Newport Beach, CA – November 2, 2015 — Maxim Hotel Brokerage is pleased to announce the sale of the 656-room Hyatt Regency Orange County, located on Harbor Boulevard in Garden Grove, California. Maxim Hotel Brokerage represented the purchaser, SCG America. The purchaser is an established and locally based subsidiary of one the largest construction companies in China and the world, with 20 years of experience in the US and significant holdings in NY and the LA area. This acquisition will be a cornerstone of their holdings in the western United States.
The property sold for $137 million by United States real estate investment trust Xenia Hotels & Resorts, which was represented by Eastdil Secured. According to Harry Pflueger, Principal with Maxim Hotel Brokerage, “The Hyatt represented an extraordinary opportunity to invest into a world-renowned destination market that is anticipating a strong upswing from the convention center expansion and recently announced Disney theme park expansion. The Hyatt offered immediate, stable cash flow with some future development upside. The purchaser was selected due to its financial strength and local market knowledge, resulting in a strong certainty to close this transaction.” Greenburg Traurig shareholder Eudeen Y. Chang, who led the legal team on the acquisition noted, “SCG America’s local team and 20 years of experience doing business in the US were tremendous assets that set SCG America apart from many other Chinese investors.”
Built in 1986, the Hyatt Regency Orange County is a Class-A, 656-room, 16/17-story high-rise structure with an atrium lobby area. With over 77,000 square feet of meeting space and an abundance of suites, the hotel is able to attract significant group business and also appeal to families in the Grove District Anaheim Resort Area destination market. The hotel will remain branded and managed by Hyatt Hotels. The large 9.4 acre lot offers further potential development possibilities. Manhattan Hospitality Advisors and Greenburg Traurig LLP were part of the purchaser’s advisory and legal team.
