Inland Buys 2 Andaz Hotels in California, Georgia for $115M
- Sep 24, 2013
Inland American Lodging Group, Inc., a wholly owned subsidiary of Inland American Real Estate Trust, Inc., Oak Brook, Ill., has acquired two Andaz hotels from Hyatt Hotels Corp. for about $115 million, the two parties announced late Friday. A Hyatt affiliate will continue to manage both properties.
The hotels, in Napa and Savannah will be the second and third Andaz properties in Inland American’s portfolio, following the purchase of the Andaz San Diego earlier this year for $53 million.
Each of the two was built in 2009 and rebranded as an Andaz in 2012.
The five-story Andaz Napa features 141 rooms, including 89 lofts and suites. The property also offers 6,800 square feet of meeting and event space, part of which is a 4,200-square-foot outdoor terrace. The hotel is in downtown Napa’s West End district near shopping, dining and entertainment venues.
The Andaz Savannah features 151 rooms on six floors, including 68 lofts and suites, and 6,700 square feet of meeting and banquet space. The property is in Savannah’s historic district, within walking distance of major attractions including historic neighborhoods, the City Market and Boughton Street.
The name “Andaz” reportedly is a Hindi word meaning “personal style.” According to the brand’s website, each Andaz hotel “features indigenous designs capturing the sights, sounds and tastes of its surrounding area,” as well as “regional cuisine and locally sourced fresh ingredients.”
“This transaction allows Hyatt to retain its brand and management presence in the Savannah and Napa markets and furthers our capital recycling strategy,” Stephen Haggerty, Hyatt’s global head, real estate and capital strategy, said in a release.
Sales of significant hotel properties dipped nearly 50 percent year over year in July, the first decline in a year, according to an August report from Real Capital Analytics.
The good news for sellers, per the report, is that hotel prices are up strongly across the country, rising 12.6 percent in the first half of this year, though this has been most prominent in the largest U.S. metro areas.
Cap rates for full-service hotels in tertiary Southeastern markets average 8.6 percent and those in tertiary West Coast markets average 8.3 percent, versus a national average of 7.7 percent, according to RCA.