Carey Watermark Investors continues its buying habits with the acquisition of the 296-room Hyatt Place Austin Downtown, one block from the Austin Convention Center, for $87 million.
Carey Watermark remarked that Austin is one of the top performing hotel markets in the U.S., ranked by Forbes as the No. 1 "Fastest Growing City in America." Austin benefits from many corporate and leisure hotel demand generators, including one the University of Texas.
The acquisition was financed with $56.5 million of debt.
The hotel will continue to be managed by the original developer, White Lodging Services Corporation.
Michael Medzigian, CEO of CWI said: "The acquisition of the Hyatt Place Austin Downtown represented an opportunity to invest in a newly built, high quality, select-service property in one of the strongest domestic hotel markets. As the first newly built Hyatt-branded hotel in downtown Austin in 30 years, we believe the property is well positioned to capture market share. Given the attractive purchase price, central Austin location and exciting growth prospects of the Austin market, we believe that the investment will be a solid cash flow-generating addition to our portfolio."