Hyatt Expands Extended Stay Select Service Presence In North America

Discussion in 'Hyatt | Gold Passport' started by J Zidell VP Hyatt, Jul 14, 2011.  |  Print Topic

  1. J Zidell VP Hyatt

    J Zidell VP Hyatt Official Representative

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    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
     
  2. Kaanapali
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    Kaanapali Gold Member

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    Interesting news Jeff thanks!

    I note the Parsippany, NJ addition to Hyatt SS (Summerfield Suites). With SS locations already in Morristown and in Whippany (which is called actually Hyatt SS Whippany/Parsippany)...and a full fledged Hyatt in downtown Morristown, it is nice to see Hyatt staking such an aggressive foothold in this area :)
     
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  3. RestlessLocationSyndrome
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    RestlessLocationSyndrome Silver Member

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    Great to see that Hyatt is expanding it's presence in the US. Too bad it doesn't close sooner as I would have liked to try out the locations in Santa Clara and San Jose while on a project in Silicon Valley.
     
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  4. tom911
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    tom911 Gold Member

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    Great to see the Hyatt brand expanding up the road into the Napa Valley! Gather this is the property converting (it's a block from the Napa Post Office where my sister works):
    http://www.aviahotels.com/hotels/napa/
     
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  5. Lighthouse
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    Lighthouse Gold Member

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    Thanks Jeff--

    As Diamond Hyatt members we have been waiting for many years for Hyatt to make an entrance into Napa Valley. You have obtained an extremely nice property.

    In your statement you mention "The hotels will be managed by Hyatt following the closing of the transaction, which is anticipated to occur in the third quarter 2011". Is there any way that I can stay informed on the timing of the shift in control of the Napa property?

    Many thanks!
     
  6. gleff
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    gleff Co-founder

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    The Avia properties look great, indeed I am also looking forward to the Napa one joining the fold, better located than the Westin and a place I'd rather stay to boot! Thanks! :)

    I admit I'm not 'excited' by more Summerfield Suites. Though I suppose they could come in handy when y'all run stay-based promos ;)
     
  7. Pizzaman
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    Pizzaman Co-founder

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    No doubt there has been a hole in the market when it comes to a really nice "chain" property in Napa or Sonoma. The Fairmont Mission Inn was/is enjoyable, but I don't spend enough nights at Fairmont on a yearly basis to have any sort of status. I stayed at a Hilton property in Santa Rosa a few times, but was never duly impressed. Hoping the Napa Avia will turn into a really pleasant Hyatt experience.

    Unlike Gary, I'm always happy to see more Summerfield Suites. The property at Dulles is near enough to my house that I could consider putting family members up there when they come to town. Summerfield is always a reasonable property if you're traveling with kids, as a second bedroom is usually pretty affordable.

    I would also expect this property to give mattress-runners another opportunity in the Dulles market to get sub-$70 rooms on the weekends.

    The other reason I like the SS additions is for a city like Shelton, CT. I have family in Connecticut, and this is a big empty spot for Hyatt. The Hyatt Greenwich is a property I've had a number of bad experiences in. After that, the only other CT property is Milford, I believe. So, good to see them plug a few holes in markets that can't support a full-service property. I'd much rather stay at an SS than pretty much any Courtyard property in a secondary market.
     
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  8. Lighthouse
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    Lighthouse Gold Member

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    Pizzaman I think you will not be disappointed with the new Napa Hyatt. It is direct head on competition with the Napa Westin. It will be interesting to see the resulting price competition between them both.

    Jeff any further information on the timing and details of the transition on your new Napa property?
     
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  9. J Zidell VP Hyatt

    J Zidell VP Hyatt Official Representative

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    Thanks for your interest in these new properties!

    The transition from Sierra and AVIA to Hyatt will occur after the transaction closes, which is expected to happen in September. This will include Hyatt Gold Passport.

    I'll provide an update once the official transiton happens.
     
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  10. Lighthouse
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    Thanks Jeff
    We appreciate the update.
     
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  11. Sweet Willie
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    Sweet Willie Gold Member

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    keep 'em coming !! I know many folks who don't stay at Hyatt properties as the footprint isn't as large as some other chains.
     
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  12. Kaanapali
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    Kaanapali Gold Member

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    HYATT COMPLETES ACQUISITION OF LODGEWORKS’ PORTFOLIO


    CHICAGO (August 31, 2011)Hyatt Hotels Corporation (NYSE: H) announced today that its wholly owned subsidiaries acquired a portfolio of assets from LodgeWorks, L.P. and its private equity partners, finalizing a previously announced transaction to purchase twenty hotels for approximately $660 million in cash, with one hotel acquisition to close during the fourth quarter of 2011. The acquisition also includes the management or franchise rights to an additional four hotels.

    The hotels involved in the transaction are in strategic, high barrier to entry markets and are currently branded under the Hotel Sierra® (17), AVIA® Hotels (4), Hyatt Place® (1) andHyatt Summerfield Suites® (2) brands. The acquisition will enable the company to introduce Hyatt-branded hotels in several markets where it currently is not represented at all and to expand its extended stay representation significantly.
    The expansion of the company’s extended stay presence that Hyatt achieves through this transaction is a critical milestone in its drive to develop the preferred brand in the extended stay segment.

    http://www.hyattpressroom.com/hyatt...etes-Acquisition-of-Lodgeworks-Portfolio.html
     
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  13. peteropny
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    peteropny Milepoint Guide

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    Wow that was pretty short closing on the transaction!!!
     
  14. Jimgotkp
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    Jimgotkp Gold Member

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    Yay for more Hyatt properties!
     
  15. RestlessLocationSyndrome
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    RestlessLocationSyndrome Silver Member

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    The question still remains... are we eligible to receive and redeem Hyatt points at these properties? Can't wait to hear when the integration is completed.
     
  16. brad

    brad Silver Member

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    The newly acquired Hotel Sierra properties are all available to book immediately on hyatt.com, at rates described as "Hyatt Daily Rate" or "hyatt.com Rate" I have to assume these rates award points and stay credit.

    These properties are not yet available for online award redemptions.
     
  17. Lighthouse
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    Lighthouse Gold Member

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    Thanks. The Avia Napa is now showing up on the Hyatt site.
     
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  18. Lighthouse
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    Lighthouse Gold Member

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    I am up in Napa for Cabernet Day...this could prove timely.
     
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  19. Lighthouse
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    Lighthouse Gold Member

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    FYI while very friendly it was clear that the hotel staff are unfamiliar with the Hyatt program and structures. They have no way for the time being to provide credit and points for stays nor understand the benefits of higher levels of status. This is not meant as a criticism ---the deal just closed--- but just an advisory if you are making plans.
     
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  20. From NYC
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    Thanks for keeping us informed, Jeff. Seems as though you’ll now have 2 Hyatt hotels in Long Beach, CA now, yes? I’ve stayed several times at the one that’s been there already. How will they be different?
     
  21. Sweet Willie
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    Sweet Willie Gold Member

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    This wasn't a Hallmark creation, who created National Cabernet Day?
     
  22. Lighthouse
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    Lighthouse Gold Member

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    Sweet Willie,
    The Cabernet wine growers. It was fun you should try it next year .. it is celebrated in locations around the world.
    http://cabernet.eventbrite.com/
     
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  23. arkleseizure
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    arkleseizure Silver Member

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    Interesting news...I was wondering why the Hotel Sierra in Richmond VA was showing up on Hyatt.com.
     
  24. From NYC
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    Nice presentation during the final SMD3 dinner last night, Jeff. And thanks again for asking the Abu Dhabi question!
     

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