NAPA -- The Napa Valley Marriott Hotel & Spa has been acquired by an Illinois-based real estate group for $72 million, or approximately $261,000 per key.
Inland American Lodging Group, a wholly-owned subsidiary of Oak Brook, Ill.-based Inland American Real Estate, announced the acquisition Aug. 31, just months after the 275-room Solano Ave. hotel underwent a $7.3 million renovation that included an upgrade of 85 concierge rooms. The hotel sits on 9.3 acres and is approximately 11,000 square feet.
"The Napa Valley Marriott is an excellent addition to our portfolio in a key destination market in Northern California, a region not heavily represented in Inland American’s lodging portfolio,” said Marcel Verbaas, president and CEO of Inland American Lodging. “This acquisition represents our seventh full-service Marriott, as we continue to strategically reposition our portfolio with more full-service and luxury hotels in premier markets.”
It's the first Marriott for the group in Northern California.
The hotel, built in 1979, was purchased in 2009 by Pivet Investments LLC and Lighthouse Lodging LLC for $36 million. Lighthouse Lodging will continue to manage the hotel. The hotel is located adjacent to the Oakland Raiders pre-season training camp facility and has hosted the team for over a decade.
Inland American said it was previously difficult to gain a foothold of the Napa Valley hotel market, and that the acquisition will help it overcome certain barriers.
"Napa Valley also presents significant barriers to entry for new hotel supply due to a lack of suitable development sites. As a result, only a handful of lodging properties are located within the city of Napa," it said in announcing the purchase.
Inland American Lodging Advisor, Inc., located in Orlando, Fla., focuses on acquiring and managing a diversified portfolio of lodging properties on behalf of Inland American Real Estate Trust, Inc. It currently oversees 105 hotels branded under various Marriott, Hilton, Starwood, Hyatt, Fairmont, Wyndham, IHG and Choice brands that are managed either by the brand’s managers or independent third-party management companies.
Inland American Real Estate Trust owns, directly or indirectly through joint ventures in which it has a controlling interest, 981 properties, representing approximately 48 million square feet of retail, industrial and office properties, 9,790 multi-family units and 15,564 lodging rooms.