BGL Real Estate Advisors Completes Conversion and Financial Restructuring to Introduce Three New Wyndham Hotels
BGL Real Estate Advisors has successfully completed the brand conversion and financial restructuring of three new Wyndham hotels, totaling 397 keys, for owners Ceres Enterprises and The Orlean Company. The properties include the 113-key Wyndham Avon (OH), 132-key Wyndham Noblesville (IN), and 152-key Wyndham Westfield (IN). BGL's team advised on the conversion process, sourced fresh capital, and negotiated with lenders to optimize operations.
The restructuring involved retiring previous brand Mezzanine loans, negotiating CMBS loan payoffs, refinancing with a bridge loan, raising preferred equity, and modifying existing loans. Amit Sripathi, CDO of Wyndham Hotels & Resorts, emphasized the benefits of joining the Wyndham brand, including global marketing and access to Wyndham Rewards. David Crisafi, President of Ceres Enterprises, noted a significant boost in top and bottom lines after switching to the Wyndham flag.
BGL Real Estate Advisors ha completato con successo la conversione del marchio e la ristrutturazione finanziaria di tre nuovi hotel Wyndham, per un totale di 397 camere, per i proprietari Ceres Enterprises e The Orlean Company. Le proprietà includono il Wyndham Avon (OH) con 113 camere, Wyndham Noblesville (IN) con 132 camere e Wyndham Westfield (IN) con 152 camere. Il team di BGL ha fornito consulenza durante il processo di conversione, ha reperito nuovo capitale e ha negoziato con i finanziatori per ottimizzare le operazioni.
La ristrutturazione ha comportato il ritiro dei precedenti prestiti Mezzanine, la negoziazione dei risarcimenti dei prestiti CMBS, il rifinanziamento tramite un prestito ponte, l'aumento del capitale preferito e la modifica dei prestiti esistenti. Amit Sripathi, CDO di Wyndham Hotels & Resorts, ha sottolineato i vantaggi di unirsi al marchio Wyndham, tra cui marketing globale e accesso a Wyndham Rewards. David Crisafi, presidente di Ceres Enterprises, ha notato un notevole incremento delle entrate e dei profitti dopo essere passato al marchio Wyndham.
BGL Real Estate Advisors ha completado con éxito la conversión de marca y reestructuración financiera de tres nuevos hoteles Wyndham, con un total de 397 habitaciones, para los propietarios Ceres Enterprises y The Orlean Company. Las propiedades incluyen el Wyndham Avon (OH) con 113 habitaciones, Wyndham Noblesville (IN) con 132 habitaciones y Wyndham Westfield (IN) con 152 habitaciones. El equipo de BGL asesoró sobre el proceso de conversión, obtuvo capital nuevo y negoció con los prestamistas para optimizar las operaciones.
La reestructuración involucró la cancelación de préstamos Mezzanine de la marca anterior, la negociación de pagos de préstamos CMBS, el refinanciamiento con un préstamo puente, la obtención de capital preferido y la modificación de préstamos existentes. Amit Sripathi, CDO de Wyndham Hotels & Resorts, enfatizó los beneficios de unirse a la marca Wyndham, incluyendo marketing global y acceso a Wyndham Rewards. David Crisafi, presidente de Ceres Enterprises, destacó un aumento significativo en los ingresos y beneficios tras el cambio a la marca Wyndham.
BGL Real Estate Advisors는 Ceres Enterprises와 The Orlean Company 소속의 세 개의 신규 Wyndham 호텔에 대한 브랜드 전환 및 재정 구조조정을 성공적으로 완료했습니다. 이 호텔은 총 397개의 객실을 갖추고 있으며, Wyndham Avon (OH) 113객실, Wyndham Noblesville (IN) 132객실 및 Wyndham Westfield (IN) 152객실이 포함됩니다. BGL 팀은 전환 과정에서 상담을 제공하고, 신규 자본을 조달하며 운영 최적화를 위해 대출사와 협상했습니다.
