Hyatt Hotels to sell 38 hotels as franchises for about $590 million

Hyatt Hotels Corp (H.N) said it will sell as franchises 38 select service hotels to a company organized by Lone Star Funds for about $590 million.

The properties, totaling 4,950 rooms under Hyatt Place and Hyatt House brands, provide a select offering of services at a lower price than full-service hotels, and are targeted at markets such as India, China and the Middle East.

The company, owner of the Park Hyatt, Grand Hyatt and Hyatt Regency brands, expects the deal to be completed in November. It said it will continue to market six additional select service hotels.

Hyatt shares closed at $63.38 on the New York Stock Exchange on Thursday. They have risen about 28 percent this year.