CHICAGO — Hyatt Hotels Corporation has unloaded 38 properties under its Hyatt Place and Hyatt House brands to a company organized by Dallas-based Lone Star Funds for approximately US$590 million.
As part of the sale, the Chicago-based Hyatt will enter into franchise agreements with the purchaser and all hotels will maintain their existing Hyatt Place and Hyatt House branding. The purchaser intends to spend approximately US$50 million in additional capital expenditures across the Hyatt portfolio over the next 24 months. Aimbridge Hospitality, LLC, based in Plano, Texas, will manage the hotels for the purchaser.
“Hyatt utilized its strong balance sheet and industry expertise to launch 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. “We believe the renovations planned for the portfolio will help maintain the brands’ reputation as the leading brands in their segments, and we look forward to deepening our relationship with Lone Star and Aimbridge.”