WYNDHAM HOTEL GROUP has signed an agreement with American Hotel Income Properties REIT Inc. involving 46 midscale and economy segmented hotels.
The REIT will convert 44 existing hotels across the U.S. to Wyndham’s Baymont Inn & Suites, a midscale brand, and Travelodge and Super 8, both economy brands. The hotels are operating under the Oak Tree Inn brand. Fourteen Oak Tree Inns will become Baymonts; 28 will fly the Travelodge flag; and two will join the Super 8 family.
American Hotel Income Properties also acquired two hotels it will add to the Wyndham portfolio. One has recently converted to a Days Inn, an economy brand, and the other is to be rebranded under one of Wyndham’s brands later this month.
The $70 million REIT owns 114 hotels in metro areas and other secondary markets in 33 states. The Oak Tree Inn brand serves railway crews, whose companies signed multi-year lodging contracts with the REIT. Most of the hotels have an attached or adjacent Penny’s Diner.
The conversion of all 46 hotels is expected to happen by the end of this year.
The agreement boosts the company’s presence in locations near Nashville, Tennessee; Kansas City, Kansas.; Jefferson City, Missouri; Lincoln, Nebraska; and Buffalo, New York.
The hotels will continue to be managed by ONE Lodging Management Inc., the REIT’s exclusive external hotel manager, a wholly owned subsidiary of O’Neill Hotels & Resorts Ltd.
Chip Ohlsson, executive vice president and chief development officer at Wyndham Hotel Group, said the deal is “a testament to … strong industry relationships” the company has formed over the years.
“Rob O’Neill and his team at AHIP have built a tremendous collection of clean, comfortable and affordable accommodations which guests have come to love,” Ohlsson said.
“This agreement furthers our strategic plan to curate a robust portfolio of premium branded, select-service hotels poised for optimal success under strong recognized brands with national awareness that will empower them to flourish,” said Rob O’Neill, chief executive officer of American Hotel Income Properties. The deal also connects the hotels to Wyndham’s international loyalty program, which Wyndham says has 54 million members.
This is the second major move Wyndham has made this year to grow its midscale footprint in the U.S. In October, the company closed on its acquisition of AmericInn, gaining 200 hotels concentrated in the Midwest.
Wyndham’s U.S. pipeline includes nearly 700 hotels and 63,000 rooms.