Wyndham Enters Upscale Extended Stay with WaterWalk
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Insights
The rebranding of 11 hotels into WaterWalk Extended Stay by Wyndham symbolizes a strategic move into the upscale extended stay market, a segment experiencing burgeoning demand. This expansion not only diversifies Wyndham Hotels & Resorts' portfolio but also taps into a rising trend where guests seek more home-like accommodations for longer durations. By integrating WaterWalk's unique LIVE|STAY model, Wyndham is positioning itself to cater to a wider array of customer preferences, potentially increasing market share in the extended stay niche.
From an investment perspective, the growth of Wyndham's extended stay offerings could lead to enhanced revenue streams through higher average daily rates (ADRs) and occupancy levels, especially given the premium nature of the upscale segment. Moreover, the strategic relationship with WaterWalk, which boasts a Gen 2.0 prototype for efficient design and low operating costs, could result in improved profit margins and returns on investment for property owners under the Wyndham umbrella.
However, the success of this initiative hinges on effective integration and brand synergy. Potential risks include the challenge of maintaining consistent quality and service across the newly rebranded hotels, as well as the execution of marketing strategies that clearly communicate the value proposition of the WaterWalk brand to both new and existing customers.
The upscale extended stay segment is a competitive arena, with established players already capitalizing on the extended stay trend. WaterWalk's innovative approach with its LIVE|STAY model introduces a unique selling proposition within this space. The model's flexibility to cater to both short-term and long-term guests could serve as a differentiator in the market, potentially attracting a diverse customer base ranging from business travelers to relocating families.
For Wyndham, the ability to offer a robust portfolio across different market segments could enhance brand loyalty and cross-selling opportunities. This could be particularly beneficial for capturing a share of the 'bleisure' travelers—a growing segment that blends business with leisure travel. The strategic location of the new WaterWalk properties in key markets could also tap into regional demand and capitalize on local economic growth.
It is essential for Wyndham to maintain the entrepreneurial spirit and innovative vision of WaterWalk's founder to continue driving the brand forward. The hospitality industry often sees mergers and acquisitions that fail to preserve the unique identity of the acquired brands, which can lead to a dilution of the customer experience and brand equity.
Wyndham's decision to incorporate WaterWalk into its portfolio represents a calculated investment in the extended stay sector, which has shown resilience and growth potential even amidst fluctuating economic conditions. The extended stay segment typically boasts higher occupancy rates and lower operational costs compared to traditional hotels, which translates into stable cash flows and can be attractive to investors looking for consistent returns.
The inclusion of WaterWalk's properties, particularly those with the Gen 2.0 prototype, suggests a focus on operational efficiency and cost management, which are vital for profitability in the hospitality industry. Investors should monitor the performance metrics of these rebranded hotels, such as RevPAR (Revenue Per Available Room), to gauge the effectiveness of the rebranding and the impact on Wyndham's overall financial health.
Long-term, the success of this expansion will depend on Wyndham's ability to scale the WaterWalk brand without compromising on the quality that defines the upscale segment. The company's track record with previous acquisitions and brand integrations will be an important factor for investors to consider when assessing the potential risks and rewards associated with this strategic move.
11 hotel portfolio rebrands as WaterWalk Extended Stay by Wyndham
"In the last year, guest demand for the extended stay segment reached record highs, which has been underscored by demand from owners and developers looking for new opportunities to partner with Wyndham. Our vision is to offer the industry's most robust portfolio of extended stay brands and the addition of WaterWalk marks an important step in that direction—helping ensure we have an offering in every segment, for every owner and for every guest."
- Chip Ohlsson, Chief Development Officer, Wyndham Hotels & Resorts
An Innovative Approach to Extended Stay
WaterWalk was founded by the late Jack DeBoer, an extended-stay trailblazer who not only pioneered the segment but created some of its most well-known and successful brands, including among others, Residence Inn and Candlewood Suites. A wildly successful entrepreneur and industry visionary, he created WaterWalk in 2014, leveraging the learnings of his past successes while also reimagining what an extended stay hotel could be. Today, his leadership, vision and entrepreneurial spirit live on through his granddaughter, WaterWalk CEO Mimi Oliver.
Positioned squarely in the upscale segment, WaterWalk brings a fresh take to the traditional extended stay experience with its unique LIVE|STAY model. STAY units are fully furnished and cater to guests looking for a traditional extended-stay, residential-like experience, while LIVE units are unfurnished and allow guests to create a long-term space that truly feels like home. The flexibility of the model is one of the brand's strategic assets as units can transform and adapt in real-time to market and customer needs—benefitting owners, operators and guests alike.
