CHICAGO—Hyatt Hotels Corp. has just sold five of its select service hotels for a total price of about $53 million. The deals are part of the Chicago-based company's growth strategy. Hyatt plans to invest the proceeds into new hotels or other growth opportunities but also signed franchise agreements with the purchasers, allowing all the hotels to retain the Hyatt Place brand. Furthermore, the new owners say they will spend about $6 million to upgrade the properties. The transactions closed in December 2014.
The company has already executed other similar deals. As reported in GlobeSt.com, last fall it sold 38 Hyatt Place and Hyatt House properties for $590 million to a company organized by Lone Star Funds. Hyatt also entered into franchise agreements with those new owners and all of the properties in that 4,950-key portfolio maintained the Hyatt Place and Hyatt House brands.
“We are now leveraging that brand equity to recycle capital while maintaining a long-term brand presence in multiple markets,” said Steve Haggerty, global head of capital strategy, franchising and select service for Hyatt.
The five hotels are located throughout Texas, North Carolina and South Carolina. The Irving, TX-based NewcrestImage purchased two hotels in Texas, and Pal Alto, CA-based BPR Properties purchased three hotels in North Carolina and South Carolina.
NewcrestImage's new properties include the Hyatt Place Dallas/ Plano, a 127-room hotel located in the Dallas Platinum Corridor office district. There are 40-million-square-feet of office space within five miles, including the corporate headquarters of J.C. Penney, the Dr. Pepper Snapple Group, Frito-Lay, Pizza Hut, and Mary Kay. The company also bought the 126-room Hyatt Place San Antonio-Northwest/Medical Center. This hotel sits along I-10 directly adjacent to the 288-acre headquarters of United Services Automobile Association.
BPR bought the Hyatt Place Greensboro, a 124-room hotel located near the Joseph S. Koury Convention Center, the Greensboro Coliseum Complex and the University of North Carolina at Greensboro. And the 127-room Hyatt Place North Raleigh-Midtown is just three miles outside of downtown Raleigh. Finally, the 127-room Hyatt Place Columbia/Harbison sits just outside of downtown Columbia and a short drive from popular destinations such as Harbison State Forest, Columbia Museum of Art, Lake Murray and more than 20 championship golf courses.
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Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
