Private equity firm The Blackstone Group has agreed to buy hotelier Wyndham International for US$3.2bn (£1.8bn, 2.7bn euros) in a deal announced on 14 June.
Blackstone will pay US$1.15 (64p, 1 euro) per share to acquire all of Wyndham’s outstanding common stock, while shareholders of preferred stock will receive US$72.17 per share (£40, 60 euros).
Under the agreement, Blackstone will also assume US$1.8bn in debt.
The acquisition is expected to close by the end of the year.
Wydham owns, manages and franchises 32 luxury hotels and resorts in the US, Canada, Mexico, the Carribean and Europe, including the Golden Door spa chain.
In 2004, heavy debt meant the hotelier sold 185 properties for US$2.7bn (£1.5bn, 2.2bn euros).
Fred Kleisner, Wyndham’s chair, president and chief executive, said the company had since simplified its corporate structure, refinanced its debt and sold all non-strategic assets to create a streamlined organisation.
“All of this has made Wyndham’s a much desired and sought after company in today’s real estate market,” he added.
Rival hotel groups Starwood, Marriot International and InterContinental Hotels are believed to have been interested in buying the company.
The transaction adds to Blackstone’s growing investment in the leisure sector, following last year’s purchases of Extended Stay America, Prime Hospitality and Boca Resorts.
The deal also reflects the current merger and acquisition activity in the hotel industry – last year there were 25 deals totalling nearly US$35bn (£19.3bn, 29bn euros), according to the Financial Times. Details: www.blackstone.com
