Hyatt Announces Sale Of 38 Select Service Hotels

September 19, 2014 // Franchising.com // CHICAGO – Hyatt Hotels Corporation (NYSE: H) today announced that Hyatt affiliates have agreed to sell 38 hotels to a company organized by Lone Star Funds (the "Purchaser") for approximately $590 million. The portfolio of 38 hotels (the "Hyatt Portfolio") consists of Hyatt Place and Hyatt House hotels totaling 4,950 rooms. As part of the sale, Hyatt will enter into franchise agreements with the Purchaser, with all hotels maintaining their existing Hyatt Place and Hyatt House branding.

The Purchaser intends to spend approximately $50 million in additional capital expenditures across the Hyatt Portfolio over the next 24 months. Aimbridge Hospitality, LLC 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."

The transaction is expected to be completed in November 2014 and is subject to customary closing conditions and approvals. The Hyatt Portfolio comprises the following hotels:

Property

City

State

Rooms

Hyatt House Boston/Burlington

Burlington

MA

150

Hyatt House Branchburg

Branchburg

NJ

139

Hyatt House Sterling/Dulles Airport-North

Sterling

VA

162

Hyatt House Fishkill/Poughkeepsie

Fishkill

NY

135

Hyatt House Morristown

Morristown

NJ

132

Hyatt House Raleigh Durham Airport

Morrisville

NC

141

Hyatt House Parsippany-East

Parsippany

NJ

140

Hyatt House Parsippany Whippany

Whippany

NJ

135

Hyatt House Philadelphia/Plymouth Meeting

East Norriton

PA

131

Hyatt House Richmond-West

Richmond

VA

134

Hyatt House Shelton

Shelton

CT

127

Hyatt Place Albuquerque Airport

Albuquerque

NM

127

Hyatt Place Atlanta/ Alpharetta/Windward Parkway    

Alpharetta

GA

127

Hyatt Place Atlanta/ Norcross/Peachtree

Norcross

GA

126

Hyatt Place Birmingham/Inverness

Birmingham

AL

126

Hyatt Place Boise/Towne Square

Boise

ID

127

Hyatt Place Charlotte Airport/Tyvola Road

Charlotte

NC

127

Hyatt Place Chicago/Itasca

Itasca

IL

126

Hyatt Place Cincinnati Airport/Florence

Florence

KY

126

Hyatt Place Cincinnati- Northeast

Mason

OH

127

Hyatt Place Cleveland/ Independence

Independence

OH

127

Hyatt Place Denver Airport

Aurora

CO

126

Hyatt Place Detroit/Auburn Hills

Auburn Hills

MI

127

Hyatt Place Detroit/ Livonia

Livonia

MI

127

Hyatt Place Lakeland Center

Lakeland

FL

127

Hyatt Place Louisville-East

Louisville

KY

121

Hyatt Place Memphis/ Primacy Parkway

Memphis

TN

126

Hyatt Place Mystic

Mystic

CT

79

Hyatt Place Oklahoma City Airport

Oklahoma City

OK

126

Hyatt Place Omaha/Downtown-Old Market

Omaha

NE

159

Hyatt Place Nashville/ Brentwood

Brentwood

TN

124

Hyatt Place Nashville/ Opryland

Nashville

TN

123

Hyatt Place Pittsburgh Airport

Pittsburgh

PA

127

Hyatt Place Pittsburgh/ Cranberry

Cranberry Township    

PA

127 

Hyatt Place Richmond/ Arboretum  

Richmond

VA

127

Hyatt Place Sacramento/ Rancho Cordova                 

Rancho Cordova          

CA    

127

Hyatt Place Secaucus/ Meadowlands

Secaucus

NJ

159

Hyatt Place Tampa/ Busch Gardens

Tampa

FL

126

Hyatt continues to market six additional select service hotels. The term "Hyatt" is used in this release for convenience to refer to Hyatt Hotels Corporation and/or one or more of its affiliates.

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®, Hyatt House®, Hyatt Zilara™ and Hyatt Ziva™ brand names and have locations on six continents. Hyatt Residential Group, Inc., a Hyatt Hotels Corporation subsidiary, develops, operates, markets or licenses Hyatt Residences® and Hyatt Residence Club®. As of June 30, 2014, the Company's worldwide portfolio consisted of 563 properties in 48 countries. For more information, please visit www.hyatt.com.

Forward-Looking Statements

Forward-Looking Statements in this press release, which are not historical facts, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Our actual results, performance or achievements may differ materially from those expressed or implied by these forward-looking statements. In some cases, you can identify forward-looking statements by the use of words such as "may," "could," "expect," "intend," "plan," "seek," "anticipate," "believe," "estimate," "predict," "potential," "continue," "likely," "will," "would" and variations of these terms and similar expressions, or the negative of these terms or similar expressions. Such forward-looking statements are necessarily based upon estimates and assumptions that, while considered reasonable by us and our management, are inherently uncertain. Factors that may cause actual results to differ materially from current expectations include, among others, failure to successfully complete the proposed transaction, including the occurrence of any event, change or circumstance that could give rise to the termination of the purchase agreement (including the failure to satisfy conditions to completion or obtain required approvals); the actual timing of closing; the ability to fund and complete certain capital improvements; and other risks discussed in our filings with the U.S. Securities and Exchange Commission, including our Annual Report on Form 10-K, which filings are available from the SEC. We caution you not to place undue reliance on any forward-looking statements, which are made as of the date of this press release. We undertake no obligation to update publicly any of these forward-looking statements to reflect actual results, new information or future events, changes in assumptions or changes in other factors affecting forward-looking statements, except to the extent required by applicable laws. If we update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements.

SOURCE Hyatt Hotels Corporation

Contacts:

Amy Patti
Media Relations
312 780 5620
amy.patti@hyatt.com

Atish Shah
Investor Relations
312 780 5427
atish.shah@hyatt.com

###

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