Carey Watermark Investors Acquires Remaining Interest in Fairmont Sonoma Mission Inn & Spa

Carey Watermark Investors, a publicly registered non-traded real estate investment trust sponsored by W.P. Carey (NYSE: WPC), acquired the remaining 25 percent interest in the Fairmont Sonoma Mission Inn & Spa from Fairmont Hotels & Resorts, bringing its ownership of the property to 100 percent. The REIT acquired its original 75 percent joint venture interest from Fairmont in July 2013.

The 226-room resort is located in Sonoma Valley in the heart of Northern California’s wine country, 15 miles west of Napa and 35 miles north of San Francisco. The hotel was built in 1927 on the 13-acre site of the former Boyes Hot Springs Hotel, which was developed in 1895.

Fairmont will continue to manage the luxury resort under a long-term management agreement.

“We are delighted to acquire Fairmont’s interest in this world-renowned luxury resort and look forward to our continued relationship with them as manager of the property. The recent renovations have enhanced the resort, solidifying its position as one of the best luxury properties in the Sonoma/Napa market,” said Michael Medzigian, chief executive officer of Carey Watermark Investors 1. “Given the strong market and the high barriers to entry, we believe that our full ownership of the property will further enhance its current value within our portfolio, and allow us to make additional strategic investments to maximize its value over the longer term.”

Property amenities include 12,000 square feet of interior meeting and banquet space, a recently renovated 40,000-square-foot spa located atop a thermal mineral spring, a fitness center, business center, pool, five on-site lounges and restaurants, and access to tennis courts, the Sonoma Golf Club and 18-hole championship course.

A $10.7 million property renovation was completed in July 2013 and included a guestroom update, a redesign of the lobby and fine dining room, Santé, as well as the creation of a new lobby bar.

Carey Watermark Investors Incorporated was formed to make investments primarily in the lodging and lodging-related sectors.