Wyndham Hotels & Resorts has entered into an agreement with LuxUrban Hotels to bring 16 of the latter’s hotels, representing approximately 1,400 rooms, into the Trademark Collection by Wyndham brand later this year.
Located across New York, Los Angeles, Miami, Washington, and New Orleans, the hotels will maintain their LuxUrban branding while also gaining affiliation and recognition via the Trademark brand name. In exchange, Wyndham will provide financial, sales, and operational related support to help advance LuxUrban’s asset-light acquisition-driven growth strategy.
The agreement also paves the way for additional LuxUrban hotels-including any locations not yet acquired – to join Trademark in the future.
The Trademark Collection, launched in 2017, is the first Wyndham-brand geared to three- and four-star hotel owners intent on retaining their independent spirit and are designed for everyday travellers seeking distinctive, attainable accommodations in sought-after destinations.
Wyndham says each of Trademark Collection by Wyndham’s upper-midscale-and-above properties boast three common attributes: character, charm, and individuality.
LuxUrban Hotels utilises an asset light business model to lease entire hotels on a long-term basis and rent out hotel rooms in the properties it leases to business and leisure travellers through the company’s online portal and third-party sales and distribution channels.
In late 2021, the company commenced the process of winding down its legacy business of leasing and re-leasing multifamily residential units, as it pivoted toward its new strategy of leasing hotels.
The company is now seeking to “rapidly build its portfolio on favourable economics,” says Wyndham, through the acquisition of additional accommodations “that were dislocated or are underutilised as a result of the pandemic and current economic conditions”.
Trademark Collection by Wyndham is geared toward three- and four-star hoteliers looking to tap into the scale and resources of Wyndham while maintaining their hotels’ independent spirit. Today, the brand includes more than 185 hotels in nearly 25 countries, including locations in top-tier cities like Atlanta, San Francisco, Las Vegas, Montreal, Berlin, Zurich, Athens and Istanbul, among others.
“We created Trademark Collection by Wyndham specifically to cater to the needs of operators like LuxUrban,” said Chip Ohlsson, chief development officer, Wyndham Hotels & Resorts.
“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,” he adds.
Like other collections developed by leading hospitality groups, Trademark “gracefully bridges that gap,” says Mr Ohlsson, by “affording hoteliers the opportunity to maintain their independence while unlocking the resources of the world’s largest hotel franchisor.”
In its recently announced 2Q 2023 results, LuxUrban revealed significant quarter-over-quarter increases in net rental revenue, EBITDA, and cash net income. Year-to-date RevPAR rose to USD291 from USD138 in the same period in 2022, and from USD247 as of the year ended 31-Dec-2022. Total short-term stay units hosting guests in 2Q 2023 rose to 1,086 from 584 in 2Q 2022, and from 839 at 31-Dec-2022.
