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Singapore May Take Minority Stake in La Jolla Hyatt

If a joint venture agreement becomes final in the third quarter, as expected, a real estate investment company connected to Singapore’s government will become a minority owner of the posh, 419-room Hyatt Regency La Jolla at Aventine.

Strategic Hotels & Resorts of Chicago announced recently that it has entered into an agreement with GIC Real Estate Pte. Ltd., the real estate investment company of the Government of Singapore Investment Corp. Pte. Ltd., to acquire a 49 percent interest in two of Strategic’s hotels, the Hyatt Regency La Jolla and 792-room InterContinental Chicago. The transaction is valued at $450 million.

Strategic, which would hold a 51 percent interest in the properties, would be the asset manager and receive fees for that and other services under the agreement.

“This transaction exemplifies one of our stated strategies of seeking partial liquidity for assets that have reached the mature phase of their life cycle, while allowing us to benefit from further cyclical upside, identified longer term redevelopment opportunities, a recurring stream of fee income and incremental profit-sharing opportunities,” said Laurence Geller, Strategic’s president and chief executive officer.

The Hyatt Regency La Jolla has 34,000 square feet of meeting and function space, as well as food and entertainment outlets, including Caf & #233; Japengo, the 32,000-square-foot atrium style Sporting Club and Spa and an Olympic-size lap pool. Strategic has ownership interests in 20 properties with an aggregate of 10,033 rooms.

, Connie Lewis

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