San Jose Marriott Changes Hands
- Jul 18, 2016
San Jose, Calif.—Carey Watermark Investors 2 Inc. has acquired the San Jose Marriott, a 510-key hotel located in downtown San Jose, Calif., for $154 million. The acquisition has been financed with $88 million of senior debt.
“The strength of the Silicon Valley market and its continuing growth made it the right time to add this asset to our portfolio,” Michael Medzigian, CWI 2’s CEO, told Commercial Property Executive. “In this market, year-over-year growth RevPAR has far outpaced the national average and analyst expectations are for that outperformance to continue.”
The high-quality 27-story hotel was built in 2004 and benefits from $10 million of capital improvements completed since 2014, including a soft goods renovation of the guestrooms and corridors, the addition of four guestroom keys and a complete renovation of the lobby, as well as updates to the public space and concierge lounge.
“The property is not only the newest hotel in downtown San Jose, it has also been recently renovated,” Medzigian said. “Its location adjacent and connected to the McEnery Convention Center along with its proximity to corporate and leisure demand generators provided a unique value proposition for current performance and future growth.”
Property amenities include 23,000 square feet of meeting and event space, three food and beverage outlets, a concierge lounge, business center, fitness center and outdoor swimming pool.
The San Jose Marriott is directly connected to the newly renovated and expanded San Jose McEnery Convention Center and is in close proximity to San Jose State University and attractions such as the Tech Museum of Innovation, the San Jose Museum of Modern Art and the SAP Center, home of the NHL’s San Jose Sharks. The region’s primary airport, the San Jose Mineta International Airport, is also located just three miles away.
According to Medzigian, the company’s objective is to build a diverse portfolio of hotel assets by identifying and executing on attractive accretive acquisitions in the resort, full-service and select service sectors that will generate near-term cash flows and longer-term value. The acquisition of the San Jose Marriott is consistent with this strategy.
Image courtesy of Marriott