Carey Watermark Investors (CWI) announced today that it has acquired the Sheraton Austin Hotel at the Capitol. The 365-room, full-service hotel has 15 stories and is located in the heart of downtown Austin, Texas.
CWI is a non-traded REIT that focuses on lodging and lodging-related properties and is managed by W.P. Carey and Watermark Capital Properties. The Sheraton Austin acquisition is a joint venture for CWI with JMI Realty, a private, Austin-based real estate investment and development company. CWI holds 80% interest while JMI Realty holds 20%.
“We are delighted to partner with JMI on the acquisition of this well-located full-service property,” commented Michael Medzigian, Chief Executive Officer of CWI. He continued, “In combination with our recently announced acquisition of the select-service Hyatt Place Austin, we believe the strength of the Sheraton brand in the full-service sector, along with the property’s location and physical attributes, give us broad sector exposure in the strong Austin lodging market. In addition, this investment is consistent with our strategy of creating joint ventures with experienced owners to maximize the current value of uniquely positioned assets, create a solid financial platform for future operations and achieve attractive risk-adjusted returns for our investors.”
The hotel features 17,250 square feet of meeting and function space, which includes a large 9,650 square foot ballroom. Amenities also include a fitness center, business center, and an indoor/outdoor pool, as well as a restaurant and lobby bar. The hotel will be renovated at an estimated cost of over $6 million, to improve guest rooms and public spaces.
Greg Clay, Chief Investment Officer of JMI Realty commented, “The Sheraton Austin Hotel at the Capitol is an attractive, full-service property that offers solid growth opportunities in one of the strongest lodging markets in the United States. In conjunction with CWI, we look forward to enhancing the asset in order to drive the value of the investment.”
Being part of the Sheraton line, the hotel has a strong brand affiliation.
The hotel’s location is close to the entrance of the Capital as well as University of Texas’ Football Stadium. In addition, it is near Erwin Center and is just five blocks from the Central District/6th Street entertainment district.