Wyndham says liquidity strong, calls decision not pay rent "commercial"

By Carlise Newman

Chicago, April 3 - Wyndham International Inc. said its liquidity remains strong and that its decision not to pay rent on two of its properties was "purely commercial."

Wyndham's comments came in response to an announcement Wednesday by Hospitality Properties Trust saying that Wyndham had not paid rent on two of its properties.

Wyndham said its current liquidity remains strong at approximately $272 million, up from $256 million on Dec. 31, 2002.

"Wyndham has ample liquidity. Even in a difficult environment, Wyndham is generating positive cash flow and continues to grow market share for the proprietary Wyndham brand," said Rick Smith, executive vice president and chief financial officer, in a news release.

"The two Wyndham subsidiaries' actions with regard to approximately $3.6 million in rent to HPT were purely commercial decisions of the two subsidiaries and not related to Wyndham's overall liquidity."

Hospitality Properties Trust said it owns 27 hotels that are leased to Wyndham under two combination leases: one for 15 Summerfield by Wyndham hotels, which requires a minimum rent of $2,083,333 per month; and another for 12 Wyndham hotels, which requires a minimum rent of $1,527,083 per month.

Dallas-based Wyndham International Inc. operates hotels and resorts. Hospitality Properties Trust is a real estate investment trust headquartered in Newton, Mass.

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