New York – May 28, 2014 – Carey Watermark Investors Incorporated (CWI), a non-traded real estate investment trust (“REIT”) focused on investing in lodging properties, announced that it has acquired the Courtyard Times Square West, a 224-room select-service hotel, located at 307 West 37th Street in the Times Square area of midtown Manhattan. CWI’s total investment in the property is approximately $95 million.
The New York City lodging market is the strongest performing hotel market in the U.S., benefitting from strong corporate demand as well as leisure demand from both domestic and international travelers. NYC occupancy averaged 78.3% from 1991 to 2013 as compared to 61.8% nationally over the same period. Year-to-date through March, New York City achieved a RevPAR of $161, outperforming the U.S. by 142%.
The Courtyard Times Square West benefits from its location on West 37th Street in the heart of Midtown Manhattan, which is within walking distance of many of the city’s most popular tourist and entertainment destinations, including Times Square, Madison Square Garden, the Fashion District, the Theater District and the Jacob Javits Center. Midtown Manhattan also houses more than 75% of New York City’s 389 million square feet of office space, making the hotel ideal for both business and leisure travelers.
·$95 million investment includes purchase price, acquisition-related costs and planned capital expenditures. The acquisition was financed with $56 million of debt.
The Courtyard brand is one of the most highly desirable select-service brands in the lodging industry. The hotel benefits from its affiliation with Marriott International, utilizing its strong reservation system and loyalty program—Marriott Rewards—which has garnered more accolades than any other hotel loyalty program. Marriott benefits from excellent brand recognition and demand among both domestic and international travelers.
Built in 2013, the hotel was designed with a more open, expansive lobby and larger guestrooms and public spaces when compared to the select-service supply in the market.
Michael Medzigian, Chief Executive Officer of CWI, commented: “The acquisition of the Courtyard Times Square West represented the opportunity to invest in a newly built, high quality, select-service property with strong brand affiliation in one of the strongest domestic hotel markets. Given these attributes, we believe that the investment will be a solid cash flow-generating addition to our growing portfolio.”