Six established Courtyard by Marriottâ„¢ properties on 11-year triple-net lease
NEW YORK, Nov. 18, 2015 — W. P. Carey Inc. (NYSE: WPC), a real estate investment trust specializing in corporate sale-leaseback and build-to-suit financing, and the acquisition of single-tenant net lease properties, announced today that it has acquired a portfolio of six Courtyard by Marriott™ hotels for approximately $52 million. The portfolio is triple-net leased to a wholly-owned subsidiary of Marriott International, Inc. (Marriott International).
Key Facts
Industry-leading, established parent: In the hotel business since 1957, what is today Marriott International, Inc. is a leading global lodging company with more than 4,300 properties in 85 countries and territories. Marriott International has an equity market capitalization of approximately $19 billion and is rated investment grade by both Standard & Poor's and Moody's.
Strong performing, highly-rated portfolio: The portfolio of six properties has shown strong operating performance in recent years, including growth in average daily rate, occupancy and revenue per available room, and has generated consistent operating margins and substantial rent coverage. In addition, each hotel within the portfolio has received high guest satisfaction ratings.
Long-term net leases with built-in rent growth: The portfolio is triple-net leased with a remaining term of approximately 11 years and includes fixed rent escalations.
Management Commentary
Jason Fox, Head of Global Investments and President of W. P. Carey Inc., commented: "The acquisition of the Courtyard by Marriottâ„¢ portfolio presented the opportunity to acquire six established operating properties with strong performance at an attractive basis, offering compelling risk-adjusted returns. The steady, predictable cash flows and annual rent escalations, coupled with the strength of Marriott International's brand and credit made this an ideal addition to the W. P. Carey Inc. portfolio."
