ORLANDO, FL—Xenia Hotels & Resorts Inc. has acquired the Hyatt Regency Grand Cypress from an affiliate of Hyatt Hotels Corporation for a purchase price of $205.5 million (approximately $252,000 per key). The acquisition was funded with cash available on Xenia’s balance sheet and its senior unsecured credit facility.
“The acquisition of Hyatt Regency Grand Cypress represents a unique opportunity to increase our presence in the Orlando market, a market we know extremely well and believe to be poised for long-term growth due to a favorable supply and demand outlook,” said Marcel Verbaas, president and CEO of Xenia.
The 815-key convention resort has six F&B outlets; more than 65,000 sq. ft. of indoor and outdoor meeting and event space; a full-service spa; preferred access to 45 holes of Jack Nicklaus signature-designed golf courses; and other amenities.
Backed by the Hyatt Regency brand, the hotel has received roughly $32 million in capital investment over the past 5 years, including improvements to the public spaces, F&B outlets, as well as to the exterior and back-of house. Xenia plans to position the hotel to capture additional revenue and market share through a renovation of the guestrooms and existing meeting space, as well as the addition of a new ballroom.
The hotel will continue to be managed by Hyatt, which has managed the property since its opening in 1984.