Carey Watermark Acquires Landmark Pasadena Hotel
- Mar 24, 2015
Carey Watermark Investors Inc. has acquired the Westin Pasadena hotel, a 350-room, Four Diamond AAA-rated full-service hotel located in downtown Pasadena, Calif., for $142.5 million.
“It is a leading asset in its competitive market and we believe well positioned to retain that market leading position over time due to location and quality,” Michael Medzigian, CWI’s CEO, told Commercial Property Executive. “In addition, the property represented an attractive cash flowing asset with strong potential upside in a Southern California market with strong appeal to both leisure and commercial travelers.”
The Westin Pasadena is a landmark hotel located within the Plaza Las Fuentes, a mixed-use complex with a 178,000 square-foot office building and 15,000 square feet of retail space, including two restaurants.
The hotel features Spanish architecture highlighted by a dramatic facade, manicured courtyard garden and sculptured fountains. The hotel includes 19,000 square feet of interior meeting space, a 1,300-square-foot fitness studio, and an outdoor heated swimming pool and spa.
“The hotel industry continues to be favored by increasingly strong demand and therefore we think it is an opportune time to acquire well positioned properties in strong markets with upside potential,” Medzigian said. “It is a well-located property with strong value add opportunities where we can apply both our financial and operating expertise.”
According to Medzigian, CWI is planning an extensive $15.5 million renovation of the guestrooms and guestroom lobbies, which will include a full replacement of the soft and case goods throughout the guestrooms and corridors and various other value-add projects throughout the hotel.
The property is located in Pasadena’s CBD, which has more than 7 million square feet of office space. It’s close by attractions and demand generators including the Pasadena Convention Center, Civic Auditorium, Rose Bowl and Paseo Colorado shopping and entertainment center. The property also benefits from its proximity to the strong corporate base in downtown Los Angeles, which is 10 miles from the hotel.
The hotel will continue to be managed by HEI Hotels & Resorts, a hospitality owner/operator that owns and manages 43 full-service, upper-upscale, luxury and premium select-service hotels and resorts throughout the U.S.