NEW YORK CITY—W. P. Carey has acquired a portfolio of six Courtyard by Marriott hotels for approximately $52 million.
The portfolio is triple-net leased to a wholly-owned subsidiary of Marriott International. It has a remaining term of approximately 11 years and includes fixed rent escalations.
The half-dozen limited service properties are in St. Louis, MO; Clive, IA; Fort Worth, TX; Baton Rouge, LA; Greensboro, NC and Mount Laurel, New Jersey. According to W.P. Carey, the portfolio of six properties has shown strong operating performance in recent years, including growth in average daily rate, occupancy and revenue per available room, and has generated consistent operating margins and substantial rent coverage. In addition, each hotel within the portfolio has received high guest satisfaction ratings."
Says Jason Fox, head of global investments and president of W. P. Carey, "The acquisition of the Courtyard by Marriott portfolio presented the opportunity to acquire six established operating properties with strong performance at an attractive basis, offering compelling risk-adjusted returns."
He continues, "The steady, predictable cash flows and annual rent escalations, coupled with the strength of Marriott International's brand and credit made this an ideal addition to the W. P. Carey Inc. portfolio."
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Rayna Katz
Rayna Katz is a seasoned business journalist whose extensive experience includes coverage of the lodging sector, travel and the culinary space. She was most recently content director for a business-to-business publisher, overseeing four publications. While at Meeting News, a travel trade publication, she received a Best Reporting award for a story on meeting cancellations in New Orleans during Hurricane Katrina.
