Leading global hotel chain,
Hyatt Hotels Corporation
) recently declared the acquisition of The Driskill Hotel under
Destination Hotels & Resorts brand in Austin, Texas. This
property was purchased from Lowe Enterprises Investors for an
upfront payment of $85 million.
Post the acquisition, Hyatt is now managing the operation of
the hotel. Established in 1886, The Driskill Hotel is ideally
positioned near the Central Business District, the Texas State
Capitol and the Austin Convention Center. The hotel is also
adjacent to the 6
Street Entertainment District, the Warehouse District and 2
Street Retail District. The Driskill Hotel's comprehensive
services, high historical values and ideal location make it a
lucrative acquisition target.
Hyatt has taken a two-year refurbishment initiative to restore
the acquired property with 189 guestrooms. Hyatt is also planning
to invest nearly $8 million for this renovation.
With this acquisition, Hyatt will strengthen its position in
the rapidly-growing market of Austin. Hyatt has also recently
launched a Hyatt Place branded hotel, Hyatt Place Austin Downtown
However, the market at Austin is not totally devoid of
competition. To tap the growing potential, many other hoteliers
Marriott International Inc.
Starwood Hotels & Resorts Worldwide Inc.
) are also making their presence felt in the market.
Hyatt currently owns and operates 500 properties across 46
countries. At the end of Dec 31, 2012, Hyatt penned a record
number of franchise and management agreements to develop 200
Hyatt currently retains a Zacks Rank #3 (Hold). Another hotel
stock worth a look is
Choice Hotels International Inc.
) which carries a Zacks Rank #2 (Buy).
CHOICE HTL INTL (CHH): Free Stock Analysis
HYATT HOTELS CP (H): Free Stock Analysis
STARWOOD HOTELS (HOT): Free Stock Analysis
MARRIOTT INTL-A (MAR): Free Stock Analysis
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