A wholly owned Hyatt subsidiary plans to purchase the 1,641-room Peabody Orlando hotel for $717 million. The transaction is expected to close on October 1st, and the hotel will then be rebranded as Hyatt Regency Orlando Convention Center.
“This transaction brings us a very high-quality hotel in one of the most popular cities in the world and enhances the Hyatt Regency brand⎯⎯already a leader in meetings and conventions⎯⎯with a presence adjacent to one of the largest convention facilities in the U.S.,” says Stephen Haggerty, global head, real estate and capital strategy for Hyatt. “We are confident that we will be able to build on the strong performance of this property through the depth and breadth of our relationships with meeting planners and corporate travel managers and the global strength of our brand.”
Hyatt Regency Orlando Convention Center will mark the sixth Hyatt-branded hotel in Orlando but the first large convention hotel presence for Hyatt. With more than 200,000 square feet of meeting space⎯⎯as well as over two million square feet of space in the attached Orange County Convention Center⎯⎯the hotel will offer the most meeting space of any Hyatt Regency hotel in the U.S.
As a result of a recent $440 million multi-year expansion and renovation, Hyatt does not plan to invest significant capital in the near future. Hyatt expects the hotel to generate approximately $10 million of EBITDA in the Q4 of 2013 and approximately $55 million of EBITDA in 2014.
