TAMPA, FL—The 521-room Hyatt Regency has a new owner. AREA Property Partners sold the hotel to Driftwood Hospitality Management. Driftwood plans to invest $13 million in renovations.
HFF marketed the Hyatt on behalf of the seller, AREA Property Partners. senior HFF managing director Daniel Peek, along with associate directors Paul Hsu and Max Comess and senior real estate analyst Cyrus Vazifdar, worked on the deal.
“The Hyatt sale is further evidence to the recovery of the Tampa Bay market and the expectations for future growth,” Peak tells GlobeSt.com. “Hotel and other commercial real estate transaction volume and pricing are clearly on the rise in the region.”
Located at 211 North Tampa Street in Downtown Tampa, the hotel features a restaurant and bar, 30,000 square feet of meeting space, heated outdoor pool, rooftop sundeck, fitness center and gift shop. Following a renovation, the hotel will be rebranded as a Hilton.
“While the Hyatt Regency was for years a high profile asset on the Tampa skyline, the pending conversion to a Hilton is an exciting aspect of this transaction for the downtown market,” Peak says. “The property was a key component of the redevelopment of downtown Tampa and now sits in the center a dynamic and expanding central business district.”
This hotel acquisition marks Driftwood’s re-entry to the Tampa market, which has seen significant growth in 2012 with RevPAR and ADR up 19% and 14%, respectively, in the third quarter alone.
“We are excited to return to the Tampa market and believe this property is poised for success with terrific core offerings and a central location that appeals to business and leisure travelers alike,” says Mike Diaz, Chief Operating Officer of Driftwood. When complete, the location will be home to Tampa’s newest Starbucks and will feature a variety of other new amenities.