Hotel Sale Allows Hyatt to Recycle Capital

SANTA CLARA, CA-As GlobeSt.com recently reported, Orlando-based Inland American Lodging Group Inc., a wholly owned subsidiary of Inland American Real Estate Trust Inc. has purchased the 14-story, 501-room Hyatt Regency Santa Clara in Santa Clara, Calif., for approximately $93 million or $185,000 per key. The total purchase price may increase to $100 million if certain performance thresholds are achieved at the hotel. 

Although sources involved in the deal couldn’t further disclose what “performance thresholds” would need to be achieved for the higher price in terms of specific numbers, but they did tell GlobeSt.com that ““Certain performance milestones were included in the contract and if they are met, an increase in the purchase can be achieved.” We also learned that the sale allows for Hyatt to “recycle capital that can be deployed for growth while continuing to serve the guests who have enjoyed and come to rely on our authentic hospitality at Hyatt Regency Santa Clara for eight years,” according to Steve Haggerty, global head, real estate and capital development for Hyatt. “We are delighted to deepen our relationship with a well-established, well-respected owner who plans to further invest in the hotel in the years ahead.” A Hyatt affiliate will continue to manage the hotel under a new management agreement.