NAPA -- The Avia Napa hotel has been purchased by Hyatt Hotels Corp. as part of a larger purchase of 24 hotels and related assets from LodgeWorks, Avia's parent company.
LodgeWorks officials told the Business Journal in 2009, when the 141-room, five-story Napa hotel was completed, that the hotel would be a flagship location for the startup Avia brand.
Chicago-based Hyatt (NYSE: H) purchased the hotels for a total of approximately $802 million, and key members of LodgeWorks management and development team are expected to join Hyatt as part of the transaction.
The transaction is expected to close sometime in the third quarter of this year.
In announcing the deal, Hyatt said the hotels being purchased are "key assets in strategic, high barrier to entry markets." Other brands that were part of the purchase include 17 Hotel Seirra hotels, four Avia hotels, one Hyatt Place property and two Hyatt Summerfield Suites locations.
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.
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.