Wyndham Hotels & Resorts has joined hands with investment company Lafayette Square to ensure hoteliers get better access to capital. Through an exclusive partnership, Wyndham will vet and directly connect eligible owners with Lafayette Square, which aims to help hoteliers with up to $100 million in combined financing from the firm over the coming years.
Lafayette Square’s investment strategy seeks to address a challenge that diverse hoteliers face when it comes to 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.
The recently launched Accelerator Circle offers operational support and complimentary services to help maximize revenue, with each program providing tailored solutions and complimentary services to help new entrepreneurs. The BOLD and Women Own the Room together have resulted in more than 100 hotel deals with Black and women hoteliers, out of which over 20 are currently open.
“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,” said Galen Barrett, VP, strategic franchise initiatives, Wyndham Hotels & Resorts.
Finance is an ongoing issue, especially for diverse hotel owners, and there is an increasing need to intervene, said Abhay Patel, Lafayette Square’s managing director.
“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,” Patel said.
Despite a background in real estate and experience in owning a hotel in Memphis, Tenn., BOLD member Amina James was set back by the same challenges she had earlier faced with banks when exploring a new venture in Lake Charles, La. This included high rates and deals that didn’t provide adequate capital to finance James’ next business plan, Wyndham highlighted in a release. Wyndham then introduced James to Lafayette Square, which helped her become the first Wyndham franchisee to receive financing from the firm.
Wyndham’s connection with Lafayette Square helped her work out a package solution, enabling her to purchase her second hotel, which is now operational as Wyndham Lake Charles. James plans to use the funding to upgrade the hotel 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. That’s a vision and a mission I’m proud to be part of,” James said.
