Wyndham Hotel Group announced an agreement with Hospitality Properties Trust to brand 20 hotels with the Wyndham Hotels and Resorts and Hawthorn Suites by Wyndham brand names.
As part of the agreement, four of the hotels will become Wyndham Hotels and Resorts properties, and 16 will become Hawthorn Suites by Wyndham hotels. All 20 properties will be managed by the Wyndham Hotel Group management company under a 25-year management contract. Wyndham Hotel Group will have two consecutive 15-year renewal options, which may be exercised for all of the hotels.
The rebranded hotels to become Wyndham Hotels and Resorts properties are: Wyndham Irvine John Wayne Airport, Irvine, Calif.; Wyndham Atlanta Perimeter, Atlanta, Ga.; Wyndham Dallas Park Central, Dallas, Texas; and Wyndham Houston West Energy Corridor, Houston, Texas.
The other properties, to be rebranded Hawthorn Suites by Wyndham, are in Denver Tech Center, Centennial, Colo.; Hartford-Meriden, Meriden, Conn.; Orlando Altamonte Springs, Altamonte Springs, Fla.; Chicago-Hoffman Estates, Hoffman Estates, Ill; Louisville, Louisville, Ill.; Chicago-Schaumburg, Schaumburg, Ill.; Northbrook-Wheeling, Wheeling, Ill.; Detroit Aubrun Hills, Aubrun Hills, Mich.; Detroit Farmington Hills, Farmington Hills, Mich.; Charlotte-Coliseum, Charlotte, N.C.; Greensboro, Greensboro, N.C.; Raleigh, Raleigh, N.C.; Omaha, Omaha, Neb.; Cincinnati Blue Ash, Blue Ask, Ohio; Dallas Near the Galleria, Dallas, Texas; and Salt Lake City - Fort Union, Salt Lake City, Utah.
Hospitality Properties Trust will provide up to $75 million for refurbishment and rebranding of the hotels, which is expected by the third quarter of this year. The management contract also requires that up to five percent of the hotels' gross revenues for an FF&E Reserve be escrowed for future periodic refurbishments of the hotels. Management fees due to Wyndham Hotel Group are contractually subordinated to the owner's priority return due HPT and the FF&E Reserve funding. The payment of these amounts to HPT is guaranteed by Wyndham Worldwide for the first seven years subject to a maximum cap of $20 million and an annual cap of $10 million. All amounts are subject to future recapture by Wyndham Worldwide and any payments or recapture is done on a consolidated portfolio basis.