NEW YORK—Carey Watermark Investors 1 Incorporated (CWI 1) and Carey Watermark Investors 2 Incorporated (CWI 2) have completed the merger first announced in October to become Watermark Lodging Trust (WLT), a self-managed non-traded REIT with increased scale and operating efficiencies.
Prior to the merger, CWI 1 and CWI 2 were non-traded REITs managed by the Watermark Capital Partners team and professionals from W. P. Carey. Following the close of the merger, the combined company completed an internalization transaction with Watermark Capital Partners and W. P. Carey, as a result of which, the combined company became self-managed.
“We believe the strategic combination of CWI 1 and CWI 2 creates meaningful benefits for all shareholders and is even more compelling amid today’s economic backdrop,” said Michael Medzigian, chairman/CEO, WLT. “As a combined company with a more simplified structure, we will have a larger balance sheet with greater financial flexibility and are better positioned to improve value as we work through this challenging period in the lodging industry. We will continue to work on behalf of our shareholders to execute on our strategy and create long-term growth.”
