Hyatt Hotels Corporation (NYSE: H) today announced that a Hyatt affiliate acquired a select service hotel in downtown Minneapolis and will rebrand the hotel as Hyatt Place Minneapolis Downtown following $20 million in capital improvements. The rebranding is scheduled for the summer of 2013.
In a move that underscores the growing relationship between the companies, an affiliate of Summit Hotel Properties, Inc. plans to purchase the hotel and enter into a management agreement with a Hyatt affiliate upon completion of the improvements.
“Recycling capital to allow continued strategic growth is core to our business approach and this transaction is the perfect example of how we are executing that in an effort to help Hyatt and as well as owners achieve that growth,” said Stephen Haggerty, Hyatt’s global head of Real Estate and Capital Strategy group. “Summit was one of the first companies to recognize the potential of the Hyatt Place brand and we are excited to have identified new opportunities for us to grow the brand and our relationship with such a valued company.”
Hyatt Place Minneapolis Downtown will be the fourth Hyatt-branded hotel in the Minneapolis area and offers easy access to the city’s professional sports stadiums, including the venues for the Minnesota Vikings, Minnesota Timberwolves and Minnesota Twins. The hotel is also walking distance to the city’s historic Hennepin Theater District, as well as lively restaurants, shopping and nightlife.In early October, a Summit Hotel Properties affiliate also closed on the acquisition of seven Hyatt Place hotels and one Hyatt House hotel, and the company entered into an agreement with a Hyatt affiliate to manage these eight Hyatt Place- and Hyatt House-branded hotels. “Hyatt has invested an impressive amount of its own capital in the Hyatt Place brand, which gives Hyatt a level of credibility with owners not typical in the industry,” said Dan Hansen, president and chief executive officer, Summit Hotel Properties. “That commitment demonstrated that Hyatt understands how Summit approaches our business, which has been a key factor in driving new ways to deepen our relationship.”