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Blackstone Sells Hyatt Regency Sarasota (Correction)

294-Unit Tampa Hotel Trades for $76M
November 4, 2016
The Blackstone Group LP sold the Hyatt Regency Sarasota hotel at 1000 Boulevard of The Arts in Sarasota, FL to a group of investors led by Dr. Kiran Patel for $76 million, or approximately $259,000 per room.

The 294-room hotel was constructed in 1975 on 5.8 acres in Sarasota County. The 13-story, 180,312-square-foot property features two restaurants, meeting space, 24-hour gym, a heated lagoon and a swimming pool, and a 32-slip, full-service marina with boat house and outfitter. The AAA Four Diamond-rated resort boasts an average occupancy at 75 percent and revenue per available room (RevPAR) at roughly $146 for the year ending July 31, 2016.

Patel, a Tampa-area physician who founded WellCare Health Plans of Florida (NYSE: WCG) and has been involved in real estate investment for over 25 years, financed this latest acquisition in-part with a new $54 million loan provided by Morgan Stanley Bank NA. The financing carries a 4.98% interest rate, 10-year term and 30-year amortization schedule.

In addition to Patel's 450-room Wyndham Grand Hotel & Beach Resort which will open on Clearwater Beach, FL in January 2017, the philanthropist investor also owns a 700-room Wyndham in Pittsburgh, PA and a 241-room Westward Look hotel in Tucson, AZ.

"The hotel investment market continues to offer attractive investments for discerning investors across the United States," said Daniel C. Peek, senior managing director and head of HFF’s hotel group. "The Hyatt Sarasota was another example of a high-quality, full-service hotel that offered an attractive combination of current performance and upside potential that the most active hospitality investment players are seeking today."

Daniel Peek, Preston Reid and Alexandra Lalos of HFF represented the seller. The buyer handled the sale in-house.

Please see CoStar COMPS #3722814 for more information on this transaction.

Editor's Note: The news story was corrected from an earlier version which reported the sales price at $57.8 million ($197,000 /room), the recorded price which likely did not account for furniture, fixtures and equipment (FF&E), accumulated goodwill, business value, supplies and the like.
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