AREA Property Partners, the New York-based private equity real estate firm, has purchased three hotels in Chicago for $51 million via a joint venture with Dallas-based Aimbridge Hospitality, the hotel investment management business.
AREA, formerly Apollo Real Estate Advisors, announced today it had acquired three Hyatt branded hotels, namely the Hyatt Lisle, the Hyatt Deerfield and the Hyatt Rosemont, near to Chicago’s O’Hare Airport.
Lee Neibart, AREA’s global chief executive officer, said: “These Hyatt properties constitute a strategic acquisition as the hospitality sector continues to rebound. All are in convenient Chicago area locations with a high volume of traffic and offer significant potential going forward.”
Under the joint venture arrangement between the two firms Aimbridge will operate the hotels, which will continue to be managed under the Hyatt brand. AREA said that in addition to the acquisition cost, there was a further $13.5 million allocated for ‘ongoing capital improvements’.
AREA, founded in 1993, has launched multiple funds and joint ventures since its inception, comprising $13 billion in equity commitments. Aimbridge owns and manages more than 60 hotels, comprising more than 11,000 rooms across the US and the Caribbean.