate sale-leaseback and build-to-suit financing, and the acquisition of single-tenant net lease properties, announced today that it has acquired a portfolio of six Courtyard by Marriott™ hotels for approximately $52 million. The portfolio is triple-net leased to a wholly-owned subsidiary of Marriott International, Inc. (Marriott International).
- Industry-leading, established parent: In the hotel business since 1957, what is today Marriott International, Inc. is a leading global lodging company with more than 4,300 properties in 85 countries and territories. Marriott International has an equity market capitalization of approximately $19 billion and is rated investment grade by both Standard & Poor's and Moody's.
- Strong performing, highly-rated portfolio: The portfolio of six properties has shown strong operating performance in recent years, including growth in average daily rate, occupancy and revenue per available room, and has generated consistent operating margins and substantial rent coverage. In addition, each hotel within the portfolio has received high guest satisfaction ratings.
- Long-term net leases with built-in rent growth: The portfolio is triple-net leased with a remaining term of approximately 11 years and includes fixed rent escalations.
Jason Fox, Head of Global Investments and President of W. P. Carey Inc., commented: "The acquisition of the Courtyard by Marriott™ portfolio presented the opportunity to acquire six established operating properties with strong performance at an attractive basis, offering compelling risk-adjusted returns. The steady, predictable cash flows and annual rent escalations, coupled with the strength of Marriott International's brand and credit made this an ideal addition to the W. P. Carey Inc. portfolio."
W. P. Carey Inc.
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This press release contains forward-looking statements within the meaning of U.S. Federal securities laws. The comments from Mr. Fox are examples of forward looking statements. A number of factors could cause W. P. Carey's actual results, performance or achievement to differ materially from those anticipated. Among those risks, trends and uncertainties are the general economic climate; the supply of and demand for office and industrial properties; interest rate levels; the availability of financing; and other risks associated with the acquisition and ownership of properties, including risks that the tenants will not pay rent, or that costs may be greater than anticipated. For further information on factors that could impact W. P. Carey, reference is made to its filings with the U.S. Securities and Exchange Commission. Statements about past performance, which are presented for informational purposes only, are not a guarantee of future results. Neither Marriott International nor its respective directors, officers, agents or employees had responsibility for the creation or contents of this press release.
W. P. Carey Inc. Contacts:
+ 1 212-308-3333
+ 1 212-492-8921
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SOURCE W. P. Carey Inc.