To facilitate the expansion of the brand and raise capital, Hyatt is exploring the possibility of selling multiple properties including the Park Hyatt New York. The Salt Lake Tribune says that Hyatt is in “active discussions” on several properties. During last week’s 2nd quarter earnings call, Hyatt said:
“We’re active in discussions on a couple different situations on the disposition side and likewise, we’re continuing to see really interesting opportunities on the acquisition side”
The brand sold the NYC Andaz 5th Avenue back in June to Japan’s Takenaka Corporation for $250M. The paper quotes one industry senior analyst on the hotel chain’s strategy:
“I don’t think they are necessarily looking to sell the Park Hyatt in New York, but they would be open to that. They own assets around the world and really what they want to do is increase their brand presence in key markets, and if they can fund that by selling the Park Hyatt in Zurich or Chicago or Mexico City, and secure stable long-term management contracts on those,” then “that makes a lot of sense for them.”
Hyatt shared on the call that they plan to continue with their plan to sell properties while maintaining management contracts / franchise agreements, investing proceeds into new properties.