Wyndham Hotel Group has signed an agreement with
Hospitality Properties Trust (HPT) to brand 20 hotels with the
Wyndham Hotels and Resorts and Hawthorn Suites by Wyndham brand
As part of the agreement, four of the
hotels will become Wyndham Hotels and Resorts properties and 16
will become Hawthorn Suites by Wyndham hotels.
All 20 properties will be managed by the
Wyndham Hotel Group management company under a 25-year management
contract. Wyndham Hotel Group will have two consecutive 15-year
renewal options, which can be exercised for all of the hotels.
We are proud to align with HPT, a prominent
ownership group which clearly believes in and supports our brand
growth strategy, said Eric Danziger, Wyndham Hotel Group president and CEO. We look forward to a
rewarding alliance and to furthering our association with HPT.
20 rebranded hotels will become:
Wyndham Irvine John Wayne
Airport, Irvine, Calif.
Wyndham Atlanta Perimeter, Atlanta,
Wyndham Dallas Park Central, Dallas, Texas
Houston West Energy Corridor, Houston, Texas
Suites by Wyndham Denver Tech Center, Centennial, Colo.
Hawthorn Suites by Wyndham Hartford-Meriden, Meriden, Conn.
Hawthorn Suites by Wyndham Orlando Altamonte Springs, Altamonte
Hawthorn Suites by Wyndham Chicago-Hoffman
Estates, Hoffman Estates, Ill.
Hawthorn Suites by Wyndham
Louisville, Louisville, Ill.
Hawthorn Suites by Wyndham
Chicago-Schaumburg, Schaumburg, Ill.
Hawthorn Suites by
Wyndham Northbrook-Wheeling, Wheeling, Ill.
by Wyndham Detroit Aubrun Hills, Aubrun Hills, Mich.
Suites by Wyndham Detroit Farmington Hills, Farmington Hills,
Hawthorn Suites by Wyndham Charlotte-Coliseum,
Hawthorn Suites by Wyndham Greensboro,
Hawthorn Suites by Wyndham Raleigh, Raleigh,
Hawthorn Suites by Wyndham Omaha, Omaha, Neb.
Hawthorn Suites by Wyndham Cincinnati Blue Ash, Blue Ask, Ohio
Hawthorn Suites by Wyndham Dallas Near the Galleria, Dallas,
Hawthorn Suites by Wyndham Salt Lake City Fort Union,
Salt Lake City, Utah
Hospitality Properties Trust will
provide up to $75 million for refurbishment and rebranding of the
hotels, which is expected by the third quarter of this year.
John Murray, HPT president, said, HPT is delighted to add Wyndham Hotel Group as a hotel management partner and we believe that the
refurbishment and rebranding of these 20 hotels and their management by Wyndham Hotel Group will result in improved
operating results at the hotels. Also, HPT expects it may in the future add to its ownership of Wyndham branded hotels.
management contract also requires that up to five percent of the
hotels gross revenues for an FF&E Reserve be escrowed for future
periodic refurbishments of the hotels. Management fees due to
Wyndham Hotel Group are contractually subordinated to the owners
priority return due HPT and the FF&E Reserve funding. The payment
of these amounts to HPT is guaranteed by Wyndham Worldwide for the
first seven years subject to a maximum cap of $20 million and an annual cap of $10 million. All amounts are subject to future
recapture by Wyndham Worldwide and any payments or recapture is done on a consolidated portfolio basis.
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