Fresh from announcing the opening of the 296-room Hyatt Place Austin Downtown, Hyatt Hotels Corporation (NYSE:H) today announced that a Hyatt affiliate has acquired the 189-room Driskill Hotel for approximately $85 million from an investment fund managed by Lowe Enterprises Investors, which was represented in the transaction by Jones Lang LaSalle’s Hotels & Hospitality Group.
The transaction closed earlier today and the hotel will continue to be marketed as The Driskill Hotel under the umbrella of Hyatt Hotels & Resorts. The hotel will undergo a two-year, approximately $8 million renovation to preserve its reputation as one of the most storied hotels in Texas.
“Our investment in this hotel, which has a highly visible and long-standing presence in a vibrant market, is a great example of Hyatt’s willingness and ability to apply our capital to increase our brand presence in key locations for our guests. Austin has a diverse economy driven by technology, the state capitol, and the University of Texas, and is a rapidly growing tourism and convention market,” said David Tarr, senior vice president of North American development and real estate for Hyatt. “We are excited to have the opportunity to continue the tradition of hospitality that Lowe Enterprises and Destination Hotels & Resorts have been providing at The Driskill Hotel during their ownership and management of this special property.”
Built in 1886, The Driskill Hotel is one of downtown Austin’s most recognizable buildings and was designated a national historic landmark in 1969. The hotel’s location provides easy access to the Central Business District, the Texas State Capitol and the Austin Convention Center, as well as the areas that comprise the heart of Austin’s cultural and entertainment activity, including the 6
Street Entertainment District, the Warehouse District and 2
Street Retail District.
“We are thrilled to add such a well-loved local icon to the Hyatt family and are delighted to be increasing our presence in Austin, which offers world-class business and educational institutions, as well as thriving entertainment and technology scenes,” said Rakesh Sarna, group president – Americas for Hyatt.