NEW YORK—Carey Watermark Investors Incorporated (CWI 1) has acquired The Equinox Golf Resort & Spa, part of Starwood’s The Luxury Collection brand. This comes on the heels of CW 1’s acquisition from Fairmont Hotels & Resorts of the remaining 25% interest in the Fairmont Sonoma Mission Inn & Spa, which brought its ownership of the property to 100%.
The Equinox Golf Resort & Spa is located on 1,300 acres between the Green and Taconic Mountains in Manchester, VT, and includes 195 guestrooms, 18,500 sq. ft. of flexible meeting and event space, an 18-hole championship golf course, a 13,000-sq.-ft. spa and five F&B outlets.
Originally built in 1796, the resort, which is listed on the National Register of Historic Places, has hosted four different American presidents and has expanded over the centuries. In 2008, the property was converted to a resort and became part of The Luxury Collection brand. Since 2007, more than $20 million in capital expenditure projects were completed, including a full guestroom and public area renovation, as well as significant investment into the mechanical, electrical, plumbing and building facade.
“The Equinox transaction allowed us to acquire an iconic Northeastern resort that significantly benefits from its proximity to both Boston and New York City. The investment represents a further expansion of our portfolio of irreplaceable resort and urban lodging properties, as well as the expansion of our already important relationships with Starwood Hotels & Resorts and HEI Hotels & Resorts,” said Michael Medzigian, CEO of the Carey Watermark Investors 1. “The addition of this high-yielding and stable cash flow generating asset is consistent with our strategy of acquiring assets that are positioned to generate attractive near-term cash flow and increase in value over time by maintaining their competitive advantage.”
CWI 1 plans to spend in excess of $6 million on additional property enhancements, including a soft goods guestroom renovation, public/meeting space and F&B outlet improvements and other building/mechanical upgrades, according to the company.
The property represents the only The Luxury Collection hotel in Vermont and only one of two Starwood hotels in the state. The hotel will continue to be managed by HEI Hotels & Resorts, a hospitality owner and operator that operates 54 full-service, upper-upscale, luxury and premium select-service hotels and resorts throughout the U.S., including nine properties owned by CWI 1 and Carey Watermark Investors 2.
As for its acquisition of the Fairmont property, CWI 1 acquired its original 75% joint venture interest from Fairmont in July 2013. Fairmont will continue to manage the luxury resort under a long-term management agreement.
Medzigian said, “We are delighted to acquire Fairmont’s interest in this world-renowned luxury resort and look forward to our continued relationship with them as manager of the property. The recent renovations have enhanced the resort, solidifying its position as one of the best luxury properties in the Sonoma/Napa market. Given the strong market and the high barriers to entry, we believe that our full ownership of the property will further enhance its current value within our portfolio, and allow us to make additional strategic investments to maximize its value over the longer term.”
The 226-room resort is located in Sonoma Valley in Northern California’s wine country, 15 miles west of Napa and 35 miles north of San Francisco. The hotel was built in 1927 on the 13-acre site of the former Boyes Hot Springs Hotel, which was developed in 1895. In July 2013, the hotel completed a $10.7-million renovation of the guestrooms, lobby and fine dining room, Santé. A new lobby bar was also created. Since then, additional work has been done on the spa and other areas of the property.
Amenities at the hotel include 12,000 sq. ft. of interior meeting and banquet space; a 40,000-sq.-ft. spa located on top of a thermal mineral spring; fitness center; business center; access to the Sonoma Golf Club and 18-hole championship course; access to tennis courts; an outdoor pool; and five on-site lounges and restaurants.