Carey Watermark Investors Acquires Sonoma Resort In Joint Venture With Fairmont Hotels & Resorts

    Carey Watermark Investors Acquires Sonoma Resort In Joint Venture With
                          Fairmont Hotels & Resorts

PR Newswire

NEW YORK, July 11, 2013

NEW YORK, July 11, 2013 /PRNewswire/ --Carey Watermark Investors Incorporated
(CWI) announced that it has acquired a joint venture interest in the Fairmont
Sonoma Mission Inn & Spa from Fairmont Hotels & Resorts. Fairmont, the prior
owner, will continue to manage the luxury resort under a long-term management
agreement. CWI's interest in the joint venture is 75 percent while Fairmont
will retain a 25 percent ownership interest.

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The joint venture's total investment in the property is approximately $97.1
million, which was financed with $44 million of debt. CWI's investment is
approximately $73.3 million, including its allocated portion of debt.

The first phase of an approximate $10.7 million renovation is nearing
completion and includes the updating of all Heritage Rooms, a complete
redesign of the lobby and fine dining room, Sante, as well as the creation of
a new lobby bar. Additional work is planned over the next two years including
the spa and other areas of the property

The 226-room resort is located in idyllic Sonoma Valley in the heart of
Northern California Wine Country, 15 miles west of Napa and 35 miles north of
San Francisco. The hotel was built in 1927 on the 13 acre site of the former
Boyes Hot Springs Hotel, which was developed in 1895. The resort was
renovated and expanded during the period from 1984 to 2000.

The luxury resort is regularly included on prestigious top hotel lists and
rankings and its award-winning amenities include exclusive access to the
Sonoma Golf Club and its 18-hole championship golf course, as well as the
40,000 square foot Willow Stream Spa. Dining venues include a casual dining
restaurant and Sante, a premier Michelin-rated fine dining restaurant.
Meeting space includes 12,000 square feet of flexible function area as well
as access to the facilities of the Sonoma Golf Club. Additional amenities
include a business center, fitness center, access to tennis courts, concierge
services, gift shop, laundry service and valet parking.

The resort has been designated a AAA Four-Diamond Hotel for the past four
years and the Willow Stream Spa, one of the only luxury spas in the country
with its own source of natural geo-thermal mineral water, appears on Travel &
Leisure's Top Spas in North America and Conde Nast Traveler's Top 54 Spas
lists.

Commenting on the investment, Michael Medzigian, Chief Executive Officer of
CWI, said, "We are delighted to join with Fairmont on the acquisition of this
world-renowned luxury resort. The completion of the hotel's renovations will
enhance the resort, making it among the best luxury properties in the
Sonoma/Napa market. In combination with the strength of the Fairmont branding,
the property is positioned as a leader in all aspects. Given the strong
market and the high barriers to entry, we believe that this investment is
consistent with our strategy of sourcing and investing in opportunities where
we can joint venture with owners to maximize the current value of the asset,
create a solid financial platform for future operations and achieve attractive
risk-adjusted returns for our investors."

"We are pleased to be teaming up with CWI and see this as an exciting
opportunity to work with a well-respected investor that has extensive
experience in the lodging industry," said Jennifer Fox, President of Fairmont
Hotels & Resorts. "The Fairmont Sonoma Mission Inn & Spa is a remarkable asset
and we are convinced there are solid growth opportunities given the hotel's
renovation plans and Fairmont's strong brand presence in the California
market."

Carey Watermark Investors
Carey Watermark Investors Incorporated is a publicly registered non-traded
real estate investment trust (REIT) that invests primarily in the lodging and
lodging-related sectors. www.careywatermark.com

Fairmont Hotels & Resorts
Fairmont Hotels & Resortsis a celebrated collection of more than 65 luxury
properties around the globe, including Shanghai's Fairmont Peace Hotel, The
Plaza in New York, and Makkah Clock Royal Tower in the Kingdom of Saudi
Arabia. The luxury brand's distinctive hotels offer a sense of heritage and
sophistication, warm, engaging service and culturally rich experiences.
Fairmont balances the company's economic, environmental and social priorities
and provides the framework for responsible hotel operations through the
Sustainability Partnership program. Fairmont is owned by FRHI Holdings
Limited, a leading global hotel company with over 100 hotels under the
Fairmont, Raffles, and Swissotel brands. The company also manages Fairmont,
Raffles and Swissotel branded luxury private residences club, whole-ownership
residences and serviced residences properties. For more information or
reservations, please call 1-800-441-1414 or visit fairmont.com.

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of
the Federal securities laws. The statements of Mr. Medzigian are examples of
forward looking statements. A number of factors could cause actual results,
performance or achievement to differ materially from those anticipated. Among
those risks, trends and uncertainties are the risks related to CWI's public
offering; the general economic climate; the supply of and demand hotels;
interest rate levels; the availability of financing; and other risks
associated with the acquisition and ownership of hotels. For further
information on factors that could impact CWI, reference is made to its filings
with the Securities and Exchange Commission

COMPANY CONTACT:             PRESS CONTACT:
Cheryl Sanclemente           Guy Lawrence
W. P. Carey Inc.             Ross & Lawrence
212-492-8995                 212-308-3333
csanclemente@wpcarey.com     gblawrence@rosslawpr.com

SOURCE W. P. Carey Inc.

Website: http://www.careywatermark.com
 
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