Carey Watermark JV Buys 365-Room Sheraton Austin Hotel at the Capitol
- Jun 02, 2014
Carey Watermark Investors Inc. has Austin under its skin. The company just made its second acquisition in the city in two months with the purchase of the 365-room Sheraton Austin Hotel at the Capitol, in a joint venture with JMI Realty.
CWI, the majority owner of the full-service hotel with an 80 percent stake, has not disclosed the financial terms of the transaction. The 15-story property last changed hands in 2011 when Cornerstone Real Estate Advisers picked it up from HEI Hotels & Resorts for $95.2 million.
Sited downtown at 701 E. 11th St., the hotel had been known as the Marriott Austin Capitol until 2007, when it became the Sheraton Austin, the city’s first Starwood Hotels & Resorts-brand hotel, under HEI’s ownership. Now, CWI and JMI will freshen-up the asset, which also features more than 17,000 square feet of meeting space, with an approximately $6 million renovation. Management of the property will remain in the hands of an affiliate of HEI.
CWI’s purchase of the Sheraton Austin comes on the heels of the company’s acquisition of Hyatt Place Austin Downtown from White Lodging Services Corp. The REIT snapped up the 296-room property at the beginning of April for $87 million.
“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,” Michael Medzigian, CEO of CWI said in a prepared statement.