Ensemble Hotel Partners Fuses Investment With Carey Watermark For Joint Venture
May 26, 2011 Leave a comment
by Tiffany Rider, Staff Writer
Ensemble Hotel Partners, LLC, has closed a joint venture investment with Carey Watermark Investors Incorporated (CWI) of approximately $88 million for two waterfront hotel properties in Long Beach, the Residence Inn Downtown Waterfront and Hotel Maya. The deal marks the first lodging investment made by the New York-based real estate investment trust (REIT).
The Residence Inn by Marriott is a 178-unit, all-suite extended stay hotel situated on three acres; and the Hotel Maya is an upscale full-service urban resort, spread across 12 acres with 194 guestrooms and 20,000 square feet of interior and exterior meeting space. The CWI investment is approximately $43.6 million.
Commenting on the investment, CWI’s Chief Executive Officer Michael Medzigian said in a statement, “As CWI’s first transaction, this is an excellent example of how we can effectively enter into joint ventures to leverage our hospitality industry and asset management expertise. These two high quality and uniquely located properties offer value creation opportunities through a stabilized financial structure and a targeted capital investment program. We look forward to working with Ensemble to achieve our mutual investment goals and to increase the contribution the properties can make to the Long Beach economy by attracting additional travelers, business functions and other types of events to the city.”
Ed Proenza, senior vice president of Ensemble, told the Business Journal the CWI board impresses him and “it’s exciting to continue to work on those hotels.” Ensemble is a hotel property management and development branch of Phoenix-based Ensemble Real Estate, which owns, manages and leases more than 5.5 million square feet of properties in the United States.
In Long Beach, Ensemble Real Estate owns the California Bank & Trust Building at Ocean Boulevard and Magnolia Avenue, the Security Bank Building at Pine Avenue and 1st Street, and, across the street, the 115 Pine Avenue Building.