Wyndham Banks $100M Plus From First Round of Closings

Dallas-based Lone Star Funds' first round secured deeds to three non-proprietary hotels and a trio of Wyndham-branded assets. A seventh hotel, the 252-room Doubletree Hotel at 1400 Milwaukee Ave. in Glenview, IL, will be exchanged in January. When the Lone Star buy-out was announced a few months ago, industry sources' best guesses were the 1,363-room portfolio in four states brought $30,000 to $50,000 per key for a ballpark range of $40.9 million to $68.1 million.

The Annapolis, MD-based Thayer Lodging Group closed on three of its four Wyndham purchases, spending $51.4 in its first go-around. Pending lender approval, the sale of the 242-room Wyndham Lisle at 3000 Warrenville Rd. in Lisle, IL to Thayer Hotel Investors IV will occur in December, taking the full cost to $69.6 million for 1,211 rooms in four states.

Wyndham's strategy is to emerge as a hotel operator with long-term management pacts, except for a key portfolio of resort-style properties. The Dallas-based hotelier has 27 hotels left to sell on its disposition list.

Lone Star picked up two historic hotels, the 124-room Union Station at 1001 Broadway in Nashville and 147-room Tutwiler Wyndham at in Birmingham, AL. Its third closing was the 320-room Wyndham Roanoke Airport at 2801 Hershberger Rd. in Roanoke, VA. The closing also included two non-core Dallas assets, the 199-room Radisson Hotel at 2330 W. Northwest Highway and 172-room Holiday Inn Aristocrat Hotel at 1933 Main St. in the CBD as well as the 148-room Holiday Inn at 441 Rio Concho Dr. in San Angelo, TX. The majority of properties rose between 1983 and 1988. All were bought in 1998 from Grand Heritage Hotels International of London and Interstate Hotels & Resorts Inc. of Arlington, VA.

Thayer's first round of closings, using separate funds to claim the deeds, secured the 408-room Wyndham Miami Airport at 3900 NW 21st St. ; 311-room Wyndham Colorado Springs at 5580 Tech Center Dr.; and 250-room Wyndham Peachtree Hotel & Conference Center at 2443 Highway 54 West in Peachtree City, GA. Wyndham bought the hotels, built between 1976 and 1988, about six years ago in several portfolio acquisitions.