Hyatt Hotels Corporation paid $390 million for a 100 percent stake in the Park Hyatt hotel component of Extell Development’s One57 tower project.
The acquisition covers all costs related to the construction of the hotel. Hyatt was slated to take two-thirds of the total hotel stake when the Chicago-based chain partnered with Extell in 2010.
“First, whole ownership provides us more flexibility and control to recycle the asset at the right time,” Hyatt CEO Mark Hoplamazian said in an earnings call cited by GlobeSt. “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.”
The 210-room hotel, set to open later this month, is seeking a five-star designation. Room prices will begin at $795 per night. Amenities will include an indoor pool with underwater speakers that stream music from Carnegie Hall. [GlobeSt] — Mark Maurer