Wyndham Inks Exclusive Development Agreement to Bring Award-Winning Microtel by Wyndham Brand to India

Rhea-AI Summary

Wyndham Hotels & Resorts has signed an exclusive development agreement with NILE Hospitality LLP to introduce its Microtel by Wyndham brand to India, marking the eighth Wyndham brand in the country. The partnership aims to open 40 Microtel hotels by 2031, targeting key Tier II, III, and IV cities. This strategic move aligns with India's infrastructure development and growing hospitality market.

Microtel by Wyndham, known for its efficiency and modern design, will debut in India with the first hotels opening in 2025. Each property will have a minimum of 50 keys and feature amenities tailored to regional needs. This expansion is part of Wyndham's robust growth strategy in India, where it currently has 60 hotels and expects 25% growth in the next 18 months.

The agreement leverages Wyndham's global presence and NILE's regional expertise to tap into India's expanding economy lodging segment. Franchisees will benefit from the Wyndham Advantage, including access to innovative technology and the Wyndham Rewards program with approximately 110 million enrolled members.

Positive

• Exclusive development agreement to introduce Microtel by Wyndham to India
• Target of 40 Microtel hotels open by 2031
• Expansion into key Tier II, III, and IV cities in India
• Expected 25% growth in India over the next 18 months
• Access to Wyndham Advantage resources for franchisees
• Wyndham Rewards program with 110 million enrolled members

Negative

• None.

Insights

Hotel Industry Analyst

The exclusive development agreement between Wyndham and NILE Hospitality marks a significant expansion of Wyndham's presence in India's growing hospitality market. With plans to open 40 Microtel hotels by 2031, this move capitalizes on the increasing demand in Tier II, III and IV cities, aligning with India's infrastructure development.

This strategic partnership leverages NILE's regional expertise and Wyndham's global brand power, potentially accelerating Wyndham's growth in India by 25% in the next 18 months. The introduction of Microtel, known for efficiency and value, could disrupt the economy hotel segment in these developing markets.

For investors, this expansion represents a long-term growth opportunity in a high-potential market. However, execution risks and the extended timeline for full realization of returns should be considered. The agreement's success will depend on factors such as India's economic growth, tourism trends and the partners' ability to deliver consistent quality across new properties.

Market Research Analyst

This development signals a strategic shift in India's hospitality landscape, targeting the underserved economy segment in emerging cities. The planned 40 Microtel hotels could capture a significant share of the growing domestic and inbound tourism market, estimated to reach $50 billion by 2028.

Wyndham's approach of partnering with a local expert like NILE Hospitality mitigates risks associated with market entry and accelerates expansion. This model has proven successful in other emerging markets and could set a precedent for future international hotel brand expansions in India.

Investors should monitor key performance indicators such as occupancy rates, average daily rates and RevPAR (Revenue Per Available Room) as these properties come online. The success of this venture could potentially influence other global hotel chains to adopt similar strategies, reshaping competition in India's hospitality sector.

Exclusive development agreement with NILE Hospitality LLP targets 40 hotels open by 2031, fuelled by increased inbound and domestic tourism

LONDON, Oct. 17, 2024 /PRNewswire/ -- Wyndham Hotels & Resorts has signed an exclusive development agreement with NILE Hospitality LLP to introduce its Microtel by Wyndham brand to India, marking the eighth Wyndham brand to debut in the country. This strategic alliance enables Wyndham to leverage a leading regional third-party developer and operator to bring its award-winning brand to India.

With Wyndham's global presence and NILE's expertise across India, the Company anticipates opening 40 Microtel hotels by 2031, all of which will be direct franchisees of Wyndham, as part of its ambitious and robust growth strategy. The agreement underscores the Company's commitment to expanding in one of the world's most dynamic growing hospitality markets, where it currently has 60 hotels open throughout India and expects to grow by at least 25% in the next 18 months.

A pioneer in efficiency, Microtel by Wyndham is known for its modern design, exceptional service and value-driven guest experiences, making it one of the most trusted names in the economy hotel segment. Wyndham's agreement with NILE will see development of the brand in key Tier II, III and IV cities, in line with India's infrastructure development cycle, with the first hotels opening in 2025. Each will have a minimum of 50 keys and feature meeting and social spaces, gyms and other facilities based on the needs of the region. 

---

"We continue to see incredible opportunity in India, which is why we're focusing our strategic efforts on introducing more of our diverse brands to the country. Microtel is an ideal example of a brand that can be purpose-built for the market and with the continued collaboration with trusted partners like NILE Hospitality, we can quickly scale to meet growing demand."

  - Dimitris Manikis, President EMEA, Wyndham Hotels & Resorts

---

"Wyndham is a proven partner for NILE and this is just the latest chapter in our combined growth story as we aim to collectively tap into India's rapidly expanding economy lodging segment. By introducing Microtel, we'll be able to propel development in a robust domestic market while further tapping into the scale and resources of the world's largest hotel franchisor. It's an ideal match and reflection of our shared ambition to grow and build together."

