Date: June 2018
Location: Santa Barbara, California, USA
Name: Hyatt Centric Santa Barbara – 4 star
No. of Keys: 200
Seller: Chesapeake Lodging Trust announced that it has entered into an agreement to sell the Hyatt Centric Santa Barbara located in Santa Barbara, California, subject to customary pro-rations at closing.
Completion of the proposed sale is expected to close within the next 60 days, subject to customary closing requirements and conditions.
Built in June of 1931 by Fred Bartholomew, the Vista Mar Monte was a dream hotel structured in an idyllic spot. The current name of this historic beauty is Hyatt Centric Santa Barbara, and it stands still today as one of the best historic hotels California has to offer.
When building his hotel, Bartholomew focused on a Spanish motif throughout, including the furniture and fixtures. He also highlighted the spot’s natural beauty by providing every room either a view of the ocean or mountains beyond.
In an interview during construction, he proclaimed, “there will be nothing finer on the coast,” and he held true to his word. This hotel was one of his dreams.
The Trust acquired the Hyatt Centric Santa Barbara in June 2013 for $61.0 million, or $305,000 per key.
In April 2016, Chesapeake sold a separate, five-room villa building and related land parcel at the Hyatt Centric Santa Barbara for $2.1 million to an unrelated buyer.
The $90.0 million sale price represents a 5.4% trailing twelve month NOI cap rate and is expected to produce a 15.3% unlevered IRR over the Trust’s ownership period.
Chesapeake Lodging Trust is a self-advised lodging real estate investment trust (REIT) focused on investments primarily in upper-upscale hotels in major business and convention markets and, on a selective basis, premium select-service hotels in urban settings or unique locations in the United States.
The Trust owns 21 hotels with an aggregate of 6,479 rooms in eight states and the District of Columbia. In November 2017, they sold the 222-Room Hotel Minneapolis, Autograph Collection for $46 Million
Price per Key: $450,000
THPT Comment: Buy for $60m, sell for $90m five years on for $90m plus $2m in 2016…not a bad day’s work.
First Seen: Hotel Online