Carey Watermark Investors has acquired a dual-branded select-service hotel, The Hampton Inn & Suites and Homewood Suites by Hilton at the Denver Downtown Convention Center, for USD81.5 million.
The hotel is located at 550 15th Street in the heart of the downtown CBD.
Primary demand generators include major corporations and businesses within the CBD, the Colorado Convention Center and Denver's premier leisure attractions, including the 16th Street Mall, Coors Field and Pepsi Center.
Since 2003, the CBD has welcomed approximately USD4.6 billion of public and private sector investment.
The USD85 million investment includes a USD81.5 million purchase price as well as acquisition-related costs and planned capital expenditures. The acquisition was financed with USD53 million of debt.
Michael Medzigian, chief executive officer of CWI, says: "The acquisition of the Hampton Inn & Suites/Homewood Suites by Hilton Denver Downtown/Convention Center represented the opportunity to invest in a newly redeveloped, quality dual-branded hotel with strong brand affiliations in a strong domestic market. Given these attributes, we believe that the investment will be a solid cash flow-generating addition to our growing portfolio."