These figures have grown 1% sequentially and 10% year-on-year as at the end of Q2 2023.
Home and away increases
Wyndham’s robust pipeline total includes 22% growth in its home US market, while around 57% of the projects in development are now international.
The firm’s recent signings of 24,000 rooms represent a 6% uptick year-over-year and a 7% rise compared to pre-pandemic in 2019.
High end newbuilds
Approximately 72% of the company’s pipeline is in the midscale and above segments, including brands such as La Quinta, Trademark Collection by Wyndham, Tryp by Wyndham, Wyndham Garden Hotels, Wyndham Hotels & Resorts, Dazzler Hotels, Esplendor Hotels, Wyndham Grand Hotels & Resorts, Dolce Hotels & Resorts and Registry Collection Hotels.
Wyndham details that circa 81% developments are new constructions, of which approximately 35% has broken ground.
Rising legacy and recent lines
During Q2 2023, the group awarded 179 new contracts for its legacy brands, an increase of 8% year-over-year.
In July, the firm awarded 60 additional new contracts for its Echo Suites Extended Stay by Wyndham brand to established and experienced developers, including what will be the brand’s first hotels in Canada. This brings the total number of contracts awarded for the brand to 265 since its launch, or nearly 33,000 rooms.
Current portfolio
System-wide rooms grew 4% year-over-year, reflecting 1% growth in the US and 9% growth internationally, to around 852,000 keys within 9,072 sites.
As expected, these increases included strong growth in both the higher RevPAR midscale and above segments in the US and the direct franchising business in China, which grew 4% and 13%, respectively, as well as 80 basis points of growth globally and 200 basis points internationally from the acquisition of the Vienna House brand.Â
Wyndham forecast that it remains on track to achieve its net room growth outlook of 2 to 4% for the full year 2023, including an increase in its retention rate compared to 2022.
Continued acceleration
Geoff Ballotti, president and CEO, said: “As the world’s largest hotel franchise company whose growth continues to accelerate, our teams have so much to be proud of.
“Over the past five years, we’ve launched, acquired, and integrated five new brands, bringing our portfolio to 24 brands globally in every segment of the industry from economy to luxury. We’ve expanded into over 55 new countries, debuting our brands more than 100 times in countries where they’ve never been before, while expanding our global development pipeline by over 50% to 228,000 rooms and nearly 1,850 hotels.
“Two thirds of our openings come out of the pipeline each and every year. From signing to opening, new construction usually exits on average four years after it enters . Conversion rooms are averaging less than a year to come out of the pipeline. A larger pipeline gives us confidence into the future on accelerating our net room growth.”
