Two lodging-focused non-traded real estate investment trusts (REITs) announced today the acquisition of a majority interest in The Ritz-Carlton Key Biscayne, Miami. Carey Watermark Investors Incorporated (CWI 1) and Carey Watermark Investors 2 Incorporated (CWI 2) along with an affiliate of the property’s original developer, GB Key Biscayne Holdings, LLC, acquired the luxury hotel located on the island of Key Biscayne.
“The joint venture investment in The Ritz-Carlton Key Biscayne property allowed us to add a AAA Four Diamond destination resort in a location with high barriers to entry to the CWI 1 and CWI 2 portfolios,” commented Michael Medzigian, Chief Executive Officer of CWI I and CWI 2.
Developed in 2001, the hotel boasts 302 resort guestrooms and 188 condo-hotel units on 17 acres of oceanfront property plus access to nature preserves, shopping villages, and beaches. Additional amenities include 20,000 square feet of interior meeting and banquet space, 30,000 square feet of exterior function space, pools, a spa, a fitness center, and food and beverage outlets, among others.
The island of Key Biscayne is only three miles off the coast of Miami and is accessible by car. Miami ranks fourth in the U.S. in terms of revenue per available room or RevPar only trailing New York, Oahu, and San Francisco.
The resort recently underwent renovations to its lobby, a couple of food and beverage outlets, and its spa. In 2016, renovations are planned for all guestrooms to receive a full replacement of soft goods plus certain bathroom upgrades.
Medzigian added, “Working with GB Key Biscayne Holdings, we were able to recapitalize the asset to allow for ongoing renovations and secure attractive current risk adjusted returns with the potential for longer term incremental value.”
“The combination of a high quality asset in an unmatched location with the strength of The Ritz-Carlton brand represented a unique and attractive investment opportunity.”