Sunstone Hotel Investors Inc. based in Aliso Viejo, California, completed its agreement to acquire the 630-room Hyatt Regency San Antonio Riverwalk in San Antonio, Texas. It is situated directly between the city’s famous San Antonio River Walk and The Alamo, two of the most visited tourist sites in the state. The acquisition, completed in April, also includes nearly 2 acres of riverfront land and a 516-space parking garage.
“This is the best-located hotel in the city, situated in the heart of the River Walk, at the front door of The Alamo, and steps away from the convention center,” says Bryan Giglia, CEO of Sunstone Hotel Investors, in a prepared statement. “Our premiere location allows the hotel to benefit from an attractive combination of group and transient demand in a market that continues to experience positive demographic shifts, increasing hotel demand, and a business-friendly backdrop. The hotel has been recently renovated and is in great shape with minimal near-term capital needs but has opportunities to drive additional earnings over the long term.”
The company announced in its recent first quarter report that the purchase was completed for a contractual price of $230 million, part of which was funded from a redeployment of a portion of the proceeds received from Sunstone’s sale of the Boston Park Plaza (now Hilton Boston Park Plaza) in Massachusetts last October. Hyatt will continue to manage the hotel under the Hyatt Regency brand and will contribute approximately $8 million as part of the transaction, subject to the terms of the investment company’s management agreement with Hyatt.
The Hyatt Regency San Antonio Riverwalk recently completed a $37 million renovation of its 602 guest rooms and 28 suites, and The Alamo nearby is currently undergoing a transformation that will include a new museum and visitor center. The hotel is conveniently located less than 1 mile from the Henry B. González Convention Center for the ease of planners and attendees.
