Wyndham Hotels & Resorts Inc. will terminate all hotel management agreements with real estate investment trust CorePoint Lodging when CPLG’s merger with Highgate and Cerberus Capital Management closes, the hotel chain announced Nov. 8.
Upon completion of CPLG’s sale, scheduled for the first quarter of 2022, CPLG will pay Wyndham approximately $84 million in termination fees.
“The termination of these management contracts will mark our exit from the lower margin, resource intensive select-service management business and afford us the opportunity to focus on the continued growth of our asset-light and highly profitable, cash generative franchising business,” Wyndham President and CEO Geoffrey Ballotti said in a statement.
Parsippany-based Wyndham’s related franchise agreements are expected to remain in- place at the current fee structure at 5% royalties plus 4.5% for marketing and reservation services.
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