The San Jose (Calif.) Marriott hotel now has new owners. Carey Watermark 2, a nontraded real estate investment trust, acquired the hotel for $154 million, or $302,000 per key.
The 510-room hotel was sold by CBRE Global Investors, who bought the property in May 2013 for $85.3 million. Since CBRE's acquisition of the property, the hotel added four guestrooms. Marriott International will carry on as manager of the hotel, and Cary Watermark 2 revealed plans for $5.8 million in capital expenditures and other costs related to the hotel.
"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," Michael Medzigian, CEO of Care Watermark 2, said in a release. "With a strong current yield and expected solid risk-adjusted returns, the property's central location and superior access within Silicon Valley should allow it to continue to outperform within its competitive set."
The hotel opened in 2003, and has 23,000 square feet of meeting and event space. It is also within walking distance of the San Jose McEnery Convention Center, as well as other downtown attractions such as the City National Civic and the California Theatre.