Wyndham Hotels & Resorts has announced the continued expansion of its brand, ECHO Suites Extended StaySM by Wyndham. In just one year, the extended-stay brand now has more than 200 hotels in its development pipeline.
ECHO Suites Extended StaySM by Wyndham’s exponential growth is fuelled in part due to historic infrastructure investments in the US. Firstly, projects linked to the 2021 Infrastructure and Jobs Act, including repairs to major roads and highways, bridges, airports, and rail networks, have created opportunities for Wyndham.
With business travellers, such as construction and other trade workers, needing long-term accommodation across the country, development opportunities are coming thick and fast for the hotel franchising company. It reported a general infrastructure-related revenues increase of over 20% in Q4 2022.
Secondly, the CHIPS and Science Act of 2022 has driven the construction of over 20 new chip manufacturing plants across several states. Together, these two Acts potentially create a long-term opportunity for Wyndham franchisees to generate $3.3 billion in additional room revenue. This could lead to more than $150 million in incremental royalties for the company over the multi-year period of spend.
The recently constructed 124-room ECHO Suites prototype has been imagined to boost growth for the brand. It occupies less than two acres of land and has a highly competitive cost per key. 74% of its total 4,645 m² can be rented out, with individual rooms averaging just under 28 m². Communal spaces include a lobby, fitness centre, and 24/7 guest laundry, which limits labour needs.
The brand’s development model is designed to maximise owner return on investment through an ultra-efficient construction process, with an emphasis on value engineering and streamlined operations. This model has attracted developers such as Dennis Wong of SPI Holdings and Richard Squires of Lennox Capital. The business partners recently signed a deal with Wyndham to develop multiple ECHO Suites hotels in the US.
At the end of 2022, ECHO Suites Extended StaySM by Wyndham began construction on its first three properties. The first property is expected to open this year, and 2023 will also see a further 20+ ground breaks for new hotels.
By virtually every metric, ECHO Suites is a phenomenal success, becoming not only the fastest-growing brand in our industry but the largest brand launch in the history of Wyndham. Its rapid growth is a testament to the power that comes with the scale and resources of the world’s largest hotel franchising company and what can happen when brands take the time to truly engage and understand the needs of the development community.
Chip Ohlsson, Chief Development Officer at Wyndham Hotels & Resorts
Extended-stay is the hot segment within hospitality right now and ECHO Suites Extended StaySM by Wyndham is undoubtedly the hot brand within that segment. What differentiates Wyndham is their owner-first approach, a commitment to ROI-driven design and best-in-class technology, marketing, and distribution. As developers - it’s everything we’re looking for.
Dennis Wong, Co-Founder of SPI Holdings
