CHICAGO
Carey Watermark Investors Incorporated (CWI), a non-traded real estate investment trust ("REIT") focused on investing in lodging and lodging-related properties, announced that it has acquired the Renaissance Chicago Downtown Hotel, a 553-room full-service hotel, located at 1 West Wacker Drive across from the Chicago River in downtown Chicago, for $139 million.
Key Facts:
Strong market: The hotel is an institutional quality asset located in Chicago, the third largest metropolitan area and lodging market in the United States; the financial, industrial, agricultural, transportation and tourism center of the Midwest; and home to McCormick Place, the largest convention center in the country.
Central riverfront location: Located across from and overlooking the Chicago River in the heart of Chicago's Central Business District, the hotel is proximate to 129 million square feet of office space and leisure destinations such as Millennium Park, Navy Pier, the Magnificent Mile and River North entertainment district.
Attractive purchase price: Includes $139 million purchase price in addition to $27 million of renovations and other acquisition-related costs. The acquisition was financed with $90 million of debt.
Strong brand affiliation: The property will continue to be managed by Marriott International under a long-term management agreement, which allows the property to benefit from Marriott's wide distribution network, strong reservation system and renowned Marriott Rewards program.
Property and amenities:
- 553 rooms and 27 stories
- 33,323 square feet, including 35,000 square feet of premier meeting space and 7,800 square feet of retail space
- Constructed in 1991 with renovations in 2005, 2012 and 2013
- 1.2 acres subject to long-term ground lease though June 2087
- Indoor pool and whirlpool, full service spa, fitness and business centers
- Three food and beverage outlets: Great Street Restaurant (three-meal restaurant), Bar Novo and Aroma Cafe
Michael Medzigian, Chief Executive Officer of CWI: "We view the acquisition of the Renaissance Chicago Downtown as a rare opportunity to invest in a premium-branded, institutional quality hotel, with an A+ location in one of the largest and strongest markets in the United States. Given an attractive purchase price, the growing Chicago market, and what we anticipate will be the positive impact of our planned capital improvements over the next two years, we believe that the investment will generate solid risk-adjusted returns for our investors."
