HYATT COMPLETES ACQUISITION OF PARK HYATT NEW YORK FOR $390M
NEW YORK — A wholly owned subsidiary of Hyatt Hotels Corp. (NYSE:H) has acquired 100 percent of the 210-room Park Hyatt New York for $390 million. Park Hyatt New York is expected to open later this month. Located between 6th and 7th Avenues on West 57th Street in Manhattan, the hotel is within walking distance of Central Park and Carnegie Hall.
“With its prominent location in one of the world’s most important markets and its elegant aesthetic, Park Hyatt New York will have a meaningful impact on the visibility and reputation of the Park Hyatt brand,” says Steve Haggerty, global head of capital strategy, franchising and select service for Hyatt Hotels Corp.
“Park Hyatt New York is an excellent example of Hyatt using the strength of its balance sheet to enter markets like New York that have high barriers to entry. Acquiring whole ownership of the hotel gives us the flexibility to recycle the asset at the appropriate time,” adds Haggerty.
Located within the 90-story glass tower that also houses One57, a luxury condominium residential development, the hotel was designed by Pritzker Prize-winning architect Christian de Portzamparc and developed by Extell Development Co. Yabu Pushelberg provided interior design for the development.
When the high-profile project was unveiled in 2010, it was a joint venture between Extell Development and Hyatt Hotels Corp. During a second-quarter conference call on July 31 of this year highlighting the financial performance of Hyatt Hotels, CEO Mark Hoplamazian indicated that the company was considering buying a 100 percent interest in the hotel instead of a two-thirds interest as previously planned for several reasons.
“First, whole ownership provides us more flexibility and control to recycle the asset at the right time,” according to Hoplamazian. “Second, whole ownership allows us the ability to purchase the hotel on an all-cash basis, which makes sense given our balance sheet and liquidity position; third, whole ownership, as opposed to joint venture ownership, allows for the deferral of gains on certain hotels that we expect to sell.”
Hyatt’s stock price closed at $57.82 per share on Wednesday, Aug. 6, up from $44.79 a year ago.
— Haisten Willis