Hyatt Hotels Corporation (“Hyatt” or the “Company”) (NYSE: H) today summarized previously announced asset sales. Since May, the Company sold six owned full-service hotels for a total gross sales price of approximately $433 million. These asset sales complete the marketing process for six hotels that the Company began earlier this year and are consistent with the Company’s asset recycling strategy – selling certain hotels, maintaining presence in respective markets by entering into new management or franchise agreements, and re-investing sale proceeds into new hotels and other growth opportunities.
The six hotels are as follows:
- Hyatt Fisherman’s Wharf, 313 rooms
- Hyatt Santa Barbara, 195 rooms
- Hyatt Regency Denver Tech Center, 451 rooms
- Andaz Napa, 141 rooms
- Andaz Savannah, 151 rooms
- Hyatt Regency Santa Clara, 501 rooms
The total gross sales price reflects an approximate 5% trailing-twelve-month NOI capitalization rate or a greater than 15x trailing-twelve-month EBITDA multiple. Hyatt entered into new management or franchise agreements for each hotel. The new owners of the hotels have agreed to invest over $20 million on capital expenditures in total.
About Hyatt Hotels CorporationHyatt Hotels Corporation, headquartered in Chicago, is a leading global hospitality company with a proud heritage of making guests feel more than welcome. Thousands of members of the Hyatt family strive to make a difference in the lives of the guests they encounter every day by providing authentic hospitality. The Company’s subsidiaries manage, franchise, own and develop hotels and resorts under the Hyatt®, Park Hyatt®, Andaz®, Grand Hyatt®, Hyatt Regency®, Hyatt Place® and Hyatt House® brand names and have locations on six continents. Hyatt Residential Group, Inc. , a Hyatt Hotels Corporation subsidiary, develops, operates, markets or licenses Hyatt Residences TM and Hyatt Residence Club TM . As of June 30, 2013, the Company’s worldwide portfolio consisted of 524 properties in 46 countries. For more information, please visit www.hyatt.com. Forward-Looking Statements Forward-Looking Statements in this press release, which are not historical facts, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Our actual results, performance or achievements may differ materially from those expressed or implied by these forward-looking statements. In some cases, you can identify forward-looking statements by the use of words such as “may,” “could,” “expect,” “intend,” “plan,” “seek,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “continue,” “likely,” “will,” “would” and variations of these terms and similar expressions, or the negative of these terms or similar expressions. Such forward-looking statements are necessarily based upon estimates and assumptions that, while considered reasonable by us and our management, are inherently uncertain. Factors that may cause actual results to differ materially from current expectations include, among others, the rate and pace of economic recovery following economic downturns; levels of spending in business and leisure segments as well as consumer confidence; declines in occupancy and average daily rate; if our third-party owners, franchisees or development partners are unable to access the capital necessary to fund current operations or implement our plans for growth; changes in the competitive environment in our industry and the markets where we operate; our ability to access the capital markets; and other risks discussed in the Company's filings with the U.S. Securities and Exchange Commission, including our Annual Report on Form 10-K, which filings are available from the SEC. We caution you not to place undue reliance on any forward-looking statements, which are made as of the date of this press release. We undertake no obligation to update publicly any of these forward-looking statements to reflect actual results, new information or future events, changes in assumptions or changes in other factors affecting forward-looking statements, except to the extent required by applicable laws. If we update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements.