REIT Acquires The Ritz-Carlton, San Francisco
Carey Watermark Investors 2 started 2017 with the acquisition of The Ritz-Carlton, San Francisco, for an undisclosed amount. The 336-room hotel in Nob Hill is San Francisco’s only AAA Five-Diamond hotel. CWI 2 is a non-traded REIT that focuses on investing in lodging and lodging-related properties.
“San Francisco’s consistently rising property values, limited land availability for hotel development and high cost of construction will support the long-term value of the asset,” CWI 2 CEO Michael Medzigian said. “We believe the expansion of Moscone Center, as well as our ability to implement value-add enhancements, will increase profitability and reinforce the property’s already enviable competitive position within the luxury sector of the market.”
The 18-column, nine-story building on Stockton Street was originally developed in 1909 and designed by Napoleon Le Brun & Sons of New York. It received landmark status in 1984 and reopened in 1991 after a four-year renovation.
Over $20M in capital improvements have been added since 2014, including renovated guest rooms and updates to the lobby, restaurant, meeting and event space and spa. Two retail outlets and a fitness center also were added.
The hotel will continue to be managed by The Ritz-Carlton Co, an affiliate of Marriott.