Hyatt Hotels has signed an agreement to acquire 24 hotels and related assets, including management, franchise and intellectual property rights, for $802m from LodgeWorks and its partners.
Hyatt said the acquisition will help it expand its footprint in nine markets in the US where the company currently has no presence, as well as allow it to enter the extended-stay market in 16 areas.
The deal includes the purchase of 17 Hotel Sierra properties, four AVIA Hotels properties, and three hotels that were already operating under the Hyatt Place and Hyatt Summerfield Suites brands.
After the acquisition, 16 Hotel Sierra properties will be branded as Hyatt Summerfield Suites, increasing the number of hotels in the brand’s portfolio from 38 to 54, and five properties including four boutique AVIA Hotels will be converted into Hyatt hotels.
LodgeWorks will retain a portfolio of 13 hotels after the deal.
Hyatt will manage the hotels after the deal closes, which is expected to take place in the third quarter of 2011.