Wyndham's First-Annual Owner Trends Report Highlights Positive Long-Term Outlook, Vital Role of Brands

Rhea-AI Summary

Wyndham Hotels & Resorts released its first-annual Hotel Owner Trends Report, revealing strong industry confidence despite economic challenges. Over 90% of hotel owners and developers express optimism about the next five years, with 80% planning portfolio expansion. The report highlights key findings: 98% of owners are open to branded offerings, with 55% preferring traditional brands. Extended-stay hotels show significant promise, with 96% seeing growth potential. Technology adoption is strong, with 90% already using AI and 61% investing in modern guest amenities. The report emphasizes Wyndham's strong performance, noting their select-service hotels historically outperformed higher segments during economic challenges, including a 2,500 basis point outperformance during the 2020 pandemic. The company maintains a 96% franchisee retention rate and has invested $350 million in technology since 2018.

Positive

• 90% of hotel owners and developers are optimistic about five-year outlook with 80% planning portfolio expansion
• 98% of surveyed owners are open to exploring branded offerings, showing strong brand value
• High franchisee retention rate of 96%, among the highest in the industry
• Strong historical performance with select-service RevPAR growing at 2.6% CAGR from 2000-2023
• $350 million investment in technology since 2018 showing commitment to innovation

Negative

• Economic volatility causing concerns among hotel owners
• Split preference between traditional (55%) and soft brands (45%) indicating market fragmentation
• Operational complexity in extended-stay segment with 59% noting different operating model requirements
• Significant ongoing technology investment requirements to remain competitive

Hotel owners and property developers remain confident in industry's resiliency despite a news cycle dominated by tariffs, inflation, interest rates and more

PARSIPPANY, N.J., June 2, 2025 /PRNewswire/ -- Wyndham Hotels & Resorts today unveiled its first-annual Hotel Owner Trends Report. A multi-month effort spanning two industry-wide surveys of hundreds of hotel owners and property developers, the findings paint a picture of an industry that, despite the tumultuous news cycle, remains confident in its resilience and long-term growth prospects.

 

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"There's a lot of noise in the marketplace right now and yet, more than 90% of hotel owners and developers are optimistic about what the next five years hold for them. That's because they know that in hospitality, they're playing the long game. Case in point: While most admit to having concerns over current economic volatility, four-out-of-five say they still plan to expand their portfolios over the next five years."

- Amit Sripathi, Chief Development Officer, Wyndham Hotels & Resorts

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Brands Matter
Highlighting the critical role brands play in hotel ownership, virtually all surveyed (98%) said they're currently open to exploring new branded offerings—underscoring the value brands bring to the table versus operating as an independent. Further, most (55%) are interested in traditional or hard brands while just under half (45%) are seeking soft brand opportunities.

Here's what owners and developers are also looking for:

• Support and Leadership Access
  Ranking the top two factors owners and developers look for when choosing which brand to join, support from industry experts tops the list (including marketing, revenue management and operational expertise), followed by access to executive leadership.
   
• A Strong Loyalty Program
  More than 80% of hotel owners and developers say a strong loyalty program is very important or critical to a hotel's success, with nearly two-thirds (62%) of those open to joining a brand or switching brands citing it as a top five factor they consider.
   
• A Robust Array of Brand Offerings
  When looking at expansion, interest spans virtually all segments. Just over a third (39%) have lifestyle and boutique hotels in their sights, while a similar number (36%) are looking at midscale and upper-midscale. The same is true for economy (35%).

Capitalizing on Extended-Stay
Extended-stay hotels continue to be front and center for hotel owners and developers. Buoyed by historically high demand and developer ROI, nearly all surveyed (96%) see opportunity in extended-stay, highlighting it as an investment with great potential.

Here's what else owners and developers are saying about extended-stay:

• The Model Matters
  Operating in extended-stay means operating in a way that's different from traditional brands. Nearly three-out-of-five surveyed (59%) recognize this, a highlight that embracing the unique operating model of extended-stay is critical to success.
   
• All Eyes on Infrastructure
  With historic multi-year infrastructure spend on the rise, 100% of respondents said they anticipate an increase in new business over the next five years (including those outside of the extended-stay segment) as a result of the many projects these investments are funding.
   
• Cross-Sell and Upsell are Key
  Both in extended-stay and beyond, when it comes to driving increased revenue, more than 80% of hotel owners and property developers say cross-sell and upsell opportunities are key, describing them as either critical or very important to their hotel's success.

Fueling the Future with Technology
When choosing a brand, the majority of owners and developers list access to best-in-class technology as one of their top five factors. What's more, one-in-five (20%) say investing in technology is how they plan to differentiate their hotel from the competition.

