Noble Investment Group and Hyatt Hotels Corp. announced on Monday the creation of a new joint venture that will pump US$80 million into the development of Hyatt Place and Hyatt Summerfield Suites brand hotels.
Noble owns 60% and Hyatt 40% of the joint venture and as part of the agreement Hyatt sold six Hyatt Place and two Hyatt Summerfield Suites hotels to the new company called Hyatt Noble Development Joint Venture for US$110 million. US$5 million will be invested in renovating these eight properties while the rest will be used for new developments.
In addition, Noble will invest up to US$48 million in new Hyatt-branded select-service development projects. Noble now manages 21 full- and select-service Hyatts.
“The structure of this joint venture will enable us to increase our select service presence in market where our customers are traveling, even in an environment in which construction financing for new hotel projects remains scarce,” Steve Haggerty, Hyatt’s head of real estate and development said.
A timeline for the joint venture’s development activities has not been specified by either company. However, the joint venture is actively pursuing a number of new development opportunities, the first of which will be located in Atlanta’s Cobb Galleria area.
The six Hyatt Place hotels included in the deal are located in Atlanta; Minneapolis; Fort Worth, Texas; Fairlawn, New Jersey; and Princeton, New Jersey. The two Hyatt Summerfield Suites hotels are located in Boston and Miami.
