Carey Watermark pays $142M for Westin Pasadena

Carey Watermark Investors Incorporated announced that it has acquired the 350-room Westin Pasadena for $142.5 million, which breaks out to roughly $407,000 per key. The hotel will continue to be managed by HEI Hotels & Resorts.

The mixed-use complex spans a 178,000 square-foot office building and 15,000 square feet of retail space, including two restaurants.

“The Four Diamond property generates attractive cash-flow and we believe that it will continue to benefit from the diverse corporate and leisure attractions in the area,” said Carey Watermark Investors’ CEO Michael Medzigian.

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CWI will invest a total of $158 million, which includes the $142.5 million purchase price as well as approximately $15.5 million of planned capital expenditures and other acquisition-related costs.

The firm said it will implement an extensive renovation of the guestrooms through a full replacement of the soft and case goods throughout the guestrooms and corridors. Further, various other value-add projects throughout the hotel will be completed in conjunction with the renovation.

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The transaction, expected to be consummated in the first half of 2020, is still subject to regulatory approval and other closing conditions.

The China-based conglomerate also acquired the iconic brand's IP assets as part of the £11 million deal, with the brand expected to live on online.

The sale is the latest step in Park's asset-light strategy.