Los Angeles-based Ares Management Acquires Hyatt Regency Orlando

Los Angeles-based Ares Management Corp. acquired the 1,641-room Hyatt Regency Orlando and 45 acres of adjacent land from Hyatt Hotels Corp. for $1.07 billion on August 16. Ares acquired the property through a real estate fund in partnership with an affiliate of RIDA Development Corp. The acquisition was the largest single-asset transaction by Chicago-based Hyatt Hotels Corp. in the company’s history.

“We will continue driving the success of Hyatt Regency Orlando and thoughtfully expand our brand footprint in the most-visited destination in the U.S. with a new Grand Hyatt hotel,” said Mark Hoplamazian, president and chief executive officer of Hyatt, in a statement.

Hyatt Regency Orlando is the hotel chain’s fourth largest Hyatt hotel globally by room count and attracts more than one million guests and attendees on average per year. The property has a direct connection to the Orange County Convention Center and features 315,000 square feet of flexible event space on hotel grounds. RIDA and Ares will pursue approvals and other governmental support for the planned Grand Hyatt Orlando, which will be developed in multiple phases and have approximately 2,500 rooms upon completion. Hyatt intends to enter into a long-term management agreement for that hotel.

“Hyatt has established Hyatt Regency Orlando as a landmark of its community’s vibrant business and leisure activity, and we are excited to work closely with the Hyatt team and advance our partnership with RIDA to realize the potential of this important location,” said Andrew Holm, partner and Ares’ co-head of U.S. real estate investments, in a statement.