Strategic Hotels & Resorts Inc. To Sell Property
In 1989, a mixed-use Aventine development was constructed near Interstate 5 in La Jolla. At 3777 La Jolla Village Drive, part of that development was turned into the 417-room Hyatt Regency La Jolla.
It has been the property of Strategic Hotels & Resorts Inc., a real estate investment trust based out of Chicago, Illinois. Strategic Hotels' portfolio consists of 18 US properties—all high-end resorts and high-end hotels—for a total of 8,325 rooms. One of its other holdings is Hotel Del Coronado.
Strategic Hotels & Resorts Inc. has had control of this La Jolla property, but is now putting this Hyatt Regency up for sale. Officials at Strategic Hotels are working with another Chicago-based company, Walton Street Capital LLC, and JMA Ventures LLC based out of San Francisco, to sell 100 percent interest of the Hyatt Regency for $118 million. At present, Strategic Hotels owns 53.5 percent interest.
This transaction is expected to close in the second quarter of 2015. When it does, Walton Street Capital and JMA Ventures will retire $89.2 million of the hotel's debt. Strategic Hotels Chairman and CEO Raymond Gellein has said that the intention to sell the property lines up with their business plan to de-leverage their balance sheet and allocate capital in a disciplined manner.
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