Carey Watermark pays big bucks for Renaissance Chicago Downtown

The non-traded real estate investment trust Carey Watermark Investors Incorporated has acquired the 553-room Renaissance Chicago Downtown Hotel for $139 million. The hotel is located at 1 West Wacker Drive across from the Chicago River in downtown Chicago.

Michael Medzigian, CEO of CWI, said, "We view the acquisition of the Renaissance Chicago Downtown as a rare opportunity to invest in a premium-branded, institutional quality hotel, with an A+ location in one of the largest and strongest markets in the United States. Given an attractive purchase price, the growing Chicago market, and what we anticipate will be the positive impact of our planned capital improvements over the next two years, we believe that the investment will generate solid risk-adjusted returns for our investors."

The purchase price includes the $139-million purchase price in addition to $27 million of renovations and other acquisition-related costs. The acquisition was financed with $90 million of debt.

The property will continue to be managed by Marriott International under a long-term management agreement.

The hotel is 27 stories, has 35,000 square feet of meeting space and 7,800 square feet of retail space. It was constructed in 1991 with renovations in 2005, 2012 and 2013.