Hyatt Sells 3 Chicago Area Hotels for $51M

December 3rd, 2010 | by ashley gordon |

A Hyatt Hotels Corp. affiliate sold three Chicago area hotels to a partnership between AREA Property Partners and Aimbridge Hospitality for $51 million, or nearly $62,000 per room. Hyatt also agreed to manage the properties under its brand on a long-term basis.

“The sale of these three properties supports our strategy of recycling capital in order to expand the presence of Hyatt hotels in markets in which we are not represented or are underrepresented,“ said Stephen Haggerty, Hyatt’s global head of real estate and development.

The AREA/Aimbridge joint venture will invest $13.5 million in capital improvements.

The portfolio features:

* Hyatt Lisle, a 12-story, 316-room, 219,600-square-foot hospitality building at 1400 Corporetum Drive in Lisle.

* Hyatt Deerfield, a 301-door, 96,959-square-foot property at 1750 Lake Cook Road in Deerfield.

* Hyatt Rosemont, a 206-room, 119,016-square-foot building at 6350 N. River Road in Rosemont. See CoStar COMPS #2011417 for more details.

Hyatt is a Chicago-based hospitality company with 447 properties in 45 countries. The organization’s subsidiaries manage, franchise, own and develop hotels, resorts and vacation ownership properties under eight brand names. Hyatt also has hotels under development in five continents.

AREA Property Partners is an international real estate fund manager headquartered in New York City.

Texas-based Aimbridge Hospitality is a hotel investment and management firm that operates 50 hotels in 17 states.

Hyatt completed a long-term franchise agreement with Aimbridge to manage its recently converted Hyatt Regency Tulsa that opens next month. Affiliates of AREA Partners are the majority owners of a joint venture that owns three Hyatt properties–Hyatt Regency New Orleans, Hyatt Regency Rochester and Hyatt Regency Tampa.

Financial Solutions