SAM NAZARIAN'S SBE FORMS STRATEGIC ALLIANCE WITH WYNDHAM, LAUNCHES NEW SMART LIFESTYLE BRAND, PROJECT HQ HOTELS & RESIDENCES

Rhea-AI Summary

sbe and Wyndham Hotels & Resorts have announced the launch of Project HQ Hotels & Residences, a new smart lifestyle brand that aims to adapt legacy hotels into exceptional centers for dining, nightlife, and wellness. The brand will be affiliated with Wyndham's Registry Collection Hotels, targeting 50 open hotels by 2030. The partnership also includes strategic investment from entertainment icon and entrepreneur, Marc Anthony.

Insights

Market Research Analyst

The launch of Project HQ, a collaborative venture between sbe and Wyndham Hotels & Resorts, is indicative of an evolving hospitality market that is increasingly targeting Millennial and Gen Z demographics. This focus on a 'smart lifestyle' niche reflects an industry trend towards personalization and experiential offerings, which are key drivers of customer loyalty and revenue growth. The strategic investment from Marc Anthony suggests a merger of hospitality with entertainment, potentially opening new avenues for marketing and customer engagement.

From a market research perspective, the intended expansion to 50 hotels by 2030 could capture significant market share if the brand successfully differentiates itself within the luxury and lifestyle segments. The dual strategy of conversions and new constructions is a balanced approach that mitigates risks associated with new builds while capitalizing on existing real estate assets. The partnership with Wyndham's Registry Collection Hotels provides Project HQ with a substantial platform for distribution and loyalty program integration, which could drive occupancy rates and average daily rates (ADRs).

Financial Analyst

Financially, the introduction of Project HQ represents a potential growth catalyst for Wyndham Hotels & Resorts, a publicly traded entity (NYSE: WH). The brand's expansion goals and strategic alignment with celebrity influence are likely to attract investor interest, with the potential for positive impacts on the stock's valuation. The investment in technology and the emphasis on a loyalty program align with operational efficiency and customer retention strategies that could improve profit margins over time.

The branded residential offering, which promises to sell at approximately 20% above market rates, also suggests a high-margin revenue stream. This could enhance the company's return on investment (ROI) and provide a steady licensing revenue. However, the success of this venture will hinge on the execution of the smart lifestyle concept and the ability to maintain a premium positioning in a competitive market.

Hospitality Industry Consultant

The concept of 'smart lifestyle' hotels is a forward-thinking approach to hospitality, aiming to address the specific needs and preferences of younger travelers. The emphasis on a 360 approach to property programming, including pre-approved FF&E (Furniture, Fixtures and Equipment) packages and OS&E (Operating Supplies and Equipment) packages, suggests a turnkey solution for hotel owners looking to rebrand or revitalize their properties. This could be particularly appealing in a post-pandemic landscape where hoteliers are seeking innovative ways to attract guests and remain competitive.

The focus on wellness, culinary experiences and the involvement of high-profile chefs and celebrities could create unique selling propositions (USPs) for Project HQ. However, managing these partnerships and maintaining quality across multiple locations will be critical to the brand's reputation and longevity. The alliance with Wyndham's technology and operational support could provide the necessary infrastructure to scale effectively while maintaining operational excellence.

Project HQ leverages sbe's decades of lifestyle expertise, offering a transformative solution for adapting legacy hotels into exceptional centers for dining, nightlife, and wellness.

Designed for savvy Millennial and Gen Z travelers, Project HQ has strategic investment from entertainment icon and entrepreneur, Marc Anthony; targeting 50 open hotels by 2030.

Project HQ joins Wyndham's Registry Collection Hotels brand, tapping into the scale, resources and reach of the world's largest hotel franchisor.

MIAMI, Jan. 22, 2024 /PRNewswire/ -- sbe, the privately-held leading international lifestyle hospitality group that develops, manages and operates world-class hotels, restaurants, lounges and nightclubs, and Wyndham Hotels & Resorts (NYSE: WH), the world's largest hotel franchising company with approximately 9,100 hotels spanning over 95 countries, announced today the launch of a new smart lifestyle brand under the working title, Project HQ Hotels & Residences.

Project HQ unites the decades of experience of lifestyle visionary Sam Nazarian with the global scale, resources and reach of Wyndham. Owned by sbe with strategic investment by entertainment icon, entrepreneur and sbe equity partner Marc Anthony and his company Magnus, Project HQ will be affiliated with Wyndham's Registry Collection Hotels, which caters to hotel owners in the luxury and smart lifestyle segments.

This marks sbe's first hotel brand after the 2020 sale of its hospitality brand and management platform which included over 100 hotels (SLS, Delano, Mondrian and Hyde, among others), more than 150 restaurants and lounges, and over $4 billion of luxury residential sales.

