Xenia Hotels & Resorts (Xenia), a US-based real estate investment trust (REIT), has acquired Hyatt Regency Grand Cypress in Orlando, Florida, for $205.5m from an affiliate of Hyatt Hotels.
For funding this acquisition, Xenia used cash on hand as well as availed senior unsecured credit facility.
Go deeper with GlobalData
Xenia Hotels & Resorts president and chief executive officer Marcel Verbaas said: "The acquisition of Hyatt Regency Grand Cypress represents a unique opportunity to increase our presence in the Orlando market, a market we know extremely well and believe to be poised for long-term growth due to a favourable supply and demand outlook.
"We are excited that we have been able to recycle a portion of the proceeds of our recent sales of lower quality assets into an outstanding and well-performing hotel at a price that is well below replacement cost.
“Additionally, we expect to grow earnings and improve the hotel's competitive positioning through strategic capital investments over the next several years, including the enhancement and expansion of the property's meeting facilities.”
Hyatt Regency Grand Cypress resort features 815 guestrooms, six food and beverage outlets, more than 65,000ft2 of indoor and outdoor meeting and event space.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataIt also includes a full-service spa, golf courses, and other amenities.
The resort is surrounded by many tourist attractions such as Walt Disney World theme parks, Disney Springs outdoor shopping, dining and entertainment district, and the Wide World of Sports.
Xenia is planning to renovate guest rooms, existing meeting space and add new ballroom in order capture additional revenue and market share.
Hyatt global head of capital strategy and franchising Steve Haggerty said: "We are thrilled to be expanding our strong relationship with Xenia and continuing to advance our capital recycling strategy.
"Hyatt Regency Grand Cypress offers a one-stop experience that puts everything guests need at their fingertips. Whether travellers want to connect or simply recharge, the forthcoming renovations will continue to build on the hotel's reputation as a leading destination in such a critical market."
Hyatt will continue to manage the Hyatt Regency Grand Cypress.
Besides this hotel, Hyatt manages five other hotels owned by Xenia, including Hyatt Centric Key West Resort & Spa, Hyatt Regency Santa Clara, Andaz San Diego, Andaz Savannah and Andaz Napa.
Image: Hyatt Regency Grand Cypress in Orlando, Florida. Photo: courtesy of Xenia Hotels & Resorts, Inc. / PR Newswire Association LLC.
