Patriot to buy Wyndham
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April 14, 1997: 1:06 p.m. ET
REIT to increase its upscale hotel holdings with $1.1 billion deal
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NEW YORK (CNNfn) -- Patriot American Hospitality announced Monday that it will acquire Wyndham Hotel Corp., along with some hotel properties owned by the Trammel Crow family, for about $1.1 billion.
The agreement to buy 102 Wyndham hotels calls for Patriot to pay $611 million in stock and $152 million in the assumption or retirement of debt
The Patriot real estate investment trust also agreed to acquire 11 Wyndham-branded hotels owned by the Dallas Crow family. The family is to receive $330 million in cash and about $14 million in incentives based on the performance of the hotels.
The Crow family holds a 47.3 percent stake in Wyndham.
The deal will make Patriot the largest hotel REIT in the country, tripling its holdings to 154 properties.
"The acquisition of Wyndham culminates Patriot's evolution from a hotel REIT into a nationally branded, fully integrated hotel company," said Paul A. Nussbaum, chairman of Patriot American.
The agreement is part of a trend in which lodging companies are looking to expand into the largely-profitable upscale hotel market.
After the agreement, Patriot will change its existing hotels over to the Wyndham brand to eliminate the franchise fees it has been paying to other hotel companies.
Patriot has been on a buying spree since October, when it agreed to acquire California Jockey Club & Bay Meadows Operating Co. It has also acquired eight hotels for a total of $308 million this year, as well as agreements to acquire 14 others for about $378 million.
--Randy Schultz
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