RALEIGH, NC—Carey Watermark Investors Incorporated (CWI) has acquired Raleigh Marriott City Center, a hotel Downtown Raleigh, NC. CWI invested a total of $89 million: $83 million to acquire the hotel and $6 million in capital improvement and other costs.
“The acquisition of Raleigh Marriott City Center represented the opportunity to acquire a strategically located property in a strong downtown market that is further supported by the vibrant regional economic activity of The Triangle,” says Michael Medzigian, CEO of CWI. The investment was financed with $51.5 million of debt. Interstate Hotels & Resorts will continue to manage the hotel.
The 400-room, 17-story hotel opened in 2008 in conjunction with the launch of a 500,000-square-foot Raleigh Convention Center. The city developed the convention center in the heart of the Fayetteville Street District in order to attract convention and meeting business. According to the city, the convention center has generated significant economic activity in the downtown core and greater Raleigh area.
“By virtue of its location alone, it is already the preferred hotel for visitors to the Raleigh Convention Center and, in combination with the quality of the asset itself and the improvements planned, we believe it will prove a solid addition to CWI’s portfolio, consistent with our strategy of acquiring assets with the potential for generating stable cash flow and building future value for our investors,” Medzigian says. The hotel is located close to major corporate offices, public sector facilities, educational institutions, and cultural and performing arts facilities, as well as collegiate and professional sporting venues.
The hotel also benefits from its location in “The Triangle,” the metropolitan region anchored by the cities of Durham, Chapel Hill, and Raleigh as well as North Carolina State University, Duke University, and University of North Carolina at Chapel Hill. Raleigh Marriott City Center is connected to the Raleigh Convention Center via an underground walkway. Amenities include Posta Tuscan Grille, an Italian-themed three-meal restaurant, Bar Posta, and an onsite Starbucks, 15,000 square feet of meeting space, indoor pool and whirlpool, and fitness and business centers.