Hyatt Regency Acquisition is a Huge Deal
NEW ORLEANS – ERG Enterprises, a New Orleans-based investment company, announced it will be one of the partners acquiring the Hyatt Regency New Orleans, a 1,193-room luxury hotel in downtown New Orleans. ERG said the sale is the largest hotel acquisition in Louisiana history and this is the first time the Hyatt Regency will fall under local majority ownership.
For the purchase, ERG joined the local ownership team of Gayle Benson and her investment company GMB Properties and the Berger Company, owned by longtime local developer Darryl Berger. Fulcrum Hospitality, located in New Jersey, is also an investor in the property. ERG will assume minority ownership in the hotel, which will continue to be managed by Hyatt Hotels. The ownership team plans to invest $20 million to make enhancements over the next few years.
“The opportunity to partner with Ms. Benson and the Berger Company is a privilege. It was important to all of us to bring this major New Orleans asset back into local ownership and control,” said ERG CEO Eric George. “We believe this investment reflects our focus on luxury properties that provide exceptional customer experiences.”
Established in 1976, the 32-story Hyatt Regency is the third-largest hotel in New Orleans. Its proximity to the Superdome and Smoothie King Center makes it an attractive destination for events. The sale by previous owners Poydras Properties Hotel Holdings Co. was first reported in April of this year. The purchase bolsters ERG’s current investment portfolio, which now exceeds more than $1 billion in assets.
The investment reflects the company’s significant focus in the hospitality market. ERG is also an owner of Windsor Court Hotel, Omni Royal Orleans, Westin Canal Place, the Pontchartrain Hotel, Thompson Nashville, Frenchmen Hotel, and Rampart Hotel. Its long-time partner, The Berger Company, is also co-owner of several properties. Outside of hospitality, ERG maintains diversified investments in education, technology, consumer goods, transportation, real estate, agriculture, health care and entertainment.