Wyndham Closes $345 Million Transaction With Sunstone Hotels and Westbrook Hotel Partners IV, LLC.
DALLAS--(BUSINESS WIRE)--Dec. 5, 2002
Company to Sell Two Additional Properties for $103 Million
by Year-End as Part of Original Agreement
Wyndham International, Inc. (AMEX:WBR) announced today that it has closed the sale of 11 non-proprietary assets to Westbrook Hotel Partners IV, LLC for approximately $345 million. As part of the same agreement announced in September, the company expects to close the sale of two additional properties to Westbrook for approximately $103 million prior to year-end. The company said it would use the net proceeds from the sales to pay down debt.
"With the sale of these properties to Westbrook Hotel Partners IV, we have sold approximately $1.4 billion in non-strategic assets since 1998. We are aggressively pursuing our disposition strategy to sell the remaining 35 non-proprietary assets in our portfolio. With this transaction, we are on track to reach our goal of becoming a proprietary-branded hotel operating company focused on our Wyndham brand," stated Fred J. Kleisner, chairman and chief executive officer of Wyndham International.
Properties included today's closing include: Marriott Tyson's Corner Vienna, Va. Marriott Houston North at Greenspoint Houston Marriott Philadelphia West West Conshohocken, Pa. Marriott Troy Troy, Mich. Hilton Del Mar Del Mar, Calif. Hilton Huntington Melville, NY Doubletree Suites Minneapolis Minneapolis Radisson Englewood Englewood, NJ Radisson Ft. Magruder Williamsburg, Va. Hyatt Newporter Newport Beach, Calif. Valley River Inn Eugene, Ore.
The two additional properties expected to close by year-end include:
Embassy Suites Chicago Wyndham Greenspoint
September's agreement outlined the sale of 12 non-proprietary assets and one Wyndham-branded asset, which will retain the Wyndham flag pursuant to a ten-year franchise agreement.
All 13 properties will be managed or asset managed by Sunstone Hotel Investors, LLC. Sunstone currently operates 61 upscale and mid-scale hotels with 14,838 rooms throughout the United States with approximately 90 percent being full-service hotels. Westbrook Hotel Partners IV, LLC is a newly formed entity of Westbrook Partners Real Estate Fund IV.
Bear, Stearns & Co. Inc. and J.P. Morgan Securities Inc. served as financial advisors to Wyndham in connection with the transaction.
Wyndham International, Inc. offers upscale and luxury hotel and resort accommodations through proprietary lodging brands and a management services division. Based in Dallas, Wyndham International owns, leases, manages and franchises hotels and resorts in the United States, Canada, Mexico, the Caribbean and Europe. For more information, visit www.wyndham.com. For reservations, call 800-Wyndham.
This press release contains certain forward-looking statements within the meaning of Sections 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including projections about future operating results. The Company's results, expectations and objectives could differ materially from those set forth in the forward-looking statements. Certain factors that might cause a difference include, but are not limited to, risks associated with the availability of equity or debt financing at terms and conditions favorable to Wyndham; risks associated with the course of litigation; Wyndham's ability to effect sales of assets on favorable terms and conditions; Wyndham's ability to integrate acquisitions into its operations and management; risks associated with the hotel industry and real estate markets in general; competition within the lodging industry; the impact of general economic conditions; the impact of terrorist activity or war, threats of terrorist activity or war and responses thereto on the economy in general and the travel and hotel industries in particular; risks associated with debt financing; and other risks and uncertainties set forth in the company's annual, quarterly and current reports, and proxy statements.
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|Date:||Dec 5, 2002|
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