Carey Spends $134M on Florida Keys Hotel

MIAMI—Hawks Cay Resort, the largest destination resort in the Florida Keys, has a new owner. Carey Watermark Investors acquired the hotel property for $133.8 million.

Located on Duck Key, about 100 miles south of Miami and 60 miles northeast of Key West, Hawks Cay includes 177 hotel rooms. The resort also offers a residential management program that includes more than 250 two-three-and four-bedroom villas.   

“Given the limited number of existing resorts and restrictions on new development, the Florida Keys is one of the strongest lodging markets in the country,” says Michael Medzigian, CEO of Carey. “Our acquisition of Hawks Cay is consistent with our strategy of applying our lodging investment and asset management disciplines to exceptional properties.”

Carey's total investment in the property is about $149.4 million, including a $133.8 million purchase price and $15.6 million of planned capital improvements and other acquisition-related costs. Carey financed the acquisition with $79 million of debt. Pyramid Resort Group will manage the Florida Keys hotel.

Hawks Cay Resort offers more facilities and amenities than any other hotel in the Florida Keys, including 14,800 square feet of indoor meeting space, six food and beverage outlets, and a private saltwater lagoon. There is also a 7,000-square-foot Calm Waters Spa, five swimming pools, an 85-slip marina, the Indies Kids' Club, Cliff Drysdale tennis center, and 10,000 square feet of retail and office space.  

Planned hotel capital improvements include the renovation of guestrooms and public spaces, the redevelopment of the marina restaurant and other enhancements to the marina area, enhancement of the pool and recreational area at the Indies Kids' Club. Carey is also planning complete renovation of the two penthouse suites, and the creation of 16 family suites.

“We believe that, through our planned improvements and upgrades, as well as the introduction of the Pyramid Hotel Group management team,” says Medzigian, “we will be able to enhance and reposition the resort, create a solid financial platform for future operations and achieve attractive risk-adjusted returns for our investors.”