Inland American Lodging Group, Inc., a wholly owned subsidiary of Inland
American Real Estate Trust, Inc. ("Inland American") and Hyatt Hotels
Corporation (NYSE: H), today announced the respective purchase and sale
of the 14-story, 501-room Hyatt Regency Santa Clara in Santa Clara,
Calif., for approximately $93 million or $185,000 per key. The total
purchase price may increase to $100 million if certain performance
thresholds are achieved at the hotel. A Hyatt affiliate will continue to
manage the hotel under a new management agreement.
Hyatt Regency Santa Clara in Santa Clara, Calif. (Photo: Business Wire)
"We are pleased to add this high-quality property, situated in a
prestigious California market, to our growing portfolio of upper-upscale
hotels," said Marcel Verbaas, president and CEO, Inland American Lodging
Advisor, Inc. "Its central location within Silicon Valley, the high-tech
capital of the world, and the fact that it is directly connected to the
Santa Clara Convention Center make it one of the premier hotels in the
region for business and leisure travelers. The Silicon Valley lodging
market benefits from a collection of high-tech companies in the
immediate area, nearby world-class universities and a highly-educated
workforce, and is projected to experience robust growth over the next
In addition to its 60,000 square feet of flexible meeting space and
direct connection to the 302,000-square-foot convention center, the
hotel is within a mile of Levi's Stadium, a 1.9 million-square-foot,
state-of-the-art sporting and entertainment venue that is currently
under construction and slated to be completed in 2014. The new home of
the San Francisco 49ers football team, Levi's Stadium will also host
Super Bowl 50 in early 2016.
The property is being acquired subject to a long-term ground lease and
related agreements with the city of Santa Clara, which, among other
things, grant the hotel priority use of the convention center as well as
other nearby recreational amenities.
"This transaction allows us to recycle capital that can be deployed for
growth while continuing to serve the guests who have enjoyed and come to
rely on our authentic hospitality at Hyatt Regency Santa Clara for eight
years," said Steve Haggerty, global head, real estate and capital
development for Hyatt. "We are delighted to deepen our relationship with
a well-established, well-respected owner who plans to further invest in
the hotel in the years ahead."
About Inland American Lodging Advisor, Inc.
Inland American Lodging Advisor, Inc., located in Orlando, FL, focuses
on acquiring and managing a diversified portfolio of lodging properties
on behalf of Inland American Real Estate Trust, Inc. Inland American
Lodging Advisor, Inc. currently oversees 94 hotels with 18,323 rooms
branded under various Marriott, Hilton, Starwood, Hyatt, Fairmont, and
IHG brands that are managed either by the brand managers or independent
third-party management companies. For further information regarding
Inland American Lodging Advisor, please refer to the company website at www.inlandamericanlodging.com.
About Inland American Real Estate Trust, Inc.
Inland American Real Estate Trust, Inc. focuses on acquiring and
developing a diversified portfolio of commercial real estate located in
the United States. The company also invests in joint ventures,
development projects, real estate loans and marketable securities. As of
June 30, 2013 Inland American owned 565 properties, representing
approximately 41 million square feet of retail, industrial and office
properties, 5,186 conventional multi-family units, 6,521 student housing
beds and 16,645 hotel rooms. Inland American is one of six REITs that
are, or have been, sponsored by affiliates of The Inland Real Estate
Group of Companies, Inc. For further information regarding Inland
American, please refer to the company website at www.inlandamerican.com.
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.
Certain statements and assumptions in this press release contain or are
based upon "forward-looking" information and are being made pursuant to
the safe harbor provisions of the Private Securities Litigation Reform
Act of 1995. When we use the words "will," may," "anticipate,"
"estimate," "should," "expect," "believe," "intend," or similar
expressions, we intend to identify forward-looking statements. Such
statements are subject to numerous assumptions and uncertainties, many
of which are outside of Inland American's or Hyatt's control, which
could cause actual results to differ materially from those expressed in
or implied by the content of this document. Forward looking statements
made in this press release are made only as of the date of their initial
publication and neither party undertakes an obligation to publicly
update any of these forward looking statements as actual events unfold.
Photos/Multimedia Gallery Available: http://www.businesswire.com/multimedia/home/20130923006487/en/
Inland American Contact:
Dan Lombardo, 630-586-6314
Amy Patti, 312-780-5620