NEW YORK CITY-Carey Watermark Investors Inc.has acquired a 97% interest in Lake Arrowhead Resort & Spa fromthe property owner, Fulton Village Green Investors,LLC, an affiliate of Pacific CapitalInvestors, for a total investment of approximately $26.5million, including its allocable share of debt and otherinvestment-related costs. The resort, located in LakeArrowhead, California, was built in 1982 and renovated and upgradedin 2007, including the addition of a spa.

The 173-room lakefront resort includes 20,000 square feet ofindoor and outdoor meeting space, an 8,000 square foot spa,restaurant, lounge, business center, fitness center, gift shop,outdoor pool, 270 surface parking spaces and a private beach anddock. The investment includes a $3.7 million renovation ofguestrooms and public spaces, which is anticipated to be completedin early 2013. The property will be managed byCrescent Hotels & Resorts and in early 2013will become a member of the Autograph Collection, a diversecollection of upper-upscale and luxury independent hotels sponsoredby Marriott International.

The resort is located in the San Bernardino National Forest, 90miles east of Los Angeles and a 45 minute drive from OntarioInternational Airport. Interstate 15, a major north/southfreeway, provides access to the resort from Riverside, Orange andSan Diego Counties and Interstate 10, a major east/west freeway,provides access from Los Angeles International Airport and LosAngeles, San Bernardino, Ventura and Santa BarbaraCounties.