With the acquisition, Wyndham adds two franchised hotel brands to its stable of properties, namely Microtel Inns & Suites and Hawthorn Suites, which together account for more than 29,000 rooms. Microtel brings a chain of 292 existing new-construction economy hotels to the mix, with another 38 currently under construction. Hawthorn's 91-property all-suite chain provides Wyndham's entry into the extended-stay market.
"This tuck-in acquisition allows us to take advantage of our existing hotel franchise platform and scale of distribution and brings further efficiencies to the Microtel Inns & Suites and Hawthorn Suites brands," says Wyndham Worldwide chairman and CEO Stephen Holmes, in a statement. "This transaction is consistent with our previously announced strategy of growing our hotel EBITDA contribution."
The deal's completion is contingent on the usual closing conditions, including regulatory approvals. The terms of the sale agreement also call for the Chicago-based Global Hyatt to provide certain specified support services as part of the transition in ownership, according to company officials.
"These two widely respected hotel brands come with strong US portfolios and a growing international presence," says Steven Rudnitsky, chairman and CEO of the Wyndham Hotel Group, in a statement. "We look forward to growing both chains domestically and internationally.
"[Wyndham Hotel Group] is committed to enhancing the support provided to franchisees of Microtel Inns & Suites and Hawthorn suites and ensuring that their hotels receive maximum benefit from our comprehensive distribution platform, information technology capabilities, field services and sales and marketing functions," Rudnitsky says. A spokesman for the Global Hyatt subsidiary could not be reached for comment.
The acquisition boosts the Wyndham Hotel Group to nearly 7,000 properties. Not including the acquisition, the group encompasses some 6,550 franchised hotels with more than 550,000 rooms worldwide.
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