From Earlier: Hospitality Properties Trust Enters Agreement for 20 Hotels with Wyndham Hotel Group
Hospitality Properties Trust (NYSE: HPT) yesterday announced that it has entered an agreement to rebrand twenty (20) hotels currently owned by HPT to brands owned by Wyndham Hotel Group, a member of the Wyndham Worldwide Corporation (NYSE: WYN). Four (4) of the hotels will be branded as “Wyndham Hotels and Resorts” and sixteen (16) of the hotels will be branded as “Hawthorn Suites by Wyndham” hotels. All twenty (20) hotels will be managed by Wyndham Hotel Group under a long term contract.
Wyndham Hotel Group has agreed to pay HPT an owner's priority from the operating results of these hotels of $770,000/month ($9,240,000/year). The payment of these amounts to HPT is partially guaranteed by Wyndham Hotel Group.
HPT has agreed to provide up to $75 million for refurbishment and rebranding of these twenty (20) hotels to “Wyndham Hotels and Resorts” and “Hawthorn Suites by Wyndham” brand standards. As these funds are advanced, the amount of the HPT owner's priority will increase by 8% per annum of the amounts funded.
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