Wyndham Hotels & Resorts has entered into a partnership with the investment firm Lafayette Square to enhance capital access for diverse hotel owners. Through this exclusive collaboration, Wyndham will evaluate and connect qualified hotel owners with Lafayette Square, which plans to provide up to $100 million in financing to support hotel projects that might otherwise falter due to lack of traditional funding.
This investment approach by Lafayette Square specifically aims to tackle the significant challenges diverse hoteliers encounter in accessing capital, as stated by Wyndham. This alliance is part of Wyndham’s broader initiatives, including BOLD (Black Owners and Lodging Developers) and Women Own the Room, which seek to empower Black and women entrepreneurs in the hotel industry by addressing the unique obstacles they face.
The initiatives offer a variety of tailored solutions, such as networking and educational opportunities through the newly launched Accelerator Circle, as well as operational assistance and complimentary services designed to maximize revenue for aspiring hotel owners. Together, BOLD and Women Own the Room have facilitated over 100 hotel deals involving Black and women hoteliers, with more than 20 of these establishments now operational.
“Inequalities persist in the hospitality sector, particularly regarding financing,” noted Galen Barrett, VP of Strategic Franchise Initiatives at Wyndham Hotels & Resorts. “Partnerships with champions like Lafayette Square—who share our mission—enable us to enhance representation within our industry. There are numerous qualified hoteliers facing persistent barriers, and we are dedicated to leveraging our network not just to provide access to hotel ownership for more diverse individuals, but to equip them with the necessary tools, resources, and partnerships for success.”
Abhay Patel, Managing Director at Lafayette Square, emphasized, “Access to financing continues to be a significant issue for diverse hotel owners, highlighting the urgent need for intervention. We are committed to uplifting entrepreneurs who have historically lacked the support to thrive. By utilizing Wyndham’s extensive network, we can effectively bring our resources to bear within the hospitality sector, making hotel ownership a more achievable goal for qualified individuals.”
Despite her real estate background and prior experience as a hotel owner in Memphis, BOLD member Dr. Amina James faced familiar hurdles when pursuing her next project in Lake Charles, LA, such as exorbitant interest rates and insufficient financing offers. Consequently, Wyndham facilitated a connection between Dr. James and Lafayette Square, ultimately leading her to become the first Wyndham franchisee to secure funding from the investment firm.
This partnership enabled Dr. James to obtain a financing package for her second hotel, now operating as the Wyndham Lake Charles. With this funding, she plans to enhance the property and optimize operations with a third-party management team.
“Thanks to Wyndham’s backing, the confidence they placed in me, and their connection to Lafayette Square, I can proudly say that I own two hotels,” stated James. “Initiatives like BOLD and Women Own the Room are transforming the hospitality landscape by paving the way and dismantling barriers to hotel ownership. I am thrilled to be a part of this vision and mission.”
The original article appeared on hotelbusiness.com.
