Wyndham reaches record development levels
Leading group, Wyndham Hotels & Resorts, now has a record number of rooms in its pipeline after a strong financial quarter.
The group’s collective development consists of approximately 1,600 hotels and 208,000 rooms as at the end of Q2 2022.
Hitting new heights
According to Wyndham’s latest quarterly financial figures, the keys pipeline grew 9% year over year, and 2% in the last quarter, from 204,000 rooms at the end of Q1 2022. Annual pipeline growth includes 17% in the group’s US domestic market and 5% internationally.
The company awarded 187 new contracts this quarter compared to 154 in the equivalent quarter last year.
Around 77% of the pipeline is within the midscale and above hotel segments, 70% of which is in the US. The remaining 23% of developments are for economy brands.
Overall, approximately 62% of the company’s development pipeline is international, with the other 38% in the USA. 78% is new construction, of which approximately 36% has broken ground, with the remaining 22% being conversions.
Wyndham’s 819,000 rooms globally means that its pipeline is 25% of its current portfolio. The group reported its eighth consecutive quarter of sequential pipeline growth, with projects covering 60 countries, including 10 without a pre-existing Wyndham brand presence.
The group believes it is the largest hotel franchisor by hotel number worldwide, with nearly 9,000 hotels. It sees this model as generating minimal exposure to asset risk.
With a 21% rise in year-on-year deals signed, Wyndham’s room additions are on track to return to 2019 levels of 27,800, with 17,400 recorded in 2021 and 2022 numbers set to reach 25,800.
Notable hotel additions in the quarter include: Origin Austin, Texas, USA; Trademark Collection by Wyndham Halong Bay, Vietnam; TRS Yucatan, a Registry Collection Hotel, Riviera Maya, Mexico; Wyndham Moline on John Deere Common, Moline, Illinois, USA; Tryp by Wyndham, Corfu, Greece; Microtel by Wyndham Xishuangbanna City Center, China; and Ramada by Wyndham Gangtok, India.
Around 70% of Wyndham’s guests are from the leisure sector, and the group’s aim is to expand its portfolio reach across adjacent segments and geographies.
Geoffrey A. Ballotti, president and chief executive officer, analysed: “Our business experienced another strong quarter performing above both last year and 2019 as international recovery accelerated and our development teams grew our pipeline to a record level. Our second quarter results once again demonstrated the strength and durability of our business model and we are well on track to deliver on our 2022 commitments.”
The TOPHOTELPROJECTS database currently extensively details 92 Wyndham group projects in progress. This includes Australia’s Wyndham Grand Adelaide, which will add 347 rooms to the company’s portfolio from Q3 2024; Wyndham Addis Ababa Bole Road in the Ethiopian capital, delivering in Q3 2023; and Wyndham Shanwei Haidi, Guangdong opening in China in Q4 this year.
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