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With Donald Trump jettisoned as its partner, Hyatt Hotels Corp. is intensifying efforts to hang more of its flags in New York.
The company, owned by the Pritzker family, last week agreed to pay Mr. Trump a generous $140 million to buy his half-share in the Grand Hyatt on 42nd Street and end a 17-year-old noncompete clause. Immediately thereafter, Manhattan real estate brokers began getting calls from scouts working on Hyatt's behalf.
"We see a great deal of vitality in the Manhattan market," says Alex Alexander, division vice president in New York for Hyatt. But he declines to be specific about the company's plans.
Real estate brokers say the hotel may have a hard time finding candidates that fit its needs: properties that have at least 300 rooms.
"There's not much out there that fits the bill for Hyatt," says Sean Hennessey, vice president with Hotel Partners, a real estate firm.
What is available is getting pricier. Strong occupancy and increasing room rates have ended discounting in the market. Aided by a dearth of properties, hotel real estate has increased by as much as 25% in the past year. Although the prices don't match the levels of the frenetic 1980s, they are continuing to climb.
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