Patriot American Hospitality Acquires Wyndham Emerald Plaza Hotel

Strategic Insights -

Patriot American Hospitality, Inc. and Wyndham International have completed the acquisition of the 436-room Wyndham Emerald Plaza Hotel in downtown San Diego, California, for $71.25 million in cash, operating partnership units, and assumption of debt. This acquisition marks the second owned property for Patriot American in the San Diego market, with the company expecting further growth through acquisitions of landmark hotels currently managed by Wyndham International.

Key Takeaways:

  • Patriot American Hospitality, Inc. and Wyndham International acquired the 436-room Wyndham Emerald Plaza Hotel in downtown San Diego, California, for $71.25 million.
  • The acquisition is the second owned property for Patriot American in the San Diego market and represents the type of upscale, landmark property the company wants in its portfolio.
  • Paul A. Nussbaum, chairman and chief executive officer of Patriot American, stated that this transaction is the first of several acquisitions of landmark, upscale hotels currently managed by Wyndham International.
  • The company plans to continue its growth internally through conversions of certain properties to the Wyndham brand and operational efficiencies created through the integration of the companies it has acquired.
  • James D. Carreker, chairman and chief executive officer of Wyndham International, stated that the acquisition underscores the importance of enhancing its portfolio of owned properties with Wyndham-branded hotels that have become leaders in their respective markets.
  • Patriot American Hospitality, Inc. is the nation's second-largest hotel real estate investment trust (REIT) with a portfolio comprised of 230 hotels and resorts and approximately 60,000 rooms.
  • The company increased the size of its rooms portfolio by more than 500% since January 1997 and is continuing to acquire full-service hotel properties throughout North America.
  • Patriot American Hospitality, Inc. is proceeding with its acquisition of Interstate Hotel Company (NHSE: IHC), the nation's largest independent hotel management company.

Statistics:

  • $71.25 million: The amount paid in cash, operating partnership units, and assumption of debt for the 436-room Wyndham Emerald Plaza Hotel.
  • 436 rooms: The number of rooms in the Wyndham Emerald Plaza Hotel.
  • 20,000 square feet: The amount of meeting space distributed throughout 11 meeting rooms, the Emerald and Crystal Ballrooms, a boardroom, and outdoor function space.
  • 230 hotels and resorts: The number of hotels and resorts in Patriot American Hospitality, Inc.'s portfolio.
  • 60,000 rooms: The approximate number of rooms in Patriot American Hospitality, Inc.'s portfolio.
  • 1997: The year in which Patriot American Hospitality, Inc. increased the size of its rooms portfolio by more than 500%.
  • 222 hotels: The number of hotels owned, managed, and leased by Interstate Hotel Company.
  • 45,000 rooms: The approximate number of rooms represented by Interstate Hotel Company.

Sources:

  • PRNewswire, "Patriot American Hospitality, Inc. and Wyndham International Acquire the Wyndham Emerald Plaza Hotel in San Diego"
  • Patriot American Hospitality, Inc., "About Patriot American Hospitality, Inc."
  • Wyndham International, "About Wyndham International"
  • Interstate Hotel Company, "About Interstate Hotel Company"