Wyndham International, Inc. (NYSE:WYN) announced today that it signed an agreement to sell its Malmaison brand and hotel properties located in England and Scotland to Marylebone Warwick Balfour Group Plc. (MWB) for approximately $112.5 million. The agreement comes as part of Wyndham`s strategic plan to continue focusing on its core branded hotel and resort operations, which are located primarily in North America.
“This is another important step in our strategy of concentrating primarily on owned and managed upscale and luxury properties,” said Fred Kleisner, president and chief executive officer of Wyndham. “The price was attractive to both sides, and we plan to use the proceeds to reduce debt and to reinvest in our core businesses. With the closing of this transaction, we will have divested approximately $300 million in non-core assets this year. We are delighted that MWB will be operating Malmaison and we will continue to be involved in developing new properties under the Malmaison brand.”
The transaction is expected to close by year-end.
Malmaison currently has hotels in Leeds, Manchester, Newcastle, Glasgow and Edinburgh, with hotels planned in Birmingham and London. Long considered the innovator in the development of lifestyle hotels, Malmaison was the U.K. hotel group of the year in 1999. Each hotel features 80-120 guest rooms.
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 hotels and resorts in the United States, Canada, Mexico, the Caribbean and Europe. For more information, visit www.wyndham.com. For reservations, call 800-WYNDHAM.