Best in Texas™: San Antonio Hyatt Regency Riverwalk sold by ALEX.realestate

by swpre-chime-me

ALEX just published a summary of Connect CRE‘s “Sunstone Pays $230M for Riverwalk Hotel.” This is the largest hotel acquisition in Greater San Antonio so far in 2024.

Sunstone Hotel Investors bought Hyatt Regency San Antonio Riverwalk for $230 million. The 630-room hotel, situated between San Antonio’s Riverwalk and the Alamo, underwent a recent $37 million renovation. Hyatt will manage the property and contribute $8 million. The deal values the hotel at $352,000 per key with a favorable financial outlook.

Acquisition Overview

Acquirer: Sunstone Hotel Investors
Target: Hyatt Regency San Antonio Riverwalk
Gross Purchase Price: $230 million
Location: Situated between San Antonio’s Riverwalk and the Alamo
Seller: Affiliate of Hyatt

Property Details

Size: 630 rooms
Land Area: Nearly two acres of riverfront land
Additional Assets: 516-space parking garage
Strategic Location: Adjacent to the Alamo Visitor Center and Museum
Recent Renovation: $37 million guestroom renovation completed
Management: Hyatt to continue managing under the Hyatt Regency brand
Key Money Contribution: Approximately $8 million from Hyatt

Financial Analysis

Net Purchase Price: Reflects incentives offered by Hyatt
Value per Key: Approximately $352,000
Multiples:
- 11.1x multiple on the midpoint of estimated 2024 hotel EBITDA
- 8.0% capitalization rate based on the midpoint of projected hotel net operating income

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Alexander Tiffany Southwest dba ALEX.realestate
v 713.591.9902
e diane@alex.realestate

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