SANTA CLARA, Calif.
Inland American Lodging Group, Inc. and Hyatt Hotels Corporation have announced the respective purchase and sale of the 14-story, 501-room Hyatt Regency Santa Clara in Santa Clara, Calif., for approximately $93 million or $185,000 per key. The total purchase price may increase to $100 million if certain performance thresholds are achieved at the hotel. A Hyatt affiliate will continue to manage the hotel under a new management agreement.
In addition to its 60,000 square feet of flexible meeting space and direct connection to the 302,000-square-foot convention center, the hotel is within a mile of Levi’s Stadium, a 1.9-million-square-foot, state-of-the-art sporting and entertainment venue that is currently under construction and slated to be completed in 2014. The new home of the San Francisco 49ers football team, Levi’s Stadium will also host Super Bowl 50 in early 2016.
The property is being acquired subject to a long-term ground lease and related agreements with the city of Santa Clara, which, among other things, grant the hotel priority use of the convention center as well as other nearby recreational amenities.
“This transaction allows us to recycle capital that can be deployed for growth while continuing to serve the guests who have enjoyed and come to rely on our authentic hospitality at Hyatt Regency Santa Clara for eight years,” said Steve Haggerty, global head, real estate and capital development for Hyatt.
Inland American Lodging Advisor, Inc., located in Orlando, Fla., focuses on acquiring and managing a diversified portfolio of lodging properties on behalf of Inland American Real Estate Trust, Inc. Inland American Lodging Advisor, Inc. currently oversees 94 hotels with 18,323 rooms branded under various Marriott, Hilton, Starwood, Hyatt, Fairmont, and IHG brands that are managed either by the brand managers or independent third-party management companies.
