Hyatt Hotels Corporation (NYSE: H) has closed on its previously-announced acquisition of The Peabody Orlando hotel from UST Hotel Joint Venture Ltd. in a 1031-exchange for approximately $717 million, subject to proration and closing adjustments.
The hotel has been rebranded as Hyatt Regency Orlando, becoming the seventh Hyatt-branded hotel in the Greater Orlando area.
The 85,000-square-foot hospitality building was constructed in 1986 on 28.3 acres in the Tourist Corridor submarket of Orange County. It is comprised of 1,641 rooms and suites with numerous guest amenities, including high-speed wifi, refrigerator, and spa-like bathroom with in-mirror television.
The property offers on-site restaurant, 22,000-square-foot spa and fitness center, three swimming pools including a grotto oasis, serenity pool and lap pool. In addition, the property offers 315,000 square feet of customizable function space including ballrooms, meeting rooms, and conferencing facilities - the most of any Hyatt hotel in the country.
The sellers recently completed a nearly $440 multi-year expansion and renovation at the property. As a result, Hyatt does not plan to invest significant capital in the near future. The company expects the hotel to generate $10 million of EBITDA in the fourth quarter 2013 and approximately $55 million throughout 2014.
"We are thrilled to welcome a property of this caliber to the Hyatt Regency brand portfolio and look forward to providing Hyatt’s authentic hospitality to our loyal guests and customers," said Tom Smith, area vice president and general manager, Hyatt Regency Orlando. "We are committed to delivering a high energy experience for guests at Hyatt Regency Orlando and taking care of the details that will allow them to take care of business or recharge, whether they come to the hotel for meetings, as part of a convention or for vacation."
Smith will take over as general manager at the hotel. Brian Comes will serve as the hotel's new manager, and Nate Hardesty will take over as director of sales and marketing. Donald Tompkins, Peabody Orlando's Duck Master, will retire this year as The Peabody reportedly hosted its final duck walk last month.
Please see CoStar COMPS #2850854 for additional information on this transaction.