Carey Watermark Investors 2 Incorporated (CWI 2), a non-traded real estate investment trust focused on investing in lodging and lodging-related properties, announced that it has acquired San Diego Marriott La Jolla. The hotel includes 372 guestrooms and is located in La Jolla, one of San Diego's strongest and most affluent submarkets.
A total of $21 million of capital improvements have taken place at the property since 2011, including a $17-million renovation completed in 2013. During the renovation, all guestrooms received a full soft and casegood replacement and the property underwent a complete lobby and public space renovation, which included the creation of additional meeting space.
The property is located within the Golden Triangle, north of downtown San Diego and minutes from the oceanfront village of La Jolla and the Pacific Ocean. The hotel's location places guests within reach of multiple demand generators, including many of La Jolla's leisure attractions, corporations and research institutions, such as the University of California at San Diego. Located in the University Towne Centre development, the hotel is surrounded by over four million square feet of Class A office space and enjoys direct access via a sky bridge to the upscale Westfield UTC mall anchored by tenants including Nordstrom and Macy's.
"The opportunity to expand our West Coast presence and at the same time acquire a recently renovated, high-quality property allowed us to add a strong cash flowing asset in a submarket with very high barriers to entry. We believe the hotel's prime La Jolla location will allow us to continue to benefit from the strong demand generators in greater San Diego, while at the same time mitigating long-term supply risk as a result of the high degree of difficulty and expense that go along with new construction in this area,” said Michael Medzigian, CEO of CWI 2. “The acquisition also provides CWI 2 with the opportunity to geographically diversify its portfolio with an acquisition in a strong Southern California market. We are extremely pleased to continue to expand on our already important relationships with both Marriott International and HEI Hotels & Resorts.”