PARSIPPANY, N.J., Nov. 8, 2021 /PRNewswire/ -- Wyndham Hotels &
Resorts, Inc. (NYSE: WH) announced today that it has entered
into a definitive agreement with CorePoint Lodging ("CPLG")
concerning the termination of all remaining Wyndham hotel
management agreements ("HMAs") upon consummation of the merger
announced by CPLG today.
The termination is conditioned upon the closing of CPLG's sale,
which is targeted to occur in the first quarter of 2022.
Upon termination of the HMAs, CPLG will pay termination fees
to Wyndham of approximately $84
million.
"The termination of these management contracts will mark our
exit from the lower margin, resource intensive select-service
management business and afford us the opportunity to focus on the
continued growth of our asset-light and highly profitable, cash
generative franchising business," said Geoffrey A. Ballotti, president and chief
executive officer.
Wyndham's related franchise agreements are expected to remain
in-place at the current fee structure (5% royalties plus 4.5% for
marketing and reservation services).
The Company has posted additional materials on its investor
relations website, www.investor.wyndhamhotels.com, to further
disclose the potential financial impact of this agreement.
About Wyndham Hotels & Resorts
Wyndham Hotels & Resorts (NYSE: WH) is the world's largest
hotel franchising company by the number of properties, with
approximately 9,000 hotels across nearly 95 countries on six
continents. Through its network of approximately 803,000
rooms appealing to the everyday traveler, Wyndham commands a
leading presence in the economy and midscale segments of the
lodging industry. The Company operates a portfolio of 22
hotel brands, including Super 8®, Days Inn®, Ramada®, Microtel®, La
Quinta®, Baymont®, Wingate®, AmericInn®, Hawthorn Suites®,
Trademark Collection® and Wyndham®. Wyndham Hotels & Resorts is
also a leading provider of hotel management services. The Company's
award-winning Wyndham Rewards loyalty program offers over 90
million enrolled members the opportunity to redeem points at
thousands of hotels, vacation club resorts and vacation rentals
globally. For more information, visit www.wyndhamhotels.com.
The Company may use its website as a means of disclosing
material non-public information and for complying with its
disclosure obligations under Regulation FD. Disclosures of
this nature will be included on the Company's website in the
Investors section, which can currently be accessed at
www.investor.wyndhamhotels.com. Accordingly, investors should
monitor this section of the Company's website in addition to
following the Company's press releases, filings submitted with the
Securities and Exchange Commission and any public conference calls
or webcasts.
Forward-Looking Statements
This press release contains "forward-looking statements" within
the meaning of the federal securities laws, including statements
related to the termination of Wyndham
Hotels' management contracts with CorePoint
Lodging. Forward-looking statements include those that
convey management's expectations as to the future based on plans,
estimates and projections at the time Wyndham Hotels makes the
statements and may be identified by words such as "will," "expect,"
"believe," "plan," "anticipate," "intend," "goal," "future,"
"outlook," "guidance," "target," "objective," "estimate,"
"projection" and similar words or expressions, including the
negative version of such words and expressions. Forward-looking
statements involve known and unknown risks, uncertainties and other
factors, which may cause the actual results, performance or
achievements of Wyndham Hotels to be materially different from any
future results, performance or achievements expressed or implied by
such forward-looking statements. You are cautioned not to place
undue reliance on these forward-looking statements, which speak
only as of the date of this press release.
Factors that could cause actual results to differ materially
from those in the forward-looking statements include, without
limitation, general economic conditions; the continuation or
worsening of the effects from COVID-19, its scope, duration and
impact on the Company's business operations, financial results,
cash flows and liquidity, as well as the impact on the Company's
franchisees and property owners, guests and team members, the
hospitality industry and overall demand for travel; the success of
the Company's mitigation efforts in response to COVID-19;
the Company's performance in any recovery from COVID-19; the
performance of the financial and credit markets; the economic
environment for the hospitality industry; operating risks
associated with the hotel franchising and management businesses;
the Company's relationships with franchisees and property owners;
the impact of war, terrorist activity, political instability or
political strife; concerns with or threats of pandemics, contagious
diseases or health epidemics, including the effects of COVID-19 and
any resurgence or mutations of the virus and actions governments,
businesses and individuals take in response to the pandemic,
including stay-in-place directives and other travel restrictions;
risks related to restructuring or strategic initiatives; risks
related to the Company's relationship with CorePoint Lodging; the
Company's ability to satisfy obligations and agreements under its
outstanding indebtedness, including the payment of principal and
interest and compliance with the covenants thereunder; risks
related to the Company's ability to obtain financing and the terms
of such financing, including access to liquidity and capital
as a result of COVID-19; and the Company's ability to make or pay,
plans for, and the timing and amount of any future share
repurchases and/or dividends, as well as the risks described in the
Company's most recent Annual Report on Form 10-K filed with the
Securities and Exchange Commission and any subsequent reports filed
with the Securities and Exchange Commission. The Company undertakes
no obligation to update or revise any forward-looking statements,
whether as a result of new information, subsequent events or
otherwise.
Contacts
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|
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Investors:
Matt
Capuzzi
Senior Vice
President, Investor Relations
973
753-6453
ir@wyndham.com
|
Media:
Scott Carman
Senior Director, Global Communications
973 753-6590
WyndhamHotelsNews@wyndham.com
|
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SOURCE Wyndham Hotels & Resorts