News Summary
OTO Development has acquired the Hyatt House Dallas/Uptown, a four-story, extended-stay hotel in Dallas located at 2914 Harry Hines Blvd. The hotel features 141 rooms, including suites with full kitchens and living spaces, catering to short and long-term guests. Plans for property updates have been announced to enhance guest experience. This marks OTO’s entry into Texas, while Xenia Hotels & Resorts recently sold the Fairmont Dallas hotel for approximately $111 million, indicating significant shifts in the Dallas hotel market.
South Carolina – OTO Development, part of The Johnson Group, has recently acquired the Hyatt House Dallas/Uptown, a strategically located four-story, extended-stay hotel situated at 2914 Harry Hines Blvd in Dallas. The acquisition, which was formally announced on Thursday, did not disclose the financial terms of the transaction.
The Hyatt House Dallas/Uptown features a total of 141 rooms, with a variety of options including studio, one-bedroom, and two-bedroom suites. Each of these suites is equipped with a full kitchen, a designated work area, and a living room space, catering to both short and long-term guests. The hotel also boasts amenities such as an outdoor pool, a fitness room, and a 24/7 business center, ensuring a comfortable stay for all visitors.
Following the acquisition, OTO Development has outlined plans for a comprehensive update of the property, with intentions to enhance guest rooms, shared spaces, and outdoor leisure areas. This acquisition marks OTO Development’s first venture into the state of Texas, and the company’s CEO has expressed excitement about the growth opportunities present in the Dallas-Fort Worth Metroplex.
In a related development, Xenia Hotels & Resorts, based in Orlando, Florida, has sold the Fairmont Dallas hotel for approximately $111 million. This move was prompted by necessary capital improvements and expected disruptions from the upcoming redevelopment of the Dallas convention center. The luxury hotel, which consists of 545 rooms, was sold at about $203,670 per room, representing a significant increase from a prior purchase price of $69 million in 2011.
The Fairmont Dallas has faced considerable capital expenditure requirements, estimated at around $80 million. Historically, the hotel has underperformed in terms of revenue per available room (RevPAR) and earnings before interest, taxes, depreciation, and amortization (EBITDA) compared to the overall averages within Xenia’s portfolio. Proceeds from this sale will be utilized for corporate purposes, including debt repayment, potential acquisitions, or share repurchases.
Both the acquisition of Hyatt House Dallas/Uptown and the sale of Fairmont Dallas illustrate significant shifts within the hotel industry landscape, particularly in a rapidly evolving market such as Dallas. OTO Development’s entry into Texas through the Hyatt House brand highlights the demand for quality extended-stay accommodations in growing urban areas, while Xenia’s divestiture of the Fairmont indicates a strategic refocus on maintaining a robust financial position and enhancing their portfolio quality through targeted sales and acquisitions.
Observers of the hotel industry will note that the Dallas area continues to attract significant investment, and developments like these play a crucial role in shaping the region’s hospitality landscape. As OTO Development moves forward with plans for the Hyatt House, the company aims to enhance the guest experience in line with the evolving preferences of travelers, making the area an increasingly desirable destination for both business and leisure travel.
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Author: STAFF HERE GREENVILLE
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