JMI acquired the Sheraton Austin Hotel at the Capitol, a 365-room full-service hotel with 17,250 square feet of meeting and function space including a 9,650 square foot ballroom, through a joint venture with Carey Watermark Investors Incorporated (CWI) in May of 2014.
Located in the heart of downtown Austin, the Sheraton Austin Hotel at the Capitol benefits from being the closest full-service hotel to the entrance of the Capitol and University of Texas’ Football Stadium and Frank Erwin Center, while only being five blocks from the Central Business District/6th Street entertainment district. It is also adjacent to the new UT Medical School and redevelopment of Waller Creek. Austin offers a wide variety of attractions that draw nearly 20 million visitors each year. The diverse business mix of stable government and university-related business and rapidly growing technology and entertainment sectors has positioned Austin as one of the top performing lodging markets in the United States. Since 2003, RevPAR in Austin has increased at a 6.7% CAGR, which is well in excess of the average of 4.2% for the Top-25 U.S. lodging markets as a whole.
The hotel will undergo a comprehensive renovation including guestrooms and public spaces at an estimated cost of over $6 million. The hotel will continue to be managed by an affiliate of HEI Hotels & Resorts, which operates six Sheratons and a total of 18 Starwood properties in the U.S.