An investment fund managed by Lowe Enterprises Investors sold the 189-room Driskill Hotel in Austin’s central business district to an affiliate of Hyatt Hotels Corp. (NYSE: H) for nearly $85 million or $449,735 per room.
Great American Life Insurance and Brothers Property Corp. sold the asset to Lowe Enterprises for more than $53 million in late 2005.
Hyatt will maintain the Driskill name under its hotels and resorts umbrella.
Built in 1886, the four-story, 101,506-sqiuare-foot hospitality property at 604 Brazos St. was designated a national historic landmark in 1969. It was completly renovated in the 1990s. The hotel will undergo a new two-year, approximately $8 million upgrade.
“Our investment in this hotel, which has a highly visible and long-standing presence in a vibrant market, is a great example of Hyatt’s willingness and ability to apply our capital to increase our brand presence in key locations for our guests. Austin has a diverse economy driven by technology, the state capitol, and the University of Texas, and is a rapidly growing tourism and convention market,” said David Tarr, senior vice president of North American development and real estate for Hyatt.
Hyatt's purchase follows days after the company opened the Hyatt Place Austin Downtown. The new 296-room hotel is a six minute walk from the Austin Convention Center and the city’s famous Sixth Street.
Jones Lang LaSalle’s Hotels & Hospitality Group represented LEI.
See CoStar COMPS #2696325 for more information.