NEW YORK—Carey Watermark Investors Incorporated (CWI) announced that it has acquired the Staybridge Suites Savannah Historic District, a 104-room select service hotel located in Savannah, Ga.
The hotel is located in Savannah’s Historic District, the largest National Historic Landmark District in the United States, containing more than 20 city squares filled with museums, churches, mansions, monuments, and famous forts of the Revolutionary and Civil War eras. The hotel is located on East Bay Street and just a block away from River Street, which is home to boutiques, galleries, and restaurants. The Savannah College of Art and Design—which has over 10,000 undergraduates—is located one mile north of the hotel.
Savannah, which has consistently been named one of “America’s Favorite Cities” by Travel + Leisure, is a strong tourism market with 6.5 million annual visitors. Increasing demand for lodging in Savannah, combined with a lack of new development, has contributed to a robust lodging market. The Savannah Historic District market has delivered strong consistent occupancy since 1987, averaging 70.5 percent over that period.
A comprehensive renovation of rooms and corridors is planned. These improvements, along with a recently completed lobby renovation, will enhance the property’s competitive profile and potential for future value appreciation.
The $25.5 million investment includes the $22.8 million purchase price as well as $2.7 million of other acquisition-related costs and planned capital expenditures. The acquisition was financed with $14.9 million of debt.
The hotel will continue to be managed by Interstate Hotels & Resorts.
Featuring 104 rooms housed in a two-story and a four-story building, the hotel offers 1,050 square feet of meeting space, a recently renovated lobby, complimentary breakfast, and fitness and business centers.
“The acquisition of the Staybridge Suites Savannah Historic District represented the opportunity to invest in a high quality, select-service property in a top tourist location with high barriers to entry,” said Michael Medzigian, chief executive officer of CWI. “We believe that our planned renovations of both rooms and corridors, in conjunction with the recent renovation of the lobby, will further enhance the property. The addition of this asset to the CWI portfolio will be accretive to current cash flow and has the potential to create future value for our investors.”
