Skift Take
To expand the pool of hotel owners, it's not enough to provide access to capital. So in a pragmatic move, Wyndham is also providing a kind of support system (think mentorship in operations expertise and facilities management).
Key Points
- Wyndham Hotels & Resorts and Lafayette Square are collaborating to provide $100 million in financing to diverse hotel owners.
- The initiative primarily supports Black and female hotel entrepreneurs, offering capital and additional resources.
- Wyndham's diversity programs have facilitated over 100 hotel deals with Black and female owners.
Summary
Wyndham Hotels & Resorts, in collaboration with Lafayette Square, has launched a $100 million fund aimed at supporting diverse hotel owners, particularly Black and female entrepreneurs. This initiative provides access to capital and additional support through programs like BOLD and Women Own the Room, and has already resulted in over 100 hotel deals. Dr. Amina James is among those who have benefited, securing financing to expand her hotel ownership.
Wyndham Hotels & Resorts is teaming up with investment firm Lafayette Square to address a persistent barrier to hotel ownership — access to capital for diverse entrepreneurs.
Lafayette Square will earmark up to $100 million in financing for qualified Wyndham hotel franchisees, focusing on Black and women hoteliers, the companies told Skift.
“This is good business,” said Damien Dwin, CEO of Lafayette Square. “We are earning an attractive market return in collaboration with an experienced entrepreneur and what we think is the best brand in the business.”
Lafayette Square has a pool of capital for both hotel and franchising opportunities and Small Business Administration-guaranteed loans designated for women, minority, and veteran-owned entrepreneurs.
Boosting Hotel Ownership
The partnership has already produced its first case study. Dr. Amina James already owned one profitable hotel. However, she hit resistance when seeking traditional lending to add another property.
James recently secured financing through Lafayette Square to acquire the Wyndham Lake Charles in Louisiana as her second hotel.
James also benefited from Wyndham’s programs to encourage more diversity in hotel ownership — BOLD (Black Owners and Lodging Developers), Women Own the Room, and its Accelerator Circle launched last month.
The programs have also facilitated more than 100 hotel deals with Black and female hoteliers, said Galen Barrett, vice president of strategic franchise initiatives at the hotel group.
“It’s not just access to capital,” Barrett said. “We can provide education, we can provide a community of support, we can give people access to experts, whether in operations or facilities management.”
Accommodations Sector Stock Index Performance Year-to-Date
What am I looking at? The performance of hotels and short-term rental sector stocks within the ST200. The index includes companies publicly traded across global markets, including international and regional hotel brands, hotel REITs, hotel management companies, alternative accommodations, and timeshares.
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Tags: future of lodging, wyndham
Photo credit: Exterior of the Wyndham Lake Charles Louisiana Hotel owned by Dr. Amina James thanks to help from funding from Lafayette Square. Source: Wyndham. Wyndham