DALLAS -- Patriot American Hospitality said it will change its name
to Wyndham International and drop its real-estate-investment-trust
The moves were part of an agreement with a group led by New
York-based Apollo Real Estate Advisors to provide an equity
investment of nearly $1 billion in the hotel company.
Wyndham was acquired by Patriot American last year, and since
then, the two have operated as separate companies under common
ownership. Under the reorganization, Patriot will be merged into
Wyndham, which becomes one of the industry's largest hotel firms,
with 472 properties that are owned, managed, leased or
A Wyndham spokesman said the merged company would strengthen
dealings with travel agents by bolstering the fast-growing Wyndham
Patriot American also announced that its chairman and chief
executive officer, Paul Nussbaum, will be replaced by James
Carreker, Wyndham International's chairman and chief executive
officer, who will head the merged company. The merged Wyndham
International's properties include various brand names and
Carreker said the merged company will concentrate on its core
brands, which he defined as Wyndham and Grand Bay. Seven Grand Bay
properties, which are grouped under the independently managed Grand
Bay Hotels & Resorts Division, were acquired last year by
Folded into the brand, which was launched 15 years ago in the
exclusive Coconut Grove section of Miami, were several other
properties in Wyndham's luxury tier.
To strengthen the luxury branding, the expanded Grand Bay
properties were paired with California-based Golden Door Spas,
which also was acquired by Patriot American.
Its Summerfield Suites brand is operated by the firm's
Other brands include Wyndham Gardens, which are limited-service
properties in strategic corporate and vacation sites, and Wyndham
Grand Heritage Resorts, a collection of fine historic properties.
Those two brands are managed under the Wyndham Hotel Group.
The new Wyndham International will be classified as a C
corporation under plans that are expected to be finalized by June
A key part of the plan calls for the Apollo-led group to provide
its equity investment in return for a minority interest that can
range from 29% to 41% of the combined company.
The equity investment, plus $2.45 billion in lending commitments
from financial institutions, is expected to strengthen the
company's balance sheet.