Wyndham Worldwide is entering the extended stay market and broadening its economy-tier reach through the purchase of Global Hyatt Corp. affiliate U.S. Franchise Systems, owner of the extended stay Hawthorn Suites and economy Microtel Inns & Suites brands.
The deal, announced Monday evening, gives Wyndham the combined 29,000 rooms of the two brands, 292 Microtel properties and 91 Hawthorn Suites properties. Financial terms of the deal were not disclosed, and it is expected to close within the next 60 days.
Wyndham CEO Steven Rudnitsky, speaking today at the New York University International Hospitality Industry Investment Conference, said the acquisition fits with Wyndham's core strategy of growing its strength in the economy sector. Wyndham also owns the Days Inn, Howard Johnson, Super 8 and Travelodge brands. "We're talking about more properties right down the center of the fairway for us with our core brands that we have a good track record of being able to grow," Rudnitsky said.
Microtel and Hawthorn both have a handful of properties overseas already, and Rudnitsky said Wyndham plans to continue growing them internationally.
U.S. Franchise Systems recently reorganized its national sales force as part of a move to expand its business among corporate travelers
(BTNonline, Feb. 20). With the acquisition, Rudnitsky said the brands' franchisees will "receive maximum benefit from our comprehensive distribution platform, information technology capabilities, field services and sales and marketing functions."