Hyatt Regency Tampa sells for $63 million

BUYER: 211 North Tampa LLC (principal: David Buddemeyer), North Palm Beach

SELLER: VEF IV Funding LLC

PROPERTY: 211 N. Tampa St., Tampa

PRICE: $63 million

PREVIOUS PRICE: $37 million, July 2000

LAW FIRM ON DEED: Levenfeld Pearlstein LLC, Chicago

PLANS, DESCRIPTION:
North Palm Beach-based Driftwood Hospitality Management LLC purchased the 521-room Hyatt Regency Tampa for $63 million.

The price equated to $120,921 per room.

The hotel, which features 30,000 square feet of meeting space, had an average occupancy of 63% heading into the sale. The property also includes the Avanzare restaurant and lounge, a heated outdoor pool, rooftop whirlpool, gift shop and fitness center.

Driftwood Hospitality plans to spend $13 million on improvements to the property to meet new brand standards as a Hilton hotel. The hotel will be renamed as Hotel Tampa - A Hilton Affiliated Property. Mike Diaz, COO at Driftwood Hospitality Management, says the hotel is also being improved to more effectively compete in the downtown Tampa market. The new owner plans to reconfigure the hotel's first floor, update the lobby and restaurant and develop a Starbucks storefront.

The first-floor lobby work is scheduled for completion by the second quarter. Guest rooms and meeting spaces will be refreshed in late 2013.

Diaz says Driftwood Hospitality was attracted to the property because of its pricing, prime downtown location and the ability to convert the property to a Hilton brand.

Driftwood Hospitality Management owns a total of 19 hotels with 4,636 rooms of which two hotels are located in Florida.