W.P. Carey acquired a portfolio of six Courtyard by Marriott hotels for approximately $52 million. The portfolio is triple-net leased to a wholly-owned subsidiary of Marriott International.
The portfolio of six properties has shown strong operating performance in recent years, including growth in average daily rate, occupancy and revenue per available room, and has generated consistent operating margins and substantial rent coverage. In addition, each hotel within the portfolio has received high guest satisfaction ratings.
The portfolio is triple-net leased with a remaining term of approximately 11 years and includes fixed rent escalations.
"The acquisition of the Courtyard by Marriott portfolio presented the opportunity to acquire six established operating properties with strong performance at an attractive basis, offering compelling risk-adjusted returns," said Jason Fox, head of global investments and president of W. P. Carey. "The steady, predictable cash flows and annual rent escalations, coupled with the strength of Marriott International's brand and credit made this an ideal addition to the W. P. Carey portfolio."