Wyndham to Buy AmericInn Brand for $170M
Wyndham Hotel Group is about to experience a growth spurt
The company, a leader in the midscale lodging segment, has entered into an agreement to acquire the AmericInn hotel brand and its management company, Three Rivers Hospitality, from Northcott Hospitality. Wyndham will shell out $170 million on the purchase, which will enhance its holdings by 200 primarily franchised hotels totaling 11,600 rooms, and a pipeline of 23 projects.
The AmericInn portfolio will give Wyndham a notable boost in the Midwest, as the bulk of the 21-state portfolio is located in the Ohio Valley, and Mountain states including Minnesota, Wisconsin, Iowa, Michigan, and North Dakota. “AmericInn is a well-known and much-loved brand in the upper Midwest, and we believe with Wyndham’s backing we can transform this regional brand into a nationally recognized brand known for great stays,” Geoff Ballotti, president & CEO of Wyndham Hotel Group, told Commercial Property Executive.
Wyndham’s plan to take the AmericInn flag from regional to national will be like déjà vu, as the company has been down this road before, and more than once. “When we purchased Baymont Inn & Suites there were about 120 hotels; today we have more than 400 in 43 states. We purchased Super 8 in 1993 with about 1000 hotels. Today’s it’s the industry’s largest economy hotel brand with more than 2800 hotels in six countries over four continents,” Ballotti added. “We believe there’s a lot of growth opportunity in the midscale and specifically growing AmericInn outside of its current foothold in the Midwest.”
Buy some, launch some
Wyndham is in expansion mode; the planned purchase of AmericInn follows a string of acquisitions over the last few years. In late 2016, the company bought Fën Hotels, a leading Latin American hotel management company operating the Esplendor Boutique Hotels and Dazzler Hotels brands. Wyndham also snapped up group accommodations provider and manager Dolce Hotels and Resorts in 2015 for $57 million, adding 24 properties totaling 5,500 guestrooms in seven countries to its portfolio.
Growth for Wyndham, however, hasn’t been solely in the form of acquisitions. In June 2017, the lodging concern unveiled The Trademark Hotel Collection, an independent concept for upper-midscale and above hoteliers. Trademark gives owners of iconic hotels the opportunity to capitalize on Wyndham’s scale and services, while maintaining the properties’ individuality.
A closing date for Wyndham-AmericInn deal has not yet been set. Nothing will happen without regulatory and government approval. Following completion of the transaction, the hotel company will pursue the disposition of the owned segment of the portfolio, which encompasses 10 hotels.
Source: Barbra Murray / 21 July 2017 / www.cpexecutive.com