Carey Watermark Grabs 302-Key Hotel in Denver’s CBD for $82M
- Jun 26, 2014
Non-traded REIT focused on lodging investment trust, Carey Watermark Investors has made its entrance into Denver’s sizzling hotel market by snapping up the Hampton Inn & Suites-Homewood Suites by Hilton Denver Downtown/Convention Center for $81.5 million.
CWI’s total investment in its very first Denver asset, the hospitality and convention center located at 550 15th St. in the center of Colorado capital’s central business district is $85 million, including the 81.5 million purchase price and acquisition-related costs and planned capital expenditures.
CEO of CWI Michael Medzigian told Commercial Property Executive “the strength of the Denver CBD as well as the high quality of this newly rebuilt asset affiliated with Hilton’s top selective service and extended stay brands” attracted his company to the dual-branded hotel.
According to a 2014 PKF Consulting report, the average hotel RevPAR in the greater Denver area increased by 8.6 percent with occupancy and ADR increasing by 5.7 percent and 2.7 percent, respectively. This data combined with Denver’s status as a leading destination for corporate, group and leisure visitors have positioned the Denver hotel market well in 2014, according to the news release.
The hotel, which was redeveloped in 2013, is made up of 302 keys, of which 120 are Hampton Inn & Suites and 182 rooms are Homewood Suites, housed in 12 stories. There’s 7,000 square feet of meeting space, two distinct lobbies and reception desks, an outdoor patio, fitness, business centers, and indoor pool, whirlpool and complimentary wireless access. The building is an adaptive reuse redevelopment of a 1960’s-era office building, which allows the dual-branded hotel more expansive lobby areas and larger guestrooms.
The property is well positioned in the CBD, close to the Colorado Convention Center and the state capital’s leisure attractions, such as the 16th Street Mall, Coors Field and Pepsi Center. Since 2003, Denver’s CBD has welcomed about $4.6 billion of public and private investment.
“We believe that the investment will be a solid cash flow-generating addition to our growing portfolio,” Medzigian added in the release.