Wyndham records double digit development rise
US-headquartered Wyndham Hotels & Resorts is continuing to storm ahead with pipeline growth, increasing its size by 10% year on year.
In its Q3 2022 results the group reported that it awarded 214 new hotel contracts this quarter compared to 151 in Q3 2021.
As at 30 September 2022, Wyndham’s global development pipeline consisted of over 1,600 hotels and over 212,000 rooms, of which approximately 76% is in the midscale and above segments. At the end of the previous quarter the upcoming room count was 208,000, therefore this has increased by 2% quarter on quarter.
61% of pipeline properties are in the group’s US home market, and the 10% pipeline growth comprises a 24% domestic increase and 2% internationally.
80% of upcoming hotels are newbuilds, of which approximately 36% have broken ground. The pipeline includes 120 new contracts awarded for the company’s new economy extended-stay brand, now confirmed as being called ECHO Suites Extended Stay by Wyndham, since its launch in March 2022.
System-wide rooms grew 4% year-over-year, including 1% of growth in the US and 9% of growth internationally. This represents an extra 33,400 keys globally across the year, rising from 802,600 at the end of Q3 2021 to 836,000 at the close of the equivalent quarter this year.
That global growth includes Wyndham’s $44 million acquisition of Austrian brand, Vienna House, which was completed on 8 September. This added an upscale and midscale portfolio of over 40 hotels and more than 6,400 rooms to the company’s existing footprint in the EMEA region.
Outlook on the up
Geoffrey A. Ballotti, Wyndham’s president and CEO, commented: “With our brands delivering record US RevPAR and our global development teams driving net unit growth towards the top end of our initial guidance, we are raising our full-year 2022 outlook.
“Despite the broader macro-economic climate, we are confident in the continued resiliency of our franchise model as we continue to invest in the business and generate substantial shareholder returns. This quarter, we grew our development pipeline by 10%, surpassed our full-year development goal for our new extended-stay brand and completed the acquisition of our 23rd brand – Vienna House. We remain committed to a disciplined capital allocation strategy that will deliver outstanding value to our shareholders, guests, franchisees and team members in any environment.”
Wyndham is the world’s largest hotel franchising company by the number of properties, with approximately 9,100 hotels across over 95 countries on six continents. The company operates a portfolio of 24 hotel brands, including Super 8, Days Inn, Ramada, Microtel, La Quinta, Baymont, Wingate, AmericInn, Hawthorn Suites, Trademark Collection and Wyndham.
The TOPHOTELPROJECTS database currently extensively details 59 Wyndham group high end projects in progress. This includes Wyndham Resort Beau Rivage Nha Trang, a Vietnamese beachfront development delivering a massive 1,709 keys in Q2 2023; the 161-room Wyndham Addis Ababa Bole Road following in the Ethiopian capital in the following quarter; and Wyndham Garden Saltillo, bringing 98 keys to Mexico in Q1 2024.
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