Hyatt Regency Orlando Sale Closes for $717M

By Justin Sumner | CoStar Group

Hyatt Hotels Corporation (NYSE: H) has closed on its previously-announced acquisition of The Peabody Orlando hotel from UST Hotel Joint Venture Ltd. in a 1031-exchange for approximately $717 million, subject to proration and closing adjustments. 

The hotel has been rebranded as Hyatt Regency Orlando, becoming the seventh Hyatt-branded hotel in the Greater Orlando area. 

The 85,000-square-foot hospitality building was constructed in 1986 on 28.3 acres in the Tourist Corridor submarket of Orange County. It is comprised of 1,641 rooms and suites with numerous guest amenities, including high-speed wifi, refrigerator, and spa-like bathroom with in-mirror television. 

The property offers on-site restaurant, 22,000-square-foot spa and fitness center, three swimming pools including a grotto oasis, serenity pool and lap pool. In addition, the property offers 315,000 square feet of customizable function space including ballrooms, meeting rooms, and conferencing facilities - the most of any Hyatt hotel in the country. 

The sellers recently completed a nearly $440 multi-year expansion and renovation at the property. As a result, Hyatt does not plan to invest significant capital in the near future. The company expects the hotel to generate $10 million of EBITDA in the fourth quarter 2013 and approximately $55 million throughout 2014. 

"We are thrilled to welcome a property of this caliber to the Hyatt Regency brand portfolio and look forward to providing Hyatt’s authentic hospitality to our loyal guests and customers," said Tom Smith, area vice president and general manager, Hyatt Regency Orlando. "We are committed to delivering a high energy experience for guests at Hyatt Regency Orlando and taking care of the details that will allow them to take care of business or recharge, whether they come to the hotel for meetings, as part of a convention or for vacation." 

Smith will take over as general manager at the hotel. Brian Comes will serve as the hotel's new manager, and Nate Hardesty will take over as director of sales and marketing. Donald Tompkins, Peabody Orlando's Duck Master, will retire this year as The Peabody reportedly hosted its final duck walk last month. 

 
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Virginia MacKoul

Virginia is a graduate from the University of Florida's College of Design Construction and Planning with a degree in Sustainability and the Built Environment, and a minor in Urban Regional Planning. Virginia joined the Front Street team in 2011, as an intern. Upon graduation, Virginia joined the Front Street team full-time as the Director of Client Services. Ms. MacKoul’s addition furthers Front Street’s continued growth and expansion within Gainesville and other North Central Florida markets. She was promoted to Director of Marketing in 2014 and now manages the firm’s team of interns and oversees all marketing and branding activity. Virginia was born in Boston and moved to Lee County, Florida in 1997. Virginia graduated her high school's International Baccalaureate program and started at the University of Florida with a focus on Architecture. Virginia shares Front Street's passion of giving back to the community and those in need. Virginia's hobbies include photography, cooking, football, movies, music, and spending time with her dog, Brinkley.

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