구조조정에는 이전 브랜드의 Mezzanine 대출 상환, CMBS 대출 상환 협상, 브리지 대출로의 재융자, 우선주 자본 조달 및 기존 대출 수정이 포함되었습니다. Wyndham Hotels & Resorts의 CDO인 Amit Sripathi는 Wyndham 브랜드에 가입함으로써 얻는 글로벌 마케팅과 Wyndham Rewards에 대한 접근과 같은 이점을 강조했습니다. Ceres Enterprises의 사장인 David Crisafi는 Wyndham 브랜드로의 전환 후 수익과 이익이 크게 증가했음을 언급했습니다.
BGL Real Estate Advisors a réussi la conversion de marque et la restructuration financière de trois nouveaux hôtels Wyndham, totalisant 397 clés, pour les propriétaires Ceres Enterprises et The Orlean Company. Les propriétés comprennent le Wyndham Avon (OH) avec 113 clés, le Wyndham Noblesville (IN) avec 132 clés et le Wyndham Westfield (IN) avec 152 clés. L'équipe de BGL a conseillé sur le processus de conversion, a trouvé de nouveaux financements et a négocié avec les prêteurs pour optimiser les opérations.
La restructuration a impliqué le remboursement des précédents prêts Mezzanine, la négociation des remboursements de prêts CMBS, le refinancement par un prêt relais, la levée d'équité préférentielle et la modification des prêts existants. Amit Sripathi, CDO de Wyndham Hotels & Resorts, a souligné les avantages de rejoindre la marque Wyndham, notamment le marketing mondial et l'accès à Wyndham Rewards. David Crisafi, président de Ceres Enterprises, a noté une augmentation significative des revenus et des bénéfices après le passage à la marque Wyndham.
BGL Real Estate Advisors hat erfolgreich die Markenumwandlung und finanzielle Restrukturierung von drei neuen Wyndham-Hotels abgeschlossen, die insgesamt 397 Zimmer umfassen, für die Eigentümer Ceres Enterprises und The Orlean Company. Zu den Objekten gehören das 113-Zimmer Wyndham Avon (OH), 132-Zimmer Wyndham Noblesville (IN) und 152-Zimmer Wyndham Westfield (IN). Das Team von BGL beriet während des Umwandlungsprozesses, beschaffte frisches Kapital und verhandelte mit Kreditgebern zur Optimierung der Betriebsabläufe.
Die Restrukturierung umfasste die Rückzahlung vorheriger Mezzanine-Darlehen, die Verhandlung von CMBS-Darlehensablösungen, die Refinanzierung mit einem Brückendarlehen, die Erhöhung von Vorzugskapital und die Anpassung bestehender Darlehen. Amit Sripathi, CDO von Wyndham Hotels & Resorts, betonte die Vorteile des Beitritts zur Wyndham-Marke, einschließlich globalem Marketing und Zugang zu Wyndham Rewards. David Crisafi, Präsident von Ceres Enterprises, bemerkte einen signifikanten Anstieg der Einkünfte und Gewinne nach dem Wechsel zur Wyndham-Marke.
- Successful conversion of three hotels to Wyndham brand, totaling 397 keys
- Financial restructuring optimized operations and balance sheets
- Significant boost in top and bottom lines reported after switching to Wyndham flag
- Access to Wyndham's global marketing, technology, and rewards program
- None.
Insights
The conversion of three hotels to the Wyndham brand, totaling 397 keys, is a significant move for Ceres Enterprises and The Orlean Company. This strategic shift demonstrates the appeal of Wyndham's franchise model and its potential for boosting revenue. The restructuring, which involved retiring previous brand loans and negotiating new financing arrangements, indicates a comprehensive approach to optimizing the portfolio's financial performance.
Key points to consider:
- The conversion has led to a "significant boost in both top and bottom lines" according to Ceres Enterprises, suggesting improved revenue and profitability.
- Access to Wyndham's global marketing, technology and loyalty program could enhance the properties' competitive position.
- The financial restructuring, including new loans and preferred equity, may provide more favorable terms and increased operational flexibility.
- The properties' locations near major interchanges and their strong historical performance bode well for future success under the Wyndham brand.
While this news is positive for the involved parties, its impact on Wyndham Hotels & Resorts (WH) stock is likely to be , given the relatively small scale of the conversion in the context of Wyndham's global portfolio.
