ERG Enterprises Joins GMB Properties, the Berger Company, Fulcrum Hospitality in Acquiring Hyatt Regency New Orleans
ERG Enterprises, a New Orleans-based investment company, announces its partnership in acquiring the Hyatt Regency New Orleans, a 1,193-room luxury hotel in downtown New Orleans. The sale represents the largest hotel acquisition in Louisiana history, and the first time the Hyatt Regency will fall under local majority ownership.
For the purchase, ERG joins the local ownership team of Gayle Benson and her investment company GMB Properties and The Berger Co., owned by long-time 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 Mrs. Benson and The Berger Co. is a privilege. It was important to all of us to bring this major New Orleans asset back into local ownership and control," says ERG CEO Eric George. "First and foremost, we decided to invest in this property because of the partners involved. They believed, as do we, that bringing a hotel of this size and prestige into local ownership is important. It's also the largest hotel in the city that isn't dependent on the convention center for its business, which means we control our destiny. For all those reasons, we believe it's a unique and incredible investment opportunity."
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 and entertainment. 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, Pontchartrain Hotel, Thompson Nashville, Frenchmen Hotel, and Rampart Hotel. Its long-time partner, The Berger Co., 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