NEW YORK—Carey Watermark Investors Incorporated (CWI 1) announced that it has acquired a majority interest in The Ritz-Carlton, Fort Lauderdale property in a joint venture with RCFL Holdco, LLC, an affiliate of Gencom, one of North America’s leading hospitality and luxury hospitality-related residential real estate investment and development firms. This transaction marks Carey Watermark Investors’ third joint venture purchase with the Gencom family of companies, following The Ritz-Carlton, Philadelphia and The Ritz-Carlton, Key Biscayne, Miami, acquisitions. The three transactions represent a total investment of more than $500 million.
The property is located on Fort Lauderdale Beach, adjacent to some of the area’s high-end residential real estate. It is within proximity to leisure demand generators, including golf courses, shopping malls, museums, nightclubs, and marinas. The Ritz-Carlton, Fort Lauderdale is near Fort Lauderdale-Hollywood International Airport and Port Everglades, and within a 30-minute drive to Miami International Airport.
From 2009 to 2014, the Fort Lauderdale lodging market RevPAR experienced a compound annual growth rate of 7.6 percent and is projected to increase over the next two years, according to PKF Hospitality Research.
An extensive renovation of the hotel is planned for 2015, including a complete renovation and re-conceptualization of the three-meal restaurant, renovation, and expansion of the spa to include new sauna and steam areas, the addition of an indoor/outdoor bar, updates to the main lobby and other public spaces, and the creation of a signature 3,700-square-foot retail store.
The hotel will continue to be managed by The Ritz-Carlton Company, L.L.C. (The Ritz Carlton), an affiliate of Marriott International. As part of The Ritz-Carlton’s portfolio, the hotel benefits from its luxury branding and Marriott’s management platform affiliation, including access to The Ritz-Carlton’s global distribution system and The Ritz-Carlton Rewards program.
The property features 166 guestrooms, 34 third party-owned condominium hotel units, and 28 third party-owned residential units. It offers 25 square feet of meeting and function space and a 8,500-square-foot spa.
Outside, there is an infinity swimming pool and 29-square-foot pool deck. There is a Skywalk to the beach, in addition to a fitness center, business center, and four food and beverage outlets.
“The joint venture investment in The Ritz-Carlton, Fort Lauderdale represented the opportunity to acquire the only AAA Five Diamond hotel in Fort Lauderdale—a strong-growth market that benefits from solid fundamentals and a strategic location with respect to air transportation and leisure demand generators,” Michael Medzigian, chief executive officer of CWI 1, said. “We look forward to executing on additional value-add and cash flow-generating opportunities over the coming months and years.”
