Year After Little Rock Exit, Belz Enterprises Sells Stake In Orlando Peabody Hotel

Belz Enterprises, which owns the Peabody Hotel franchise, is downsizing once again.

The Memphis-based hotel group, which exited the Little Rock market last year, announced today that it will sell its stake with a partner in the Orlando hotel to Hyatt Hotels Corp. for $717 million.

The 1,641-room Peabody Orlando hotel is co-owned by Belz Enterprises and Estein & Associates USA, Ltd. The transaction is expected to close on October 1, 2013, and the hotel will be rebranded as Hyatt Regency Orlando Convention Center upon closing.

“This transaction brings us a very high-quality hotel in one of the most popular cities in the world and enhances the Hyatt Regency brand – already a leader in meetings and conventions – with a presence adjacent to one of the largest convention facilities in the U.S.,” said Stephen Haggerty, global head, real estate and capital strategy for Hyatt.

“We are confident that we will be able to build on the strong performance of this property through the depth and breadth of our relationships with meeting planners and corporate travel managers and the global strength of our brand. Orlando, the second largest hotel market in the United States, continues to benefit from strong demand from a variety of different types of guests,” he added.

Because the hotel recently completed a nearly $440 million multi-year expansion and renovation, Hyatt does not plan to invest significant capital in the near future.

Belz Enterprises is a multi-faceted real estate development and investment company located in Memphis, Tennessee. The company will continue to own and manage The Peabody hotel in Memphis, Tennessee.