Carey Watermark Investors 2 Buys San Francisco Ritz-Carlton
Carey Watermark Investors 2 Inc., a publicly registered non-traded real estate investment trust sponsored by W.P. Carey (NYSE: WPC), has acquired The Ritz-Carlton in San Francisco for an undisclosed sum.
The nine-story Ritz-Carlton, located in San Francisco’s Nob Hill neighborhood, was originally developed in 1909 and designed by Napoleon Le Brun & Sons of New York. In 1984, the neo-classical treasure received landmark status from the City of San Francisco and, after a four-year renovation, re-opened in 1991 as the 336-room Ritz-Carlton, San Francisco. The hotel is the city’s only AAA Five-Diamond Hotel.
“As the highest-rated luxury property in a globally recognized destination, the acquisition of The Ritz-Carlton, San Francisco is a significant addition to the CWI 2 portfolio,” said Michael Medzigian, chief executive officer of the REIT. “San Francisco’s consistently rising property values, limited land availability for hotel development and high cost of construction will support the long-term value of the asset.”
More than $20 million in capital improvements have been completed since 2014, including the renovation of all 336 guest rooms and updates to the lobby, restaurant, meeting and event space, and spa. Two new retail outlets and a fitness center were also added during the renovation. The property is within close proximity to the Financial District, Union Square and Fisherman’s Wharf, as well as several shopping and dining options.
The property will continue to be managed by The Ritz-Carlton Company, an affiliate of Marriott International.
Carey Watermark Investors 2, which invests primarily in the lodging and lodging-related sectors, went effective in February 2015 and has raised $536 million in investor equity since inception. As of September 2016, the company owned nine properties hotels with a total investment cost of approximately $1 billion.
