Front Entrance at dawn - Fairmont Sonoma Mission Inn & Spa, 100 Boyes Blvd, Sonoma, California
In July 2013 Carey Watermark Investors Inc. purchased a 75% joint venture interest in the 226-room Fairmont Sonoma Mission Inn resort from Fairmont Hotels & Resorts in a transaction valued at an aggregate $82 million: $76.6 million purchase price plus $5.4 million in renovations and acquisition cost.
CWI's interest in the joint venture is 75 percent while Fairmont will retain a 25 percent ownership interest. The joint venture's total investment in the property is approximately $97.1 million, which was financed with $44 million of debt. CWI's investment is approximately $73.3 million, including its allocated portion of debt. The first phase of an approximate $10.7 million renovation is nearing completion and includes the updating of all Heritage Rooms, a complete redesign of the lobby and fine dining room, Sante, as well as the creation of a new lobby bar. Additional work is planned over the next two years including the spa.
Carey Watermark Investors is W. P. Carey’s non-traded REIT that was formed to take advantage of current and future opportunities to invest in the lodging industry and lodging-related properties.
Carey Watermark Investors Inc. owns other significant hotels such as the - Holiday Inn Manhattan 6th Avenue New York, NY; Lake Arrowhead Resort & Spa Lake Arrowhead, CA; Hyatt French Quarter New Orleans, LA; and the Westin Atlanta Perimeter North Atlanta, GA.
The transaction comes just over one year after Fairmont acquired the remaining stake in the Mission Inn from Crescent Real Estate Equities L.P. Fairmont has been hotel's management since 2002, when the company acquired a 19.9% ownership position in the property and took over management.
Michael Medzigian, CEO of CWI, said in a prepared statement.“Given the strong market and the high barriers to entry, we believe that this investment is consistent with our strategy of sourcing and investing in opportunities where we can joint venture with owners to maximize the current value of the asset, create a solid financial platform for future operations and achieve attractive risk-adjusted returns for our investors,”
Fairmont Sonoma Mission Inn & Spa Statistics:
Year: - - - - 2008 - 2009 - 2010 - 2011 - 2012 - 2013
Occupancy - - 73.70% 69.40% 72.60% 71.20% 68.20% 68.70%
ADR - - - - $312.12 $260.02 $262.91 $285.87 $309.63 $312.09
RevPAR - - - $230.19 $180.49 $190.87 $203.65 $211.31 $214.33
Crescent Real Estate Equities, an investment trust, bought the property in 1996. Crescent defaulted on a $55 million loan in 2011. The resort was scheduled for a foreclosure auction in Santa Rosa in January, 2012 but was pulled from the sale by lenders. Fairmont Hotels acquired full ownership of the Fairmont Sonoma Mission Inn & Spa, at an undisclosed price. The resort was reportedly listed for $100 million. Jennifer Fox, Fairmont President said “We believe the timing is right to support strategic acquisition opportunities and fund future growth of our brand.”
Rick Corcoran's is the current General Manager at Fairmont Sonoma Mission Inn & Spa. He previously was the Hotel Manager at the Fairmont Hotel Vancouver and the Director of Food and Beverage at Fairmont San Francisco.
Front Entrance at dawn - Fairmont Sonoma Mission Inn & Spa, 100 Boyes Blvd, Sonoma, California
In July 2013 Carey Watermark Investors Inc. purchased a 75% joint venture interest in the 226-room Fairmont Sonoma Mission Inn resort from Fairmont Hotels & Resorts in a transaction valued at an aggregate $82 million: $76.6 million purchase price plus $5.4 million in renovations and acquisition cost.
CWI's interest in the joint venture is 75 percent while Fairmont will retain a 25 percent ownership interest. The joint venture's total investment in the property is approximately $97.1 million, which was financed with $44 million of debt. CWI's investment is approximately $73.3 million, including its allocated portion of debt. The first phase of an approximate $10.7 million renovation is nearing completion and includes the updating of all Heritage Rooms, a complete redesign of the lobby and fine dining room, Sante, as well as the creation of a new lobby bar. Additional work is planned over the next two years including the spa.
Carey Watermark Investors is W. P. Carey’s non-traded REIT that was formed to take advantage of current and future opportunities to invest in the lodging industry and lodging-related properties.
Carey Watermark Investors Inc. owns other significant hotels such as the - Holiday Inn Manhattan 6th Avenue New York, NY; Lake Arrowhead Resort & Spa Lake Arrowhead, CA; Hyatt French Quarter New Orleans, LA; and the Westin Atlanta Perimeter North Atlanta, GA.
The transaction comes just over one year after Fairmont acquired the remaining stake in the Mission Inn from Crescent Real Estate Equities L.P. Fairmont has been hotel's management since 2002, when the company acquired a 19.9% ownership position in the property and took over management.
Michael Medzigian, CEO of CWI, said in a prepared statement.“Given the strong market and the high barriers to entry, we believe that this investment is consistent with our strategy of sourcing and investing in opportunities where we can joint venture with owners to maximize the current value of the asset, create a solid financial platform for future operations and achieve attractive risk-adjusted returns for our investors,”
Fairmont Sonoma Mission Inn & Spa Statistics:
Year: - - - - 2008 - 2009 - 2010 - 2011 - 2012 - 2013
Occupancy - - 73.70% 69.40% 72.60% 71.20% 68.20% 68.70%
ADR - - - - $312.12 $260.02 $262.91 $285.87 $309.63 $312.09
RevPAR - - - $230.19 $180.49 $190.87 $203.65 $211.31 $214.33
Crescent Real Estate Equities, an investment trust, bought the property in 1996. Crescent defaulted on a $55 million loan in 2011. The resort was scheduled for a foreclosure auction in Santa Rosa in January, 2012 but was pulled from the sale by lenders. Fairmont Hotels acquired full ownership of the Fairmont Sonoma Mission Inn & Spa, at an undisclosed price. The resort was reportedly listed for $100 million. Jennifer Fox, Fairmont President said “We believe the timing is right to support strategic acquisition opportunities and fund future growth of our brand.”
Rick Corcoran's is the current General Manager at Fairmont Sonoma Mission Inn & Spa. He previously was the Hotel Manager at the Fairmont Hotel Vancouver and the Director of Food and Beverage at Fairmont San Francisco.