Amstar Group, LLC of Denver, and Davidson Hotel Com. of Memphis became one of the first Hyatt franchisees on the East Coast with the acquisition, John Belden, president and chief executive officer of Davidson, tells GlobeSt.com. The purchase was also the first New England buy for the joint venture group, he says.
"In solidifying this transaction, we hope it will provide us with an opportunity to grow the Hyatt brand while allowing us to grow our brand," says Belden, whose firm currently operates 25 hotels under the Marriott, Renaissance, Hilton, Westin, Embassy Suites, Doubletree, Sheraton, Radisson and Holiday Inn brands.
As part of the acquisition, Belden says the partners plan to invest $23 million in upgrading the hotel, located on nine acres just a half-mile from historic Downtown Newport. Among the planned changes are an expansion of the property's spa facilities, the total renovation of the hotel's exterior facade and 264 rooms, including the addition of plasma TVs.
Plans also call for the addition of 40,000 sf of outdoor space that will be highlighted by the creation of a new water feature to mesh the surrounding harbor with the property's new landscaping, Cyndi Carl, a corporate sales assistant with Davidson, tells GlobeSt.com. "Its going to have a whole, fresh new look," she says.
Renovation of the property will begin in 2007 following a year of planning, Belden notes. "We feel that for the property to truly be positioned as the strongest regional resort in New England, it was incumbent upon us to take it to the highest level as possible and have it reflect Hyatt quality worldwide," Belden says.The property, which sits on a peninsula overlooking the harbor and Downtown, brought out some tough competition, he adds, but the partners' reputation for closing deals and Davidson's proven track record as a manager of some of the nation's top hotel names helped the group beat out the competition.
The sale was arranged for Hyatt by New York office of Jones Lang LaSalle. Davidson will manage the property.
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