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Hyatt sells six hotels, raising USD 433m

Chicago-based lodging firm Hyatt Hotels Corp (NYSE: H) said it has sold six owned full-service hotels since May for a total gross sales price of approximately USD 433m.

According to Hyatt, the asset sales complete the marketing process for six hotels that the company began earlier this year and are consistent with the company´s asset recycling strategy selling certain hotels, maintaining presence in respective markets by entering into new management or franchise agreements, and re-investing sale proceeds into new hotels and other growth opportunities.

The six hotels sold include the Hyatt Fisherman´s Wharf, the Hyatt Santa Barbara, the Hyatt Regency Denver Tech Center, Andaz Napa, Andaz Savannah and the Hyatt Regency Santa Clara.

Hyatt said that the total gross sales price reflects an approximate 5% trailing-twelve-month NOI capitalization rate or a greater than 15x trailing-twelve-month EBITDA multiple. Hyatt entered into new management or franchise agreements for each hotel.

The new owners of the hotels have agreed to invest over USD 20m on capital expenditures in total, the firm said.

Hyatt Hotels´ 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. As of June 30, 2013, the company´s worldwide portfolio consisted of 524 properties in 46 countries.

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