SAN DIEGO The previously announced acquisition of the 1,625-key Manchester Grand Hyatt in San Diego has been cancelled.
An attorney representing hotel owner Doug Manchester says would-be buyer Sunstone Hotel Investors has made “material changes” to the terms of the proposal, causing Manchester to terminate the deal. The exact changes have not been made public.
The sale price had been reported at US$580 million, or US$357,000 per guestroom.
Analyst David Loeb with Robert W. Baird & Co. says investors likely “cooled” on the transaction in the month since it was first announced. However, Loeb says it is possible Sunstone or another hotel REIT may approach Manchester at a later date about restarting negotiations.
This is the second time this year that a deal for the hotel has fallen through. Manchester had been in talks with Hyatt Hotels Corp. to trade a majority stake in the hotel for stakes in Hyatt properties in Atlanta and Chicago, but those negotiations ceased prior to Sunstone showing interest.