Carey Watermark Investors 2 Inc., a publicly registered, non-traded real estate investment trust sponsored by W.P. Carey (NYSE: WPC), acquired the Le Méridien Arlington hotel in Arlington, Virginia. The purchase price was not disclosed.
The hotel is part of a mixed-use development that includes 621,000 square feet of class A office space and 136 residential units, as well as the 154-guestroom Le Méridien. Built in 2008, the hotel is located in the Rosslyn submarket across the river from Georgetown and within close proximity to top destinations in the Washington, D.C. area.
“The hotel is the highest quality asset in the Arlington market and benefits from its proximity to nearby office buildings, as well as the greater Georgetown and Washington, DC markets,” said Michael Medzigian chief executive officer of Carey Watermark Investors 2. “Given this positioning, as well as the limited availability of other sites for hotel development in the Rosslyn market, we believe the property will continue to generate attractive near term cash flow and add incremental long-term value to CWI 2’s portfolio.”
Property amenities include both indoor and outdoor meeting and event space, a bar and lounge with a full-service restaurant, a fitness center and business center. A $3 million soft goods renovation of the guestrooms and meeting space is currently underway. Le Méridien is a Starwood Hotels & Resorts brand and will be managed by HEI Hotels & Resorts.
Carey Watermark Investors 2 focuses on investing in lodging and lodging-related properties. The REIT went effective in February 2015 and has raised $449.3 million in investor equity since inception. As of March 31, 2016, the company held ownership interests in five hotels, with a total of 1,948 rooms.