NEW YORK, Jan. 3, 2017 /PRNewswire/ -- Carey Watermark Investors 2 Incorporated (CWI 2), a non-traded real estate investment trust (REIT) focused on investing in lodging and lodging-related properties, announced that it has acquired The Ritz-Carlton, San Francisco, a landmark hotel in the heart of downtown San Francisco's Nob Hill neighborhood.
Key Facts
-- Iconic, irreplaceable asset: The 18-column, nine-story building spanning
Stockton Street was originally developed in 1909 and designed by
Napoleon Le Brun & Sons of New York. In 1984, the neo-classical treasure
received landmark status from the City of San Francisco and, after an
extensive four-year renovation, re-opened in 1991 as the 336-room
Ritz-Carlton, San Francisco.
-- Newly renovated, high-quality hotel: Over $20 million of capital
improvements have been completed since 2014, including the renovation of
all guest rooms and comprehensive updates to the lobby, restaurant,
meeting and event space, and spa. Two new retail outlets and a fitness
center were also added during the renovation. The hotel has received
several industry awards and continues to serve as San Francisco's only
AAA Five-Diamond hotel.
-- Strong hotel market with high barriers to entry: The densely developed,
downtown San Francisco market includes nearly 50 million square feet of
rentable office space and has limited developable land. Barriers to
entry are very high and the local hotel market is strong. As of October
2016, San Francisco's year-to-date RevPAR was up 4.3%, significantly
above the national average of 3.2%. The last luxury hotel to open in San
Francisco was the St. Regis, which opened more than a decade ago.
-- Premier, downtown location: Located in the heart of the iconic Nob Hill
neighborhood, The Ritz-Carlton, San Francisco is situated along the
famed California Street cable car line. The property's central location
provides business and leisure visitors easy access to major city
destinations, including the Financial District, Union Square and
Fisherman's Wharf, as well as several popular shopping and dining
options. The property is less than one mile from the Moscone Center, San
Francisco's main convention center, which is undergoing an approximately
$500 million renovation and expansion that is expected to be completed
in late 2018.
-- Strong Marriott brand affiliation: The hotel will continue to be managed
by The Ritz-Carlton Company, L.L.C. (The Ritz Carlton), an affiliate of
Marriott International. As part of The Ritz-Carlton portfolio, the hotel
benefits from its luxury branding and Marriott's management platform,
including access to The Ritz-Carlton global distribution system and The
Ritz-Carlton Rewards program.
-- Property and amenities:
-- Nine-story institutional quality, iconic building
-- 336 guest rooms
-- 23,000 square feet of newly-renovated meeting space, including a
9,400 square feet ballroom and 2,200 square feet of interior
courtyard and function space
-- Two food and beverage outlets (restaurant and lobby lounge)
-- L'Occitane Spa, wine tasting lounge and jewelry boutiques
-- Fitness and business centers
Management Commentary
Michael Medzigian, Chief Executive Officer of CWI 2, said: "As the highest-rated luxury property in a globally recognized destination, the acquisition of The Ritz-Carlton, San Francisco is a significant addition to the CWI 2 portfolio. In combination with the strength of The Ritz-Carlton brand, the hotel represents a unique and attractive opportunity as we continue to build out our portfolio. San Francisco's consistently rising property values, limited land availability for hotel development and high cost of construction will support the long-term value of the asset. We believe the expansion of Moscone Center, as well as our ability to implement value-add enhancements, will increase profitability and reinforce the property's already enviable competitive position within the luxury sector of the market. We are extremely pleased to continue to expand on our already important relationships with both The Ritz-Carlton and Marriott International."
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 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
amcgrath@wpcarey.com
Press Contact:
Guy Lawrence
Ross & Lawrence
212-308-3333
gblawrence@rosslawpr.com
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SOURCE Carey Watermark Investors 2
