SOMONA, CA-Carey Watermark Investors Inc. has acquired a joint venture interest in the Fairmont Sonoma Mission Inn & Spa from Fairmont Hotels & Resorts. Fairmont, the prior owner, will continue to manage the luxury resort under a long-term management agreement.
The joint venture's total investment in the property is approximately $97.1 million, which was financed with $44 million of debt. CWI's investment is approximately $73.3 million including its allocated portion of debt. CWI's interest in the joint venture is 75% while Fairmont will retain a 25% ownership interest.
The 226-room resort is located in Sonoma Valley in Northern California's Wine Country, 15 miles west of Napa and 35 miles north of San Francisco. The hotel was built in 1927 on the 13 acre site of the former Boyes Hot Springs Hotel, which was developed in 1895. The resort was renovated and expanded during the period from 1984 to 2000.
The first phase of an approximate $10.7-million renovation is nearing completion and includes the updating of all Heritage Rooms, a complete redesign of the lobby and fine dining room, as well as the creation of a new lobby bar. Additional work is planned over the next two years including the spa and other areas of the property
Michael Medzigian, CEO of CWI, says, “We are delighted to join with Fairmont on the acquisition of this world-renowned luxury resort. The completion of the hotel's renovations will enhance the resort making it among the best luxury properties in the Sonoma/Napa market.”
In combination with the strength of the Fairmont branding, he adds, the property is positioned as a leader in all aspects. “Given the strong market and the high barriers to entry, this investment is consistent with our strategy of sourcing and investing in opportunities where we can joint venture with owners to maximize the current value of the asset, create a solid financial platform for future operations and achieve attractive risk-adjusted returns for our investors.”
Jennifer Fox, president of Fairmont Hotels & Resorts, adds that “The Fairmont Sonoma Mission Inn & Spa is a remarkable asset and we are convinced there are solid growth opportunities given the hotel's renovation plans and Fairmont's strong brand presence in the California market.”
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
