SAN JOSE, CA—Lodging REIT Carey Watermark Investors 2, Inc. has acquired the 510-room San Jose Marriott for $154 million.
The recently renovated hotel, located downtown, was financed with $88 million of senior debt.
The 27-story hotel was built in 2004 and has had $10 million of capital improvements completed since 2014, including a soft-goods renovation of the guestrooms and corridors, the addition of four guestrooms, a renovation of the lobby, as well as updates to the public space and concierge lounge.
A total $159.8 million investment includes the purchase price, as well as $5.8 million of planned capital expenditures and other acquisition-related costs.
Michael Medzigian, CEO of CWI 2, said: “Given the limited supply of institutional quality assets in the Silicon Valley market, the San Jose Marriott represented a unique investment opportunity. The property is the newest hotel in downtown San Jose and the acquisition adds a top performing, well-located asset in a high-growth market with high barriers to entry to CWI 2’s portfolio.”
The hotel will continue to be managed by Marriott International.