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Wyndham Buys 29,000 Hotel Rooms

PARSIPPANY, NJ-The addition of the US Franchise Systems subsidiary of Global Hyatt brings over the Microtel and Hawthorn brands.

By Eric Peterson | Updated on June 03, 2008

PARSIPPANY, NJ-Hotelier Wyndham Worldwide Corp. has agreed to acquire US Franchise Systems Inc., an Atlanta-based subsidiary of the Global Hyatt Corp. The terms of the deal, which is expected to close within the next 60 days, were not released. Sources with knowledge of the transaction tell GlobeSt.com that pricing is $150 million.

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.”

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