The 448-room Hyatt Regency Austin overlooking Woman Hen Lake has altered fingers.
Bethesda, Md.-primarily based Host Hotels & Resorts said it procured the hotel for about $161 million in dollars. The acquisition came ahead of a planned foreclosures auction of the residence, Host Lodges reported. Host Motels is the nation’s biggest real estate expense believe in in the lodging sector.
The hotel’s past owner is stated as Tantallon Austin Hotel LLC by the Travis Central Appraisal District. The appraisal district valued the assets at $90.8 million in 2020, down from $96.9 million in 2019.
The resort marketplace has been among the sectors of the economic system hit toughest by the coronavirus pandemic. Host Hotel’s acquire price reflects a 20% to 25% low cost relative to pre-COVID-19 pricing centered on the profits of 3 comparable Austin accommodations in between 2014 and 2019, Host Lodges said.
The resort will retain the Hyatt model, with Hyatt continuing to manage the house below a long-term agreement, Host Motels reported.
James Risoleo, president and CEO of Host Resorts, claimed the acquisition allows Host Inns to diversify into a sector “with a thriving economic climate and a youthful and vivid populace.”
“We are thrilled to have executed an off-industry, opportunistic acquisition of a substantial-good quality hotel in one particular of the nation’s swiftest developing cities, which proceeds to be a major beneficiary of corporate and persons relocation,” Risoleo stated in a created assertion. “As vacation resumes, we assume the effectively-found Hyatt Regency Austin to reward from a potent rebound led by Austin’s numerous leisure and enterprise demand from customers drivers that are anchored in environment-renowned new music festivals, sporting situations and blue-chip organizations.”
The Hyatt sits on nearly six acres at 208 Barton Springs Road, on the south shore of Woman Hen Lake. The hotel has 45,000 sq. feet of complete assembly place (including ballrooms of 14,000 and 10,000 square feet), two food and beverage stores, an outdoor pool and a conditioning heart.
Its rooms have been renovated in 2015. Meeting space was expanded in 2015, and renovated in 2018.
The acquisition follows two other major Austin hotel product sales in current months.
In November, an affiliate of the Axton Group, a privately held investment management agency primarily based in San Francisco, acquired the Renaissance Austin Lodge. Axton paid $70 million for the 492-space lodge at 9721 Arboretum Blvd. in Northwest Austin.
In late December, Irvine, Calif.-based Pacific Hospitality Team acquired the 194-place Hotel Granduca in Southwest Austin for an undisclosed selling price.
Formulated by Giorgio Borlenghi and his Houston-centered Interfin Corporations LP in a joint venture with Austin-dependent Riverside Resources, the Granduca is on a bluff overlooking Bee Cave Highway (RM 2244) and Loop 360 (Capital of Texas Freeway). The lodge will be rebranded as aspect of the Meritage Collection of unbiased lodges this summer months.
The hotel marketplace throughout the world has been devastated by the COVID-19 pandemic.
In Texas, lodge revenues plunged by far more than $5 billion last year in contrast to 2019, an drop of 40.9%, hotel consulting business Source Strategies stated in its most up-to-date report.
In the ultimate quarter of past yr, the Austin-Round Rock industry experienced a 40% drop in home nights bought, the biggest proportion decline amongst the state’s 5 greatest metro spots, explained Resource Tactics, which has been tracking accommodations in Texas because 1988.
Risoleo, having said that, said Host Accommodations is inspired by Austin’s shrinking hotel building pipeline in comparison to pre-pandemic concentrations, as properly as by the market’s drastically reduce hotel running prices in comparison to other markets.
He claimed Host Inns bought the Hyatt Regency in advance of its scheduled foreclosures auction “at a incredibly eye-catching produce centered on 2019 functionality.”
Host Resorts at present owns 76 attributes in the United States and 5 houses internationally totaling about 46,800 rooms.
In Austin, new accommodations continue to split floor and open, or are nearing opening.
The 31-tale Austin Marriott Downtown just opened this month, throughout from the Austin Convention Center. The hotel has 613 rooms and was due to open last summer, but the pandemic postponed all those designs.
This summer, the Thompson Austin resort is scheduled to open up its doorways downtown. The lodge — a single of Hyatt’s most recent way of life accommodations — will have 212 guest rooms and suites, 17 residences and extra than 6,000 square toes of assembly and party room. It will be in a 34-story mixed-use tower now underneath construction at East Fifth and Brazos Street.