A lodging-focused non-traded investment offering announced today the commencement of its $1.4 billion offering. The Securities and Exchange Commission (SEC) has declared Carey Watermark Investors 2 Incorporated’s (CWI 2) registration statement effective.
CWI 2 plans to use offering proceeds to purchase lodging and lodging related properties such as full-service branded hotels, resorts, high-end boutique hotels, and select-service hotels among other property types.
A subsidiary of W.P. Carey Inc. will advise CWI 2 and its subadvisor is a subsidiary of Watermark Capital Partners.
The company intends to qualify as a real estate investment trust (REIT).
CWI 2 will offer up to 140,000,000 shares of common stock at $10 per share plus 60,000,000 shares under its distribution reinvestment plan at $9.60 per share during its initial public offering.
Carey Watermark Investors Incorporated, CWI 2’s predecessor, is closed to new investors and has an estimated gross net asset value of approximately $942.5 million, or $10.30 per share of common stock, based on shares outstanding as of September 30, 2014. Its portfolio consisted of full or partial ownership in 27 hotels as of December 31, 2014.