Milestone Hotel Investments, Inc. and Regency Hotel Management, Inc. announced today that they have purchased a portfolio of eight Clubhouse Inn hotels and six Wyndham Garden Hotels, as well as the Clubhouse Inn brand, from Wyndham International (NYSE:WYN). Terms of the transaction were not disclosed.
An operating affiliate of Regency will continue to operate the upscale Wyndham Garden Hotels under a long-term franchise contract with Wyndham. Wyndham previously announced that it intended to exit the mid-priced hotel business, including Clubhouse Inn, and focus instead on its core luxury and upscale Wyndham brand.
“This transaction will allow us to focus on our core upscale and luxury segments while further strengthening our financial position. Our strategy is to continue to utilize the sale of non-core assets to strengthen our balance sheet and brands,” said Fred J. Kleisner, president and chief executive officer of Wyndham. “We are delighted that Milestone and Regency will operate the six Wyndham Garden Hotels as franchisees and make a substantial investment in those properties.”
“The acquisition confirms our strategy of doing larger transactions,” said Jasen Mark, vice president, acquisitions of Milestone Investments, Inc. “Over the past fourteen years we have been doing mostly single asset purchases. Although these deals have been terrific investments for us, in the future we would like to focus on larger transactions.”
Milestone and Regency said they would renovate the properties with estimated capital expenditures in excess of $10 million. “Once our extensive renovation plan is completed, the Clubhouse Inn hotels will be well positioned within their respective markets and the Wyndham Garden Hotels will benefit from improved curb appeal,” said David Sweet, President and CEO of Regency Hotel Management, Inc.
“Over the next 6 to 12 months we will evaluate the Clubhouse Inn name and develop a strategic focus for the brand,” said Sweet. In 1998, Clubhouse Inns of America was ranked number one, in the mid-priced without food and beverage segment, in the “Top U.S. Hotel Chain Survey” conducted by Business Travel News.
The acquired hotel portfolio consists of 1,873 rooms.
The Clubhouse Inn hotels are located in Overland Park, KS, (143 rooms); Atlanta, GA (147 rooms); Savannah, GA (138 rooms); Topeka, KS (121 rooms); Albuquerque, NM (137 rooms); Valdosta, GA (121 rooms); Nashville, TN (135 rooms); and Chicago, IL (137 rooms).
The Wyndham Garden Hotels purchased by Regency are in the following locations: Kansas City Airport- Kansas City, MO (138 rooms); Richardson (Dallas), TX (137 rooms); St. Louis, MO (142 rooms); Knoxville, TN (137 rooms); Omaha, NE (120 rooms); and Wichita, KS (120 rooms).