Carey Watermark Investors has acquired the Holiday Inn Manhattan 6th Avenue hotel in New York City’s Chelsea neighborhood for approximately US$121.4 million, including a US$113 million purchase price and US$8.4 million of planned capital improvements and acquisition-related costs. The investment was financed with US$80 million of debt.
The 226-room, 24-story hotel was newly constructed in 2008. Amenities include high-speed wireless Internet, a business center, a fitness center and laundry/valet service. Three-meal food and beverage services are offered through Prime Café, a 2,400-sq-ft (223-sq-m) restaurant and adjoining lounge, which is leased to a third-party operator.
“The opportunity to enter this market through the acquisition of a relatively new, well-located property with an established operating history, strong initial cash returns and the potential for future appreciation made it an ideal investment for Carey Watermark,” said Michael Medzigian, chief executive officer of the New York City-based REIT.