Wyndham Acquiring the Microtel and Hawthorn Brands
PARSIPPANY, NJ, June 2, 2008. Wyndham Worldwide Corporation (NYSE: WYN) today announced it will acquire US Franchise Systems Inc. and its Microtel Inns & Suites and Hawthorn Suites hotel brands, together totaling more than 29,000 rooms, from a subsidiary of Global Hyatt Corporation.
Microtel Inns & Suites, a chain of 292 all-new-construction economy hotels, with 38 more under construction, has been ranked number one in guest satisfaction in its segment by J.D. Power and Associates for the last six years. Wyndham Worldwide will enter the all-suites, extended-stay market with the addition of the 91-hotel Hawthorn Suites chain.
"Wyndham Hotel Group is the largest hotel franchisor in the world with nearly 7,000 properties, including this acquisition," said Stephen P. Holmes, Wyndham Worldwide chairman and chief executive officer. "This tuck-in acquisition allows us to take advantage of our existing hotel franchise platform and scale of distribution and bring further efficiencies to the Microtel Inns & Suites and Hawthorn Suites brands. This transaction is consistent with our previously announced strategy of growing our hotel EBITDA contribution."
The transaction is expected to be completed in the next 60 days, subject to satisfaction of customary closing conditions including regulatory approvals. Terms call for Global Hyatt, based in Chicago, to provide specified support services during the course of the ownership transition.
"We are very pleased to acquire these two widely respected hotel brands, which come with strong U.S. portfolios and a growing international presence," said Steven A. Rudnitsky, Wyndham Hotel Group chairman and chief executive officer. "We welcome Microtel Inns & Suites and Hawthorn Suites franchisees to our family of brands and look forward to growing both chains domestically and internationally."
Rudnitsky said 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."
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