The Hyatt Hotels Corp. just got a bit smaller. The Chicago-based company plans to sell off some of its select-service hotels as franchises. The first sale includes 38 hotels for the nice price of $590 million.

According to Reuters, the 38 hotels, operated under the names Hyatt Place and Hyatt House, were sold to Lone Star Funds.

The properties, which total about 4,950 rooms, offer services at lower prices than the full-service hotels associated with Hyatt.

The new franchises will be targeted in markets outside of the United States, including India, China and the Middle East.

Officials with Hyatt say the first deal is expected to close in November. The company plans to market six additional select service hotel franchises in the coming months.

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

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