Wyndham Completes TRYP Acquisition from Sol Meliá
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Wyndham Completes TRYP Acquisition from Sol Meliá
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Category: - Industry economy
- Group or hotel buyout
This is a press release selected by our editorial committee and published online for free on 2010-07-02
• The brand’s acquisition will open vast growth opportunities for both companies across Europe and the Americas
• “TRYP by Wyndham” joins the Wyndham’s portfolio, which encompass nearly 7.100 hotels in 65 countries
Wyndham Hotel Group, a subsidiary of Wyndham Worldwide (NYSE: WYN), has completed the previously announced acquisition of the TRYP hotel brand from Sol Meliá Hotels & Resorts for approximately 42,5 million (USD), including franchise agreements with 92 TRYP hotels in Europe and South America.
The newly renamed TRYP by Wyndham brand joins Wyndham Hotel Group’s 11 other brands, which encompass nearly 7,100 hotels and approximately 593,300 rooms in 65 countries.
TRYP, a select-service, midpriced brand representing approximately 13,000 rooms, caters to business and leisure travelers in cosmopolitan cities including Madrid, Barcelona, Paris, Lisbon, Frankfurt, Buenos Aires, Sao Paulo and Montevideo. Last month, the brand opened its third hotel in Barcelona, the Tryp Hotel Condal Mar, and anticipates additional openings this year in Lisbon, Berlin, Madrid and Medellin, Colombia.
Wyndham Hotel Group President and Chief Executive Officer Eric Danziger said the TRYP by Wyndham brand “significantly increases the company’s global presence in Europe and Latin America.”
“We acquired the TRYP brand because of its strategic presence in major international cities and the significant growth opportunities it presents to our business,” said Danziger. “Our immediate focus is to grow the TRYP by Wyndham brand across Europe and the Americas. The latest hotel opening in Barcelona demonstrates the brand’s accelerating growth and increasing interest from developers and hotel owners.”
As previously announced, Wyndham Hotel Group and Sol Meliá will work together to develop the TRYP by Wyndham brand globally and expect to market the hotels cooperatively through their central reservations systems and loyalty programs as part of a strategic alliance between the two companies. “Wyndham Rewards” Program has more than 7 million active members, whilst Sol Melia´s loyalty Program, MaS, includes nearly 2,5 million members.
“This marks the beginning of a promising relationship between two complementary hospitality companies that will foster growth in a vast diversity of regions,” said Gabriel Escarrer Jaume, vice chairman and chief executive officer of Sol Meliá.
The agreement states that Sol Meliá will hold a license agreement with Wyndham over the next 20 years for the current 92 TRYP hotels located throughout Europe and South America, whilst they continue to be owned, operated, managed or licensed by Sol Meliá.
As part of the strategic agreement, the new TRYP by Wyndham brand is committed to continue to add new hotels to its global portfolio and share some of the economic value created. Due to their stronger market positioning after the alliance, both companies are committed to increasing revenues and operating profits in the 92 TRYP hotels that Sol Meliá brings to the franchise agreement.
The conditions in the Closing Agreement reinforce the confidence both Wyndham and Sol Meliá have in the profitability of the alliance from several standpoints, including financial, commercial and brand expansion.
In connection with the closing, Danziger announced the appointment of Daniel del Olmo, as brand senior vice president, TRYP by Wyndham, responsible for its overall business strategy, brand integration, performance, customer relations, service culture, operations and sales and marketing. He will report to Jeff Wagoner, who will continue to serve the company as president of its Wyndham Hotels and Resorts® brand and affiliated Wingate® by Wyndham and Hawthorn Suites® by Wyndham brands.
Del Olmo most recently served Wyndham Hotel Group as chief performance officer, leading the development of the company’s long-term strategic plan including the development of business strategy and integration plans for the TRYP brand. Since joining the company in 2003, he has served in a variety of roles in marketing, strategy and innovation. He began his career in hospitality in the Americas Division of Sol Meliá Hotels & Resorts where he held various marketing and e-commerce positions
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