A Chinese construction company has just bought the Hyatt Regency Orange County in California's Garden Grove for $137 million.
SCG America, the U.S. arm of the giant Shanghai Construction Group, acquired the 656-room hotel from the Xenia Hotels & Resorts real estate trust, which paid $112 million for the hotel in 2008.
The Chinese company was reportedly interested in the cash flow from the hotel’s operations, as well as development potential on the 9.4- acre site, said Harry Pflueger, a principal with Maxim Hotel Brokerage, which helped SCG with the deal. Pflueger also suggested that the hotel would profit from the planned expansions of both nearby Disneyland and the Anaheim Convention Center. The hotel has been 77 percent full this year with an average room rate of $154 a night.
“The market’s very hot,” said Pflueger, referring to the pace of California hotel deals. “Nobody has a perfect crystal ball, but there’s a pretty good three-year landing strip to this cycle.”