American Realty Advisors Provides Equity for Grand Hyatt Washington Recapitalization
- Nov 21, 2008
American Realty Advisors has provided preferred equity financing to an affiliate of Quadrangle Development Corp. for the recapitalization of the Grand Hyatt Washington, D.C. The investment was executed on behalf of one of American’s separate account clients. American Realty Advisors did not disclose the dollar amount of the investment. The hotel (pictured), built in 1987, underwent a full-scale guestroom, guest bath and corridor renovation in 2004, and a comprehensive renovation of the hotel’s meeting and ballroom areas was completed this year. The property includes 43,000 square feet of meeting space, five on-site dining options, and guest access to an adjacent fitness club with an indoor swimming pool and spa treatment rooms. The property’s location in Washington, D.C.’s East End means it is within walking distance of the U.S. Capitol, the White House, Verizon Center and Union Station. The timing of the Grand Hyatt’s spruce up is excellent. The U.S. hotel industry has struggled this year, due to the economic downturn. But hotels in Denver, site of this year’s Democratic convention, and Minneapolis, which hosted the Republicans, enjoyed significant increases in occupancies during these events. Washington, D.C.’s hotel are likely to fare even better on dates surrounding Jan. 20, 2009, the inauguration date of President-elect Barack Obama. According to several media reports, officials predict that as many as 4 million people could visit the city for the inauguration, and most hotel rooms in Washington are sold out. According to Destination DC, the Washington, D.C., tourism and convention organization, those hotels that still have vacancy are requiring a three or four night minimum stay.