Prime DC Area Hotel Changes Hands
- Jul 05, 2016
Washington—New York City-based hospitality REIT Carey Watermark Investors 2 recently acquired the Le Méridien Arlington for an undisclosed amount. The hotel was bought in 2012 by HEI Hotels & Resorts for a reported $45 million, with the Norwalk, Conn.-based company switching the property to Starwood’s Le Méridien brand. HEI will continue to handle the management side of the hotel.
Known as Hotel Palomar prior to its rebranding, the 154-key establishment is part of the Waterview Place mixed-use development that includes 621,000 square feet of Class A office space and 136 residential units. In a case study, JLL reports that the 24-story Waterview Place was designed by Pei, Cobb, Freed & Partners and developed in 2007 by The JBG Cos. According to Yardi Matrix, the office part of the development is currently owned, managed and leased by the Paramount Group.
Located at 1121 19th St. in Arlington, Va.’s dense and competitive Rosslyn submarket, the property is just steps away from Vornado’s recently approved 2.5 million-square-foot redevelopment project. Close to the Potomac River and right next to Interstate 66, Le Méridien Arlington is currently subject to a $3 million renovation process, with guestrooms and meeting spaces soon to be completely refurbished.
Offering 4,800 square feet of inside and 4,500 square feet of outdoor meeting and event space, the hotel also features a bar/lounge, full-service restaurant, 24-hour fitness and business centers, spa treatment rooms and complimentary Wi-Fi in public areas.
“The acquisition of Le Méridien Arlington represented the opportunity to secure a fully renovated asset in one of the most attractive locations in Arlington and the Washington, D.C., region…Given this positioning, as well as the limited availability of other sites for hotel development in the Rosslyn market, we believe the property will continue to generate attractive near-term cash flow and add incremental long-term value to CWI 2’s portfolio,” said Michael Medzigian, CEO of the non-traded hospitality REIT, in a prepared statement.
Images courtesy of Starwood Hotels & Resorts