Hyatt Hotels Sells Park Hyatt Washington for $100M
- Oct 21, 2014
Just weeks after announcing the sale of a 38-property portfolio to Lone Star Funds for about $590 million, Hyatt Hotels Corp. has completed another important transaction. At the start of the month, the company sold the Park Hyatt Washington to a joint venture comprising Westmont Hospitality Group and Thomas Tan for about $100 million, or $463,000 per room.
The hotel is located in Washington, D.C.’s West End neighborhood. It features 216 rooms, including 28 suites, and 12,000 square feet of state-of-the-art meeting space. The hotel is also home to the Tea Cellar and the Blue Duck Tavern, considered one of the best restaurants in the city.
Boston Properties developed the hotel as part of a $200 million project that encompassed most of the city block. Construction started in 1984, and the hotel opened two years later. Boston Properties sold it to Hyatt in 1995 for $43.4 million.
The new owners plan to invest approximately $5.5 million over the next three years to improve the property. The Park Hyatt Washington was last renovated in 2005, when it underwent a $24 million, seven-month project in order to stay competitive.
A Hyatt affiliate will continue to manage the Park Hyatt Washington under a new management agreement.
“We are delighted to expand our relationship with Westmont,” Stephen Haggerty, global head of capital strategy, franchising and select service for Hyatt, said in a statement for the press. “This transaction is consistent with our asset recycling strategy and allows Hyatt to retain its brand and management presence in Washington, D.C., an established market with high barriers to entry.”
Photo credit: Hyatt Hotels Corp.