Carey Watermark Investors, a publicly registered non-traded real estate investment trust sponsored by W.P. Carey (NYSE: WPC), purchased Le Meridien Dallas, The Stoneleigh, a historic hotel in the Uptown Dallas district.
Originally built in 1923, Le Meridien Dallas, The Stoneleigh is an iconic, AAA Four Diamond Art Deco hotel that is listed on the National Register of Historic Places. The 176-room hotel underwent a $36 million renovation in 2008. Since 2008, $4.5 million has been spent to further upgrade the property and in early 2016, an additional $4 million renovation is planned for guestroom and corridor updates, the addition of an outdoor courtyard event space, a pool and other enhancements.
The hotel is located directly north of downtown Dallas, offering a diverse mix of office, residential and retail demand drivers. The hotel is within walking distance of numerous dining, nightlife and entertainment options for locals and leisure travelers alike. From 2009 to 2014, the downtown Dallas lodging market achieved an 8.4 percent compound annual growth rate in RevPAR (revenue per available room), significantly above the U.S. average of 6.8 percent for the same period.
Le Meridien, a Starwood Hotels & Resorts brand, is a global hotel brand with a portfolio of more than 100 luxury and upper-upscale hotels across more than 50 countries worldwide. The hotel will continue to be managed by Merritt Hospitality, an affiliate of HEI Hotels & Resorts, a hospitality owner and operator that owns and manages 48 full-service, upper-upscale, luxury and premium select-service hotels and resorts throughout the United States.
Michael Medzigian, chief executive officer of Carey Watermark Investors, said, “The acquisition of Le Meridien Dallas, The Stoneleigh represented the opportunity to secure a fully-renovated, iconic asset in one of the most attractive locations in the Dallas Metroplex, a region where economic growth is amongst the strongest in the nation.”
Medzigian explained further, “As a top-ranking property in Dallas, we expect the hotel to continue to benefit from the strength of the local economy, as well as the diverse corporate and leisure attractions in the area. Although Dallas-Fort Worth is already the fourth largest metro area in the country, it continues to diversify and grow at a considerable pace and we are very excited about its continued and long-term growth potential.”
Carey Watermark Investors Incorporated is a publicly registered real estate investment trust that was formed to make investments primarily in the lodging and lodging-related sectors. Affiliates of W. P. Carey Inc. and Watermark Capital Partners advise Carey Watermark Investors and manage its overall portfolio.