The Chartres Lodging Group, has completed its purchase of the 910-room Adam’s Mark Hotel St. Louis from HBE Corp., of St. Louis. The property will be renovated and repositioned as the Hyatt Regency St Louis Riverfront to serve as a signature group and convention-oriented destination hotel for the St. Louis market. Goldman Sachs’ Whitehall Street Global Real Estate Fund participated as the majority equity stake in the transaction.
The downtown St. Louis hotel, located at the base of the Gateway Arch, will undergo an anticipated $63-million, building-wide renovation intended to build upon the strong St. Louis legacy originally developed by HBE owner Fred Kummer. The hotel will be the second Hyatt Regency hotel for the expanding St. Louis business, convention and leisure visitor market. Hyatt assumes management of the property now as an Adam’s Mark until the rebranding in Spring 2008, while final project completion is expected later this year.
The Chartres Lodging Group was formerly known as Oxford Lodging Advisory and Investment Group, but changed its name back to its original identity last month as part of a company recapitalization and to differentiate it from its previous partners.
The company’s partnership with the Hyatt Regency Riverfront in St. Louis will be patterned after a similar successful venture in Jacksonville, Fla. In March 2005, a Chartres-led investment group acquired the 966-room Adam’s Mark Jacksonville Hotel from HBE Corp., and has since transformed it into the Hyatt Regency Jacksonville Riverfront through a multi-million-dollar renovation that created one of Northeast Florida’s most elegant waterfront convention hotels.
“We’re bullish on the future of St. Louis as a business, convention and leisure destination,” explained Rob Kline, Chartres Lodging president. “Chartres Lodging has a strong track record of working with Hyatt to renovate and reposition high-profile, city-center hotels - and we’re especially fortunate to be able to build upon HBE’s strong presence in St. Louis.”