Despite seeing some weakness in hotel demand during the second quarter of 2024, Wyndham Hotels is continuing to push ahead with expansion.
CEO Geoff Ballotti noted some weakness in US hotel demand, but said it did not concern him. “We believe, along with many in the industry, that the current revpar environment is transitory in nature,” he commented. “Historically… through four lodging cycles, US revpar for the select-service segments, which makes up the majority of our domestic system, has grown at a CAGR of 2.6%, despite the occasional downturn. We’ve been through similar situations before, and we’re confident that the select-service revpar will bounce back, as it always has historically.”
Ramping up signings
Wyndham opened more than 18,000 rooms during its second quarter, while in the home US market, it opened 16% more rooms than in the same period of 2023. CEO Geoff Ballotti added: “Our franchise sales team in the United States signed an impressive 33% more development deals in the quarter than they did last year, which helped grow our global development pipeline for the sixteenth consecutive quarter by 740 basis points year over year, to a record 245,000 rooms.”
The growth was also evident in a number of international markets. In EMEA, the company opened 20% more rooms than in Q2 of 2023, with additions including growing the La Quinta brand in the United Arab Emirates and Turkey. Ballotti also called out some luxury additions including in France, the Dolce by Wyndham Hotel & Spa in Versailles, and the Dolce by Wyndham Cesme, Turkey.
Wyndham has also been preparing for an acceleration of openings for its new extended stay brand, Echo Suites. The brand’s first property opened in Spartanburg, South Carolina, during the second quarter, ahead of a strong pipeline that includes Louisville, Clarksville, Indiana; Lexington, Kentucky; and Frankfort, Kentucky.
In Latin America, Wyndham grew its net rooms by 11% year on year, adding nine resorts under its Trademark and Ramada brands, across the Caribbean, Mexico and Panama. A similar growth rate was achieved in southeast Asia, with additions including the Wyndham Majestic Genting Highlands, a substantial 850 room hotel in Malaysia. And in China, with 12% year on year rooms growth, the Microtel brand is one with pace, now up to 22 hotels in the country. In Q2 of 2024, Wyndham signed 34 direct franchise development agreements, taking the Chinese pipeline to almost 400 hotels.
Meeting all-inclusive demand
The group is also building up its all-inclusive offering, via its Alltra brand. Working with operating partner Playa, it recently opened a resort in the Dominican Republic, and will soon add Wyndham Alltra Punta Cana, joining other resorts under the brand in Cancun, Freeport, Bridgetown, and Montego Bay. CEO Ballotti said the group is in talks with Playa to add further Alltra properties across the Caribbean, Central America and in Mexico.