WaterWalk's current portfolio consists of 11 hotels throughout the
"WaterWalk's success is the culmination of decades of experience in extended stay combined with a relentless pursuit for driving innovation and delivering exceptional guest experiences. We believe WaterWalk is our best brand yet and our decision to bring it into the Wyndham portfolio is a pivotal moment in its evolution, one we believe will lead to enhanced efficiencies, performance and growth—all thanks to the Wyndham Advantage."
- Mimi Oliver, CEO, WaterWalk
A Portfolio Poised for Growth
WaterWalk marks Wyndham's third extended stay brand, joining ECHO SuitesSM Extended Stay by Wyndham and Hawthorn® Extended Stay by Wyndham. ECHO Suites launched in 2022 and has over 265 economy new construction hotels in its development pipeline, half a dozen of which are nearing completion. Hawthorn in 2023 saw
Collectively, the three brands give the Company a robust and growing portfolio of offerings designed for the needs of today's extended stay guests—be that construction workers hitting the road for weeks at a time or digital nomads looking to mix business and leisure travel. What's more, with the addition of WaterWalk, the portfolio of brands further reinforces owners' ability to capitalize on the historical infrastructure spend in the
In joining the Wyndham family of brands, WaterWalk hotels unlock access to the Wyndham Advantage – world-class marketing, distribution and resources from the world's largest hotel franchisor. Over the last five years, Wyndham has invested more than
For more information about WaterWalk Extended Stay by Wyndham, including franchising opportunities, visit wyndhamdevelopment.com.
Images associated with the above release can be downloaded here.
About WaterWalk
WaterWalk is the nation's most innovative extended stay brand. The company was founded in 2014 by the late Jack DeBoer, a hospitality visionary recognized as the pioneer of the extended-stay and all-suite hotel concepts. WaterWalk is unique in that it boasts two accommodation options under one roof, with its signature 'LIVE | STAY model.' This diversified product offering creates the utmost in flexibility and value to consumers and investors alike.
About Wyndham Hotels & Resorts
Wyndham Hotels & Resorts (NYSE: WH) is the world's largest hotel franchising company by the number of properties, with approximately 9,200 hotels across over 95 countries on six continents. Through its network of approximately 872,000 rooms appealing to the everyday traveler, Wyndham commands a leading presence in the economy and midscale segments of the lodging industry. The Company operates a portfolio of 25 hotel brands, including Super 8®, Days Inn®, Ramada®, Microtel®, La Quinta®, Baymont®, Wingate®, AmericInn®, Hawthorn®, Trademark Collection® and Wyndham®. The Company's award-winning Wyndham Rewards loyalty program offers over 106 million enrolled members the opportunity to redeem points at thousands of hotels, vacation club resorts and vacation rentals globally. For more information, visit www.wyndhamhotels.com.
Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of the federal securities laws, including statements related to Wyndham's current views and expectations with respect to development and rooms growth. Wyndham claims the protection of the Safe Harbor contained in the Private Securities Litigation Reform Act of 1995 for forward-looking statements. Forward-looking statements include those that convey management's expectations as to the future based on plans, estimates and projections at the time Wyndham makes the statements and may be identified by words such as "will," "expect," "believe," "plan," "anticipate," "intend," "goal," "future," "forward," "remain," "outlook," "guidance," "target," "objective," "estimate," "projection" and similar words or expressions, including the negative version of such words and expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of Wyndham to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release.
Factors that could cause actual results to differ materially from those in the forward-looking statements include, without limitation, factors relating to the expired unsolicited exchange offer by Choice Hotels International, Inc. to acquire all outstanding shares of Wyndham's common stock and any ongoing cost, loss of time and disruption associated therewith; general economic conditions, including inflation, higher interest rates and potential recessionary pressures; global or regional health crises or pandemics (such as the COVID-19 pandemic) including the resulting impact on Wyndham's business, operations, financial results, cash flows and liquidity, as well as the impact on its franchisees, guests and team members, the hospitality industry and overall demand for and restrictions on travel; the performance of the financial and credit markets; the economic environment for the hospitality industry; operating risks associated with the hotel franchising business; Wyndham's relationships with franchisees; the impact of war, terrorist activity, political instability or political strife, including the ongoing conflicts between
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SOURCE Wyndham Hotels & Resorts
FAQ
What is the new brand name for the 11 hotels rebranded by Wyndham Hotels & Resorts in partnership with WaterWalk?
Who is the Chief Development Officer of Wyndham Hotels & Resorts and what vision does he have for the extended stay segment?
What is the unique model introduced by WaterWalk for extended stay experiences?
How does WaterWalk's Gen 2.0 prototype benefit owners and operators?
Which other extended stay brands are part of Wyndham's portfolio along with WaterWalk?