Executive Quotes

Sam Nazarian, Founder & CEO of sbe states: "At sbe, we believe in the fundamental value of hotels as places where people make memories and experience wonder. When we created lifestyle luxury back in 2005 with SLS, we forged a new category. Now, almost 20 years later we look to reinvent lifestyle again with Project HQ, the first smart lifestyle hotel brand. We will channel our entrepreneurial spirit and deep industry expertise into crafting intuitive, groundbreaking solutions for both hotel owners and guests. As a global leader for over two decades, we feel uniquely equipped to solve for the unmet needs of the next generation who are eager to engage with culinary excellence and vibrant social spaces that we've curated and cultivated with intention. It is such a privilege to have the support of an icon and entrepreneur like Marc Anthony as we embark on this next chapter. We also feel so honored to have established a strategic alliance with the best-in-class team at Wyndham and look forward to bringing The Wyndham Advantage to owners of Project HQ hotels around the globe."

Geoff Ballotti, President & CEO, Wyndham Hotels & Resorts states:

"Today we are combining Sam Nazarian's unmatched culinary and lifestyle experience with the unrivalled scale and resources of the world's largest hotel franchisor to fuel Project HQ Hotels & Residences. Our owners drive our success. Hotel owners searching for a differentiated, yet approachable, lifestyle brand will immediately benefit from the scale and resources of the world's largest hotel franchisor, gaining access to best-in-class sales, distribution and technology, along with the industry's number one hotel loyalty program in Wyndham Rewards."

Smart Lifestyle: A New Category

With over two decades of experience in lifestyle hospitality, sbe is setting out to pave the way for a new category, smart lifestyle, revolutionizing hospitality by building communities and creating meaningful memories for its savvy Millennial and Gen Z guests through memorable experiences. Project HQ was concepted to be a more approachable experience for the consumer that has been priced out of the lifestyle hotel market and doesn't feel like they have a brand that speaks to their desires in travel. Project HQ is the only smart lifestyle brand that provides innovative, proven solutions for the hospitality space. The brand name "Project HQ" is born from the concept that Project HQ Hotels will be in the heart of the cities they launch in, serving as the "headquarters" for exceptional dining, nightlife and wellness.

Project HQ's 360 Approach to Smart Lifestyle

With brands backed by celebrity chefs like Casa Dani from 3-star Michelin Chef Dani García; MXO, a Mexican Steakhouse by Chef Wes Avila; the award-winning Katsuya by Chef Katsuya Uechi; and more brands in incubation with rising stars in the culinary space, Project HQ provides a unique food and beverage experience that transforms its hotels into sought-after destinations for locals and travelers alike. With a comprehensive approach, Project HQ offers legacy hotel owners an unparalleled and simplified experience to revitalize their properties, elevating them into distinguished Project HQ Hotels & Residences.

With a 360 approach to programming a property, Project HQ can equip a hotel with a desirable brand and global awareness, pre-approved FF&E packages, supply chain, technology integrations, OS&E packages, and unique programming to monetize otherwise underutilized spaces of the hotel. Project HQ can deliver this through its collection of partnerships and collaborations.

Project HQ will provide owners with sbe wellness programming, adding the med spa offering with sbe Wellness Clinics, and myriad food and beverage offerings ranging from fine dining to the array of brands from Sam Nazarian's C3 and Nextbite with influential celebrity partners like Sofia Vergara, Dario Cecchini, Iron Chef Masharu Morimoto, Dani García, and Wes Avila; YouTube influencers like Dude Perfect and Matt Stonie; legendary brands like Umami Burger and Soom Soom and additional brands with cult followings. These comprehensive enhancements will not only help hotels revitalize their real estate, but deeply enrich the guest experience, making every visit memorable and unique.

Project HQ Branded Residential

Project HQ will also deliver a uniquely positioned branded residential offering for underserved markets like integrated student housing, workforce housing and the like. After launching an extremely successful branded residential business with brands like SLS and Mondrian that regularly sold for ~20% above market rates, this Project HQ product is set to build on that expertise to deliver a unique smart lifestyle residential program that will drive licensing revenue for owners and address a need for the most sought-after Millennial and Gen Z audience.

A Strategic Alliance: Wyndham

Through its strategic alliance with Wyndham, Project HQ join Wyndham's Registry Collection Hotels brand. Widely recognized for its OwnerFirst^SM approach, Wyndham in recent years has invested more than $275 million in technology, helping deliver industry-first sales, marketing and digital innovations including mobile check-in/check-out, mobile key and more—all while expanding its on-the-ground operational support of hotels.

From next-gen property and revenue management systems to opt-in, revenue-boosting, ancillary services like its Signature Reservation Services, to loyalty-building team member incentives like The Rewards Circle—no other major hotel company is more focused or more committed to the long-term, collective success of owners and franchisees.

Project HQ will also participate in Wyndham Rewards, connecting them to a rapidly growing enrolled member base of approximately 105 million everyday travelers around the globe. Program members account for nearly one out of every two check-ins at Wyndham's hotels across the U.S. and on average, stay and spend nearly twice as much as non-members. Wyndham Rewards is routinely celebrated for its simple, generous approach to rewards has been named the number one hotel rewards program by both U.S. News & World Report and the readers of USA TODAY.

