SAN DIEGO, July 5, 2001 (PRIMEZONE) -- Manchester Resorts, one of San Diego County's largest hotel and commercial developers, today announced the completion of a $230 million loan to fund the expansion of its flagship property -- the Hyatt Regency San Diego.
The loan, funded by TIAA--CREF and the New York State Teachers Retirement fund, is the largest financial offering in the United States backed by a single asset. And, it is believed to be the only such deal not subsidized by taxpayer dollars.
Construction began today and is expected to be complete in the summer of 2003. The planned expansion calls for the construction of a 33-story, 750-room tower. With a combined 1,625 rooms once completed, the facility will become a headquarters hotel critical to attract large convention opportunities, complementing the newly expanded San Diego Convention Center.
"We are absolutely thrilled that our financing is in place and that we are ready to move forward with a project that is not only important to Manchester Resorts, but also integral to bolstering San Diego's tourism and convention economy as well as the vitality of the city's Waterfront," said, Jim Bailey, Manchester Resorts' chief executive officer.
Civic leaders share that sentiment. Frank Urtasun, chairman of the board at the Port of San Diego, called the completion of financing a "grand achievement," and noted that "the new Hyatt Hotel tower will have a positive impact on the newly expanded Convention Center."
Dan McAllister, treasurer of the San Diego Convention Center Corporation, added that, "We are truly excited and invigorated with the prospect of the second Hyatt tower coming online at the earliest possible date. While we recognize it has been a difficult road to find the elements to make this all possible, we give credit to Manchester Resorts for its dogged pursuit of this important addition to our convention and visitor family."
The project will employ 200 construction workers for approximately two years. Once completed, the hotel's new tower will add about 750 staff to the approximately 800 people already employed by the Hyatt, as well as generate $9 million in rent to the Port of San Diego per year.
Manchester Resorts representatives, including Bailey and Peter Litrenta, senior vice president, will outline the details of the financing, and talk about the hotel expansion and its impact on San Diego County at a news conference at the Hyatt Regency in the Windsor Room at 11:00 a.m. this morning.
Loan Details
Manchester Resorts has secured a $230 million loan with funds made available through TIAA-CREF (Teachers' Insurance and Annuity Association-College Equity Fund) and the New York State Teachers' Retirement System (NYSTRS).
In addition, Manchester Resorts is investing $270 million, including $43 million in construction expenses, plus the $227 million in equity the company has already paid-off on the original hotel property. Thus, the value of the completed property will be $500 million.
Of the $230 million loan, $123 million will be used to repay the existing tower mortgage, and $107 million will go toward the construction loan for the new tower.
The Hotel Expansion
Situated on 3.29 acres adjacent to Seaport Village and west of the existing Hyatt, the new tower will provide 750 rooms, in addition to meeting rooms and complementary hotel services. The hotel's two towers will be connected by a new central lobby, as well as a 30,000-square-foot ballroom and a 34,000-square-foot exhibit hall. With the expansion, the Manchester Grand Hyatt will offer a total of more than 120,000 square feet of meeting space. The Hyatt expansion will protect and enhance existing public view corridors and public access, as well as fulfill the desire for pedestrian-oriented gathering places.
In addition, Manchester Resorts will contribute $500,000 toward the creation of a new central park at the old police station site northwest of the property, further enhancing the area's attractiveness for visitors and residents alike.
The architect for the expansion, Martinez+Cutri Architects, has designed a new tower that will feature a 72-seat lounge and a 25,000-square-foot swimming pool deck. The new tower's facade will complement that of the existing Hyatt tower.
The general contractor for the project is Clark Construction, known as one of the nation's most experienced and respected general contractors.
Bailey commented, "With the design work of Martinez+Cutri, coupled with the proven abilities of Clark Construction, we are confident that we will meet our development milestones, creating an invaluable contribution to San Diego."
In addition to Clark and the architects, the project subcontractor team includes Dyna Electric, A.O. Reed , R.E. Staite, Otis Elevator, and Morley Concrete, among others.
About Manchester Resorts
Manchester Resorts designs, develops and manages high-quality commercial properties in the western United States, primarily focusing on the San Diego region of California. For more than 30 years, Manchester Resorts has been a part of San Diego's evolving landscape from the city's role as a primarily Navy port to its newfound prominence as a thriving international destination -- playing a critical role in preserving the beauty of the environments it builds in, enriching the lives of the community's residents as well as enhancing the economic vitality and quality of life in those communities. In addition to the Hyatt, some of Manchester Resorts' landmark properties in San Diego include: the San Diego Marriott Hotel and Marina; First National Bank Building; Torrey Pines Business and Research Park; Torrey Executive Centre and Torrey Financial Building; Manchester Resorts corporate offices are located at One Market Place, San Diego, California, 92101, and can be reached at (619) 231-3800.