A pair of Richmond hotels is set to be sold and one is tabbed for a major face-lift as part of a $590 million nationwide deal.
Hyatt Hotels is selling the Hyatt House at Short Pump Town Center and the Hyatt Place at Arboretum on the Southside, along with 36 other hotels around the country. An affiliate of Dallas-based private equity firm Lone Star Funds is the buyer.
As a part of the deal, which is under contract, the 127-room Arboretum Hyatt Place will undergo major renovations over the next year.
Jeff Kotlarczyk, the hotel’s general manager, said its new owners plan to renovate all of the building’s guest rooms by the end of 2015.
The upgrades are part of $50 million in improvements Lone Star has planned across the 38-property package. It is unclear how much Lone Star will spend on the Arboretum hotel or if the Hyatt House near Short Pump, a much newer hotel, is in line for any upgrades.
Lone Star declined to comment on the deal. Hyatt House General Manager Kathy Holland also declined to comment.
The Arboretum Hyatt was built in 1996, according to Chesterfield County records. It was originally an AmeriSuites but was converted after Hyatt bought the AmeriSuites brand in early 2005. It rebranded AmeriSuites as Hyatt Place, which is geared toward business travelers.
The Hyatt House Richmond West is in the middle of Short Pump Town Center and shares a building with Dick’s Sporting Goods. The six-story hotel was built in 2009 and totals 96,575 square feet. Hyatt House is an extended-stay hotel brand, with rooms that typically include an apartment-type design with a kitchen.
The only other Virginia hotel Lone Star is buying is a Hyatt House in Sterling near Dulles International Airport. Hyatt will enter into franchise agreements with Lone Star, and all of the hotels will continue to operate under the Hyatt name, the hotel company announced. Dallas-based Aimbridge Hospitality will manage each of the properties.
Lone Star’s acquisitions, which Hyatt expects to close in November, will be the latest in a run of area hotel deals this year. Earlier this month, the Hilton Garden Inn near Innsbrook sold in a $20 million deal. That came one month after the $8.8 million sale of the Homewood Suites at Innsbrook.