Inland American Real Estate Trust, Inc. Announces the Purchase of Hyatt Regency Santa Clara in California
OAK BROOK, Ill. - (BUSINESS WIRE) - Inland American Lodging Group, Inc., a wholly owned subsidiary of Inland American Real Estate Trust, Inc. (“Inland American”) and Hyatt Hotels Corporation (NYSE: H), today announced the respective purchase and sale of 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. A Hyatt affiliate will continue to manage the hotel under a new management agreement.
“We are pleased to add this high-quality property, situated in a prestigious California market, to our growing portfolio of upper-upscale hotels,” said Marcel Verbaas, president and CEO, Inland American Lodging Advisor, Inc. “Its central location within Silicon Valley, the high-tech capital of the world, and the fact that it is directly connected to the Santa Clara Convention Center make it one of the premier hotels in the region for business and leisure travelers. The Silicon Valley lodging market benefits from a collection of high-tech companies in the immediate area, nearby world-class universities and a highly-educated workforce, and is projected to experience robust growth over the next several years.”
In addition to its 60,000 square feet of flexible meeting space and direct connection to the 302,000-square-foot convention center, the hotel is within a mile of Levi’s Stadium, a 1.9 million-square-foot, state-of-the-art sporting and entertainment venue that is currently under construction and slated to be completed in 2014. The new home of the San Francisco 49ers football team, Levi’s Stadium will also host Super Bowl 50 in early 2016.
The property is being acquired subject to a long-term ground lease and related agreements with the city of Santa Clara, which, among other things, grant the hotel priority use of the convention center as well as other nearby recreational amenities.
“This transaction allows us 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,” said 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.”
About Inland American Lodging Advisor, Inc.
Inland American Lodging Advisor, Inc., located in Orlando, FL, focuses on acquiring and managing a diversified portfolio of lodging properties on behalf of Inland American Real Estate Trust, Inc. Inland American Lodging Advisor, Inc. currently oversees 94 hotels with 18,323 rooms branded under various Marriott, Hilton, Starwood, Hyatt, Fairmont, and IHG brands that are managed either by the brand managers or independent third-party management companies. For further information regarding Inland American Lodging Advisor, please refer to the company website at www.inlandamericanlodging.com.
About Inland American Real Estate Trust, Inc.
Inland American Real Estate Trust, Inc. focuses on acquiring and developing a diversified portfolio of commercial real estate located in the United States. The company also invests in joint ventures, development projects, real estate loans and marketable securities. As of June 30, 2013 Inland American owned 565 properties, representing approximately 41 million square feet of retail, industrial and office properties, 5,186 conventional multi-family units, 6,521 student housing beds and 16,645 hotel rooms. Inland American is one of six REITs that are, or have been, sponsored by affiliates of The Inland Real Estate Group of Companies, Inc. For further information regarding Inland American, please refer to the company website at www.inlandamerican.com.
About Hyatt Hotels Corporation
Hyatt Hotels Corporation, headquartered in Chicago, is a leading global hospitality company with a proud heritage of making guests feel more than welcome. Thousands of members of the Hyatt family strive to make a difference in the lives of the guests they encounter every day by providing authentic hospitality. The Company's subsidiaries manage, franchise, own and develop hotels and resorts under the Hyatt®, Park Hyatt®, Andaz®, Grand Hyatt®, Hyatt Regency®, Hyatt Place® and Hyatt House® brand names and have locations on six continents. Hyatt Residential Group, Inc., a Hyatt Hotels Corporation subsidiary, develops, operates, markets or licenses Hyatt ResidencesTM and Hyatt Residence ClubTM. As of June 30, 2013, the Company's worldwide portfolio consisted of 524 properties in 46 countries. For more information, please visit www.hyatt.com.
Certain statements and assumptions in this press release contain or are based upon “forward-looking” information and are being made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. When we use the words “will,” may,” “anticipate,” “estimate,” “should,” “expect,” “believe,” “intend,” or similar expressions, we intend to identify forward-looking statements. Such statements are subject to numerous assumptions and uncertainties, many of which are outside of Inland American’s or Hyatt’s control, which could cause actual results to differ materially from those expressed in or implied by the content of this document. Forward looking statements made in this press release are made only as of the date of their initial publication and neither party undertakes an obligation to publicly update any of these forward looking statements as actual events unfold.