BGL Real Estate Advisors Completes Conversion and Financial Restructuring to Introduce Three New Wyndham Hotels

Rhea-AI Summary

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.

Positive

• 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

Negative

• None.

CLEVELAND, Oct. 4, 2024 /PRNewswire/ -- Brown Gibbons Lang & Company (BGL) is pleased to announce the completion of the brand conversion and financial restructuring of three new Wyndham hotels accounting for 397 keys, on behalf of the hotels' owners, Ceres Enterprises and The Orlean Company. The hotels include the 113-key Wyndham Avon (OH), the 132-key Wyndham Noblesville (IN), and the 152-key Wyndham Westfield (IN). Ceres Enterprises also owns and operates The Orbit Hotel, a Trademark Collection by Wyndham, a 54-key hotel that is housed in a former NASA office building at the Cleveland Hopkins International Airport—bringing the portfolio to four Wyndham-branded hotels.

BGL's Real Estate Advisors team advised the owners throughout the conversion process.

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 Ohio and Indiana delivers on our promise of delivering exceptional experiences for the everyday traveler," said Amit Sripathi, Chief Development Officer, Wyndham Hotels & Resorts. "By joining forces with the world's largest hotel franchisor, Ceres Enterprises unlocks The Wyndham Advantage—global marketing, innovative technology, and access to our award-winning Wyndham Rewards program—which will support the success of these hotels as they begin welcoming guests for unforgettable stays."

"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 Ohio-based real estate developer with extensive ground-up commercial real estate experience, including senior and assisted living care housing, affordable and market-rate multifamily housing, and commercial retail and for-sale housing in Northeast Ohio.

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 Boston, Chicago, Cleveland, Los Angeles, and New York, and real estate offices in Chicago, Cleveland, and San Antonio. The firm is also a founding member of REACH Cross-Border Mergers & Acquisitions, enabling BGL to service clients in more than 30 countries around the world. Securities transactions are conducted through Brown, Gibbons, Lang & Company Securities, Inc., an affiliate of Brown Gibbons Lang & Company LLC and a registered broker-dealer and member of FINRA and SIPC. For more information, please visit https://www.bglco.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 9,200 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?

Three new Wyndham hotels were introduced in the brand conversion, totaling 397 keys.

What are the locations of the newly converted Wyndham hotels?

The newly converted Wyndham hotels are located in Avon, Ohio (113 keys), Noblesville, Indiana (132 keys), and Westfield, Indiana (152 keys).

Who were the owners of the hotels involved in the Wyndham brand conversion?

The hotels involved in the Wyndham brand conversion were owned by Ceres Enterprises and The Orlean Company.

What financial restructuring steps were taken during the Wyndham conversion process?

The financial restructuring included retiring previous brand Mezzanine loans, negotiating CMBS loan payoffs, refinancing with a bridge loan, raising preferred equity, and modifying existing loans.