The financial restructuring aspect of this deal is particularly noteworthy. BGL's Real Estate Advisors team executed a multi-faceted approach that included:
- Sourcing private capital to retire previous brand Mezzanine loans
- Negotiating a CMBS loan payoff with a Special Servicer
- Securing an interest-only bridge loan for one property
- Raising preferred equity for two properties
- Modifying an existing senior loan
This comprehensive restructuring likely resulted in a more optimized capital stack for the portfolio. The use of preferred equity suggests a desire to maintain control while bringing in additional capital. The interest-only bridge loan for one property could provide short-term cash flow relief, potentially allowing for reinvestment in the property or operations.
The ability to negotiate these various financial instruments demonstrates flexibility in capital markets and a tailored approach to each property's needs. This restructuring could serve as a model for other hotel owners looking to optimize their portfolios and switch brands while managing their debt obligations effectively.
BGL's Real Estate Advisors team advised the owners throughout the conversion process, sourced fresh capital, and negotiated with current lenders to restructure the assets' balance sheet and optimize future operations. The sequencing of the brand conversion and restructure included:
- Advising ownership with various strategic alternatives regarding the hotel conversions
- Sourcing private capital to retire previous brand Mezzanine loans across the portfolio
- Negotiating with the CMBS lender's Special Servicer on a payoff of their loan
- Refinancing the Wyndham Noblesville with an interest-only bridge loan from American Bank, N.A.
- Raising preferred equity to recapitalize the balance sheets of Wyndham Avon and Wyndham Westfield
- Negotiating a Loan Modification with a current senior lender to insulate the equity position in the asset
This 397-key portfolio was originally developed and constructed by Ceres Enterprises & The Orlean Company. All properties are located around major interchanges, with unique demand drivers within each submarket and strong historical performance.
"Introducing these new hotels in
"Switching our hotels to the Wyndham flag has led to a significant boost in both our top and bottom lines," said David Crisafi, President of Ceres Enterprises. "Without changing the asset location or its physical condition, the lever of accretive revenue has been remarkable."
Ceres Enterprises is a leading developer and operator of premier hotels in the Midwestern United States, whose portfolio includes Marriott, Hilton, and Wyndham hotels. The Orlean Company is a leading
BGL's Real Estate Advisors team offers comprehensive real estate investment banking services tailored to the middle market. It provides client-focused solutions with an emphasis on real estate advisory, debt, preferred and private equity placement, financial restructuring, recapitalizations, sale-leasebacks, structured finance, and asset acquisitions and dispositions across all asset classes. The team assists real estate owners and developers looking to form alliances and joint ventures with single-source capital providers to gain local and institutional access for all capital needs.
About Brown Gibbons Lang & Company
Brown Gibbons Lang & Company (BGL) is a leading independent investment bank and financial advisory firm focused on the global middle market. The firm advises private and public corporations and private equity groups on mergers and acquisitions, capital markets, financial restructurings, valuations and opinions, and other strategic matters. BGL has investment banking offices in
About Wyndham Hotels & Resorts
Wyndham Hotels & Resorts (NYSE: WH) is the world's largest hotel franchising company by the number of properties, with approximately 9,200 hotels across over 95 countries on six continents. Through its network of nearly 885,000 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 25 hotel brands, including Super 8®, Days Inn®, Ramada®, Microtel®, La Quinta®, Baymont®, Wingate®, AmericInn®, Hawthorn Suites®, Trademark Collection® and Wyndham®. The Company's award-winning Wyndham Rewards loyalty program offers approximately 110 million enrolled members the opportunity to redeem points at thousands of hotels, vacation club resorts and vacation rentals globally. For more information, visit wyndhamhotels.com.
Industry contacts:
Anthony D. Delfre
Managing Director
Real Estate Advisors
adelfre@bglco.com
216.920.6615
Daniel A. DiCarro
Director
Real Estate Advisors
ddicarro@bglco.com
216.920.6631
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SOURCE Brown Gibbons Lang & Company
FAQ
How many new Wyndham hotels were introduced in the brand conversion?
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What financial restructuring steps were taken during the Wyndham conversion process?
