Dune Capital Management and DiNapoli Capital Partners have teamed up to acquire the Hyatt Regency San Francisco at Embarcadero Center. Transaction details were not disclosed, but the firms reportedly paid $200 million (€154 million) for the hotel.
The seller of the 800-room hotel was Strategic Hotel Capital, a private group owned by investment bank Goldman Sachs.
“The acquisition represents a unique opportunity for us to acquire a landmark asset in an irreplaceable location in Downtown San Francisco,” Dan Neidich, the co-chief executive officer at Dune Capital Management, said in a statement. “The continued improvement in the local economy and lodging fundamentals in San Francisco, coupled with attractive opportunities to reinvest capital into the property, make this an exciting opportunity for Dune and our investors.”
Late last year, Dune teamed up with Los Angeles-based private equity real estate firm Colony Capital to acquire the Xanadu Meadowlands, a retail and entertainment project adjacent to the Meadowlands Continental Arena in New Jersey.
Dune was founded by Neidich, Chip Seelig and Steve Mnuchin, all former pros at Goldman. Neidich was the founder of Goldman’s proprietary private equity real estate arm, known as Whitehall. Dune closed its debut private equity real estate fund last year on $727 million.
DiNapoli was founded by F. Matthew DiNapoli, a founding principal at Maritz-Wolff Hotel Equity Funds, and focuses on commercial and hotel real estate.