BETHESDA, MD—The Meridian Group closed on the purchase of the Hyatt Regency Bethesda from LNR Partners LLC, with plans to reposition the hotel. The purchase price was not disclosed.
The property features 390 guestrooms, 20,000 sq. ft. of meeting space and two restaurants leased to third-party restaurant operators—Morton’s of Chicago and The Daily Grill. Additional amenities include a lounge, heated indoor pool and whirlpool on the rooftop, exercise room, business center and gift shop. The full-service hotel sits atop the Bethesda Metro station, a short distance from the Central Business District in Washington, DC.
The hotel is under a management agreement with Hyatt Hotels Corp. until Dec. 31, and then Meridian will have the option of rebranding the asset. Meridian has retained Highgate Hotels, a hospitality management company, to manage the property after the expiration of the Hyatt management agreement. A sister company of Highgate is investing along with Meridian.
Renovation plans include upgrades to the lobby, guestrooms and bathrooms; a complete replacement of draperies, carpeting and linens; lobby and common corridor enhancements; and changes to the hotel’s amenity package.
Meridian previously owned the hotel with several different partners from 1999 to 2010. It is acquiring the hotel through its discretionary real estate fund—Meridian Realty Partners II.
“This was an opportunistic acquisition for us that aligns well with our investment strategy,” said David Cheek, president and cofounder of Meridian. “We look forward to substantially upgrading the hotel and making it the best hotel in Bethesda.”