Carey Watermark Investors (CWI), a non-traded real estate investment trust (REIT), has acquired the Renaissance Chicago Downtown Hotel, a 553-room full-service hotel, for USD139m.
The hotel is an institutional quality asset located in Chicago, the third largest metropolitan area and lodging market in the US.
Located across from and overlooking the Chicago River in the heart of Chicago's Central Business District, the hotel is close 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.
The purchase price of USD139m is in addition to USD27m of renovations and other acquisition-related costs. The acquisition was financed with USD90m of debt.
The property will continue to be managed by Marriott International under a long-term management agreement.
Michael Medzigian, chief executive officer of CWI, says: "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 US. 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."