Wyndham Worldwide Corporation (WYN) through its subsidiary Wyndham Hotel Group announced recently that it has completed the acquisition of the Tryp hotel brand, a select-service, mid-priced brand located throughout Europe and South America . The company purchased the Tryp hotel brand from Sol Meliá Hotels & Resorts for $43 million.  Sol Meliá Hotels is one of the world’s largest resort hotel chains.
 
Sol Meliá Hotels will continue to own and operate 92 properties of Tryp while Wyndham will collect the licensing fee as per the agreement. Wyndham and Sol Meliá will also enter into a strategic agreement to expand the Tryp brand globally and promote the hotels jointly through their central reservations systems and loyalty programs.
 
Management believes that the acquisition provides significant growth opportunities and international presence in Europe and Latin America.
 
We view the deal as strategically positive as it will expand Wyndham internationally and is also in line with its strategy to acquire brands and expand through its franchise model, as it reduces the company’s capital intensity. Going forward, we expect Wyndham to benefit from its repositioning as a more fee-for-service based business.
 
Wyndham’s primary competitors in the hotel industry include Starwood Hotels & Resorts Worldwide Inc. (HOT) and Home Inns & Hotels Management Inc. (HMIN).
 
We maintain a Zacks Rank #3 on Wyndham, which translates into a short-term Hold recommendation.
 
Wyndham is a hospitality company engaged in offering individual consumers and business customers a range of hospitality products and services across various accommodation alternatives and price ranges through its premier portfolio of global brands. Wyndham Hotel Group encompasses approximately 7,100 hotels and approximately 593,300 hotel rooms worldwide.
 
The company operates in the lodging, vacation exchange and rentals, and vacation ownership segments of the hospitality industry. The company has built a significant presence in most major hospitality markets in the U.S. and throughout the rest of the world as well.
Read the full analyst report on “WYN”
Read the full analyst report on “HOT”
Read the full analyst report on “HMIN”
Zacks Investment Research