Wyndham and LuxUrban Enter Agreement to Broaden Trademark Collection Portfolio in the USA

Wyndham Hotels and Resorts just announced a new agreement that will add no less than 16 LuxUrban Hotels.

Wyndham Hotels & Resorts, a world-leading hotel franchise company with more than 9,100 hotels in 95 countries, announced today a new agreement to add 16 LuxUrban Hotels, which represent approximately 1,400 rooms, to the Trademark Collection (r) by Wyndham later this year.

The hotels, located in New York, Los Angeles Miami, Washington and New Orleans will retain their LuxUrban brand while also gaining recognition and affiliation via the Trademark name. Wyndham, in exchange, will provide financial, operational, and sales support to advance LuxUrban’s asset-light, acquisition-driven strategy. This agreement will also pave the way for any additional LuxUrban properties, including those not yet acquired by Trademark, to join Trademark.

"We created Trademark Collection by Wyndham specifically to cater to the needs of operators like LuxUrban," said Chip Ohlsson, chief development officer, Wyndham Hotels & Resorts. "So many hotels today, particularly those in urban destinations, have a distinct character and unique charm that hoteliers want to hold on to. At the same time, they want the visibility, distribution and support that comes with being part of a well-known brand. Trademark gracefully bridges that gap, affording hoteliers the opportunity to maintain their independence while unlocking the resources of the world's largest hotel franchisor."

Ohlsson continued, "In just a few years, LuxUrban has created a significant position in the U.S. urban hotel market, proving the success of its unique, asset light operating model. We're excited to have their hotels join what continues to be one of Wyndham's fastest growing brands and even more excited by the long-term growth opportunities that exist for both LuxUrban and for Trademark."

Trademark Collection by Wyndham caters to three- and four star hoteliers who want to benefit from the resources and scale of Wyndham, while still maintaining their hotels' independence. The brand has more than 185 properties in 25 countries. These include hotels in major cities such as Atlanta, San Francisco and Las Vegas.

An Asset-Light Approach

LuxUrban, founded in 2017, leverages a asset-light approach to secure long-term leases of hotels in city centers. LuxUrban's approach allows it to take advantage of growing demand from consumers for short-term accommodations in city centers while also helping distressed urban asset owners who are struggling to cope with rising interest rates, declining property values, and tighter underwriting conditions. LuxUrban acquires the operating rights for these hotels through long-term Master Lease Agreements. This allows property owners to retain ownership while unlocking their full commercial potential.

"Our collaboration with Wyndham is a tremendous leap forward for LuxUrban and a validation of our operating model, execution abilities, and large opportunity landscape," said Brian Ferdinand, chairman and CEO, LuxUrban Hotels. "We appreciate Wyndham's collaborative approach to the process, the depth and breadth of their due diligence, and their confidence in our team and outlook. With the support of a world class hospitality organization like Wyndham, as well as their assistance with growth and working capital in the form of development advance notes for existing and future projects, we believe we are now in the best position in our history to accelerate growth, enhance cash flow and capture the benefits of scale."

Wyndham Hotels and Resorts has a franchisee-first mentality, prioritizing their needs to ensure long-term success. Wyndham, the largest hotel franchiser in the world, has more hotels than any major hotel company. It leverages this scale to offer best-in class services and support for marketing, distribution and sales, as well as sourcing and technology. Wyndham Rewards was recently named the number one hotel reward program by editors at U.S News & World Report. Hotels within the Wyndham Portfolio benefit from a rapidly expanding membership base with more than 100,000,000 enrolled members who account for almost one in every two U.S. Check-ins.

Ferdinand added, "We're incredibly enthusiastic about our alignment with Wyndham, and believe that the financial, brand and operating advantages our relationship provides will make LuxUrban an even more attractive solution for property owners looking to employ our asset-light, triple net lease alternatives, particularly those looking to tap into new sources of capital while maintaining ownership of their asset."

Source: breakingtravelnews.com