Carey Watermark Investors said Monday that it has sold its stake in a joint venture owning two hotels to its partner in the venture, Ensemble Hotel Partners, for approximately $22.6 million. As part of the transaction, Ensemble will retain all third party debt of the venture. Based in Long Beach, Calif., the two hotels are Hotel Maya, a Doubletree by Hilton and Residence Inn Long Beach Downtown.
NEW YORK, July 22, 2013 /PRNewswire/ — Carey Watermark Investors Incorporated (CWI) announced today that it sold its 49% interest in a joint venture owning two hotels located on the waterfront in Long Beach, CA – Hotel Maya, a Doubletree by Hilton; and Residence Inn Long Beach Downtown – to its partner in the venture, Ensemble Hotel Partners, LLC (Ensemble). CWI sold its joint venture interest for approximately $22.6 million, with Ensemble retaining the obligations of the venture, including all third party debt.
CWI’s joint venture investment with Ensemble in the two properties, which occurred in May 2011, was CWI’s first investment.
Commenting on the sale, Michael Medzigian, Chief Executive Officer of CWI, said, “The sale of CWI’s interest in Hotel Maya and Residence Inn has enabled us to lock in an attractive return on our investment and demonstrates our ability to secure joint venture opportunities that are accretive for our investors. Leveraging our hospitality industry and asset management expertise, and working with Ensemble, we achieved a stabilized financial structure for the venture and implemented a targeted capital program that allowed us to achieve our mutual investment and financial goals for these properties.”
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.