Tuesday September 24th, 2013 - 9:58AM
SANTA CLARA, CA—Inland American Lodging Group, Inc. has announced the respective purchase and sale of the 14-story, 501-room Hyatt Regency Santa Clara located here, 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.
“We are pleased to add this high-quality property, situated in a prestigious California market, to our growing portfolio of upper-upscale hotels,” stated Marcel Verbaas, president and CEO, Inland American Lodging Advisor, Inc. “The Silicon Valley lodging market benefits from a collection of high-tech companies in the immediate area, nearby world-class universities and a highly-educated workforce, and is projected to experience robust growth over the next several years.”
In addition to its 60,000 sq. ft. of flexible meeting space and direct connection to the 302,000-sq.-ft. convention center, the hotel is within a mile of Levi’s Stadium, a 1.9 million-sq.-ft., 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,” stated Steve Haggerty, global head, real estate and capital development for Hyatt. “We are delighted to deepen our relationship with a well-established, well-respected owner who plans to further invest in the hotel in the years ahead.”