NEW YORK—Carey Watermark Investors Incorporated (CWI) announced today that it has acquired the Hawks Cay Resort, the largest destination resort in the Florida Keys. Located on Duck Key—approximately 100 miles south of Miami and 60 miles northeast of Key West—Hawks Cay includes 177 resort guestrooms and a resort residential management program that includes over 250 two-three-and four-bedroom villas.
CWI’s total investment in the property is approximately $149.4 million, including a $133.8 million purchase price and $15.6 million of planned capital improvements and other acquisition-related costs. The acquisition was financed with $79.0 million of debt. The property will be managed by Pyramid Hotel Group.
The resort includes 14,800 square feet of indoor meeting space, six food and beverage outlets, a private saltwater lagoon, the 7,000 square foot Calm Waters Spa, five swimming pools, an 85-slip marina, the Indies Kids’ Club, Cliff Drysdale tennis center, and 10,000 square feet of retail and office space.
Capital improvement plans include a wide variety of projects throughout the resort, including the renovation of guestrooms and public spaces, the redevelopment of the marina restaurant and other enhancements to the marina area, enhancement of the pool and recreational area at the Indies Kids’ Club, complete renovation of the two penthouse suites, and the creation of 16 family suites.
Commenting on the investment, Michael Medzigian, Chief Executive Officer of CWI, said, “Given the limited number of existing resorts and restrictions on new development, the Florida Keys is one of the strongest lodging markets in the country. Our acquisition of Hawks Cay is consistent with our strategy of applying our lodging investment and asset management disciplines to exceptional properties. We believe that, through our planned improvements and upgrades, as well as the introduction of the Pyramid Hotel Group management team, we will be able to enhance and reposition the resort, create a solid financial platform for future operations and achieve attractive risk-adjusted returns for our investors.”