Chartwell Leisure

Chartwell Leisure was an American hotel company that operated during the 1990s and evolved out of a failed attempt to establish a separately managed casino business. The company was formed in 1994 under the name National Gaming as a spin-off of the gaming operations of Hospitality Franchise Systems (HFS). Its initial strategy was centered on the casino industry, but the business reportedly achieved limited success. In 1995, management announced that it would leave gaming and look for an acquisition in a less risky sector. The strategic shift led to the company's entry into lodging. In January 1996, National Gaming changed its name to National Lodging and acquired 16 Travelodge hotels, together with joint-venture interests in a further 96 properties, from Forte for $98 million. The transaction was connected to a broader arrangement in which HFS acquired the Travelodge trademark and franchise operation. National Lodging therefore obtained a substantial operating portfolio while the associated brand and franchising rights moved to HFS. In August 1996, the company adopted the name Chartwell Leisure after receiving a $57 million investment from groups associated with the Fisher family, the Gordon Getty family, and the de Gunzburg family. The investment gave those affiliated parties a combined 52 percent stake. The renaming and recapitalization marked Chartwell Leisure's repositioning as a lodging-focused company rather than a gaming venture. Its business was principally associated with owning or operating hotel properties and related hospitality assets rather than with developing a broad consumer-facing hotel franchise system of its own. Chartwell's independent existence ended in March 1998, when it was acquired by a partnership of Whitehall Street Real Estate, a Goldman Sachs affiliate, and Westmont Hospitality Group. The transaction was valued at $349 million, including $77 million in assumed debt. Westmont received a minority ownership interest and assumed operational responsibility for the company's 124 properties under the new name WW Leisure. As a result, Chartwell Leisure ceased to operate as an independent company and became part of a new ownership and operating structure. The company's history illustrates a short but significant transition from gaming to lodging in the U.S. hospitality sector. Its principal turning points were the 1994 spin-off, the abandonment of the casino strategy, the 1996 Travelodge-related acquisition, the investment-led name change to Chartwell Leisure, and the 1998 sale to Whitehall Street Real Estate and Westmont. Publicly available reference material does not identify a continuing Chartwell Leisure brand, a current website, a public stock ticker, or a surviving standalone corporate organization.

Chartwell Leisure originated in 1994 as National Gaming, a spin-off of the gaming businesses of Hospitality Franchise Systems. The new company was intended to operate independently in the casino sector, but its initial performance was weak. In 1995, it abandoned that direction and announced plans to seek an acquisition in a less risky field. The company entered lodging in January 1996. It changed its name to National Lodging and paid $98 million to Forte for 16 Travelodge hotels and joint-venture interests in 96 more properties. The transaction was linked to HFS's acquisition of the Travelodge trademark and franchise operation, separating the hotel assets acquired by National Lodging from the brand and franchising infrastructure obtained by HFS. In August 1996, National Lodging became Chartwell Leisure after receiving a $57 million investment from groups connected with the Fisher family, the Gordon Getty family, and the de Gunzburg family. The investors collectively held 52 percent of the company. The name change reflected the company's new emphasis on lodging and hospitality rather than gaming. Chartwell Leisure was sold in March 1998 to a partnership between Whitehall Street Real Estate, a Goldman Sachs affiliate, and Westmont Hospitality Group. The reported value was $349 million, including $77 million of assumed debt. Westmont received a minority stake and assumed responsibility for operating the company's 124 properties. The operations were placed under the name WW Leisure, ending Chartwell Leisure's existence as an independent hotel company.

• 1998

  Acquisition and transition to WW Leisure

  [1]Chartwell Leisureen.wikipedia.org

  Whitehall Street Real Estate and Westmont Hospitality acquired the company for $349 million, including assumed debt, and transferred operations to the WW Leisure structure.

• 1996

  Travelodge portfolio acquisition

  [1]Chartwell Leisureen.wikipedia.org

  Under the name National Lodging, the company purchased 16 Travelodge hotels and joint-venture interests in 96 additional properties from Forte for $98 million.

• 1996

  Renaming as Chartwell Leisure

  [1]Chartwell Leisureen.wikipedia.org

  A $57 million investment by groups associated with the Fisher, Gordon Getty, and de Gunzburg families preceded the company's renaming as Chartwell Leisure and gave the investors a combined 52 percent interest.

• 1995

  Exit from the casino strategy

  [1]Chartwell Leisureen.wikipedia.org

  After limited success, the company decided to leave the casino industry and seek a business in a less risky sector.

