The total
purchase price may increase to $100 million if certain performance thresholds
are achieved at the hotel. A Hyatt affiliate will continue to manage the hotel
under a new management agreement.
“We are
pleased to add this high-quality property, situated in a prestigious California
market, to our growing portfolio of upper-upscale hotels,” stated Marcel
Verbaas, president and CEO, Inland American Lodging Advisor, Inc. “The Silicon
Valley lodging market benefits from a collection of high-tech companies in the
immediate area, nearby world-class universities and a highly-educated
workforce, and is projected to experience robust growth over the next several
years.”
In addition
to its 60,000 sq. ft .
of flexible meeting space and direct connection to the 302,000-sq.-ft.
convention center, the hotel is within a mile of Levi’s Stadium, a 1.9
million-sq.-ft., state-of-the-art sporting and entertainment venue that is
currently under construction and slated to be completed in 2014. The new home
of the San Francisco 50 in early 2016.
The property
is being acquired subject to a long-term ground lease and related agreements
with the city of Santa Clara
“This
transaction allows us to recycle capital that can be deployed for growth while
continuing to serve the guests who have enjoyed and come to rely on our
authentic hospitality at Hyatt Regency Santa Clara for eight years,” stated
Steve Haggerty, global head, real estate and capital development for Hyatt. “We
are delighted to deepen our relationship with a well-established,
well-respected owner who plans to further invest in the hotel in the years
ahead.”