CHICAGO—Carey Watermark Investors Incorporated, a New York-based REIT has completed their $139 million acquisition of the Renaissance Chicago Downtown Hotel, a 553-room hotel at 1 West Wacker Dr. just south of the Chicago River in downtown Chicago, from the Royal Bank of Scotland Group PLC.
Officials from the REIT say the purchase was financed with $90 million of debt, and that they will pour $27 million into renovations and “other acquisition-related costs.” Marriott International will continue to manage the hotel under a long-term management agreement, and retain Marriott's reservation system and rewards program.
“We view the acquisition of the Renaissance Chicago Downtown as a rare opportunity to invest in a premium-branded, institutional quality hotel, with an A+ location in one of the largest and strongest markets in the United States,” says Michael Medzigian, CEO of CWI. “Given an attractive purchase price, the growing Chicago market, and what we anticipate will be the positive impact of our planned capital improvements over the next two years, we believe that the investment will generate solid risk-adjusted returns for our investors.”
Jones Lang LaSalle's Hotels & Hospitality Group represented the Royal Bank of Scotland in the sale. Managing Director Adam McGaughy and Senior Vice President John Nugent led the JLL team.
“Through our focused marketing process, we found that a wide variety of institutional investors are actively seeking high-quality, well-located Chicago hotel opportunities, given the solid future outlook for the market,” says McGaughy. “Specifically, the Renaissance Chicago Downtown is expected to experience strong near-term growth given the new owner's planned improvements, the power of the Marriott brand affiliation, and the irreplaceable nature of the real estate.”
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Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
