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Tryp by Wyndham Franchise

Audited Financials
HospitalityEst. 2010Parsippany, NJ
development.wyndhamhotels.com/
Financing Available

Risk Score

Pending analysis

Investment Range

$1,314,523 - $32,448,618

Franchise Fee

$20,000

Total US Locations

8

Business Summary

TRYP by Wyndham operates as an upper midscale, select-service hotel brand, offering overnight accommodations and related services primarily in urban and city centers globally. TRYP by Wyndham facilities cater to both business and leisure travelers, providing diverse room options such as Fitness Rooms and Family Rooms. Each facility is required to offer food and beverage services, including a premium breakfast menu, and typically features between 100 and 225 guest rooms.

Corporate History

TRYP Hotels Worldwide, Inc. was incorporated in Delaware on June 2, 2010. On June 30, 2010, TRYP Hotels Worldwide, Inc. and an affiliate, Wyndham Europe, acquired the TRYP hotel brand, including its service marks, from Sol Meliá S.A., a Spanish corporation. Sol Meliá S.A. had previously operated TRYP facilities in Europe and South America since 2000. TRYP Hotels Worldwide, Inc. began offering franchises for TRYP by Wyndham guest lodging facilities in the United States in January 2011. The company is a subsidiary of Wyndham Hotel Group, LLC, which is wholly owned by Wyndham Hotels & Resorts, Inc. Wyndham Hotels & Resorts, Inc. was established on May 31, 2018, as a result of a tax-free spin-off from Wyndham Worldwide Corporation, now known as Travel + Leisure Co.

Financial Overview

Investment Range

$1,314,523 - $32,448,618

Franchise Fee (Low)

$20,000

Franchise Fee (High)

$52,500

Royalty %

5%

Marketing %

3%

Equipment Costs (Low)

$84,238

Equipment Costs (High)

$2,339,827

Working Capital

$1,171,667

Audited Financials

Yes

Offers Financing

Yes

Audit Opinion

Unqualified opinion

Financial Health Notes

Wyndham Hotels & Resorts, Inc., the guarantor of TRYP Hotels Worldwide, Inc.'s obligations, appears to be in a financially sound position. Its consolidated balance sheet as of December 31, 2024, indicates total assets of $4,223 million against total liabilities of $3,573 million, resulting in a healthy stockholders' equity of $650 million. The company maintains positive working capital, with current assets of $467 million exceeding current liabilities of $466 million. For the year ended 2024, Wyndham Hotels & Resorts, Inc. reported a net income of $289 million. The independent auditors issued an unqualified opinion on the financial statements, indicating they present fairly the company's financial position and operations in accordance with U.S. GAAP, with no going concern qualification noted. While the audit report identifies the estimation of deferred revenues and liabilities related to the Wyndham Rewards loyalty program as a critical audit matter due to the high degree of auditor judgment involved, this refers to the complexity of the audit procedures for specific estimates rather than a concern about the overall financial stability of the franchisor.

Financing Details

TRYP Hotels Worldwide, Inc. offers financing assistance directly to its franchisees. The franchisor may defer the Initial Fee payment, typically for 90 days or until the facility opens, with no interest unless the franchisee defaults. Repayment is usually made in up to three equal installments. The franchisor also provides "Development Incentives" for new construction and conversion facilities. These are structured as loans that do not require repayment unless the franchise agreement terminates or is transferred before the end of its term. A portion of the Development Incentive loan, specifically 1/20th of the original amount, is forgiven annually, so it is fully forgiven by the end of the franchise term. This loan carries no interest unless a default occurs, in which case an 18% per annum interest rate applies. The franchisor reserves the right to require additional security for these loans based on the incentive amount and the franchisee's creditworthiness. Special Development Incentives include the "Women Own the Room (WOTR) Development Incentive," which targets $2,500 per guest room, capped at 50% of the franchisee's equity investment, for women-owned franchisees. Additionally, the "Black Owners & Lodging Developers (BOLD) Support" program may offer customized support, including a Development Incentive. Franchisees can also request a Lender Notification Agreement for third-party lenders, but TRYP Hotels Worldwide, Inc. is not obligated to enter into such an agreement.

Performance Metrics

Total US Locations

8

Franchised Units

8

Corporate Units

0

Franchising Since

2011

Agreement Terms

Initial Term

20 years

Renewal Conditions

If TRYP Hotels Worldwide, Inc. and a franchisee mutually agree to renew a franchise, the franchisee must apply for a renewal agreement between six and nine months before the current agreement expires. The franchisee will need to meet the franchisor's then-current requirements for new applicants, which could involve signing a new franchise agreement with potentially different terms, executing a general release of the franchisor and its affiliates, completing a property improvement plan, and paying a standard renewal fee.

