Hospitality Funding Acted as Advisor for the Acquisition and Debt Placement of Master License Rights for Travelodge Canada
Palm Beach, FL, Boca Raton, FL and Calgary, AB Canada — Waramaug Hospitality Canada LLC, in partnership with Superior Lodging Corporation, announced the purchase of the master license rights to Travelodge Canada from Halifax-based Holloway Lodging Corporation (TSX: HLC, HLC.DB, HLC.DB.A). Hospitality Funding arranged funding for the acquisition. Superior Lodging Corp will continue to manage the day-to-day operations of hotels following the acquisition.
Realized under a newly formed joint entity by the name of Superior Lodging Development TL Corporation, the company, which will look to oversee the continued growth of the Travelodge brand in Canada, will be led by Marc Staniloff, CEO of Superior Lodging Corporation, while Michael Rapps, Chairman of Holloway, will join as a member of the newly formed company’s board of directors.
The announcement builds on a separate but related agreement between Waramaug and Superior that gives Waramaug a controlling share of the development rights for Super 8 Canada. This will make the combined portfolio for both brands 221 hotels. Wyndham Hotel Group, the world’s largest hotel company with over 7,600 hotels in 70 countries worldwide, grants the rights for both deals.
“Canada’s strong economy bodes well for our organization and we expect Super 8 and Travelodge to benefit greatly from the augmented management experience that this newly formed team brings to the table,” stated Paul Nussbaum, Chairman, Waramaug Hospitality Canada LLC.
Super 8 and Travelodge are expected to expand their presence by converting above referenced unbranded hotels across Canada, particularly where the highest numbers of unbranded guestrooms reside in Alberta, British Columbia, Quebec and Atlantic Canada. Geographically, 64% of Super 8’s Canadian hotels are located in Western Canada, 29% of hotels are located in Central Canada, 6% of hotels are located in Atlantic Canada and 1% of hotels are located in Northern Canada. For Travelodge, 58% of all Canadian hotels are located in Western Canada, 38% are located in Central Canada, and the remaining 4% is located in Atlantic Canada, leaving room for both Super 8 and Travelodge to strategically expand in either side of the country.
“Both Super 8 and Travelodge possess several key benefits that we were looking for in terms of having a stable revenue base, high margins and low capital requirements. There are significant growth opportunities in Canada, which we intend to gain from with our capital partners as we expand these brands,” said Scott Silver, principal, Waramaug Hospitality Canada LLC. “Our strategy will be to grow these franchises further through acquisition, development and conversion of existing hotels. We will also be able to offer financing to existing and prospective franchisees, which is a unique opportunity for them and hopefully provide the impetus to further our footprint in the dynamic Canadian market. We also have identified a senior sales person with a premier track record of converting multiple units per year. This in-house sales person, along with two Travelodge sales people will focus on the growth of both brands to add leverage to our platform. In addition, Superior Lodging, through their management agreement will focus on sourcing development opportunities for direct co-invest opportunities.”
About Hospitality Funding: Hospitality Funding is a boutique investment advisory firm focused on raising equity, mezzanine, and debt financing for the acquisition of all types of hospitality assets. Hospitality Funding works with superior owners to find capital solutions that fit their specific goal for property acquisition, development and refinance. For more information, please visit www.hospitalityfunding.com.
About Waramaug Hospitality Canada LLC: Waramaug Hospitality Canada LLC is a joint venture between the founding principal of Waramaug Hospitality and Hospitality Funding focused on growing brands throughout Canada. The company utilizes their wealth of industry knowledge and key leaders to create a track record of successfully expanding into new territories as well as repositioning and renovating assets to reach their full potential and become market leaders.
About Superior Lodging Corporation: Superior Lodging Corporation recently named to Canada’s Best Managed Companies in 2014 for excellence in business performance is a privately owned, hotel development and investment company that ranks as the industry leader in hotel development in Canada. In its two+ decades of industry leadership, Superior has been integral in planning, developing, financing and managing over 190 hotels and $1 billion in real estate assets with a specific focus on branded limited-service hotels. The Canadian collection of hotel brands includes: Super 8, Microtel Inn & Suites by Wyndham, Wingate by Wyndham, Marriott Courtyard, Marriott Residence Inn, Holiday Inn Express and JMarc Suites.
About Super 8: Part of Wyndham Hotel Group, the Super 8® hotel brand is one of the world’s most well-known hotel chains with over 2,500 locations around the globe, more than any other economy lodging provider. Most hotels offer an array of complimentary amenities including free Wi-Fi, a free SuperStart® continental breakfast and the opportunity to earn and redeem points through Wyndham Rewards®, the brand’s guest loyalty program. Travelers can join the free program at www.wyndhamrewards.com. The brand celebrated its 40th anniversary in 2014.
About Travelodge: Part of Wyndham Hotel Group, Travelodge® is a chain of nearly 430 economy hotels located throughout the U.S. and Canada designed to keep guests close to adventure at an affordable price, no matter where their travels take them. Standard amenities include free Wi-Fi and complimentary continental Bear Bites Breakfast®. Many hotels also offer fitness centers, swimming pools and the opportunity to earn and redeem points through Wyndham Rewards®, the brand’s guest loyalty program. Travelers can join the free program at www.wyndhamrewards.com.