Strategic Hotels & Resorts to Sell Hyatt Regency New Orleans
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Strategic Hotels & Resorts to Sell Hyatt Regency New Orleans
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Category: North America & West Indies / Carribean islands -
This is a press release selected by our editorial committee and published online for free on 2007-10-18
Strategic Hotels & Resorts, Inc. has signed an agreement to sell the Hyatt Regency New Orleans to Poydras Properties Hotel Holdings Co., LLC for $32 million, of which $3 million is in the form of a promissory note payable in six years. The transaction, subject to certain contingencies, is scheduled to close by year end.
The 31-story atrium hotel property is located in the Central Business District, adjacent to the Louisiana Superdome. With 1,184 rooms, the Hyatt Regency New Orleans is one of the largest hotels in the Hyatt chain.
Strategic Hotels & Resorts acquired the Hyatt Regency New Orleans from The Prudential Insurance Company of America in 1997. The property was taken out of service after sustaining significant damage from Hurricane Katrina in August, 2005. In August 2007, the company reached an agreement with its insurers to settle its claim for $143 million, net of deductible.
Strategic was instrumental in stewarding a master plan to redevelop the post-Katrina Hyatt-Superdome area into a 20-acre performance arts park anchored by a National Jazz Center. Strategic CEO Laurence Geller said the architectural plans designed by award-winning architect Thomas Mayne will be donated to the National Jazz Center in anticipation that the vision will one day be realized.
"The sale of this hotel concludes two years of effort after the devastation of Hurricane Katrina," Geller said. "We continue to be great supporters of New Orleans and the Hyatt, and our wish is that the innovative and revitalizing plans for the Hyatt Jazz District and the National Jazz Center become a reality."
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