Carey Watermark Investors Incorporated (CWI) announced today that it has acquired a 97% interest in Lake Arrowhead Resort & Spa from the property owner, Fulton Village Green Investors, LLC, an affiliate of Pacific Capital Investors, for a total investment of approximately $26.5 million, including its allocable share of debt and other investment-related costs. The resort, located in Lake Arrowhead, California, was built in 1982 and renovated and upgraded in 2007, including the addition of a spa.
The 173-room lakefront resort includes 20,000 square feet of indoor and outdoor meeting space, an 8,000 square foot spa, restaurant, lounge, business center, fitness center, gift shop, outdoor pool, 270 surface parking spaces and a private beach and dock. The investment includes a $3.7 million renovation of guestrooms and public spaces, which is anticipated to be completed in early 2013. The property will be managed by Crescent Hotels & Resorts and in early 2013 will become a member of the Autograph Collection, a diverse collection of upper-upscale and luxury independent hotels sponsored by Marriott International.
The resort is located in the San Bernardino National Forest, 90 miles east of Los Angeles and a 45 minute drive from Ontario International Airport. Interstate 15, a major north/south freeway, provides access to the resort from Riverside, Orange and San Diego Counties and Interstate 10, a major east/west freeway, provides access from Los Angeles International Airport and Los Angeles, San Bernardino, Ventura and Santa Barbara Counties.
Commenting on the investment, Michael Medzigian, Chief Executive Officer of CWI, said, "We are pleased to be entering into this transaction with Pacific Capital in this unique and well-known mountain resort. We believe that this investment creates an opportunity for value creation through enhanced operations via the management of Crescent Hotels & Resorts and affiliation with the Autograph Collection; the completion of high impact enhancements to the property; and the strategic asset management oversight of CWI. Combined with high barriers to entry, the mountain/lakefront location of the property provides the basis for significant value enhancement consistent with our overall strategy for CWI."
Carey Watermark Investors Incorporated is a publicly registered non-traded real estate investment trust (REIT) that was formed to make investments primarily in the lodging and lodging-related sectors. Affiliates of W. P. Carey & Co. LLC (NYSE: WPC) and Watermark Capital Partners, LLC advise the REIT and manage its overall portfolio.
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