American tourists aren’t the only ones taking advantage of the strong U.S. dollar with shopping trips to Europe. Wyndham has now done a tuck-in acquisition that deepens its franchise portfolio in Central Europe. Another overseas deal within the year is more likely than not.
Wyndham Hotels & Resorts bought Vienna House — a group of 40 hotels in Europe — in a $44 million (€44 million) purchase from Berlin-based HR Group, the companies said on Thursday.
Vienna House has upscale and midscale properties and more than 6,000 rooms. It gives Wyndham more of a presence in Europe — particularly in Germany, where Vienna House has 28 hotels.
“Vienna House’s guest-centric culture, strong brand recognition, and ambitious brand development plans align with our distribution goals, making it a perfect match to continue our international growth,” said Geoff Ballotti, Wyndham Hotels & Resorts president and CEO, in a statement.
The brand will become Vienna House by Wyndham. HR Group, a real estate owner and operator, will continue to own or lease and operate existing Vienna House hotels under long-term franchise agreements with Wyndham.
Wyndham said it has been continuing to expand across Europe. In 2021, it had nearly 70 new hotel signings and openings, including 12 resorts. The European growth trajectory included important openings in key cities, the expansion of the upper-upscale Dolce Hotels and Resorts by Wyndham brand in Denmar,k and the launch of Trademark Collection by Wyndham through more conversions in Budapest, Bucharest, Thessaloniki, Brussels, Manchester, and Sheffield.
There may be more acquisitions to come. Wyndham’s ending cash balance on June 30, before this transaction, was $400 million. Ballotti said his team is especially looking for hotel portfolios that could provide growth in existing and adjacent franchise markets. The strong U.S. dollar is making overseas purchases more attractive than usual.
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