$120M Hyatt House to Open in 24-Story CBD Office Building
- Oct 21, 2014
By Eliza Theiss, Associate Editor
Hyatt Hotels Corp. has announced the development of a new Hyatt property in New Orleans. Set to open in 2015 at 1250 Poydras St., the new location will operate under the Hyatt House brand, New Orleans’ first. Launched in 2012, the residentially inspired Hyatt House offers guests studio, one- and two-bedroom suites featuring full kitchens.
As a testament to the city’s booming tourism industry, the new 194-key location will be developed at 1250 Poydras St., the CBD’s largest contiguous Class A office space, taking up seven floors of the building’s 24 levels. The hotel lobby will occupy the 11th floor, while guest rooms will take up floors 12 through 17. Expected to open in 2015, the Hyatt House will be adjacent to the Mercedes-Benz Superdome, the New Orleans Arena and the booming BioDistrict. It will also be just a few blocks away from the French Quarter, the Mississippi Riverfront and the Morial Convention Center. Courtesy of a second story skybridge, the new hotel will be connected to the 1,193-key Hyatt Regency New Orleans, which reopened in 2011 after a $275 million redesign. The sky bridge will ensure Hyatt House guests have access to the Regency’s amenities.
The 134,000-square-foot New Orleans Hyatt House will be operated by Hyatt Hotel affiliate Select Hotels Group LLC. The latter has entered into a management agreement with an affiliate of Waypoint NOLA LLC for the 194-key hotel. The conversion from vacant office space to New Orleans Hyatt House will be financed by a $120 million loan from Starwood Property Trust subsidiary Starwood Property Mortgage LLC. The loan is guaranteed by a 60-year lease from building owner Poydras Properties to Waypoint NOLA.
ENI Petroleum had leased 56,000 square feet of the future hotel space through October 2018, but it had sat vacant for several years, ever since ENI Petroleum moved its New Orleans operations to Houston. The new project’s lease buyout saved ENI $2.5 million in future lease expenses.
Robert Hand, president of Louisiana Commercial Realty LLC, who marketed the space, said: “Of the 9,000,000 square feet of Class A CBD office space, over 1 million square feet of Class A CBD office space is for lease, and half of that is full floor space. With the thriving New Orleans tourism-based economy, there is more demand for hotel use than for full-floor Class A office space.”
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Image via Hyatt Regency New Orleans