As at 30 September, the company’s global development project total consisted of over 1,930 hotels and approximately 237,000 rooms.
Exponential growth
The latest figures represent 4% sequential growth and a 12% year-over-year increase, including 16% growth in the US. This also equates to 13 consecutive quarters of pipeline growth.
In the prior three months, Wyndham signed over 230 contracts, an increase of 8% year-over-year, including 60 new construction projects for the Echo Suites Extended Stay by Wyndham line, bringing the brand’s pipeline to 265 sites, encompassing nearly 33,000 rooms. With all the Echo Suites hotels due to open within the next seven years, the group believes this makes it the fastest growing economy extended stay brand in the market.
Legacy uptick
During Q3 2023, the firm awarded 172 new contracts for its legacy brands, an increase of 4% year-over-year.
Approximately 69% of the pipeline is in the midscale and above segments, while around 58% is outside its US home market, and circa 80% are newbuilds, of which approximately 34% have broken ground.
Annual openings
Wyndham also underlined that it has four new brands targeting attractive segments, and opens more than 450 hotels annually.
In Q3, system-wide rooms grew 3% year-over-year, reflecting 1% growth in the US and 6% growth internationally.
Standalone strength
Geoff Ballotti, president and CEO, analysed: “We recently announced our board of directors unanimously rejected an unsolicited stock-and-cash proposal by Choice Hotels to acquire our company.
“Our board of directors, together with our financial and legal advisors, closely reviewed Choice’s latest proposal and determined, for multiple reasons, that it is not in the best interest of our shareholders. They remain confident that our standalone growth prospects offer superior, risk-adjusted returns to Wyndham shareholders.”
Strategy focus
He continued: “Supporting that belief are our third quarter results, which were highlighted by continued growth in global RevPAR, ongoing domestic and international organic net room growth and another 8% increase in hotel contracts awarded to franchisees driving our development pipeline to a record 1,930 hotels.
“We remain focused on our growth strategy, which includes continued system expansion through our Echo Suites by Wyndham brand and further improvements in franchisee retention, as well as the multi-year benefit expected from the US infrastructure bill. We’re enthusiastic about our ability to deliver exceptional value to our shareholders, guests, franchisees and team members in the months and years ahead.”
One addition a day
In Wyndham’s subsequent investor call, Ballotti added: “Our teams opened over 14,500 new rooms in the third quarter, with 5,900 of those rooms opening in the US. Year-to-date through 30 September, we’ve opened over 42,600 rooms across 326 hotels, opening more than one hotel each and every day.
“Our teams awarded more than 230 contracts for over 26,000 rooms, with 15% of our pipeline now representing our Echo Suites Extended Stay by Wyndham brand and an additional 70% of our pipeline now in the higher RevPAR midscale, upscale, upper upscale, and luxury segments.”
