"...is planning a $15.5 million expansion to the existing hotel with a $5 million redevelopment loan from the city to build a conference center and 85 new rooms. The makeover also would include a new rooftop restaurant and underground garage. The conversion means popular longtime restaurant Caffé Italia will need to move from its current location adjacent to the hotel. Caffé Italia is in talks with Patel and the city to see if the restaurant can get assistance in the relocation, [Caffé Italia] owner Shar Katz said."Davis Enterprise
The city approved the redevelopment loan because it hopes to "snag hotel tax revenues that are otherwise captured by surrounding jurisdictions such as Woodland, Sacramento and even UC Davis, which opened the 75-room Hyatt Place on campus last March." source. Also, with the state government trying to cut redevelopment agencies, Davis is trying to use the money before it goes away.
From a July 20, 2011 Davis Enterprise article:
"The Embassy Suites project will continue and city staff is working with the owner on the feasibility and environmental analyses. The makeover would include additional rooms, a new rooftop restaurant, underground garage and conference center.
Patel and city leaders say the Embassy Suites brand will draw customers from miles away, helping Davis snag hotel taxes that otherwise are captured by surrounding jurisdictions such as Woodland, Sacramento and even UC Davis, which opened the 75-room Hyatt Place on campus last March.
The university is already planning an expansion of Hyatt Place."