Hyatt Hotels Corp. said it agreed to buy 24 properties for about $802 million in cash to expand its extended-stay lodging business.
The company will buy the hotels from LodgeWorks LP, a private hotel developer, and its private-equity partners, Chicago-based Hyatt said in a statement. The purchase includes management, franchise and intellectual-property rights.
Hyatt is looking to expand across the U.S. and the acquisition will add hotels in nine markets where the company currently doesn’t have any, and bolster Hyatt with hotels in the extended-stay arena in 16 markets.
"This is a significant expansion of our presence in the United States and enhances our extended stay representation," said Mark S. Hoplamazian, president and CEO of Hyatt Hotels Corp. "We know that for Hyatt Summerfield Suites to become the preferred brand among extended stay guests, we must increase the number of markets we serve."
The transaction will give Hyatt an immediate boost in brand awareness among both guests and potential third party developers, Hoplamazian said. The extended stay hotels coming into the portfolio average four years old with many open less than two years.
"Most of the hotels slated to become full service Hyatts were new-builds in 2009, and are already recognized as market leaders in guest experience and performance."
The hotels being purchased are key assets in strategic, high barrier to entry markets and are currently branded under the Hotel Sierra (17 properties), Avia Hotels (4), Hyatt Place (1) and Hyatt Summerfield Suites (2) brands.
The hotels that will join the Hyatt Summerfield Suites portfolio are: Hotel Sierra Bellevue, WA (160 rooms); Hotel Sierra Branchburg, NJ, 139 suites; Hotel Sierra Charlotte City Center, NC, 163 rooms; Hotel Sierra Dulles/Sterling, VA, 162 rooms; Hotel Sierra Fishkill, NY, 135 rooms; Hotel Sierra Morrisville/Raleigh, NC, 140 rooms; Hotel Sierra Parsippany, NJ, 140 rooms; Hotel Sierra Rancho Cordova, CA, 159 rooms; Hotel Sierra Redmond, WA, 144 rooms; Hotel Sierra Richmond, VA, 134 rooms; Hotel Sierra San Jose, CA, 164 rooms; Hotel Sierra San Ramon, CA, 142 suites; Hotel Sierra Santa Clara, CA, 150 rooms; Hotel Sierra Shelton, CT, 127 rooms; Hotel Sierra King of Prussia, PA, 147 rooms (under construction); and Hotel Sierra Merrifield, VA (under construction)
The hotels that will become Hyatt hotels, totaling 741 rooms, are Hyatt Place Madison, WI, 151 rooms; Avia Long Beach, CA, 138 rooms; Avia Napa, CA, 141 rooms; Avia Savannah, GA, 151 rooms; and Avia The Woodlands, TX, 70 rooms.
The hotels that are already Hyatt-branded that Hyatt will acquire and begin managing are Hyatt Place Madison/Downtown (WI), 151 rooms; Hyatt Summerfield Suites Boston/Burlington, 150 rooms; Hyatt Summerfield Suites Philadelphia/Plymouth Meeting, PA, 131 rooms.
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