Wyndham signs first 50 hotels for new economy extended stay brand

Operating under the working title “Project ECHO” – an acronym for Economy Hotel Opportunity – the all-new construction brand fills white spaces within Wyndham Hotels & Resorts’ broader portfolio while strategically growing the business in a segment that experienced record growth and resilience, not just in the midst of the pandemic but throughout the last hosting cycle. Wyndham has been developing the brand since summer 2021.

“Over the past two years, budget hotels for extended stays have outperformed all other segments and in 2021 set new records for occupancy, ADR and RevPAR,” said Geoff Ballotti, President and Chief Executive Officer, Wyndham Hotels & Resorts. “Demand for these accommodations is only growing, from both customers and developers, so now is the time for Wyndham, the undisputed leader in the economy segment, to bring our experience and expertise to this space. with great potential.”

Budget extended stay hotels have been proven to perform consistently at all stages of the accommodation cycle and are particularly resilient during downturns. During the global pandemic, US RevPAR for the segment increased by 8% compared to 2019, while the rest of the industry decreased by 17%. Additionally, in 2021, the average U.S. extended-stay budget hotel occupancy rate was over 78%, 20 points higher than all other U.S. segments combined.

A developer-centric approach
Project ECHO was created with the help of a seven-member Development Board, comprised of some of the largest and most experienced owners and operators currently in the extended stay economy segment. The council’s ideas are matched with the experience and expertise of Wyndham’s in-house design and construction team. Over the past several years, the team has spearheaded the creation of highly successful La Quinta by Wyndham’s Del Sol prototype, currently in over 130 hotels with 56 more in its pipeline; and more recently, Microtel by Wyndham’s Moda prototype, which has another 40 hotels under development. At a time when rising construction costs drive a need for ultra-efficiency, the three prototypes prioritize owner ROI with a focus on value engineering and streamlining operations, helping thus to optimize operating margins on a recurring basis.

“Wyndham not only understands its owners and developers, but listens and acts on their needs,” said Carter Climb, Chairman and CEO of Sandpiper Lodging Trust. “This commitment, coupled with top-notch design and a deep, fundamental understanding of the economic guest, is a differentiator in our industry and is ultimately the reason we chose to partner with Wyndham.”

The purpose-built 124-room Project ECHO prototype requires just under two acres of land, has a very competitive cost per key, and has multiple features that intentionally separate it from traditional budget brands. At just over 50,000 square feet, of which nearly 74% is rentable, single rooms average 300 square feet and consist of single and double studio suites with in-suite kitchenettes, while Efficiently designed public spaces – a lobby, fitness center and launderette reserved for hotel guests – contribute to limiting labor requirements.

“From day one, Wyndham made it a point to reach out and ask, ‘What should be done differently?’ It wasn’t about dictating to us what the brand would be, but rather wanting to understand its potential and how our experience and expertise could best help developers achieve their goals,” said Ian McClure, Managing Director, Gulf Coast Hotel Management. “For us, it’s come a long way. It showed they’re committed to making sure this brand is the right one.”

Strategic growth through multi-unit operators
With 50 hotels already in the initial pipeline – 25 each from Sandpiper and Gulf Coast over the next five years – Wyndham is now eyeing additional growth opportunities. The brand plans to open its first hotel in 2023 and is actively talking to other multi-unit operators with experience in the segment, a key part of the brand’s growth strategy.

Wyndham intends to be thoughtful with early development partners, prioritizing brand integrity while building a strong multi-year pipeline. To assist qualified developers, the Company has identified possible development markets across the United States and will make available various incentives to select early developers. Wyndham is targeting at least 300 hotels over the next ten years in the United States with additional growth potential internationally.

Industry leading support, experienced extended stay leadership
Recognizing the immense importance of early franchisee success and the unique business model of the extended stay economy, Wyndham has assembled a dedicated leadership and operations support team around Project ECHO, a team deeply rooted in the experience of extended stay brands.

Led by the Vice President of Operations Dan Leh, a hospitality industry veteran with over 25 years of extended stay experience, the team brings deep expertise in all facets of extended stay operations, including but not limited to design and construction, pre-opening operations, sales, revenue management, labor management, landlord relations and more. Their efforts are complemented by dedicated Project ECHO sales teams, both locally and nationally, who will focus exclusively on matching hotels with Wyndham’s strong and growing roster of long-term guests in small and midsize businesses. companies and Fortune 500 companies.

On a larger scale, Project ECHO enables Wyndham to now offer guests and developers a portfolio of extended stay offerings. Hawthorn Suites by Wyndham, the company’s existing midrange extended-stay brand, is a central part of the company’s new dual-brand concept with La Quinta by Wyndham, which continues to attract strong developer interest. with 36 hotels currently under development, two of which are being developed by Trusha Patelinaugural member of Wyndham’s Women Own the Room program.

Additional details about Project ECHO, including the official brand name, are expected to be announced during the official brand launch later this year. For more information, including development opportunities, visit www.projectecho.wyndhamhotels.com.

About Wyndham Hotels & Resorts
Wyndham Hotels & Resorts (NYSE: WH) is the world’s largest hotel franchise company by number of properties, with approximately 9,000 hotels in approximately 95 countries on six continents. With its network of more than 810,000 rooms that appeal to the everyday traveler, Wyndham provides a leading presence in the economy and midscale segments of the lodging industry. The Company operates a portfolio of 22 hotel brands, including Super 8®, Days Inn®, Ramada®, Microtel®, La Quinta®, Baymont®, Wingate®, AmericInn®, Hawthorn Suites®, Trademark Collection® and Wyndham®. Wyndham Hotels & Resorts is also a leading provider of hotel management services. The company’s award-winning Wyndham Rewards loyalty program offers more than 92 million registered members the ability to redeem points at thousands of hotels, resorts and vacation rentals worldwide. For more information, visit www.wyndhamhotels.com.

Forward-looking statements
This press release contains “forward-looking statements” within the meaning of the United States federal securities laws, including the planned addition of hotels and similar statements regarding possible future results or performance. You are cautioned not to place undue reliance on these forward-looking statements, which are not guarantees of future results or performance, speak only as of the date of this press release, and are subject to numerous risks and uncertainties. including the risks described in Wyndham Hotels and Resorts‘ most recent Annual Report on Form 10-K and subsequent reports filed with the Securities and Exchange Commission, each of which could cause actual results or performance to differ materially from future results or performance expressed or implied by such forward-looking statements. Except as required by law, Wyndham Hotels and Resorts undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, subsequent events or otherwise.

SOURCE Wyndham Hotels & Resorts

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