Hyatt Place Cleveland/Independence Sold to Lone Star Funds as Part of 38-Hotel Portfolio
- Sep 29, 2014
The Hyatt Place Cleveland/Independence is changing hands. The Northeast Ohio property is one of 38 sites that Hyatt Hotels Corp. has agreed to sell to Texas-based Lone Star Funds for about $590 million.
Located seven miles south of downtown Cleveland, in the city of Independence, the hotel features 127 studio-style suites and 1,200 square feet of flexible meeting space. Amenities include a 24-hour fitness center, indoor pool, free Wi-Fi, complimentary parking and more.
The 38-property portfolio totals 4,950 rooms and includes another Ohio hotel, the Hyatt Place Cincinnati- Northeast, in Mason. Hyatt Hotels said it will enter into franchise agreements with Lone Star Funds as part of the sale. This means that all the hotels will keep their current Hyatt Place and Hyatt House branding. The transaction is expected to be completed this November, subject to customary closing conditions and approvals.
Aimbridge Hospitality LLC will manage the hotels. Over the next 24 months, Lone Star Funds will invest an additional $50 million to renovate and upgrade its new hotels.
“Hyatt utilized its strong balance sheet and industry expertise to launch the Hyatt Place and Hyatt House brands. We are now leveraging that brand equity to recycle capital while maintaining a long-term brand presence in multiple markets,” Steve Haggerty, global head of capital strategy, franchising and select service for Hyatt, said in a statement for the press. “We believe the renovations planned for the portfolio will help maintain the brands’ reputation as the leading brands in their segments, and we look forward to deepening our relationship with Lone Star and Aimbridge.”
This is the second large hotel portfolio to sell this month. NorthStar Realty Finance Corp. also recently announced it will buy a 7,000-room portfolio of upscale extended-stay and select-service hotels from Inland American Real Estate Trust for $1.1 billion.
Photo credit: independence.place.hyatt.com