NEW YORK—Carey Watermark Investors Incorporated (CWI) announced that it has acquired a joint venture interest in the Fairmont Sonoma Mission Inn and Spa from Fairmont Hotels and Resorts. Fairmont, the prior owner, will continue to manage the luxury resort under a long-term management agreement. 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, Santé, as well as the creation of a new lobby bar. Additional work is planned over the next two years including the spa and other areas of the property
The hotel was built in 1927 on the 13 acre site of the former Boyes Hot Springs Hotel, which was developed in 1895. The resort was renovated and expanded during the period from 1984 to 2000.
Meeting space includes 12,000 square feet of flexible function area as well as access to the facilities of the Sonoma Golf Club. Additional amenities include a business center, fitness center, access to tennis courts, concierge services, gift shop laundry service, and valet parking.
Commenting on the investment, Michael Medzigian, chief executive officer of CWI, said, “We are delighted to join with Fairmont on the acquisition of this world-renowned luxury resort. The completion of the hotel’s renovations will enhance the resort making it among the best luxury properties in the Sonoma/Napa market. In combination with the strength of the Fairmont branding, the property is positioned as a leader in all aspects. Given the strong market and the high barriers to entry, 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.”