NAPA – The young, Southern California-based hospitality company that finalized the purchase of the Napa Valley Marriott late last month has already begun preparations for about $6 million in updates, including reconfiguration of the site’s entry, lobby and other areas.
The Lighthouse Lodging Group of Pacific Palisades announced the purchase of the 274-room Wine Country hotel May 28, closing the sale for $36 million in cash with partner Privet Investments of New York. Previous holder Sunstone Hotel Investors purchased the property in 1998 for $21 million and will use the sale’s proceeds for a recently completed debt buyback.
Lighthouse Senior Vice President of Sales and Marketing Mark Goeman said the hotel is the company’s largest purchase so far and was chosen for its potential for future growth. “In terms of answering why purchase now, the simplest answer is that it was listed for sale,” he said.
“We know the markets are depressed right now, but we liked where it is positioned in the marketplace and we see a healthy long-term growth. … We also saw the opportunity to buy at a really good price.”
Mr. Goeman said the company launched in 2007 has a general strategy of acquiring “undervalued products” and adding value either through construction-based operational or added-service improvements. Currently Privet is the majority stakeholder in the property and will continue as an equity partner for 10 to 20 years.