- Vikram Singh Chauhan, Founder and CEO, NILE Hospitality LLP

---

The Wyndham Advantage
Wyndham franchisees throughout the EMEA region benefit from the Wyndham Advantage—a combination of world-class marketing, distribution and other resources designed to put owners on the path to success. Inclusive of nearly $325 million in innovative technology investments over the past six years, owners have access to best-in-class technology from industry-leading providers, including next-gen property management systems, as well as a growing member base of approximately 110 million enrolled Wyndham Rewards members who make up more than a third of all check-ins globally.

Wyndham Rewards is the number one hotel rewards program, as named by both USA Today and U.S. News and World Report, with more than 60,000 hotels, vacation club resorts and vacation rentals. Wyndham Rewards is the only hotel loyalty program where members earn a guaranteed 1,000 points with every qualified stay. Members can easily redeem points towards free nights at tens of thousands of hotels, vacation club resorts and vacation rentals around the world or a host of other rewards like tours, activities, gift cards, shopping and more. Offering three simple redemption tiers, free nights start at just 7,500 points per bedroom per night, while discounted nights start at just 1,500 points per bedroom per night.

For more information on franchising opportunities with Wyndham, visit whrdevelopmentemea.com.

Images associated with this release can be downloaded here.

About Microtel by Wyndham 
Microtel^® by Wyndham is an award-winning chain of more than 360 economy hotels located throughout North America, Asia and New Zealand. Consistently over-delivering on both guest and owner expectations, Microtel ranks best-in-class by organizations like The Harris Poll^®. Microtel's rich award-recognized heritage is backed by 18 J.D. Power honors – the most of any hotel brand in the economy segment. Microtel prides itself on being an innovator, offering a midscale experience at an economy price with an array of complimentary amenities including free Wi-Fi and continental breakfast. Other amenities available at most hotels include meeting and fitness centers, swimming pools and the opportunity to earn and redeem points through Wyndham Rewards^®, the brand's guest loyalty program. Travelers can join the program for free at www.wyndhamrewards.com. 

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 nearly 885,000 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 Suites^®, Trademark Collection^® and Wyndham^®. The Company's award-winning Wyndham Rewards loyalty program offers approximately 110 million enrolled members the opportunity to redeem points at thousands of hotels, vacation club resorts and vacation rentals globally. For more information, visit wyndhamhotels.com.  

About NILE Hospitality LLP
NILE Hospitality, founded in 2018, is a leading hotel management and development company in South Asia. Our unique understanding of Indian region's hospitality business distinguishes us as a leader in service, performance and quality. Our reputation for consistently delivering outstanding results to our owners and upholding brand positioning of our hotels make us the preferred partners of Hotel Management in the sub-continent. Our dynamic team comes with an experience of leading international hotel brands in all phases of hotel operations, sales and marketing and development.

Our vision is to ensure that our every guest is seen, heard and met at our hotels and return home with memories of exceptional hospitality.

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 expected hotel openings and the timing thereof. Forward-looking statements are any statements other than statements of historical fact, including 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," "predict," "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, 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 Russia and Ukraine and between Israel and Hamas, respectively; Wyndham's ability to satisfy obligations and agreements under its outstanding indebtedness, including the payment of principal and interest and compliance with the covenants thereunder; risks related to Wyndham's ability to obtain financing and the terms of such financing, including access to liquidity and capital; and Wyndham's ability to make or pay, plans for and the timing and amount of any future share repurchases and/or dividends, as well as the risks described in Wyndham's most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission and any subsequent reports filed with the Securities and Exchange Commission. These risks and uncertainties are not the only ones Wyndham may face and additional risks may arise or become material in the future. Wyndham undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, subsequent events or otherwise, except as required by law.

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/wyndham-inks-exclusive-development-agreement-to-bring-award-winning-microtel-by-wyndham-brand-to-india-302278264.html

SOURCE Wyndham Hotels & Resorts

FAQ

How many Microtel by Wyndham hotels are planned to open in India by 2031?

Wyndham and NILE Hospitality LLP plan to open 40 Microtel by Wyndham hotels in India by 2031.

When will the first Microtel by Wyndham hotels open in India?

The first Microtel by Wyndham hotels in India are expected to open in 2025.

What is the minimum number of keys for each new Microtel by Wyndham hotel in India?

Each new Microtel by Wyndham hotel in India will have a minimum of 50 keys.

How many hotels does Wyndham (WH) currently have open in India?

Wyndham Hotels & Resorts currently has 60 hotels open throughout India.

What growth rate does Wyndham (WH) expect in India over the next 18 months?

Wyndham expects to grow its presence in India by at least 25% in the next 18 months.