X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

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.”

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.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.