Carey Watermark Investors 2 Incorporated, a non-traded REIT focused on investing in lodging and lodging-related properties, has acquired the Charlotte Marriott City Center, located in Uptown, Charlotte’s central business district.
Michael Medzigian, CEO of CWI 2, says in a prepared statement that “We are extremely pleased to continue to expand on our already important relationship with Marriott International and to support them as they continue to embrace hotel innovation and shape the future of travel. With the transformative renovation of the property incorporating Marriott’s latest design and technology concepts, the Charlotte Marriott City Center is now recognized as one of the flagship Marriott properties throughout the country.”
Medzigian also says that “With the strength of its location in the heart of the CBD, one of the highest growth lodging markets in the US, we believe the property is not only well positioned to deliver attractive current cash flow but also to benefit from the ongoing strength of the local economy. Given our own focus on continuing to develop product and service concepts to enhance the guest experience, the property’s designation as M Beta made it a strategic acquisition for the CWI 2 portfolio.”
More than $40 million of capital improvements to the property were completed in 2016 to reposition it as the most technologically advanced full-service property within the Marriott Hotels system, the release says.
Now dubbed the “Beta Hotel” for its cutting-edge concepts, the recent renovations have transformed the upscale property into an ultra-modern hotel, featuring innovative guest rooms, public space, event space and programming. The property functions as a real-time platform for guest feedback and ideas to enhance all aspects of the hotel experience. The comprehensive renovation added eight guest rooms, five unique food and beverage outlets, a state-of-the-art fitness center, a newly programmed M Club Lounge and lobby core.
Charlotte’s Uptown market has been one of the fastest growing lodging markets in the US, achieving a 5.8% RevPAR compound average growth rate (CAGR) since 1990 versus the US average of 3.1%, the release says. The 2016 RevPAR for the Charlotte CBD increased 5.5% year-over-year, further illustrating the strong demand in the Charlotte marketplace.
The Charlotte Marriott City Center sits at one of the busiest intersections in Charlotte’s CBD, surrounded by 16 million square feet of office space. Several Fortune 500 companies, including Bank of America, Duke Energy and the East Coast operations of Wells Fargo, are located in the CBD. The area is also home to major sports teams with stadiums within one mile of the hotel. Other nearby demand generators include the NASCAR Hall of Fame, the 280,000-square foot Charlotte Convention Center and EpiCentre, Charlotte’s primary mixed-use entertainment and dining attraction. Over two million square feet of office space, 600,000 square feet of retail space and 3,400 residential units are currently under construction or are in planning in the immediate area.