NEW YORK—Carey Watermark Investors Incorporated (CWI 1) has acquired a majority interest in The Ritz-Carlton, Fort Lauderdale property in a joint venture with RCFL Holdco, LLC, an affiliate of Gencom.
This transaction marks Carey Watermark Investors’ third joint venture purchase with the Gencom family of companies, following The Ritz-Carlton, Philadelphia (CWI 1) and The Ritz-Carlton, Key Biscayne, Miami, (CWI 1 and CWI 2) acquisitions. The three transactions represent a total investment of more than $500 million.
Michael Medzigian, CEO of CWI 1, stated, “The joint venture investment in The Ritz-Carlton, Fort Lauderdale represented the opportunity to acquire the only AAA Five Diamond hotel in Fort Lauderdale—a strong growth market that benefits from solid fundamentals and a strategic location with respect to air transportation and leisure demand generators.” From 2009 to 2014, the Fort Lauderdale lodging market RevPAR experienced a compound annual growth rate of 7.6% and is projected to increase over the next two years, according to PKF Hospitality Research.
Located on Fort Lauderdale Beach, adjacent to some of the area’s most exclusive, high-end residential real estate, the hotel is within proximity to leisure demand generators, including golf courses, shopping malls, museums, nightclubs and marinas. The Ritz-Carlton, Fort Lauderdale is located close to Fort Lauderdale-Hollywood International Airport and Port Everglades, and within a 30-minute drive to Miami International Airport.
Medzigian added, “Additionally, working on our third transaction with Gencom in recent months for both CWI 1 and CWI 2, we were able to recapitalize the asset to fund an extensive renovation.” This includes a complete renovation and re-conceptualization of the three-meal restaurant, renovation and expansion of the spa to include new sauna and steam areas, the addition of an indoor/outdoor bar, updates to the main lobby and other public spaces, and the creation of a signature 3,700-sq.-ft. retail store.
The hotel will continue to be managed by The Ritz-Carlton Company, L.L.C. (The Ritz Carlton), an affiliate of Marriott International.