Training & Support Program

Franchisor Assistance

Before a TRYP by Wyndham facility opens, TRYP Hotels Worldwide, Inc. provides several types of assistance. This includes approving the chosen site based on market feasibility studies for new construction, designating a Protected Territory, and for conversions or transfers, developing a Property Improvement Plan (PIP). The franchisor consults with architects on plans for new construction or renovations and conducts inspections to ensure compliance with System Standards before and during operation. Franchisees receive the System Standards Manual and information on Approved Suppliers. Mandatory pre-opening services include general manager certification, initial staff training, and digital photography. After opening, TRYP Hotels Worldwide, Inc. offers ongoing access to the System Standards Manual and may host Chain conferences. The franchisor conducts regular inspections and provides operational support via email, telephone, and a Chain intranet site, along with periodic on-site field visits. Franchisees have access to an online platform for brand-specific information and business tools, as well as a Central Reservation System (CRS) and a Signature Reservation Service for customer inquiries and bookings. Optional services available for a fee include comprehensive revenue management programs (Standard, Premium, and Premium Plus levels) and remote local sales services. Additionally, the franchisor provides access to a customer experience software platform (Medallia) and branded email accounts.

Initial Training Hours

34

Training Location

Corporate offices in Parsippany, NJ, or online/virtual

Ongoing Support

After opening, TRYP Hotels Worldwide, Inc. provides continuous access to the confidential System Standards Manual, which includes the Wyndham Rewards Front Desk Guide. The franchisor may hold Chain conferences, typically every 18 months, with mandatory attendance and an associated fee. It conducts announced or unannounced inspections and offers operational support through email, telephone, and the Chain's intranet site, supplemented by periodic on-site visits from its field support team. Franchisees receive access to a proprietary online platform for brand-specific information and business management tools. The franchisor also provides information about Approved Suppliers, operates a computerized Central Reservation System (CRS), and offers a Signature Reservation Service staffed by agents to handle calls and digital inquiries. Optional, fee-based comprehensive revenue management programs (Standard, Premium, and Premium Plus) are available. Franchisees also get access to a customer experience software platform (Medallia) for guest feedback and remote local sales services for an additional fee. Furthermore, the franchisor provides access to a guest engagement platform (Wyndham Connect) and branded email accounts. There is also a mandatory annual Continuing Education fee of $1,200, granting access to a comprehensive curriculum of hotel operations training, including regional workshops and Wyndham University.

Franchise Requirements

Ideal Candidate Profile

TRYP Hotels Worldwide, Inc. seeks franchisees who possess significant experience managing a hotel or are prepared to hire a management company or individual manager with substantial training and experience in general management of similar lodging facilities. The franchisor may require a third-party management company if the franchisee does not have the necessary hotel management experience, especially if they are receiving a Development Incentive. The ideal candidate will also be financially qualified and capable of performing all obligations under the Franchise Agreement.

Industry Experience Required

Yes

Management Experience Required

Yes

Sales Experience Required

No

Technical Skills Required

No

Operational Details

Location Type

commercial

Owner Participation

absentee-allowed

Territory Type

protected

Territory Size Requirements

TRYP Hotels Worldwide, Inc. negotiates the Protected Territory with each franchisee before signing the Franchise Agreement. This negotiation considers factors such as the market's nature (urban/suburban/rural), population density, demographics, natural travel boundaries (like rivers), and public and private facilities that generate lodging demand (e.g., airports, highways, tourist attractions, shopping malls). The Protected Territory can be defined as a specific radius around the facility, an irregular area bounded by roads or natural features, or by latitude and longitude. The franchisor states there is no minimum Protected Territory offered.

Staffing Notes

TRYP by Wyndham franchisees are responsible for all staffing decisions, including recruiting, hiring, firing, scheduling, and compensation. While the franchisor recommends that franchisees personally manage their facilities, it is not mandatory. If a franchisee does not personally manage the facility, they must hire a management company or an individual manager who possesses significant training and experience in general management of similar lodging facilities. The franchisor reserves the right to require a franchisee to retain an approved third-party manager or management company if the franchisee lacks significant hotel management experience or is receiving a Development Incentive. The Facility's general manager, or the representative exercising day-to-day operational authority, must successfully complete TRYP by Wyndham's mandatory Hospitality Management Program (HMP) within 90 days of the facility's opening. Any replacement general manager must complete this program within 90 days of assuming the role. Additionally, all personnel employed in positions designated by the franchisor for training are required to attend and successfully complete initial and other training programs as specified in the System Standards or deemed necessary for sound management practice. This includes specific training such as Human Trafficking Prevention Training and Count on Us® training, which all general managers must complete. For new construction or conversion facilities, opening training for staff is mandatory and is conducted on-site, with duration and fees varying based on the number of rooms. All hotel team members also have access to ongoing learning and development support through Wyndham University's comprehensive curriculum of hotel operations training.

FDD Documents

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