Hyatt Hotels (NYSE: H ) today announced plans to purchase the Peabody Orlando hotel from UST Hotel Joint Venture Ltd. for $717 million. Expected to close Oct. 1, the transaction will include rebranding the hotel as the Hyatt Regency Orlando Convention Center.
The purchase will give Hyatt its sixth branded hotel in Orlando. The company says it will be the company's first large convention hotel in the market. The 1,641-room Peabody Orlando recently completed a multiyear, $440 million renovation and expansion; Hyatt has no immediate plans to invest a significant amount of capital into the hotel.
Buying the Peabody "enhances the Hyatt Regency brand with a presence adjacent to one of the largest convention facilities in the U.S." said the company's global head of real estate and capital strategy, Stephen Haggerty, in a press release. "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 expects the hotel to generate approximately $10 million of EBITDA in the fourth quarter of 2013 and approximately $55 millionof EBITDA in 2014. As of June 30, Hyatt's worldwide portfolio consisted of 524 properties in 46 countries.