July 14 (Bloomberg) -- Hyatt Hotels Corp., the chain controlled by the Pritzker family, said it agreed to buy 24 properties for about $802 million in cash to expand its extended-stay lodging business.
The company will buy the hotels from LodgeWorks LP, a closely held developer, and its private-equity partners, Chicago-based Hyatt said in a statement today. The purchase includes management, franchise and intellectual-property rights.
Hyatt is looking to expand its footprint across the U.S. The acquisition will add hotels in nine markets where the company currently doesn’t have any, and allow it to enter the extended-stay market in 16 areas.
“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,” Mark Hoplamazian, president and chief executive officer, said in the statement.
The hotels to be purchased carry the Hotel Sierra, AVIA Hotels, Hyatt Place and Hyatt Summerfield Suites brands.
Sixteen Hotel Sierra properties will become Hyatt Summerfield Suites, an extended-stay brand. Five hotels, including those carrying the AVIA name, are expected to be converted to full-service Hyatt brands. The transaction is expected to be completed in the current quarter.
The hotels will be managed by Hyatt, which as of March had 451 properties in 43 countries.
--Editors: Kara Wetzel, Christine Maurus
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