US: Wyndham Hotels & Resorts has teamed up with investment firm Lafayette Square to provide diverse hoteliers with improved access to capital.
Wyndham will vet and directly connect qualified owners with Lafayette Square, which aims to help hoteliers with up to US$100 million in combined financing from the firm over the coming years.
Viable candidates can use the funds to move forward projects that would otherwise stall due to lack of traditional financing.
Lafayette Square’s investment strategy addresses a critical issue diverse hoteliers face when it comes to access to capital and is the latest component of Wyndham’s BOLD (Black Owners and Lodging Developers) and Women Own the Room initiatives, which aim to bolster hotel ownership by Black and women entrepreneurs by addressing the unique challenges faced by each community.
Wyndham’s Women Own the Room helps more than 550 women hoteliers
From networking and educational opportunities via the newly launched Accelerator Circle, to operational support and complimentary services to help maximize revenue, each programme offers tailored solutions to help entrepreneurs on their path to hotel ownership.
Together, BOLD and Women Own the Room have resulted in more than 100 hotel deals with Black and women hoteliers, of which more than 20 are now open.
One example is BOLD member Dr. Amina James, who, despite a background in real estate and experience owning a hotel in Memphis, faced the same challenges she had previously with banks upon exploring her next venture in Lake Charles, La., including high rates and deals that did not provide enough capital to fund her business plan.
Wyndham introduced Dr. James to Lafayette Square, resulting in her becoming the first Wyndham franchisee to receive financing from the firm and a package solution was agreed facilitating the acquisition of her second hotel, which is now open as the Wyndham Lake Charles. With the financing, Dr. James plans to upgrade the property and streamline operations with a third-party management team.
Amina James, Wyndham franchisee and member of BOLD by Wyndham said: “Because of Wyndham’s support, the credibility they saw in me and their connection to Lafayette Square, I can now say I own two hotels. BOLD and Women Own the Room are actively changing hospitality by forging the path – and knocking down the barriers along the way – to make hotel ownership possible. That’s a vision and a mission I’m proud to be part of.”
Galen Barrett, VP, strategic franchise initiatives, Wyndham Hotels & Resorts said: “Inequities still exist within hospitality, especially when it comes to financing. Champions like Lafayette Square — who believe in our same mission — can help us bring greater representation to our industry.
“There are deserving, credible hoteliers that continue to face roadblocks, and we’re committed to using our network to not only give the keys to hotel ownership to more diverse owners, but ultimately help give them the access to tools, resources and partners they need to succeed.”
Abhay Patel, managing director, Lafayette Square said: “Financing is an ongoing issue—particularly for diverse hotel owners— and there’s a growing need to intervene. We believe in elevating entrepreneurs who have historically not had the backing to succeed. Tapping into Wyndham’s network brings us and our resources to the epicenter of hospitality, helping make hotel ownership more attainable to qualified hoteliers.”
Wyndham’s Accelerator Circle makes networking easier for diverse hoteliers
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