BGL Real Estate Advisors Completes Major Restructuring for Wyndham Hotels
Brown Gibbons Lang & Company (BGL) has successfully finished the brand transformation and financial restructuring of three Wyndham hotels, which together encompass 397 keys. This initiative was undertaken for the hotels’ owners, Ceres Enterprises and The Orlean Company. The newly branded hotels, namely Wyndham Avon, Wyndham Noblesville, and Wyndham Westfield, reflect BGL's commitment to enhancing the hospitality landscape.
The New Wyndham Hotels
The 113-key Wyndham Avon, 132-key Wyndham Noblesville, and the 152-key Wyndham Westfield represent the strategic expansion of Wyndham Hotels & Resorts. This transition aligns with a growing demand for comfortable and well-managed accommodations suited for a range of travelers. Ceres Enterprises offers additional options with The Orbit Hotel, a Trademark Collection by Wyndham, located at Cleveland Hopkins International Airport. This brings Ceres' portfolio to a total of four Wyndham-branded hotels.
Support Throughout the Conversion Process
BGL's Real Estate Advisors played a crucial role throughout the conversion process, guiding the hotel owners in making strategic decisions that best serve their interests. From sourcing fresh capital to negotiating with lenders, the team effectively restructured the assets' balance sheets and optimized operational strategies for future successes.
Comprehensive Advisory Services
Throughout the brand conversion, BGL facilitated several key initiatives:
- Providing advisory services on various strategic alternatives regarding hotel conversions.
- Sourcing private capital to eliminate previous brand mezzanine loans across the portfolio.
- Negotiating with the CMBS lender's Special Servicer regarding a loan payoff.
- Securing an interest-only bridge loan from American Bank to refinance Wyndham Noblesville.
- Raising preferred equity to recapitalize the balance sheets of Wyndham Avon and Wyndham Westfield.
- Arranging a loan modification with a senior lender to protect the equity position.
Strategic Positioning and Strong Performance
This newly structured 397-key portfolio was initially developed by Ceres Enterprises & The Orlean Company, located around significant interchanges and surrounded by demand-driving factors within each submarket. Historical performance data indicates strong occupancy rates, underscoring the appeal of these locations.
Statements from Leadership
Amit Sripathi, Chief Development Officer of Wyndham Hotels & Resorts, stated, "Introducing these new hotels delivers on our promise of providing exceptional experiences for the everyday traveler. By joining forces with the world’s largest hotel franchisor, Ceres Enterprises unlocks The Wyndham Advantage, including global marketing and innovative technology that ensures these properties will thrive."
David Crisafi, President of Ceres Enterprises, shared the impact of the conversion, saying, "Switching our hotels to the Wyndham flag has resulted in a significant boost in both our top and bottom lines. Without changing the asset's location or its condition, the revenue increase has been remarkable."
About Ceres Enterprises and The Orlean Company
Ceres Enterprises stands out as a prominent hotel developer and operator in the Midwestern United States, with a portfolio that includes major brands like Marriott, Hilton, and Wyndham. The Orlean Company boasts extensive experience in developing commercial real estate, including multifamily housing and assisted living facilities.
BGL's Real Estate Advisors is recognized for providing tailored services in real estate investment banking, focusing on the middle market. Their team specializes in real estate advisory along with debt and equity placement services among other financial restructuring efforts.
About Brown Gibbons Lang & Company
Brown Gibbons Lang & Company (BGL) is a reputable independent investment bank specializing in the global middle market. BGL offers advisory services across various fields, including mergers and acquisitions and capital markets, working diligently to assist both private and public entities.
Frequently Asked Questions
What three hotels did BGL convert to Wyndham brands?
BGL converted the Wyndham Avon, Wyndham Noblesville, and Wyndham Westfield hotels, comprising a total of 397 keys.
What role did BGL play in the hotel restructuring?
BGL's Real Estate Advisors guided the owners through the conversion, sourced capital, and negotiated with lenders to optimize financial performance.
How does the Wyndham Advantage benefit Ceres Enterprises?
The Wyndham Advantage provides Ceres Enterprises with access to global marketing, innovative technology, and the Wyndham Rewards program, enhancing the overall guest experience.
What was the impact of the brand conversion on revenue?
The conversion to the Wyndham flag has significantly improved both topline and bottom line revenues for the hotels, according to David Crisafi from Ceres Enterprises.
What services does BGL's Real Estate Advisors provide?
BGL offers a wide range of services including real estate advisory, debt placements, and financial restructuring tailored to meet the needs of their clients.
