Orlando Hotel Sold for $717 Million

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A subsidiary of the Hyatt Hotels Corporation plans to purchases the 1,641-room Peabody hotel in Orlando, Florida for $717 million from UST Hotel Joint Venture, Ltd.

The Hyatt Regency Orlando Convention Center will be the sixth Hyatt-branded hotel in Orlando. Hyatt does not expect to invest significant capital in the property, since it recently completed an almost $440 million expansion and renovation. The property currently has more than 200,000 square feet of meeting space.  

The company expects the hotel, which is attached to the Orange County Convention Center, to generate approximately $10 million of earnings before interest, taxes, depreciation, and amortization (EBITDA) in the fourth quarter of 2013 and approximately $55 million of EBITDA in 2014. 

The deal is expected to close on October 1, 2013. The joint venture selling the hotel is comprised of affiliates of Belz Enterprises and Estein & Associates USA, Ltd.