Hospitality Properties Trust (NYSE: HPT) today 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. Other important terms of this agreement include the following:
John Murray, President of HPT, made the following statement at the time this transaction was announced:
“HPT is delighted to add Wyndham Hotel Group as one of its hotel operator partners. The twenty (20) hotels which will be rebranded to Wyndham Hotel Group brands are some of the hotels which HPT identified to be sold or rebranded when HPT announced the re-alignment of its contracts with InterContinental Hotels Group last July. HPT believes that the refurbishment and rebranding of these twenty (20) hotels and their management by Wyndham Hotel Group will result in improved operating results at these hotels. Also, HPT expects it may in the future add to its ownership of Wyndham Hotel Group branded hotels.”
HPT expects the rebranding of the hotels discussed in this press release to be completed during the third quarter of this calendar year, but the completion of the refurbishment program may continue into 2013 or 2014. A list of the locations of the twenty (20) hotels to be rebranded to Wyndham Hotel Group brands is attached as Schedule A to this press release.
Hospitality Properties Trust is a real estate investment trust headquartered in Newton, Massachusetts which currently owns 290 hotels and 185 travel centers located throughout the United States and in Puerto Rico and Ontario, Canada.
WARNING REGARDING FORWARD LOOKING STATEMENTS
THIS PRESS RELEASE CONTAINS FORWARD LOOKING STATEMENT WITHIN THE MEANING OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 AND OTHER SECURITIES LAWS. ALSO, WHENEVER HPT USES WORDS SUCH AS “BELIEVE”, “EXPECT”, “ANTICIPATE,” “INTEND”, “PLAN”, “ESTIMATE” OR SIMILAR EXPRESSIONS, HPT IS MAKING FORWARD LOOKING STATEMENTS. THESE FORWARD LOOKING STATEMENTS ARE BASED UPON HPT’S CURRENT BELIEFS AND EXPECTATIONS BUT THEY ARE NOT GUARANTEED TO OCCUR AND MAY NOT OCCUR FOR VARIOUS REASONS, INCLUDING SOME REASONS BEYOND HPT’S CONTROL. HPT’S ACTUAL RESULTS MAY DIFFER MATERIALLY FROM THOSE CONTAINED IN HPT’S FORWARD LOOKING STATEMENTS AS A RESULT OF VARIOUS FACTORS. FOR EXAMPLE:
THE INFORMATION CONTAINED IN HPT’S FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION, OR SEC, INCLUDING UNDER “RISK FACTORS” IN HPT’S PERIODIC REPORTS, OR INCORPORATED THEREIN, IDENTIFIES OTHER IMPORTANT FACTORS THAT COULD CAUSE HPT’S ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE STATED IN HPT’S FORWARD LOOKING STATEMENTS. HPT’S FILINGS WITH THE SEC ARE AVAILABLE ON THE SEC’S WEBSTIE AT WWW.SEC.GOV.
YOU SHOULD NOT PLACE UNDUE RELIANCE UPON HPT’S FORWARD LOOKING STATEMENTS.
EXCEPT AS REQUIRED BY LAW, HPT DOES NOT INTEND TO UPDATE OR CHANGE ANY FORWARD LOOKING STATEMENTS AS A RESULT OF NEW INFORMATION, FUTURE EVENTS OR OTHERWISE.
|Wyndham Hotels||Houston (West Energy||344||2 food & beverage|
|and Resorts||Corridor), TX||outlets and 9,000 sq.ft. of|
|Wyndham Hotels||Irvine (Orange County||335||2 food & beverage|
|and Resorts||Airport), CA||outlets and 7,500 sq.ft. of|
|Wyndham Hotels||Dallas (near the Galleria), TX||295||2 food & beverage|
|and Resorts||outlets and 10,300 sq.ft.|
|of meeting space|
|Wyndham Hotels||Atlanta (Perimeter area), GA||296||2 food & beverage|
|and Resorts||outlets and 12,000 sq.ft.|
|of meeting space|
|Subtotal:||1,270||8 food & beverage|
|outlets and 38,300 sq.ft.|
|of meeting space|
|Hawthorn Suites by Wyndham||Dallas (near the Galleria), TX||114|
|Hawthorn Suites by Wyndham||Denver (Denver Tech Center), CO||129|
|Hawthorn Suites by Wyndham||Hartford-Meriden, CT||122|
|Hawthorn Suites by Wyndham||Orlando, FL||120|
|Hawthorn Suites by Wyndham||Chicago-Hoffman Estates, IL||120|
|Hawthorn Suites by Wyndham||Chicago-Schaumburg, IL||120|
|Hawthorn Suites by Wyndham||Northbrook-Wheeling, IL||141|
|Hawthorn Suites by Wyndham||East Louisville, KY||76|
|Hawthorn Suites by Wyndham||Detroit-Auburn Hills, MI||108|
|Hawthorn Suites by Wyndham||Detroit-Farmington Hills, MI||123|
|Hawthorn Suites by Wyndham||Charlotte, NC||79|
|Hawthorn Suites by Wyndham||Greensboro, NC||120|
|Hawthorn Suites by Wyndham||Raleigh, NC||79|
|Hawthorn Suites by Wyndham||Omaha, NE||129|
|Hawthorn Suites by Wyndham||Cincinnati-Blue Ash, OH||76|
|Hawthorn Suites by Wyndham||Salt Lake City-Ft. Union, UT||97|
|TOTAL:||3,023||8 food & beverage|
outlets and 38,300 sq.ft.
|of meeting space|
A Maryland Real Estate Investment Trust with transferable shares of beneficial interest listed on the New York Stock Exchange.
No shareholder, Trustee or officer is personally liable for any act or obligation of the Trust.