Wyndham Hotels and Lafayette Square Unveil $100 Million Fund

Wyndham Hotels & Resorts has teamed up with investment firm Lafayette Square to unveil a $100 million fund to provide diverse hoteliers with improved access to capital.

Through this exclusive relationship, Wyndham will vet and directly connect qualified owners with Lafayette Square, which aims to help hoteliers in combined financing from the firm over the coming years.

While not all hoteliers will qualify, viable candidates can use the funds to move forward projects that would otherwise stall due to lack of traditional financing, Wyndham Hotels said on Thursday.

Lafayette Square’s investment strategy addresses a critical issue being faced by diverse hoteliers while accessing 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.

From networking and educational opportunities via the newly launched Accelerator Circle, to operational support and complimentary services to help maximise revenue, each program 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.

Wyndham Hotels & Resorts Vice President for Strategic Franchise Initiatives Galen Barrett said that 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,” Barrett added.

Lafayette Square Managing Director Abhay Patel said that financing is an ongoing issue, particularly for diverse hotel owners, and there’s a growing need to intervene.

He added: “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 epicentre of hospitality, helping make hotel ownership more attainable to qualified hoteliers.”

Advancing Hotel Ownership

Despite a background in real estate and experience owning a hotel in Memphis, BOLD member Dr Amina James continued to face the same challenges she had previously with banks upon exploring her next venture in Lake Charles in Los Angeles, including high rates and deals that did not provide enough capital to fund her business plan.

As a result, Wyndham introduced Dr James to Lafayette Square, resulting in her becoming the first Wyndham franchisee to receive financing from the firm.

Because of Wyndham’s connection to Lafayette Square, Dr James worked out a package solution 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.

“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,” Dr James said.