The Future of PROJECT HQ

Project HQ plans to open 50 hotels by 2030, delivering approximately 7,500 rooms designed uniquely for the savvy Millennial and Gen Z traveler. PROJECT HQ's business development team will also benefit from the experience and reach of Wyndham's large development organization, aiding the brand in seeking out both ground up developments and conversion Projects. Project HQ's concept is a solution that legacy hotel owners have a deep and urgent need for in todays' market. Project HQ plans to open 50% of its properties stateside with 50% of openings internationally, and a mix of 80% conversion Projects and 20% ground up new construction.

Media Contacts:

sbe | Jennifer Hawkins, jennifer.hawkins@finnpartners.com 

Wyndham | Maire Griffin, maire.griffin@wyndham.com

About sbe
Established in 2002 by Founder and CEO Sam Nazarian, sbe is a privately-held, leading lifestyle hospitality company that develops, manages and operates world-class hotels, restaurants, lounges and nightclubs. Through exclusive partnerships with cultural visionaries, sbe is devoted to creating extraordinary experiences throughout its proprietary brands with a commitment to authenticity, sophistication, mastery and innovation. Over the last decade, sbe has mastered the art of creating desirable destinations; the lifestyle platform included over 100 hotels and 150 restaurants and lounges. In 2020, Sam Nazarian shifted his focus to the culinary and nightlife world by launching Disruptive Restaurant Group (DRG.) DRG incubates and operates globally renowned culinary brands including critically-acclaimed restaurants, lounges and nightclubs. By partnering with an impressive roster of internationally renowned culinary talent, DRG concepts are committed to innovation and setting new industry standards. Restaurants and lounges include: Casa Dani, by three Michelin-starred Chef Dani Garcia; Citizens; Katsuya, by Chef Katsuya Uechi; Kumi; MXO by Wes Avila, Doheny Room; HYDE; LiFE; and S Bar. In 2023, sbe announced its foray back into hotels with PROJECT HQ Hotels & Residences, a smart lifestyle concept launched via a strategic alliance with Wyndham Hotels & Resorts. Sam Nazarian has consistently demonstrated his ability to anticipate and shape the future of hospitality and gastronomy. With his unwavering passion, entrepreneurial prowess, and a portfolio of iconic brands, Sam has cemented his position as a trailblazer in both the hospitality and culinary world for generations to come. To learn more, visit sbe.com.

About Wyndham Hotels & Resorts
Wyndham Hotels & Resorts (NYSE: WH) is the world's largest hotel franchising company by the number of properties, with approximately 9,100 hotels spanning over 95 countries and six continents. Through its network of approximately 858,000 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 24 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 105 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.

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, including statements related to the development and rooms growth. Wyndham claims the protection of the Safe Harbor contained in the Private Securities Litigation Reform Act of 1995 for forward-looking statements. Forward-looking statements include those that convey management's expectations as to the future based on plans, estimates and Projections at the time Wyndham 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. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of Wyndham 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 hereof. Factors that could cause actual results to differ materially from those in the forward-looking statements include, without limitation: general economic conditions, including inflation, higher interest rates and potential recessionary pressures; the effects from the coronavirus pandemic, including the impact on Wyndham's business, as well as the impact on its franchisees, guests and team members, the hospitality industry and overall demand for and restrictions on travel; the performance of the financial and credit markets; the economic environment for the hospitality industry; operating risks associated with the hotel franchising business; Wyndham's relationships with franchisees; the impact of war, terrorist activity, political instability or political strife, including the ongoing conflicts between Russia and Ukraine and between Israel and Hamas; Wyndham'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 Wyndham's ability to obtain financing and the terms of such financing, including access to liquidity and capital; and Wyndham'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 Wyndham's most recent Annual Report on Form 10-K filed with the SEC and subsequent reports filed with the SEC. Wyndham undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, subsequent events or otherwise, except as required by law.

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SOURCE sbe

FAQ

What is the name of the new smart lifestyle brand launched by sbe and Wyndham Hotels & Resorts?

The new smart lifestyle brand is called Project HQ Hotels & Residences.

How many open hotels is Project HQ aiming for by 2030?

Project HQ targets 50 open hotels by 2030.

Who is the strategic investor in Project HQ?

Entertainment icon and entrepreneur, Marc Anthony, is the strategic investor in Project HQ.

What brand is Project HQ affiliated with?

Project HQ is affiliated with Wyndham's Registry Collection Hotels.

What is the ticker symbol for Wyndham Hotels & Resorts?

The ticker symbol for Wyndham Hotels & Resorts is WH.

What is the primary focus of Project HQ?

Project HQ aims to transform legacy hotels into exceptional centers for dining, nightlife, and wellness.

What is the ownership structure of Project HQ?

Project HQ is owned by sbe with strategic investment by entertainment icon, entrepreneur, and sbe equity partner Marc Anthony and his company Magnus.