Hyatt Regency Orlando Convention Center will strengthen Hyatt’s
position in a key market
CHICAGO--(BUSINESS WIRE)--Aug. 28, 2013--
Hyatt Hotels Corporation (NYSE: H) today announced that a wholly owned
Hyatt subsidiary plans to purchase the 1,641-room Peabody Orlando hotel
for $717 million from UST Hotel Joint Venture, Ltd., comprised
of affiliates of Belz Enterprises and Estein & Associates USA, Ltd. The
transaction is expected to close on October 1, 2013, and the hotel will
be rebranded as Hyatt Regency Orlando Convention Center upon closing.
“This transaction brings us a very high-quality hotel in one of the most
popular cities in the world and enhances the Hyatt Regency brand –
already a leader in meetings and conventions – with a presence adjacent
to one of the largest convention facilities in the U.S.,” said
Stephen
Haggerty
, global head, real estate and capital strategy for Hyatt. “We
are confident that we will be able to build on the strong performance of
this property through the depth and breadth of our relationships with
meeting planners and corporate travel managers and the global strength
of our brand. Orlando, the second largest hotel market in the United
States, continues to benefit from strong demand from a variety of
different types of guests. The strong base of business booked at the
Orange County Convention Center over the coming years demonstrates the
attractiveness of the market to associations and corporate groups. The
overall number of visitors to Orlando continues to increase and it
remains one of the most visited vacation destinations. This addition to
the Hyatt Regency portfolio will create value for the company in
multiple ways and is consistent with our strategy of applying our
capital to increase our brand presence in key markets.”
Hyatt Regency Orlando Convention Center will be the sixth Hyatt-branded
hotel in Orlando, but the first large convention hotel presence for
Hyatt in the market. The property will be a significant addition to the
Hyatt Regency brand, which is well known for extensive meetings
facilities around the world. With more than 200,000 square feet of
meeting space – and with over two million square feet of space in the
Orange County Convention Center to which the hotel is attached – the
hotel will offer the most meeting space of any Hyatt Regency hotel in
the U.S. and will position the company to compete successfully for
in-house group business in addition to citywide convention business.
The hotel is in excellent condition and enjoys a strong reputation among
meeting planners and guests. Because the hotel recently completed a
nearly $440 million multi-year expansion and renovation, Hyatt does not
plan to invest significant capital in the near future.
Hyatt expects the hotel to generate approximately $10 million of EBITDA
in the fourth quarter of 2013 and approximately $55 million of EBITDA in
2014.
The closing of the transaction is subject to the satisfaction of
customary closing conditions. The purchase price is subject to closing
adjustments.
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.
About Belz Enterprises (a trade name used by various business
entities)
Belz Enterprises is a multifaceted real estate development and
investment company located in Memphis, Tennessee. The company will
continue to own and manage The Peabody hotel in Memphis, Tennessee. The
Peabody Memphis, a 464-room luxury hotel, is just completing a
comprehensive renovation. The historic hotel, considered to be the
cornerstone of the redevelopment of downtown Memphis, has been owned
since 1975 by the Belz family who restored and has operated it since its
1981 reopening.
About Estein & Associates USA, Ltd.
Estein & Associates USA, Ltd., and its affiliates (“E&A”), based in
Orlando, Florida, have been in business since 1974 and have been
investing in real estate in the United States since 1978. As equity
partners, E&A typically invests in joint ventures with US developers and
operators in all asset classes including hotels, office buildings, land,
industrial properties, multifamily housing, etc. More recent investments
include the 610-room JW Marriott Chicago, the 500 West Madison office
building known as Citicorp Center in Chicago, and residential land on
the Hudson River across from Manhattan. Since its inception, E&A has
invested over $5 billion.
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. These statements
include statements about the expected EBITDA contribution of the hotel
and financial performance, the anticipated timing of the closing of the
transaction, our plans, strategies, prospects or future events and
involve known and unknown risks that are difficult to predict. As a
result, 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, the parties’ ability to consummate the transaction; the results
and impact of the announcement on the transaction; the timing for
satisfying the conditions to the completion of the transaction; the
parties’ ability to meet expectations regarding the timing and
completion of the transaction; the occurance of any event, change or
other circumstance that could give rise to the termination of the
transaction; rating agency downgrades; general economic uncertainty in
key global markets; the rate and pace of economic recovery following
economic downturns; levels of spending in business and leisure segments
as well as consumer confidence; declines in occupancy and average daily
rate; limited visibility with respect to group bookings; our ability to
successfully achieve certain levels of operating profit at hotels that
have performance guarantees with our third-party owners; the impact of
hotel renovations; loss of key personnel, including as a result of our
organizational realignment; hostilities, including future terrorist
attacks, or fear of hostilities that affect travel; travel-related
accidents; changes in the tastes and preferences of our customers;
relationships with associates and labor unions and changes in labor law;
the financial condition of, and our relationships with, third-party
property owners, franchisees and hospitality venture partners; if our
third-party owners, franchisees or development partners are unable to
access the capital necessary to fund current operations or implement our
plans for growth; risk associated with potential acquisitions and
dispositions and the introduction of new brand concepts; changes in the
competitive environment in our industry and the markets where we
operate; outcomes of legal proceedings; changes in federal, state, local
or foreign tax law; foreign exchange rate fluctuations or currency
restructurings; general volatility of the capital markets; our ability
to access the capital markets; and other risks discussed in the
Company's 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
Hyatt Hotels Corporation
MEDIA CONTACT:
Farley Kern,
312 780 5506
farley.kern@hyatt.com
or
INVESTOR
CONTACT:
Atish Shah, 312 780 5427
atish.shah@hyatt.com