HomeHotelsWyndham to add 16 LuxUrban hotels to its Trademark Collection
Wyndham to add 16 LuxUrban hotels to its Trademark Collection
August 4, 2023
Wyndham has inked a deal with LuxUrban Hotels to add 16 LuxUrban hotels, totaling 1,400 rooms, into the Trademark Collection by Wyndham brand portfolio later this year.
Located across New York, Miami, Los Angeles, New Orleans and Washington, D.C., the 16 hotels will retain their LuxUrban branding while gaining affiliation and recognition through their new Trademark brand name.
As part of the deal, Wyndham will provide sales, financial and operation-related assistance to help LuxUrban progress its asset-light acquisition-driven expansion plan. The agreement will see more LuxUrban hotels, including at locations yet to be acquired, joining Trademark in the future.
Trademark Collection was created to cater to the needs of operators like LuxUrban specifically, said Chip Ohlsson, chief development officer, Wyndham Hotels & Resorts.
The brand aims at three- and four-star hotel owners looking to benefit from the resources and scale of Wyndham while maintaining the uniqueness and individuality of their hotels. Presently, the brand has more than 185 hotels across 25 countries, including in top-tier cities like Atlanta, Las Vegas, San Francisco, Montreal, Athens, Berlin, Istanbul and Zurich.
“So many hotels today, particularly those in urban destinations, have a distinct character and unique charm that hoteliers want to hold on to. At the same time, they want the visibility, distribution and support that comes with being part of a well-known brand. Trademark gracefully bridges that gap, affording hoteliers the opportunity to maintain their independence while unlocking the resources of the world’s largest hotel franchisor,” Ohlsson said.
“We’re excited to have their hotels join what continues to be one of Wyndham’s fastest growing brands and even more excited by the long-term growth opportunities that exist for both LuxUrban and for Trademark.”
LuxUrban has risen to a significant position in the urban hotel market in the U.S. in just a few years, which proves the success of its asset-light operating model, Ohlsson added.
LUXURBAN’S ASSET-LIGHT STRATEGY
Created in 2017, the Miami-based LuxUrban utilizes a long-term lease, asset-light business model to manage and acquire a portfolio of short-term rental assets in key metropolitan cities. The hotel operator’s portfolio currently consists of nearly 24 properties in significant urban markets in the U.S.
LuxUrban’s asset-light strategy helps the company capitalize on the increasing consumer demand for short-stay accommodations while helping owners of distressed urban assets who, along with struggling with the after-effects of the pandemic, may also be faced with increasing interest rates, depressed property values and stricter underwriting terms.
By purchasing the operating rights to such properties under long-term master lease agreements, LuxUrban enables owners to retain ownership of their properties while unlocking each asset’s full commercial potential.
The partnership with Wyndham is a “tremendous leap forward” for LuxUrban and a validation of its operating model, opportunity landscape and execution abilities, said LuxUrban Hotels Chairman and CEO Brian Ferdinand.
“We appreciate Wyndham’s collaborative approach to the process, the depth and breadth of their due diligence, and their confidence in our team and outlook. With the support of a world-class hospitality organization like Wyndham, as well as their assistance with growth and working capital in the form of development advance notes for existing and future projects, we believe we are now in the best position in our history to accelerate growth, enhance cash flow and capture the benefits of scale.”
The financial, brand and operating advantages of the relationship with Wyndham will make LuxUrban more attractive for property owners exploring their asset-light, triple net lease alternatives, especially those looking to utilize new sources of capital while maintaining ownership of their asset, Ferdinand said.
The world’s largest hotel franchising company, Wyndham currently has 9,100 hotels in over 95 countries.