DENVER—Lodging REIT Carey Watermark Investors Inc., has acquired a 302-room, dual-brand select-service hotel, located here in the city’s central business district for approximately $85 million.
The dual-branded Hampton Inn & Suites and Homewood Suites hotel opened in 2013 following the adaptive reuse of a 1960s-era office building.
CWI’s investment includes the $81.5-million purchase price as well as acquisition-related costs and planned capital expenditures. The acquisition was financed with $53 million of debt.
In 2013, average hotel RevPAR in the greater Denver area increased by 8.6%, with occupancy and ADR increasing by 5.7% and 2.7%, respectively, according to CWI. Strengthening market fundamentals combined with Denver’s status as a destination for corporate, group and leisure visitors have positioned the Denver hotel market well for 2014, according to the REIT.