DALLAS— Wyndham International, Inc. has entered into a definitive agreement to sell 25 non-strategic hotels for $366 million to a partnership comprised of a private investment fund managed by Goldman Sachs and affiliates of Highgate Holdings. The divestiture includes 15 Wyndham-branded and 10 non-proprietary hotels. As part of the agreement, all 15 Wyndham-branded assets will remain in the brands portfolio pursuant to new franchise agreements. The transaction is expected to close during first quarter and completes Wyndham’s planned disposition program initiated in June 1999. Fred Kleisner, chairman, president, and CEO, noted, “Wyndhams positioning as a branded hotel operating company solely focused on our core Wyndham brand has been realized.” As of Dec. 31, this transaction will result in a $49 million non-cash impairment to the book values of certain assets to be sold. Upon the close of the transaction a gain of approximately $34 million will be recorded on the remainder of the assets in the portfolio, according to the company. Over the past five years, Wyndham has sold approximately 180 non-strategic properties for gross proceeds of over $2.5 billion while growing its core Wyndham brand portfolio to over 150 hotels across the U.S., Canada, the Caribbean, Mexico and the United Kingdom. The net proceeds from the asset sales have been used to reduce debt and overall company leverage. “Now that our formal asset disposition program is complete, the reduction of our company debt allows us to take advantage of the current capital market conditions and refinance our 2006 corporate debt maturities. The reduction of debt also allows us to invest in our remaining 33 owned assets through high return investment projects and access capital for brand growth in strategic markets,” Kleisner added.
