CWI Purchases a Times Square Hotel for $95 Million

Carey Watermark Investors Incorporated (CWI) announced today that it has acquired the Courtyard Times Square West, a Manhattan hotel located in the Times Square area at 307 West 37th street. The acquisition cost of $95 million includes purchase price, acquisition-related costs, as well as planned capital expenditures and was financed with $56 million of debt.

As a non-traded REIT managed by W.P. Carey and Watermark Capital Properties, CWI focuses on the lodging industry. The company raised $586.2 million in its initial public offering and an additional $17.6 million through March 31, 2014 in its follow-on offering. The REIT intends to invest its remaining proceeds in lodging and lodging related properties.

Constructed in 2013, Courtyard Times Square West has 224 rooms and 27 stories. It has 665 square feet of meeting space and amenities including fitness and business centers, a bistro restaurant, and complimentary wireless internet access.

The hotel is affiliated with Marriott International and the Courtyard brand is well respected in the select-service lodging industry.

“The acquisition of the Courtyard Times Square West represented the opportunity to invest in a newly built, high quality, select-service property with strong brand affiliation in one of the strongest domestic hotel markets,” commented Michael Medzigian, Chief Executive Officer of CWI. “Given these attributes, we believe that the investment will be a solid cash flow-generating addition to our growing portfolio,” he added.