Wyndham completes major franchise buy

22nd Jul 2008

Wyndham Worldwide Corporation 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 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.”

Roy E. Flora, executive vice president and chief operating officer of U.S. Franchise Systems, said 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.”

Wyndham Hotel Group encompasses more than 6,550 franchised hotels and approximately 551,000 hotel rooms worldwide, not including this acquisition.



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