Hodges Ward Elliott, as the exclusive agent for the Seller, is pleased to present for your consideration the fee simple interest in the 128-key Hyatt House Pittsburgh Bloomfield Shadyside - a recent vintage, premium-branded, extended-stay hotel - that is exceptionally well-located in Pittsburgh’s upscale Shadyside neighborhood, surrounded by strong corporate and leisure demand generators, including major medical and educational institutions. This prime location captures long-term stays, driving profitability in a high-demand submarket.
Property Overview
| Address: | |
| Year Opened: | 2015 |
| Keys: | 128 |
| STORIES: | 5 |
| SITE AREA: | ± 1.84 Acres |
| CONSTRUCTION TYPE / Foundation: | Steel / Reinforced Concrete Slab |
| MEETING SPACE: | 4,404 SF |
| F&B: |
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| OTHER AMENITIES: |
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| Parking: | Daily, $24 per day |
| Interest Conveyed: | Fee Simple |
| MANAGEMENT: | Unencumbered |
| Labor: | Non-Union |
Investment Highlights
IRREPLACEABLE LOCATION CAPTURING 7-NIGHT PER WEEK DEMAND
The Hyatt House Pittsburgh Bloomfield Shadyside is ideally situated within one of Pittsburgh's most sought-after areas, benefiting from a 7-week market demand fueled by a diverse range of demand drivers.
Located in the heart of Shadyside Pittsburgh, the Hotel is directly across the street from the 520-bed University of Pittsburgh Medical Center, which is the region’s largest employer with a staff of nearly 1,000 primary care physicians and specialists. Located several blocks from the Hotel is Western Pennsylvania Hospital, a 317-bed flagship hospital of the Allegheny Health Network. Providing a solid base of demand from which to draw, the Hyatt House is minutes from both Carnegie Mellon University, which enrolls over 16,000 students, and University of Pittsburgh, which enrolls 34,000 students. Additionally, the Hotel is located just steps from the Shadyside Shops, including an Apple Store, lululemon, and Patagonia.
STRONG AND GROWING IN-PLACE CASH FLOW
The Hotel is generating exceptionally strong cashflow, yielding impressive returns for the new owner during their ownership period. A high percentage of the business comes from long-term stays, further enhancing profitability. For the trailing 12 months ending in February 2025, the hotel’s NOI increased 33% over year-end 2023 levels, with NOI margins exceeding 35%, driven by robust ADR growth of 5%.
Additionally, the Hyatt House and its competitive set have demonstrated a strong recovery since the pandemic, with trailing 12-month February RevPAR outpacing year-end 2019 levels by 34% and 17%, respectively.
Institutionally Constructed Recent Vintage Extended-Stay Asset
Delivered in 2015, the Hyatt House is well-built from a public space, amenity space, and guest room standpoint. Each guest room features a seating area, kitchenette, walk-in shower, vanity countertops, and a 42” HDTV. Public spaces include an indoor pool, bar/lounge, fitness center, and outdoor patio.
FURTHER ADR UPSIDE / NO THREAT OF NEW SUPPLY
Despite its highly consistent cash flow history, new ownership can still realize additional ADR upside via completion of a soft goods refresh. Currently, there are only two hotels under construction in the Pittsburgh CBD Submarket, and neither will be direct competitors due to their differing market positions.
For the trailing 12 months ending in February 2025, Pittsburgh CBD RevPAR has increased by 13% compared to year-end 2019, indicating strong momentum for continued RevPAR growth at the Hyatt House. Additionally, the closure of two Shadyside hotels in 2021—the 132-room Courtyard Shadyside and the 120-room Shadyside Inn & Suites—presents a unique opportunity for a new owner to capture significant incremental market share well into the future.
VERY ATTRACTIVE ACQUISITION BASIS
Due to escalating land costs and rising construction expenses, the anticipated transaction price places a new owner’s all-in basis significantly below replacement cost allowing an investor to benefit substantially from a combination of location in a growing economy and upside opportunity.
OPTIMAL OFFERING - FEE SIMPLE, NON-UNION, UNENCUMBERED BY MANAGEMENT
The Property is offered fee simple and free and clear of existing management and financing, affording new ownership maximum optionality in the future operation and capitalization of the Hotel.
RECESSION PROOF: ‘EDS & MEDS’ POWERHOUSE
Pittsburgh is a hotspot for higher education and is home to over 29 colleges and universities, with a total student body of over 95,000. The city features three top-200 research universities according to US News: Carnegie Mellon University (#24), University of Pittsburgh (#67), and Duquesne University (#151).
Additionally, Pittsburgh is a leader in the healthcare sector and is home to two of the largest and most economically significant healthcare providers in the nation, the University of Pittsburgh Medical Center and Highmark Health.
CARNEGIE MELLON UNIVERSITY:
Carnegie Mellon University, located just one mile from the Hotel, is ranked #1 in the United States for its artificial intelligence, software engineering, and computer engineering programs. With over 16,000 students, it founded the first robotics department and helped attract major companies like Google and Intel to Pittsburgh.
UNIVERSITY OF PITTSBURGH:
Located 1.4 miles from the Hotel, the University of Pittsburgh has over 34,000 students and is the second-largest employer in the Pittsburgh area, with a $5.2 billion annual economic impact. It is also renowned for its strong academic programs, including the fifth-best philosophy department and 10th-best nursing program in the U.S.
UNIVERSITY OF PITTSBURGH MEDICAL CENTER (UPMC):
UPMC, a $24 billion global nonprofit health enterprise, operates several flagship facilities in Pittsburgh, consistently ranked among America's best for 15 years. UPMC Shadyside, one of these, is located adjacent to the Hyatt House, while UPMC Presbyterian Shadyside, just 10 minutes from the Hotel, is ranked #1 in Pittsburgh and among the nation’s best hospitals by U.S. News & World Report.
DUQUESNE UNIVERSITY:
Duquesne University, less than four miles from the Hotel, is a private Catholic research university with over 8,000 students and high research activity. It is known for its top-ranked graduate programs, including Occupational Therapy (#29), Pharmacy (#43), and Speech-Language Pathology (#55).
HIGHMARK CORPORATE HEADQUARTERS:
Highmark Health, headquartered in Pittsburgh located less than 15 minutes from the Hyatt House, is a national health and wellness enterprise with over 37,000 employees serving all 50 U.S. states. As the second-largest integrated healthcare delivery and financing system in the country, Highmark Health expanded its national reach in 2021 by acquiring sole ownership of Pittsburgh-based insurer Gateway Health, creating additional jobs in the Pittsburgh area.
PERSISTENT GROWTH OF PITTSBURGH’S CORPORATE PRESENCE
As Pittsburgh has continued to grow its economy, prominent corporations have flowed into the city and diversified away from industries that have historically made up a majority of the city’s economic activity. Over the past two decades, the city has invested heavily in growing its biotech and technology community. As a result, Pittsburgh ranks 13th in the world for emerging start-up economies and fourth for growth among the small tech talent markets. Between 2015 and 2020, Pittsburgh experienced an 11% increase in the total number of tech occupations, projected to continue to develop as more tech giants expand in the area, such as Uber, Zoom, Facebook, and more. In addition to an expanding tech sector, Pittsburgh is also home to nine Fortune 500 companies and corporate office locations for countless industry mammoths, positioning the city for long-term economic growth.
