REIT company sells stake in two hotels to partner
Carey Watermark Investors Inc. sold its 49% joint venture interest to partner Ensemble Hotel Partners for US $22.6 million.
Prior to the sale, both companies are co-managing the Hotel Maya, a Doubletree by Hilton and Residence Inn Long Beach Downtown. According to the agreement, Ensemble will assume the third-party debts of the venture.
In May 2011. the two companies originally agreed to a joint venture. This engagement marks Carey Watermark's first investment.
Michael Medzigian, Chief Executive Officer of CWI, said the company gained an "attractive return on our investment" as a result of the sale.
He explained further: "Leveraging our hospitality industry and asset management expertise, and working with Ensemble, we achieved a stabilized financial structure for the venture and implemented a targeted capital program that allowed us to achieve our mutual investment and financial goals for these properties."
Carey Watermark is a real estate investment fund with expanding interests in non-lodging and lodging industries.