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SCOTTSDALE, Ariz. – Caliber, a real estate investment firm, has announced an exclusive agreement with Hyatt Hotels Corporation to develop 15 new Hyatt Studios hotels in the United States. The development rights span Arizona, Colorado, Nevada, Texas, and Louisiana, with construction on the first hotel in Georgetown, Texas, anticipated to commence in the fourth quarter of 2025, followed by a second in Scottsdale, Arizona in the second quarter of 2026. According to InvestingPro data, Caliber currently maintains a market capitalization of $6.33 million, with revenue of $51.12 million in the last twelve months.
Hyatt Studios, introduced in 2023, is Hyatt’s upper-midscale extended-stay brand, designed with input from owners and guests. The brand emphasizes cost-effective construction, streamlined operations, and flexible design, backed by Hyatt’s commercial support. Each hotel will feature approximately 122 suites with kitchens, high-speed internet, electric vehicle charging, complimentary breakfast, a market, laundry facilities, a fitness studio, and pet-friendly accommodations.
Jim Chu, Hyatt’s Chief Growth Officer, expressed enthusiasm about the partnership with Caliber and the expansion of Hyatt Studios into new markets. Caliber CEO Chris Loeffler highlighted the current low hotel inventory and new construction starts in the U.S., alongside a resurgence in room demand, as key reasons for pursuing the Hyatt Studios developments.
This strategic move is expected to add $400 million in assets under management to Caliber, with the potential for further expansion based on market conditions. The company’s growth strategy leverages its performance and competitive edge by investing in areas overlooked by global real estate institutions. InvestingPro analysis suggests the company is currently undervalued, though investors should note its current ratio of 1.05 and recent cash burn rate. For detailed financial health metrics and 15+ additional ProTips, consider exploring InvestingPro’s comprehensive analysis tools.
Caliber’s track record spans 15 years, with over $2.9 billion in managed assets, including ongoing developments. The company offers investment opportunities through its NASDAQ-listed entity, CaliberCos Inc., and its private funds. While analysts expect net income growth this year, the company’s gross profit margin stands at 1.52%. Caliber Hospitality Trust, a subsidiary, targets a range of hotel types in desirable locations, managed through an integrated platform.
Hyatt Hotels Corporation, based in Chicago, oversees a portfolio of over 1,450 properties globally. The company’s brands cover luxury, lifestyle, inclusive, classic, and essential segments, with a loyalty program and various subsidiary services.
This development agreement aims to bolster Hyatt’s brand presence and offer travelers accommodations that combine the comforts of home with the amenities of a hotel. The information for this article is based on a press release statement.
In other recent news, CaliberCos Inc. has reported its financial results for the fourth quarter and full year of 2024, although specific figures were not disclosed in their SEC filing. The company has also announced a 1-for-20 reverse stock split, approved by shareholders, to meet Nasdaq’s minimum bid price requirements. This adjustment will consolidate the outstanding shares of Class A and Class B common stock significantly. Additionally, Caliber has received approval from the Phoenix City Council for its Canyon Village redevelopment project, which will convert a distressed office building into a 376-unit residential complex. The project is part of an opportunity zone, offering tax incentives, and aims to address housing demand in Phoenix.
CaliberCos has also set terms for a public offering priced at approximately $900,000, with the proceeds intended for debt repayment and general corporate purposes. Craft Capital Management, LLC is managing the offering. Furthermore, shareholders have approved potential issuance of shares related to agreements with Mast Hill, L.P., among other transactions. These developments reflect Caliber’s strategic efforts to enhance its market position and financial stability.
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