Aetos Capital Commits $50mil to Tian Rui Hotel Corporation
Accelerate Super 8 Hotel Growth in China
PARSIPPANY, NJ, August 27, 2007. Wyndham Hotel Group, a subsidiary of Wyndham Worldwide Corporation (NYSE: WYN), of Parsippany, N.J., today announced that Aetos Capital, LP has committed to invest up to $50 million in Tian Rui Hotel Corporation, master franchisor of the Super 8(R) brand in China, to accelerate its hotel development efforts.
Wyndham Hotel Group's Super 8 brand, one of the largest economy hotel chains in the world, was introduced to China in 2004. Tian Rui Hotel Corporation has opened 49 Super 8 hotels in China, representing more than 4,700 rooms, and has signed agreements to develop an additional 67 hotels. The Super 8 brand already is among the largest economy chains in China.
Mitchell Presnick, Tian Rui Hotel Corporation chief executive officer, said Aetos' investment will enable Tian Rui Hotel Corporation to broaden its opportunities beyond those possible as a pure franchisor and to begin operating and managing hotels.
"By expanding into hotel operations and management, we will capture a wider range of the value chain and better serve our franchisees," he said. "We welcome Aetos as a partner in the development of the Super 8 brand in China. The combined resources of Aetos and Wyndham Hotel Group will allow us to further leverage our national network of relationships with major developers and operators all across China."
"This investment will accelerate the development of the Super 8 brand throughout China," said Steven A. Rudnitsky, Wyndham Hotel Group president and chief executive officer. "The $50 million commitment by Aetos represents a powerful vote of confidence in the integrity and strength of the Super 8 brand and our important alliance with Tian Rui Hotel Corporation."
Hotel growth in China has been propelled by the country's rapidly growing economy, which has increased the amount of business and leisure travel. The World Travel & Tourism Council has predicted that China will become the second largest travel and tourism economy in the world by 2016. In addition, the 2008 Olympic games in Beijing are expected to bring hundreds of thousands of international visitors to China and attract additional worldwide interest in China as a travel destination.