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Carey Watermark Investors
2 Acquires Renaissance Atlanta Midtown Hotel
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Upscale property in central Midtown
location added to portfolio
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New
York, NY � September 2016 / Newsmaker Alert / Carey
Watermark Investors 2 Incorporated (CWI 2) announces that it has acquired
the Renaissance Atlanta Midtown Hotel. The 21-story, full-service property
includes 304 guestrooms and is located in the diverse and growing Midtown
submarket of Atlanta, Georgia.
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Key
Facts
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High-quality
asset: Constructed in 2009 and subsequently converted to a Renaissance
in 2011, the boutique hotel features high-quality finishes and has benefited
from more than $3 million of capital improvements completed between 2011
and 2015, including a complete and reconception of the hotel restaurant,
Community Smith, reopened in January 2015.
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Central
location in Midtown Atlanta: The Renaissance is located at the northwest
corner of West Peachtree Street and Abercrombie Place in Midtown Atlanta.
In addition to 14.7 million square feet of Class-A and Class-B office space,
Georgia Tech, the Coca Cola headquarters and the 189-acre Piedmont Park,
Midtown is considered the cultural center of the city, serving as home
to the one million-square-foot Woodruff Arts Center, The Fox Theatre and
the Atlanta Botanical Gardens. Further, NCR Corporation is currently constructing
its $260 million, 22-story, 485,000-square-foot headquarters less than
one block from the Renaissance, adding nearly 4,000 jobs to the Midtown
market. As one of a select number of full-service hotels in Midtown Atlanta,
the Renaissance is ideally located to take advantage of these significant
demand generators.
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Strong
market: RevPAR growth has been significant within the Atlanta market,
experiencing 13.0% and 9.3% growth in 2014 and 2015, respectively. Year-to-date
through June market RevPAR continues to trend positively, up 6.3% compared
to the same period last year. As a result of relatively low supply additions,
growth is expected to remain strong with approximately 6.0% RevPAR growth
projected over each of the next two years.
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Strong
brand affiliation: Marriott International, Inc., is a leading global
lodging company with more than 4,500 properties in 88 countries and territories.
Renaissance Hotels, a distinct lifestyle brand within Marriott International,
has a portfolio of nearly 170 hotels in nearly 35 countries. As a member
of the Marriott International family, the Renaissance Atlanta Midtown Hotel
benefits from Marriott's strong reservation system and award-winning Marriott
Rewards® loyalty program as well as its superior brand recognition
and demand by both domestic and international travelers. The hotel will
be managed by Davidson Hotels & Resorts, an Atlanta-based hotel management
company that operates 38 full-service, upper upscale and premium select
service hotels and resorts throughout the United States.
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Property
and amenities:
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304 spacious
guest rooms including 17 suites
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8,600
square feet of meeting space
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Full-service
restaurant
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Rooftop
bar and lounge
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24 hour
spa/fitness center
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24 hour
business center
Management
Commentary
Michael
Medzigian, Chief Executive Officer of CWI 2, stated: �The acquisition of
the Renaissance Atlanta Midtown Hotel represents the opportunity to invest
in a newly built, upper upscale hotel with a strong brand affiliation,
located in one of the most significant and growing business districts in
the Southeast. In addition to generating attractive initial current cash
flow, we believe the property's ongoing performance and longer-term value
can be improved through the implementation of strategic revenue enhancement
and operating initiatives. Planned property improvements include a soft
goods renovation of the guestrooms along with improvements to public areas
and meeting space. We believe this investment in conjunction with the implementation
of our strategic value-add initiatives will enhance the diversification
of CWI 2's growing portfolio and its ability to generate solid long-term
cash flow. Furthermore, we are pleased to begin a new partnership with
Davidson Hotels & Resorts and expand our already important relationship
with Marriott International.�
About
Carey Watermark Investors 2
Carey
Watermark Investors 2 (CWI 2) is a publicly registered REIT 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 CWI
2 and manage its overall portfolio. www.careywatermark2.com
This
press release contains forward-looking statements within the meaning of
the Federal securities laws. The statements of Mr. Medzigian are examples
of forward-looking statements. A number of factors could cause CWI 2's
actual results, performance or achievement to differ materially from those
anticipated. Among those risks, trends and uncertainties are the general
economic climate; the supply of and demand for hotels; interest rate levels;
the availability of financing; other risks associated with the acquisition
and ownership of hotels; and risks related to CWI 2's offering of shares.
For further information on factors that could impact CWI 2, reference is
made to its filings with the Securities and Exchange Commission. Statements
about past performance (including regarding RevPAR growth), are presented
for informational purposes only and are not a guarantee of future results.
Company
contact:
Anna
McGrath
W.
P. Carey Inc.
212-492-1166
Press
contact:
Guy
Lawrence
Ross
& Lawrence
212-308-3333 |
