As the 37th Annual NYU International Hospitality Industry Investment Conference kicked off in New York City today, Wyndham Hotel Group announced it has entered into an agreement with Corinthian Development Company to develop more than 15 new-construction Wingate by Wyndham properties in key markets throughout the U.S. and Canada over the next two years.
Corinthian, along with a “capital partner with significant experience in hospitality real estate development,” plans to deploy up to $250 million of total capital to develop the multiple properties under the Hotel Group’s midscale Wingate by Wyndham brand. The franchised hotels will be managed by Dallas-based Aimbridge Hospitality, the second largest independent hotel investment and management firm in the U.S. which currently operates more than 30 Wyndham Hotel Group properties under a number of the company’s hotel brands.
“This agreement presents a significant opportunity to leverage the improving new-construction development environment and increase our Wingate by Wyndham portfolio by more than 10 percent,” Bob Loewen, executive vice president and chief operating officer, Wyndham Hotel Group, said in a statement. “Wingate by Wyndham has always been a consistent, well-performing brand and we’re confident that our partners’ expertise, combined with their dedication, will help drive continued growth and success.” In the same statement, James Wolford, chief executive officer of Corinthian Development Company, noted that demand for hotel rooms is at historic highs, and the economic crisis of 2008 caused limited new supply.
Corinthian’s plan will target development of Wingate by Wyndham hotels in top markets including Boston, Chicago, Los Angeles, New York, Toronto and Vancouver, among others. The initial sites planned for development are located in Denver, Seattle and Nashville.
The Wingate by Wyndham portfolio consists of 153 properties in the U.S., Canada and Mexico, with 20 properties representing more than 1,900 rooms currently in the development pipeline. In 2014, the brand introduced a refreshed new-construction prototype concept designed to reduce development costs and capture greater efficiencies for hotel owners.