• 1994

  Formation as National Gaming

  [1]Chartwell Leisureen.wikipedia.org

  Hospitality Franchise Systems spun off its gaming businesses into a separately formed company called National Gaming.

A U.S. lodging and hospitality company created by moving away from casino operations and concentrating on hotel property ownership, operating interests, and related lodging assets.

• Hotels · 1996

  Travelodge hotel properties

  Chartwell's principal lodging assets came from its 1996 purchase of 16 Travelodge hotels from Forte. The transaction also included joint-venture interests in 96 additional properties, giving the company a sizeable hotel portfolio during its short independent operating period. The Travelodge trademark and franchise operation were acquired separately by HFS as part of the broader transaction.

• Hospitality operations · 1996

  Hotel operating portfolio

  Chartwell Leisure owned or held operating interests in hotel properties rather than presenting a widely documented standalone consumer product line. By the time of its 1998 acquisition, the company was associated with 124 properties, whose operations were subsequently managed under the WW Leisure name by Westmont Hospitality.

• 1998

  Sale to Whitehall Street Real Estate and Westmont HospitalityM&A

  Background

  Chartwell Leisure operated a substantial hotel portfolio but did not remain independent after its 1996 repositioning.

  Action taken

  A partnership of Whitehall Street Real Estate and Westmont Hospitality Group acquired the company for $349 million, including $77 million in assumed debt.

  Aftermath

  Westmont received a minority share and assumed operations of the 124 properties under the new name WW Leisure, ending Chartwell Leisure as a standalone company.

  Acquisition value. $349 million, including $77 million in assumed debt (March 1998)

  Source

• 1996

  Acquisition of Travelodge hotels and joint-venture interestsM&A

  Background

  Following its decision to leave gaming, the company sought a lower-risk hospitality business and changed its name from National Gaming to National Lodging.

  Action taken

  National Lodging paid $98 million to acquire 16 Travelodge hotels and joint-venture interests in 96 additional properties from Forte.

  Aftermath

  The acquisition established the company as a lodging operator, while HFS obtained the Travelodge trademark and franchise operation in the related transaction.

  Acquisition price. $98 million (January 1996)

  Source

• 1996

  Recapitalization and renaming as Chartwell LeisureStrategy

  Background

  The lodging-focused company attracted investment from groups associated with the Fisher family, the Gordon Getty family, and the de Gunzburg family.

  Action taken

  The company accepted a $57 million investment and changed its name from National Lodging to Chartwell Leisure. The investing groups received a combined 52 percent stake.

  Aftermath

  Chartwell Leisure continued as a hotel company until its acquisition in 1998.

  Investment. $57 million (August 1996)

  Source

• 1995

  Exit from casino operationsStrategy

  Background

  National Gaming had been created to hold HFS's gaming businesses, but the company found little success in the casino sector.

  Action taken

  Management announced that the company would leave the casino industry and search for an acquisition in a less risky business area.

  Aftermath

  The decision led to the company's repositioning as a lodging business and preceded its acquisition of Travelodge hotel interests.

  Source

• 1998

  Chartwell Leisure acquired by Whitehall Street Real Estate and Westmont Hospitality[1]Chartwell Leisureen.wikipedia.org

  M&A

  A partnership of Whitehall Street Real Estate and Westmont Hospitality Group acquired Chartwell Leisure for $349 million, including $77 million in assumed debt. Westmont subsequently took over operations under the name WW Leisure.

• 1996

  National Lodging acquires Travelodge hotel interests from Forte[1]Chartwell Leisureen.wikipedia.org

  M&A

  The company paid $98 million for 16 Travelodge hotels and joint-venture interests in 96 additional properties. The transaction formed part of a broader deal involving HFS and the Travelodge trademark and franchise operation.

• 1996

  National Lodging is renamed Chartwell Leisure after new investment[1]Chartwell Leisureen.wikipedia.org

  Leadership change

  Following a $57 million investment from groups associated with the Fisher, Gordon Getty, and de Gunzburg families, the company changed its name to Chartwell Leisure. The investors collectively obtained a 52 percent stake.

• 1995

  National Gaming announces withdrawal from casino operations[1]Chartwell Leisureen.wikipedia.org

  Other

  After limited success in gaming, the company stated that it intended to leave the casino industry and pursue an acquisition in a less risky business sector.

1. 1Chartwell Leisureen.wikipedia.org