PASADENA, CALIF. — Carey Watermark Investors Inc. (CWI), W. P. Carey’s non-traded lodging REIT based in New York, has purchased the Westin Pasadena from HEI Hotels & Resorts. CWI acquired the 350-room hotel located in downtown Pasadena for $142.5 million.
The Westin Pasadena is a Four Diamond AAA-rated hotel located within the Plaza Las Fuentes, a mixed-use complex with a 178,000-square-foot office building and 15,000 square feet of retail space, including two restaurants. The hotel is located near the Pasadena Convention Center, Civic Auditorium, Rose Bowl and Paseo Colorado shopping and entertainment center, as well as 10 miles outside of downtown Los Angeles.
“CWI’s investment in the Westin Pasadena represented the opportunity to secure a well-located asset that benefits from the overall strength of the Southern California lodging market,” says Michael Medzigian, CEO of CWI. “The Four Diamond property generates attractive cash flow and we believe that it will continue to benefit from the diverse corporate and leisure attractions in the area. Our ability to acquire a high-quality, well-positioned asset in a strong market adds additional market diversity, as well as solid long-term cash generating capability to our portfolio.”
The hotel features 19,000 square feet of meeting space, a full-service restaurant and bar, outdoor heated swimming pool and spa, lobby lounge and a 1,300-square-foot fitness studio. The hotel was built in 1989 and converted to a Westin property in 2002.
CWI plans to invest $15.5 million for planned capital expenditures and other acquisition-related costs. The REIT will implement the renovation of the guestrooms through a full replacement of the bedding and furniture throughout the guestrooms and corridors.
HEI Hotels & Resorts, a hospitality owner/operator that owns and manages 43 hotels and resorts throughout the U.S., will continue to manage the hotel. HEI currently manages the Westin Minneapolis, Sheraton Austin at the Capitol and the Boca Raton Marriott at Boca Center for CWI.
The Westin brand is one of Starwood Hotels & Resorts’ largest brands with a total of 204 properties and 77,535 rooms worldwide.
Affiliates of W. P. Carey and Watermark Capital Partners advise CWI and manage its overall portfolio. According to the company’s website, the REIT owns 29 hotels and resorts, including the Westin Pasadena.
— John Nelson