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8-K - FORM 8-K - Carey Watermark Investors Inc | y92609e8vk.htm |
EX-10.1 - EX-10.1 - Carey Watermark Investors Inc | y92609exv10w1.htm |
Exhibit 99.1
FOR IMMEDIATE RELEASE |
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COMPANY CONTACT: |
PRESS CONTACT: |
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Cheryl Perry |
Guy Lawrence |
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W. P. Carey & Co. LLC |
Ross & Lawrence |
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212-492-8995
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212-308-3333 | |||
cperry@wpcarey.com
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gblawrence@rosslawpr.com |
CAREY WATERMARK INVESTORS ACQUIRES HISTORIC NEW ORLEANS
HOTEL
Marks CWIs second lodging investment
HOTEL
Marks CWIs second lodging investment
New York September 7, 2011 Carey Watermark Investors Incorporated (CWI) announced today that
it has closed on a joint venture investment of approximately $45.7 million in the historic French
Quarter of New Orleans with HRI Properties, the original hotel owner and a strategic joint venture
partner with a robust real-estate presence in the area. CWIs investment is approximately $31.3
million including its allocated portion of debt. The property, the Chateau Bourbon Hotel, was
built in 1849 as the D. H. Holmes department store and was later converted to a hotel in 1995 by
HRI Properties. The hotel also includes approximately 20,000 square feet of leased commercial space
and an adjacent 300-stall parking garage. With CWIs investment, the hotel will undergo a complete
renovation and repositioning including the creation of new modern food and beverage concepts and an
increase in its room count from 251 to a total of 254. Upon completion of the renovation, expected
to be in the second quarter of 2012, the property will be renamed the Hyatt French Quarter hotel,
through a franchise agreement with an affiliate of Hyatt Hotels Corporation. An affiliate of HRI
will continue to manage the property.
Located at the intersection of Bourbon Street and Canal Street, the hotel is in a prime location
for visiting tourists and business travelers alike. Many of the areas attractions are within easy
reach, including the Louisiana Superdome, New Orleans Convention Center, Harrahs Casino, and The
Port of New Orleans an access point for popular cruise lines, such as Carnival and Royal
Caribbean. Furthermore, the hotel boasts the largest average guestroom size in the French Quarter
as well as 12-foot ceiling heights, and provides convenient driving access and guest drop-off, a
common limitation throughout the French Quarter.
Commenting on the investment, Michael Medzigian, Chief Executive Officer of CWI, said, As CWIs
second transaction, this is another excellent example of how we can effectively enter into joint
ventures to leverage our hospitality industry and asset management expertise. We found the
Chateau Bourbon Hotel to be ideal for ownership and renovation as it is a landmark property that is
well located in one of the strongest tourism markets in the country, and our joint investment with
HRI will be at substantially below the hotels replacement value, allowing us to capitalize on the
propertys full market potential. We look forward to working with HRI Properties to achieve our
mutual investment goals and to increase the contribution the property can make to the New Orleans
economy.
Trevor Bond, Chairman of the Board of CWI and President and Chief Executive Officer of W. P. Carey
& Co. LLC, noted, The closing of our second hotel investment on behalf of CWI validates our
approach of providing a solid capitalization for properties with significant value add
opportunities and upside potential. Structuring investments in the hospitality sector that meet
our investment objectives while providing attractive incentives to our local partners, we believe,
distinguishes us from other investors in the sector and gives us access to properties that might
not be available otherwise. The joint venture with HRI Properties aligns our goals of long-term
growth in value and generation of attractive risk adjusted returns for our investors with those of
a highly regarded management company active in the local community.
We are proud to be affiliated with the Hyatt family of hotels. The Hyatt brand is synonymous with
the highest level of quality and service, exactly the standards we expect to achieve at HRI
Lodging, said Gary Gutierrez, HRI Lodging president.
Carey Watermark Investors
Carey Watermark Investors Incorporated is a publicly registered non-traded real estate investment
trust (REIT) that was formed to make investments primarily in the lodging and lodging-related
sectors. Affiliates of W. P. Carey & Co. LLC (NYSE: WPC) and Watermark Capital Partners, LLC advise
the REIT and manage its overall portfolio. www.careywatermark.com
HRI Properties
HRI Properties is a New Orleans based full-service real estate development company and a national
leader in the adaptive reuse of historic structures. HRI has completed over 50 large scale
projects, 30 in New Orleans, including 4,500 apartment units, 3,500 hotel rooms, and 500,000 SF of
office and retail space. www.hriproperties.com
Forward-Looking Statements
Certain statements contained herein may be deemed to be forward-looking statements under federal
securities laws and the company intends that such forward-looking statements be subject to the
safe-harbor provisions created thereby. All forward-looking statements are qualified in their
entirety by this cautionary statement and Carey Watermark Investors Incorporated and its related
and affiliated companies assume no, and hereby disclaim any, obligation to update the
forward-looking statements contained herein. This caution is made under the safe harbor provisions
of the Private Securities Litigation Reform Act of 1995.