KANSAS CITY—Carey Watermark Investors Inc., a non-traded REIT, has just acquired the Kansas City Marriott Country Club Plaza, a 19-story, 295-room full-service hotel, for nearly $57 million. The hotel is located about four miles south of downtown in the Country Club Plaza area, a 55-acre shopping district that has recently seen signs of increasing demand. The Country Club Plaza, for example, has experienced a cumulative average growth rate in RevPAR of 4.4% since 2009, Carey Watermark officials say.
Furthermore, the downtown has begun attracting a host of new residents, many of them millennials. And, as reported in GlobeSt.com, the office market has also seen growth. There is even talk of starting speculative development. Ken Block of Block Real Estate Services LLC, for example, recently announced plans to build a $78 million, 12-story office tower in the Country Club Plaza area.
"The acquisition represented an opportunity to invest in a high-quality, full-service property located in the heart of the most desirable lodging destination in Kansas City,” says Michael Medzigian, chief executive officer of the New York-based CWI.
The new owners plan to make many improvements to the hotel, including updates to its food and beverage outlets, meeting spaces and exterior. The hotel will implement Marriott Hotels' signature "Greatroom" lobby concept, which allows guests to use the space for business or leisure. In addition to the $56.7 million purchase price, this investment includes $14.8 million in other acquisition-related costs and planned capital expenditures. Interstate Hotels & Resorts will continue to manage the property.
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