Napa Valley Marriott Sells for $72M
- Aug 30, 2011
August 30, 2011
By Nicholas Ziegler, News Editor
A transaction in the heart of Napa County could prove profitable for Inland American Lodging Group, Inc., a subsidiary of Inland Real Estate Trust, Inc. On Monday, the firm announced that it had acquired the Napa Valley Marriott Hotel for $72 million, or approximately $261,000 per key. The property is a 275-room upscale resort in the heart of California’s wine country.
“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 Advisor, Inc. “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.”
The property, upgraded in March of this year with a $7.3 million renovation, is located adjacent to the Oakland Raiders’ summer training camp and has served as the team’s home base for more than a decade. “The hotel’s preferred location, excellent service and the Marriott brand have enabled the property to consistently achieve strong, top-line performance,” Verbaas said.
According to a report by PKF Hospitality Research, the entire hospitality industry is heading for an upswing, predicting that the average hotel in the United States will be able to increase its total revenue by 7.4 percent for 2011, stemming from an equal contribution of increases in occupancy and average daily rate. While there may be an influx of new customers, the report notes, “cost controls might be what begets profits in 2011.”