A New York-based REIT specializing in hotel properties has paid $73.6 million for the Hutton Hotel at 1808 West End Ave.
Carey Watermark Investors also plans to spend $3.7 million on capital improvements at the 247-room, four-year-old hotel. The deal brings a big payday to Amerimar Enterprises, the Philadelphia-based company that spent about $50 million to convert a former office tower into the Hutton, which focuses primarily on business travelers.
"The Hutton Hotel represented the opportunity to acquire a premium quality hotel in one of the nation’s top-25 hotel markets with strong in-place cashflow and the potential for appreciation. Given the opening of the new convention center and other existing attractions, the Nashville hotel market is expected to continue its strong positive trend," said Michael Medzigian, Carey Watermark's CEO. "As a luxury property in a growing and diverse market, we feel it is an attractive addition to CWI’s portfolio, consistent with our goal of generating strong cash flow and future value for our investors."
The four-star Hutton was last appraised at $18.3 million. Amerimar will continue to manage the Midtown tower.
Carey Watermark, which was formed in the spring of 2008, had assets of $373 million at the end of March. With the Hutton purchase, its portfolio comprises 15 properties in eight states.
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