Wyndham Signs 60 New ECHO Suites Hotels Across the U.S. and Canada

Rhea-AI Summary

Wyndham Hotels & Resorts announces 60 new hotels for its ECHO Suites brand, expanding its presence in Alabama, Iowa, Nebraska, and South Dakota, and launching in Canada. The additions grow the brand's global pipeline to 265 hotels and approximately 33,000 rooms. The ECHO Suites prototype requires under two acres of land and has a highly competitive cost per key. The brand expects to have 100 hotels open over five years.

Positive

• Wyndham Hotels & Resorts announces the addition of 60 new hotels for its ECHO Suites brand, expanding its global pipeline to 265 hotels and approximately 33,000 rooms. This significant growth could positively impact the stock price as it demonstrates the brand's strong market presence and potential for increased revenue. The expansion into Canada is particularly noteworthy, as it opens up a new market for the brand and enhances its international footprint. The brand's long-term strategy of signing multi-unit deals with established developers, such as MasterBUILT Hotels, showcases its ability to attract experienced partners and drive further growth. The ECHO Suites prototype's efficient design and highly rentable square footage make it an attractive choice for developers, potentially leading to more development opportunities in the future.

Negative

• None.

New multi-unit deals with established developers expand ECHO Suites' presence in Alabama, Iowa, Nebraska and South Dakota while launching the brand in Canada

PARSIPPANY, N.J., July 25, 2023 /PRNewswire/ -- Wyndham Hotels & Resorts, the world's largest hotel franchising company with approximately 9,100 hotels across more than 95 countries, today announced 60 new hotels for its rapidly expanding ECHO Suites^SM Extended Stay by Wyndham brand, including what will be the brand's first hotels in Canada.

Continuing Wyndham's long-term strategy of signing multi-unit deals with established and experienced developers—one of the latest being MasterBUILT Hotels, which to-date has developed more than two dozen Microtel by Wyndham^® hotels across Canada—the additions grow the brand's global pipeline to 265 hotels and approximately 33,000 rooms.

"Since announcing ECHO Suites last year, we've seen unprecedented interest from among the industry's most-successful extended stay developers, helping make ECHO the fastest-growing brand launch of 2022," said Chip Ohlsson, chief development officer, Wyndham Hotels & Resorts. "Adding MasterBUILT—one of Canada's premier hotel development companies—to that growing list speaks to the quality of the ECHO prototype and its highly efficient, ROI-driven design, which offers among the most rentable square-footage in the industry."

Canadian Success Story
One of Canada's fastest growing hotel development and investment companies, MasterBUILT Hotels was founded in 2011 and has tremendous expertise in site evaluation, project design and project management—having constructed over two dozen Microtel by Wyndham hotels spanning all 10 provinces, with additional hotels currently under development.

"The success Wyndham is seeing with ECHO is not by chance—it's a testament to the care that was put into designing the brand," said David Donaldson, president and CEO, MasterBUILT Hotels. "From day one, Wyndham made a point of seeking the input of experienced developers and then actioning on their insights. The result is a brand that resonates as strongly with hotel developers as it will with guests. While other brands have since tried to tap into and mirror ECHO Suites' success—Wyndham, with its unmatched scale, owner-first approach and industry-leading support—continues to lead the pack."

Unprecedented Growth
With the addition of MasterBUILT Hotels, ECHO Suites Extended Stay by Wyndham now has pipeline of 265 hotels across the U.S. and Canada, making it one of the largest of any extended stay hotel brand. Multiple projects have already broken ground and are in various stages of construction across Virginia, Texas and South Carolina, with over a dozen more slated to break ground in the months ahead. The Company expects to have 100 hotels open over five years, with the brand's first locations beginning to make a meaningful contribution to Wyndham's overall portfolio in 2024.

The purpose-built, all new-construction, 124-room ECHO Suites prototype requires under two acres of land and has a highly competitive cost per key. Coming in at approximately 50,000 square-feet, individual rooms average 300 square-feet. The rooms consist of single- and two-queen studio suites with kitchens as well as efficiently-designed public spaces—a lobby, fitness center and 24/7 guest laundry—that help to limit labor needs.

For more information on ECHO Suites Extended Stay by Wyndham, including development opportunities, visit www.wyndhamdevelopment.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 9,100 hotels across over 95 countries on six continents. Through its network of approximately 845,000 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 24 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 101 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 the Company's current views and expectations related to rooms growth, development, consumer demand trends, technology offerings and programs. Forward-looking statements include those that convey management's expectations as to the future based on plans, estimates and projections at the time the Company makes the statements and may be identified by words such as "will," "expect," "believe," "plan," "anticipate," "intend," "goal," "future," "outlook," "guidance," "target," "objective," "estimate," "projection" and similar words or expressions, including the negative version of such words and expressions. Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the Company 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; the continuation or worsening of the effects from the coronavirus pandemic ("COVID-19"); COVID-19's scope, duration, resurgence and impact on the Company's business operations, financial results, cash flows and liquidity, as well as the impact on the Company's franchisees and property owners, guests and team members, the hospitality industry and overall demand for and restrictions on travel; the Company's continued performance during the recovery from COVID-19 and any resurgence or mutations of the virus; concerns with or threats of other pandemics, contagious diseases or health epidemics, including the effects of COVID-19; the performance of the financial and credit markets; the economic environment for the hospitality industry; operating risks associated with the hotel franchising businesses; the Company's relationships with franchisees and property owners; the impact of war, terrorist activity, political instability or political strife, including the ongoing conflict between Russia and Ukraine; risks related to restructuring or strategic initiatives; the Company'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 the Company's ability to obtain financing and the terms of such financing, including access to liquidity and capital; and the Company'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 the Company'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. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, subsequent events or otherwise.

View original content to download multimedia:https://www.prnewswire.com/news-releases/wyndham-signs-60-new-echo-suites-hotels-across-the-us-and-canada-301885039.html

SOURCE Wyndham Hotels & Resorts

FAQ

What is the significance of Wyndham Hotels & Resorts' announcement of 60 new hotels for its ECHO Suites brand?

The announcement signifies the brand's strong market presence and potential for increased revenue. It also demonstrates the brand's expansion into new markets, such as Canada.

What is the current global pipeline for ECHO Suites hotels?

The global pipeline for ECHO Suites hotels now stands at 265 hotels and approximately 33,000 rooms.

What is the long-term strategy of Wyndham Hotels & Resorts for ECHO Suites?

The long-term strategy involves signing multi-unit deals with established and experienced developers to drive further growth.

What is the unique selling point of the ECHO Suites prototype?

The ECHO Suites prototype requires under two acres of land, has a highly competitive cost per key, and offers highly rentable square footage.

How many hotels does Wyndham Hotels & Resorts expect to have open over the next five years?

Wyndham Hotels & Resorts expects to have 100 hotels open over the next five years.