Old Jul 14, 11, 4:21 pm
  #1  
J. Zidell, VP Hyatt Gold Passport
Company Representative - Gold Passport by Hyatt
 
Join Date: Jun 2011
Posts: 42
Hyatt Expands Extended Stay Select Service Presence In North America

Hyatt Hotels Corporation (NYSE: H) announced today that one of its wholly owned subsidiaries has signed an agreement to purchase a portfolio of assets from LodgeWorks, L.P., a private hotel development, ownership and management company, and its private equity partners. The acquisition includes 24 hotels and related assets, including management, franchise and intellectual property rights for an aggregate purchase price of approximately $802 million in cash. Key members of the LodgeWorks management and development team are expected to join Hyatt as part of the transaction.

The hotels being purchased are key assets in strategic, high barrier to entry markets and are currently branded under the Hotel Sierra® (17), AVIA® Hotels (4), Hyatt Place® (1) and Hyatt Summerfield Suites® (2) brands. The acquisition will enable the company to introduce Hyatt-branded hotels in nine markets where it currently is not represented at all and to establish its extended stay presence in 16 new markets.

Following the transaction, 16 Hotel Sierra hotels will be branded as Hyatt Summerfield Suites, increasing the number of hotels in that portfolio from 38 to 54. Five properties, including the AVIA Hotels, are expected to be converted to full service Hyatt brands. The brand affiliations of Hyatt Summerfield Suites and Hyatt Place properties in the LodgeWorks portfolio will remain unchanged.

The hotels will be managed by Hyatt following the closing of the transaction, which is anticipated to occur in the third quarter 2011. The closing is subject to the satisfaction of certain customary closing conditions. The closings for the majority of the asset purchases are expected to take place in the third and fourth quarters of 2011. The purchases of the remaining assets are expected to close by the end of the first quarter 2012.

“This is a significant expansion of our presence in the United States and enhances our extended stay representation with a great collection of high quality hotels,” said Mark S. Hoplamazian, President and Chief Executive Officer of Hyatt Hotels Corporation. “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. This transaction is a noteworthy step in that direction, and will give us an immediate boost in brand awareness among both guests and potential third party developers. The extended stay hotels coming into the portfolio are, on average, four years old – and many have been open less than two years – making them welcome additions to our brand. 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 that will join the Hyatt Summerfield Suites portfolio (2,354 rooms) are in:
Bellevue, WA
Branchburg, NJ
Charlotte, NC
Dulles/Sterling, VA
Fishkill, NY
Morrisville/Raleigh, NC
Parsippany, NJ
Rancho Cordova, CA
Redmond, WA
Richmond, VA
San Jose, CA
San Ramon, CA
Santa Clara, CA
Shelton, CT
King of Prussia, PA
Falls Church, VA

The hotels that will become Hyatt hotels (741 rooms) are in:
Green Bay, WI
Long Beach, CA
Napa, CA
Savannah, GA
Woodlands, TX

The hotels that are already Hyatt-branded (432 rooms) that Hyatt will acquire and begin managing are:
Hyatt Place Madison/Downtown (WI)
Hyatt Summerfield Suites Boston/Burlington
Hyatt Summerfield Suites Philadelphia/Plymouth Meeting
J. Zidell, VP Hyatt Gold Passport is offline