NEW YORK CITY--Carey Watermark Investors 2 Inc., a non-traded lodging REIT sponsored by W. P. Carey, said Thursday it has begun a capital raise of up to $1.4 billion. As with its predecessor, Carey Watermark Investors, CWI 2 intends to put together a diversified portfolio of properties in the hotel sector.

In its initial offering, CWI 2 will issue up to 140 million shares of its common stock at $10.00 per share and up to an additional 60 million common shares under its distribution reinvestment plan at $9.60 per share. WPC subsidiary Carey Financial LLC will manage the best-efforts offering through select broker/dealer firms and registered investment advisors.

Proceeds from the offering will go toward investing in lodging and lodging-related properties. These will include full-service branded hotels located in urban settings, resort properties, high-end independent urban and boutique hotels, select-service hotels and mixed-use projects with non-lodging components.

CWI 2 will be advised by another WPC subsidiary, Carey Lodging Advisors LLC, while CWA2 LLC, a subsidiary of Watermark Capital Partners, will serve as subadvisor. The advisor and subadvisor will manage CWI 2's overall portfolio, including providing oversight and strategic guidance to the independent property operators that will manage its properties.

As with CWI 1, CWI 2 is being led by Michael Medzigian, who has served as CWI 1's ceO since 2008. He has been chairman and managing partner of Watermark Capital Partners since its formation in May 2002.