Lafayette Square targeting up to $100 million of its balance sheet to finance
qualified Wyndham franchisees; executes first deal with Dr.
Amina James for first Wyndham in
Lake Charles, La.
PARSIPPANY,
N.J., Nov. 14, 2024 /PRNewswire/ -- Wyndham
Hotels & Resorts has teamed up with investment firm Lafayette
Square to provide diverse hoteliers with improved access to
capital. Through an exclusive relationship, Wyndham will vet and
directly connect qualified owners with Lafayette Square, which aims
to help hoteliers with up to $100
million in combined financing from the firm over the coming
years. While not all hoteliers will qualify, viable candidates can
use the funds to move forward projects that would otherwise stall
due to lack of traditional financing.
Lafayette Square's investment strategy addresses
a critical issue diverse hoteliers face when it comes to access to
capital and is the latest component of Wyndham's BOLD (Black Owners
and Lodging Developers) and Women Own the Room initiatives, which
aim to bolster hotel ownership by Black and women entrepreneurs by
addressing the unique challenges faced by each community. From
networking and educational opportunities via the newly launched
Accelerator Circle, to operational support and complimentary
services to help maximize revenue, each program offers tailored
solutions to help entrepreneurs on their path to hotel ownership.
Together, BOLD and Women Own the Room have resulted in more than
100 hotel deals with Black and women hoteliers, of which more than
20 are now open.
"Inequities still exist within hospitality, especially when
it comes to financing. Champions like Lafayette Square—who believe
in our same mission—can help us bring greater representation to our
industry. There are deserving, credible hoteliers that
continue to face roadblocks, and we're committed to using our
network to not only give the keys to hotel ownership to more
diverse owners, but ultimately help give them the access to tools,
resources and partners they need to succeed."
- Galen Barrett,
VP, Strategic Franchise Initiatives, Wyndham Hotels &
Resorts
"Financing is an ongoing issue—particularly for diverse hotel
owners— and there's a growing need to intervene. We believe in
elevating entrepreneurs who have historically not had the backing
to succeed. Tapping into Wyndham's network brings us and our
resources to the epicenter of hospitality, helping make hotel
ownership more attainable to qualified hoteliers."
- Abhay Patel,
Managing Director, Lafayette Square
Advancing Hotel Ownership
Despite a background in real
estate and experience owning a hotel in Memphis, BOLD member Dr. Amina James continued to face the same
challenges she had previously with banks upon exploring her next
venture in Lake Charles, La.,
including high rates and deals that did not provide enough capital
to fund her business plan. As a result, Wyndham introduced Dr.
James to Lafayette Square, resulting in her becoming the first
Wyndham franchisee to receive financing from the firm.
Because of Wyndham's connection to Lafayette Square, Dr. James
worked out a package solution facilitating the acquisition of her
second hotel, which is now open as the Wyndham Lake Charles. With the financing, Dr.
James plans to upgrade the property and streamline operations with
a third-party management team.
"Because of Wyndham's support, the credibility they saw
in me and their connection to Lafayette Square, I can now say I own
two hotels. BOLD and Women Own the Room are actively changing
hospitality by forging the path – and knocking down the barriers
along the way – to make hotel ownership possible. That's a vision
and a mission I'm proud to be part of."
- Amina James,
Wyndham Franchisee and Member of BOLD by Wyndham
For more information on franchising opportunities with Wyndham,
visit https://development.wyndhamhotels.com/. To learn more about
BOLD by Wyndham, visit here. To learn more about Women Own the
Room, visit here.
About Wyndham Hotels & Resorts
Wyndham Hotels & Resorts (NYSE: WH) is the world's largest
hotel franchising company by the number of properties, with
approximately 9,200 hotels across over 95 countries on six
continents. Through its network of approximately 893,000 rooms
appealing to the everyday traveler, Wyndham commands a leading
presence in the economy and midscale segments of the lodging
industry. The Company operates a portfolio of 25 hotel brands,
including Super 8®, Days Inn®, Ramada®, Microtel®, La Quinta®,
Baymont®, Wingate®, AmericInn®, Hawthorn Suites®, Trademark
Collection® and Wyndham®. The Company's award-winning Wyndham
Rewards loyalty program offers approximately 112 million enrolled
members the opportunity to redeem points at thousands of hotels,
vacation club resorts and vacation rentals globally. For more
information, visit wyndhamhotels.com.
About Lafayette Square
Lafayette Square invests
in middle market companies while positively supporting people and
communities. We believe the demand for capital in businesses
headquartered outside of high-income places is an overlooked
opportunity. We seek investment opportunities that stimulate
economic growth across the United
States through the creation and preservation of
working-class jobs. For more information, please visit
www.lafayettesquare.com.
Forward-Looking Statements
This press release contains
"forward-looking statements" within the meaning of the federal
securities laws, including statements related to Wyndham's current
views and expectations with respect to future availability of
financing for hotel owners. Forward-looking statements are any
statements other than statements of historical fact, including
those that convey management's expectations as to the future based
on plans, estimates and projections at the time Wyndham makes the
statements and may be identified by words such as "will," "expect,"
"believe," "plan," "anticipate," "predict," "intend," "goal,"
"future," "forward," "remain," "outlook," "guidance," "target,"
"objective," "estimate," "projection" and similar words or
expressions, including the negative version of such words and
expressions. Such forward-looking statements involve known and
unknown risks, uncertainties and other factors, which may cause the
actual results, performance or achievements of Wyndham to be
materially different from any future results, performance or
achievements expressed or implied by such forward-looking
statements. You are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date of this
press release.
Factors that could cause actual results to differ materially
from those in the forward-looking statements include, without
limitation, general economic conditions, including inflation,
higher interest rates and potential recessionary pressures; global
or regional health crises or pandemics including the resulting
impact on Wyndham's business, operations, financial results, cash
flows and liquidity, as well as the impact on its franchisees,
guests and team members, the hospitality industry and overall
demand for and restrictions on travel; the performance of the
financial and credit markets; the economic environment for the
hospitality industry; operating risks associated with the hotel
franchising business; Wyndham's relationships with franchisees; the
impact of war, terrorist activity, political instability or
political strife, including the ongoing conflicts between
Russia and Ukraine and conflicts in the Middle East, respectively; Wyndham's ability
to satisfy obligations and agreements under its outstanding
indebtedness, including the payment of principal and interest and
compliance with the covenants thereunder; risks related to
Wyndham's ability to obtain financing and the terms of such
financing, including access to liquidity and capital; and Wyndham's
ability to make or pay, plans for and the timing and amount of any
future share repurchases and/or dividends, as well as the risks
described in Wyndham's most recent Annual Report on Form 10-K filed
with the Securities and Exchange Commission and any subsequent
reports filed with the Securities and Exchange Commission. These
risks and uncertainties are not the only ones Wyndham may face and
additional risks may arise or become material in the future.
Wyndham undertakes no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
subsequent events or otherwise, except as required by law.
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SOURCE Wyndham Hotels & Resorts
