Fulfilling a commitment to focus on its core luxury and upscale brands, Wyndham International, Inc. (NYSE:WYN) announced today that it has sold its Sierra Suites(R) Hotel brand, properties and related assets to Sierra Suites Hotel Company, L.P., a partnership led by Rolf E. Ruhfus and B. Anthony Isaac.
The transaction also includes the sale of one owned and three leased properties as well as the management contracts on 13 properties currently owned by affiliates of the partnership. Sierra Suites Hotel is a mid-priced all suites chain with 17 properties.
Wyndham will continue to own and operate the Summerfield Suites(R) by Wyndham hotel business, the upscale chain of all-suites hotels. As part of the transaction, the Ruhfus, Isaac group will assume the management contracts for nine Summerfield Suites(R) by Wyndham hotels currently owned by partnerships controlled by Ruhfus. In addition, Wyndham has entered into long-term franchise agreements through LodgeWorks(R), L.P. , a new management and development partnership formed by Ruhfus, Isaac and others. The franchise agreements encompass the nine hotels as well as future Summerfield properties.
Terms of the transaction were not disclosed. Wyndham previously announced that it intended to exit the mid-price all-suites business and focus instead on its core luxury and upscale brands, while expanding the Summerfield Suites hotel division through franchising.
“We are delighted to be expanding our strategic alliance with the recognized leaders in the all-suites market, while aligning our own all-suite portfolio with the upscale and luxury segments that are Wyndham`s core,” said James D. Carreker, chairman and chief executive officer of Wyndham. “Going forward, we will benefit from their commitment to the growth of Summerfield Suites by Wyndham.”
Ruhfus and Isaac are two of the founders of the Summerfield Suites Hotel and Sierra Suites Hotel brands and, through various partnerships, currently own 25 properties of both brands. Ruhfus is a member of the Board of Directors of Wyndham International.
“Given Wyndham International`s focus on the upscale segment and our ownership interest, it was a win-win for us to take back the Sierra Suites hotel brand,” said Isaac. “We have also been very pleased with the performance of our Summerfield Suites portfolio and look forward to working with Wyndham as their largest franchisee in helping the system grow.”
Summerfield Suites by Wyndham is an up-scale all suite hotel brand that offers guests separate living and sleeping areas, full kitchens, enhanced work areas, a complimentary breakfast and an evening social hour. In addition, Summerfield Suites offers “signature” two-bedroom, two-bathroom suites designed for equal-status business travelers in training classes or attending meetings, and for families on weekend excursions.
Wyndham International, Inc. (NYSE:WYN) offers upscale and luxury hotel and resort accommodations through proprietary lodging brands and a management services division. Based in Dallas, Wyndham International owns, leases, manages and franchises 300 hotels with more than 70,000 rooms in the United States, Canada, Mexico, the Caribbean and Europe. For more information, visit www.wyndhamintl.com.