Chicago-based Hyatt Hotels Corporation has revealed its plan to sell 38 hotels to a company organized by Dallas-based real estate investment firm Lone Star Funds for about $590 million. The move is part of its plan to invest in new properties by cashing in on existing ones.
The hotels include Hyatt Place and Hyatt House, with 4,950 rooms in total. The deal, which is expected to be complete by November 2014, will allow all 38 hotels to retain the Hyatt branding.
The private equity firm will spend around $50 million for upgrades and maintenance over two years. Aimbridge Hospitality, LLC will manage the hotels for the buyer.
“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,” said Steve Haggerty, global head of capital strategy, franchising and select service for Hyatt.
Hyatt is controlled by the Pritzker family. It had 563 properties in 48 countries worldwide as of June 30.