NEW YORK—Carey Watermark Investors Incorporated (CWI 1) and Carey Watermark Investors 2 Incorporated (CWI 2), two non-traded real estate investment trusts (REITs) focused on investing in lodging and lodging-related properties, acquired a majority interest in The Ritz-Carlton Key Biscayne, Miami in a joint venture with an affiliate of GB Key Biscayne Holdings, LLC, the original developer of the property.
The property is located on Key Biscayne, an island approximately three miles off the coast of Miami and 16 miles from Miami International Airport. The resort sits on 17 acres of oceanfront land.
The resort, developed in 2001, has recently completed a full renovation of the lobby, two food & beverage outlets and spa. An additional renovation of the guestrooms is planned for 2016—with all of the rooms and condo units scheduled to receive a full replacement of all soft goods, along with various bathroom upgrades, and a significant repositioning of its signature restaurant, Cioppino.
The hotel will continue to be managed by The Ritz-Carlton Hotel Company, L.L.C., an affiliate of Marriott International.
The property includes 302 resort guestrooms, including 38 suites and 188 condo-hotel units, of which 174 units participate in the resort rental program; 20,000 sq. ft. of interior meeting and banquet space; 30,000 sq. ft. of exterior function space, including two pool decks; a recently renovated 20,000-sq.-ft. spa with 21 treatment rooms; a full-service fitness center; a tennis center with 10 clay courts and one hard court; two pools; and five primary food & beverage outlets
“The joint venture investment in The Ritz-Carlton Key Biscayne property allowed us to add a AAA Four Diamond destination resort in a location with high barriers to entry to the CWI 1 and CWI 2 portfolios,” said Michael Medzigian, CEO of the Carey Watermark Investors investment programs. “Working with GB Key Biscayne Holdings, we were able to recapitalize the asset to allow for ongoing renovations and secure attractive current risk adjusted returns with the potential for longer-term incremental value. The combination of a high-quality asset in an unmatched location with the strength of The Ritz-Carlton brand represented a unique and attractive investment opportunity.”