The 400-room Hyatt on Capitol Square has been put up for sale by its California-based owner,
which bought the hotel in 2007, just before the recession hit. The hotel is expected to continue
normal operations.

The property is valued at $30 million for tax purposes, but there is no set asking price for the
hotel, which is listed with broker Jones Lang LaSalle.

Hertz Investment Group of Santa Monica paid $30 million for the hotel at 75 E. State St. in
September 2007, according to the Franklin County auditor’s website. Hertz also bought the office
tower that is attached to the Hyatt for $42.5 million in August 2007. That building is not listed
for sale.

In April of last year, foreclosure proceedings were started on the hotel by Capitol Hill Lodging
on behalf of Wells Fargo Bank, which holds the mortgage. In November, Capitol Hill was awarded a
judgment totaling $41.5million plus fees, expenses and interest in U.S. District Court in
Columbus.

Hertz Investment Group’s Gary Horwitz did not return calls seeking comment.

The Hyatt on Capitol Square does not report occupancy numbers, but Downtown Columbus hotels as a
group showed improvement in 2010 with an average 65 percent occupancy rate, said Eric Belfrage of
the Columbus office of CB Richard Ellis.

Belfrage said Hertz’s timing in buying the hotel was bad, adding that the Capitol Square area
has lost ground to the Arena District and Easton Town Center.

But he said the Hyatt still represents an opportunity for the right buyer at the right price
because of its central location and the money being spent by the city on nearby projects such as
Scioto Mile.

“In retrospect, (Hertz) probably overpaid,” Belfrage said. “The Hyatt used to be the (room) rate
leader in the city before the Hilton Easton came along.”

mrose@dispatch.com