Haiyi, APIC acquire two San Francisco hotels

San Francisco-based Haiyi Hotel Management California Portland-based APIC purchased two hotel properties in San Francisco: Hotel Vertigo and Hotel Metropolis.

Haiyi Hotels became owner and assumed management of the new hotels as of 12:00 a.m., Wednesday, December 15, 2010. Haiyi Hotels currently owns and manages three properties in San Francisco: Best Western Plus Americania, Best Western Plus Carriage Inn and Good Hotel, which were purchased in April 2010.

 "We are very excited to be able to grow the Haiyi brand, and the purchase of these new hotels is an outstanding development for us," said Wilson Chen, APIC President and CEO. "2010 has been very exciting, and we anticipate 2011 will be a banner year for our group."

"We have always maintained a healthy ambition to expand Haiyi Hotels and this was just the right time and the right opportunity. These hotels are going to be a great addition to our boutique hotel portfolio," said Stephen Kuemper, APIC's chief operating officer.

All employees of Hotel Vertigo and Hotel Metropolis will be rehired as Haiyi Hotel employees and the new hotels will not be affected operationally during the transition. Additionally, several business tenants currently operating on hotel premises -- including popular restaurant, Farmer Brown -- will maintain their existing tenancy without interruption or affect from the hotel purchases.

"We are excited about these properties and anticipate a smooth transition," said Sandra VanderBes of Haiyi Hotel Management California. "Our immediate attention will be to enhance the guest experience and service standards as we welcome these hotels and their staff into the Haiyi family of properties."

Haiyi plans to incorporate room renovations and aesthetic improvements to the hotels. Hotel Vertigo will receive renovations to the majority
of guest rooms over the course of the next few months, and Hotel Metropolis will receive minor improvements to public spaces and service offerings.

The hotels' close proximity to one another is not viewed as a concern by the management company but as an advantage. "After considering that there are about 100 hotels within one square mile of Union Square and we will own five of them, we decided to reject the fears of cannibalization and adopt the concept that shared resources such as cluster operations and selling will be an asset to our business," says Kuemper. "In fact, with hotels on both sides of Market Street sometimes we joke that "we have Market cornered"-- so to speak."

Haiyi Hotels' new properties will include:

Hotel Metropolis (25 Mason Street, San Francisco, 415-775-4600)

The 105-room Hotel Metropolis combines earth, wind, water, and fire-based elements in design and decor. Features include complimentary
high-speed internet, a 24-hour business center and library, cardio fitness center and meditation room, and earth-element themed guest
rooms. The hotel has a number of suites including a unique "Kids Suite" complete with pint-sized furniture and bunk beds. The hotel is located off of Market, one block from the Powell Street Cable Cars, three blocks from Moscone, and four blocks from Union Square.

Hotel Vertigo (940 Sutter Street, San Francisco, 415-885-6800)

Hotel Vertigo is 102-key hotel that renews a sense of wonder by shifting the perspective slightly askew with hip, playful style and Hitchcockian design. The hotel is non-smoking and the newly renovated rooms feature flat-screen TVs, free Wi-Fi access, iPod docking stations, and other creature comforts. The hotel is located in the lower Nob Hill pocket of San Francisco, within a short walk to cable cars, Union Square, and San Francisco's major shopping and theater districts.