NEW YORK—Carey Watermark Investors Incorporated (CWI) has acquired the Westin Pasadena hotel, a 350-room, full-service hotel located in downtown Pasadena, CA. The acquisition price was $142.5 million.
The Westin Pasadena is a four-diamond AAA-rated hotel located within the Plaza Las Fuentes, a mixed-use complex with a 178,000-sq.-ft. office building and 15,000-sq. ft. of retail space, including two restaurants. The hotel features Spanish architecture that includes a, manicured courtyard garden and sculptured fountains.
Michael Medzigian, CEO of CWI, stated: “CWI’s investment in the Westin Pasadena represented the opportunity to secure a well-located asset that benefits from the overall strength of the Southern California lodging market. The four-diamond property generates attractive cash flow and we believe that it will continue to benefit from the diverse corporate and leisure attractions in the area. Our ability to acquire a high-quality, well-positioned asset in a strong market adds additional market diversity as well as solid long-term cash generating capability to our portfolio.”
The hotel is in close proximity to Pasadena’s many attractions and demand generators, including the Pasadena Convention Center, Civic Auditorium, Rose Bowl and Paseo Colorado shopping and entertainment center. The property is also 10 miles from downtown Los Angeles.
The total $158 million investment includes the $142.5 million purchase price, as well as approximately $15.5 million of planned capital expenditures and other acquisition-related costs. CWI will implement an extensive renovation of the guestrooms through a full replacement of the soft and casegoods throughout the guestrooms and corridors. Further, various other value-add projects throughout the hotel will be completed in conjunction with the renovation.
The hotel will continue to be managed by HEI Hotels & Resorts, a hospitality owner/operator that owns and manages 43 full-service, upper-upscale, luxury and premium select-service hotels and resorts throughout the U.S. HEI currently manages the Westin Minneapolis, Sheraton Austin at the Capitol and the Boca Raton Marriott at Boca Center for CWI.
Hotel amenities include 19,000 sq. ft. of interior meeting space, a full-service restaurant and bar; a lobby lounge with Westin-branded “Haven” business/networking space; an outdoor heated swimming pool and spa; and a 1,300-sq.-ft. fitness studio.