Carey Watermark Investors (CWI), a public, non-traded REIT, announced today that it acquired the Westin Pasadena hotel in Pasadena, California for $142.5 million.
The Four Diamond AAA-rated hotel offers 350 guestrooms and is conveniently located in the mixed use Plaza Las Fuentes, which offers 178,000 square feet of office space and 15,000 square feet of retail space that includes two restaurants.
Located nearby to the Pasadena Convention Center, the Civic Auditorium, and the Rose Bowl among other attractions, the hotel benefits from the events held at these locations.
“CWI’s investment in the Westin Pasadena represented the opportunity to secure a well-located asset that benefits from the overall strength of the Southern California lodging market. The Four Diamond property generates attractive cash-flow and we believe that it will continue to benefit from the diverse corporate and leisure attractions in the area. Our ability to acquire a high quality well-positioned asset in a strong market adds additional market diversity as well as solid long-term cash generating capability to our portfolio,” commented Michael Medzigian, Chief Executive Officer of CWI.
In addition to its $142.5 million acquisition cost, the REIT plans to spend $15.5 million on capital expenditures and other acquisition-related costs. Planned renovations include the full replacement of soft goods such as carpeting and bedding, and case goods like furniture and TVs in the guestrooms and corridors.
HEI Hotels & Resorts, a hospitality owner/operator of luxury and premium select-service hotels and resorts, will continue to manage the hotel.
CWI closed its follow-on offering December 31, 2014 after raising $577.4 million, which is in addition to the $575.8 million raised during its initial public offering.