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The Blackstone Group to acquire Wyndham in $3.24B deal Wednesday June 15, 10:01 am ET
Wyndham International Inc., which has been selling its stake in other brands to focus on its upscale chain, has agreed to be acquired by an affiliate of The Blackstone Group for $3.24 billion, including an assumption of debt.
Wyndham operates about 150 hotels in 10 countries, including 142 hotels under its own name. In Central Florida, it has three Wyndham hotels and an interest in the Tempus Resorts time share project.
Blackstone, a New York-based private investment firm, will pay $1.15 per share in cash for each share of Dallas-based Wyndham's (AMEX: WBR - News) common stock. That is a 19 percent premium over the stock's closing price on June 14.
The deal also includes $1.8 billion in debt, according to a Wyndham spokeswoman, who says the company's board has unanimously approved the deal and has recommended approval to shareholders.
The Associated Press reports that about 85 percent of the proceeds from the sale would go to holders of preferred shares, mostly a handful of investors -- including Apollo Real Estate Advisors L.P., Apollo Management L.P., Thomas H. Lee Capital LLC and Beacon Capital Partners Inc. -- that pumped $1 billion into the company six years ago when it underwent restructuring. Wyndham recently announced a plan to convert those preferred shares into common stock.
The hotel company lost $678 million last year, including preferred dividend payments of $168 million, on revenue of $966 million. However, room occupancy and average rates both rose.
Blackstone spent $5.1 billion on three hotel-chain acquisitions last year, and there had been speculation for several years about a Wyndham sale.
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