Carey Watermark Investors acquires 5 Hiltons

Carey Watermark Investors Inc. has acquired five hotels within the Hilton Worldwide portfolio of brands from entities managed by Fairwood Capital LLC.

The properties include the 119-room Hampton Inn & Suites Atlanta-Downtown, which is housed in a renovated historic building listed on the National Register of Historic Places; the 144-room Hampton Inn & Suites Memphis-Beale Street; the 133-room Hampton Inn Birmingham-Colonnade in Alabama; the 105-room Hampton Inn & Suites Legacy Park-Frisco in Texas; and the 131-room Hilton Garden Inn Baton Rouge Airport in Louisiana. The Memphis, Atlanta and Birmingham properties will be managed by Crescent Hotels & Resorts, and the Frisco and Baton Rouge properties will be managed by HRI Lodging Inc.

Carey Watermark’s total investment in the properties is approximately US$104 million, including acquisition-related costs and US$64.5 million of debt. The hotels, which were constructed between 1994 and 2004, have been substantially renovated between 2010 and 2012, the New York City-based Carey Watermark said in a news release.

“The portfolio represents an opportunity to invest in five Hilton-branded hotels that have been recently renovated and offer strong in-place cash flow,” said Michael Medzigian, Carey Watermark CEO. “The Memphis and Atlanta properties are high-quality urban assets, and the Birmingham, Frisco and Baton Rouge properties are similarly high-quality hotels strategically located in their respective markets. We believe that the market diversity, operating history and established branding of these properties support our strategy of building a portfolio that offers attractive risk-adjusted returns to our investors.”