Wyndham Worldwide completes purchase of U.S. franchise systems (United States)
|
Wyndham Worldwide completes purchase of U.S. franchise systems (United States)
|
Category: North America & West Indies / Carribean islands - United States - Industry economy -
Group or hotel buyout
This is a press release selected by our editorial committee and published online for free on 2008-07-22
Wyndham Worldwide Corporation (NYSE: WYN) today announced it has completed the acquisition of U.S. Franchise Systems, Inc. and its Microtel Inns & Suites® and Hawthorn Suites® hotel brands from a subsidiary of Global Hyatt Corporation for a purchase price of $131 million. The transaction is expected to be slightly accretive to earnings in 2008.
The addition of Microtel Inns & Suites, a chain of 298 all-new-construction economy hotels with 35 more under construction, and Hawthorn Suites, a chain of 91 all-suites, extended-stay hotels, expands the Wyndham Hotel Group system to 12 brands that encompass nearly 7,000 hotels on six continents.
“This acquisition is a great fit for Wyndham Worldwide,” said Stephen P. Holmes, Wyndham Worldwide chairman and chief executive officer. “It further leverages our franchise system, gives us more avenues to grow domestically and internationally, and advances our strategic goal of growing Wyndham Hotel Group’s contribution to our overall profitability.”
Steven A. Rudnitsky, Wyndham Hotel Group president and chief executive officer, added that “the acquisition of these two highly regarded brands builds on our company’s track record of acquiring brands and delivering added value to our franchisees through the many economies of scale offered by our global franchise platform.”
In welcoming Microtel and Hawthorn Suites franchisees, he said “the brands will be integrated while preserving the culture, systems and philosophies on which they were established and built.” Rudnitsky noted that Microtel has been ranked number one in guest satisfaction in their segment by J.D. Power and Associates for the last six years, adding: “We are eager to share best practices.”
Roy E. Flora, executive vice president and chief operating officer of U.S. Franchise Systems, added that U.S. Franchise Systems “greatly anticipates the opportunity of working together as one team to add the Microtel and Hawthorn Suites brands to the Wyndham portfolio of hotels. As part of the Wyndham Hotel Group we will have access to Wyndham’s resources which will enable us to further enhance the success of our owners and provide the consumer with the highest level of quality accommodations and service. I look forward to leading the continued growth and success of our brands.”
As one of the world’s largest hospitality companies, Wyndham Worldwide offers individual consumers and business-to-business customers a broad suite of hospitality products and services across various accommodation alternatives and price ranges through its premier portfolio of world-renowned brands.
Wyndham Hotel Group encompasses more than 6,550 franchised hotels and approximately 551,000 hotel rooms worldwide, not including this acquisition. Group RCI offers its more than 3.6 million members access to more than 67,000 vacation properties located in approximately 100 countries. Wyndham Vacation Ownership develops, markets and sells vacation ownership interests and provides consumer financing to owners through its network of approximately 145 vacation ownership resorts serving over 800,000 owners throughout North America, the Caribbean and the South Pacific.
|
|
