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JMI Buys Hyatt

Denver

Believe it or not, JMI Realty's purchase of the Hyatt Regency Denver Tech Center still gives the new owner some wriggle room for value-add.

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This week, Texas-based JMI purchased the 451-room four star hotel for $60M from Hyatt Hotel Corp. (Hyatt paid $50M for the hotel in the '90s.) JMI's Greg Clay says, "Denver is in the midst of a really strong recovery, and we are confident that the Hyatt Regency Denver Tech Center can take advantage of that."

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So, why value-add? HREC CEO Mike Cahill (who brokered the sale for Hyatt along with Geoff Davis) tells us Hyatt spent $5M in renovations at the beginning of the year. But for JMI, the company plans to add meeting space. JMI is installing Davidson Hotels & Resorts to manage the property.


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"I would still say there's more demand for hotels than there is product to buy," Mike tells us. For the Hyatt, HREC only presented the opportunity to a "limited group of investors" (some 200 groups) and received 15 first-round offers. (We should do the same thing with this couch we're trying to move. Sorry, Craiglist. You have too many buyers.) HREC has been averaging about 75 hotel listings a month. Most recently, Mike has brought aResidence Inn (above) and a Marriott Courtyard just outside Las Vegas to market.