by Liviu Oltean, Associate Editor
Hotel Sierra in Morrisville will be rebranded as a Hyatt Summerfield Suites Hotel, following Hyatt Hotels Corp.’s closing on a 20-hotel portfolio belonging to LodgeWorks LP.
Hyatt initially showed interest in a 24-hotel portfolio, but the company ultimately decided on closing on 20 hotels. The total cost of the portfolio acquisition decreased from $802 million to $661 million. The properties that are not already under Hyatt’s aegis will be branded as Hotel Sierra, AVIA Hotels, Hyatt Place and Hyatt Summerfield Suites.
The 141-room hotel located off N.C. 54 south of Carrington Mill Boulevard was purchased for $20.3 million. According to the Triangle Business Journal, the amount represents a 78 percent premium over the $11.4 million tax value of the property.
“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,” said Mark S. Hoplamazian, president and CEO of Hyatt Hotels Corp.
The transaction also stipulated certain executive transitions: founder of LodgeWorks, B. Anthony Isaac, and other management members are expected to join Hyatt’s ranks. “We respect the Hyatt heritage and culture and are very pleased to contribute to its growth,” said Isaac. Chicago-based Hyatt Hotels Corp. is a global hospitality company with properties throughout the world. As of June 30, 2011, the company’s portfolio included 456 properties in 44 countries.
In regional news, Cary’s Harris Teeter-anchored shopping center on Ten Ten Road was sold for $14 million. 1st Carolina Properties of Cary, represented by Sonny Malloy of Marcus Millichap, sold the 83,824 square feet shopping center to Virginia-based real estate investment group, Suburban Asset management LLC, which was represented by Cushman & Wakefield|Thalhimer.