Wyndham signs first 50 hotels for the development of its upcoming economy extended-stay hotel brand.
The segment of extended-stay hotel has recorded a significant growth and resiliency during the pandemic but also before. During the pandemic, U.S. RevPAR for the segment grew 8% versus 2019 while the rest of the industry declined 17%. This segment answers to new emerging need among travellers these recent years, a phenomenon amplified by the sanitary crisis. Wyndham has thus deciced in 2021 to develop a new brand in line with the popular segment.
Over the last two years, economy extended-stay hotels outperformed all other segments, and in 2021, set new records for occupancy, ADR and RevPAR. Demand for these accommodations only continues to climb—both from guests and developers alike—making now the right time for Wyndham, the definitive leader in the economy segment, to bring our experience and expertise to this high-potential space.
Geoff Ballotti, President and CEO of Wyndham Hotels & Resorts
Operating under the working title “Project ECHO”, an acronym for Economy Hotel Opportunity, these 50 new construction projects will complete the portfolio oh Wyndham. Project ECHO was created with the help of a seven-member development council. These new properties will be brought to life by two partners of the group, Richmond, Va.-based Sandpiper Hospitality and Dallas-based Gulf Coast Hotel Management.
The Project ECHO prototype, featuring 124 rooms, has a highly competitive cost per key, and has multiple characteristics that intentionally separate it from traditional economy brands. Each room include in-suite kitchenettes and efficiently-designed public space features a lobby, a fitness center and a guest laundry.
From day one, Wyndham has made a point of reaching out and asking, ‘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 meet their goals. For us, that went a long way. It showed they’re committed to getting this brand right.
Ian McClure, CEO of Gulf Coast Hotel Management
Wyndham expects to open the first hotel of this new brand in 2023. The group announced that there are 50 hotels already in the initial pipeline, 25 each from Sandpiper and Gulf Coast ,over the next five years. Wyndham is targeting at least 300 hotels over the next ten years in the U.S. with potential for additional growth internationally. It is already looking for additional, multi-unit operators with experience in the segment.