Carey Watermark Investors (CWI), a non-traded real estate investment trust (REIT), has acquired the Sheraton Austin Hotel at the Capitol, a 365-room full-service hotel, through a joint venture with JMI Realty.
CWI holds an 80 per cent interest in the joint venture and JMI Realty, a private real estate investment and development company based in Austin, Texas, holds a 20 per cent ownership interest.
Michael Medzigian, chief executive officer of CWI, says: "We are delighted to partner with JMI on the acquisition of this well-located full-service property. In combination with our recently announced acquisition of the select-service Hyatt Place Austin, we believe the strength of the Sheraton brand in the full-service sector, along with the property's location and physical attributes, give us broad sector exposure in the strong Austin lodging market. In addition, this investment is consistent with our strategy of creating joint ventures with experienced owners to maximise the current value of uniquely positioned assets, create a solid financial platform for future operations and achieve attractive risk-adjusted returns for our investors."
Greg Clay, chief investment officer of JMI Realty, says: "We are pleased to be teaming up with CWI and see this as an exciting opportunity to work with a well-respected investor that not only has access to capital but also has extensive experience in the lodging industry. The Sheraton Austin Hotel at the Capitol is an attractive, full-service property that offers solid growth opportunities in one of the strongest lodging markets in the US. In conjunction with CWI, we look forward to enhancing the asset in order to drive the value of the investment."