KANSAS CITY — Carey Watermark Investors Inc., a non-traded REIT, has acquired the Kansas City Marriott Country Club Plaza for $57 million. The hotel is located in the Country Club Plaza, a 55-acre, 15-block shopping district located four miles from downtown Kansas City and comprised of 150 retail establishments, restaurants and entertainment venues. The University of Missouri-Kansas City is also nearby. According to the Kansas City Star, the seller was an affiliate of Noble Investment Group.
Country Club Plaza has experienced a cumulative average growth rate in revenue per available room (RevPAR) of 4.4 percent since 2009. Planned improvements to the property include updates to food and beverage outlets, meeting spaces and the hotel’s exterior. The hotel will also implement Marriott Hotels’ signature “Greatroom” lobby concept, which features modern lobby space for guests to use.
Along with the $57 million purchase, CWI invested $15 million in other acquisition-related costs and planned capital expenditures, bringing the total price to $71.5 million. The acquisition was financed with $38.5 million in debt. The hotel will continue to be managed by Interstate Hotels & Resorts.
The 19-story hotel includes 295 rooms, 16,000 square feet of meeting space, three food and beverage outlets, a fitness center, indoor pool and spa and complimentary wireless Internet access.
“The acquisition of the Kansas City Marriott Country Club Plaza 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, CEO of CWI. “We believe that our planned hotel renovations, updating guest rooms and refreshing public and meeting spaces will materially enhance the hotel’s positioning in the market, providing longer-term value creation for our investors.”
CWI is a publicly registered, non-traded REIT that was formed to make investments primarily in the lodging and lodging-related sectors. Affiliates of W. P. Carey Inc. and Watermark Capital Partners advise CWI and manage its overall portfolio.
— Haisten Willis