Here's what owners and developers are also saying about technology:

• Investing in Tomorrow's Traveler
  Recognizing the role technology plays in delivering a great guest experience, nearly two-thirds (61%) of hotel owners have already invested in, or are considering investing in, things like streaming, digital room keys and self-service kiosks. Meanwhile, nearly half (46%) have done or are considering the same when it comes to EV charging stations.
   
• Harnessing the Power of AI
  Over 90% of hotel owners are already leveraging AI in some capacity. Notably, more than 70% are deploying the technology to support operations while more than 60% are using it for guest-facing services.
   
• An Interconnected Guest Experience
  When it comes to guest messaging platforms, one-in-three hotels (33%) are already utilizing this technology, with nearly another third (30%) looking to invest in or increase their investment in it. The same is true for mobile tipping: a third of those surveyed (33%) say they already offer mobile tipping, with nearly another third (30%) expecting to invest or increase their investment in it.

 

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"The message from today's hotel owners and property developers is clear: it's not just about growing their portfolios, it's about growing their portfolios with the right brands and the right partners. They also want the best. The best technology, the best rewards program, the best support. The good news? That's exactly what Wyndham offers, and its why our franchisee retention rate has grown to nearly 96%, including our economy brands, which are among the highest in the industry."

- Scott Strickland, Chief Commercial Officer, Wyndham Hotels & Resorts

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Proven Resilience
Over the last twenty-five years, select-service hotels, like those owned and operated by most Wyndham franchisees, have repeatedly proven their resilience in weathering challenging environments. From 2000 to 2023, U.S. select-service RevPAR grew at a 2.6% CAGR, and during some of the most historic economic events on record, Wyndham's select-service hotels have consistently outperformed STR's upscale and above segments. In 2001, following the attacks of 9/11, they outperformed by 300 basis points. In 2008, in the wake of the global financial crisis, they outperformed by 500 basis points. And most recently, in 2020, amid the backdrop of the global pandemic, they outperformed by 2,500 basis points. These results are not coincidental and reflect the tested, long-term value proposition of Wyndham's select-service brands.

The Wyndham Advantage 
As the world's largest hotel franchisor, Wyndham takes an OwnerFirst^™ approach to franchising, prioritizing the needs of hotel owners and their success. From unprecedented access to Company leaders, to launching new brands designed to take advantage of the extended-stay boom (ECHO Suites^® Extended Stay by Wyndham and WaterWalk Extended Stay by Wyndham) to investing nearly $350 million in best-in-class technology since going public in 2018, Wyndham—through the Wyndham Advantage—is making moves that not only help owners succeed today, but also help set them up to innovate and grow their business in the future.

A white paper detailing the findings of Wyndham's first-annual Hotel Owner Trends Report is slated to be available for download later this month. To sign-up for early access, click here. For more information on franchising 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 franchised properties, with approximately 9,300 hotels across over 95 countries on six continents. Through its network of approximately 907,000 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^®, ECHO Suites^®, Registry Collection Hotels^®, Trademark Collection^® and Wyndham^®. The Company's award-winning Wyndham Rewards loyalty program offers over 115 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. 

Survey Methodology
Managed by Wakefield Research, the Wyndham Survey was conducted among 325 Hotel Owners & Hotel Property Developers, with minimum seniority of VP+, in the United States, Canada, and the Caribbean, between February 4th and February 12th, 2025, using an email invitation and an online survey. A follow-up survey was conducted between May 16^th and May 27^th, 2025, with another 325 Hotel Owners & Hotel Property Developers, using similar methods. Results of any sample are subject to sampling variation. The magnitude of the variation is measurable and is affected by the number of interviews and the level of the percentages expressing the results. For the interviews conducted in both studies, the chances are 95 in 100 that a survey result does not vary, plus or minus, by more than 6.2 percentage points for the total data, 6.9 percentage for the U.S., 9.8 percentage points for Canada, and 19.6 percentage points for the Caribbean, from the result that would be obtained if interviews had been conducted with all persons in the universe represented by the sample.

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SOURCE Wyndham Hotels & Resorts

FAQ

What are the key findings from Wyndham's (WH) first Hotel Owner Trends Report 2025?

The report reveals that over 90% of hotel owners are optimistic about the next five years, 98% are open to branded offerings, and 96% see opportunity in extended-stay properties. Additionally, 90% are leveraging AI technology and 80% plan to expand their portfolios.

How has Wyndham's (WH) select-service segment performed during economic downturns?

Wyndham's select-service hotels have consistently outperformed STR's upscale segments during economic challenges: 300 basis points after 9/11, 500 basis points during the 2008 financial crisis, and 2,500 basis points during the 2020 pandemic.

What percentage of Wyndham (WH) hotel owners are investing in new technology?

61% of hotel owners have invested or are considering investing in modern amenities like streaming, digital room keys, and self-service kiosks, while 90% are already using AI technology in some capacity.

What is Wyndham's (WH) current franchisee retention rate?

Wyndham maintains a franchisee retention rate of nearly 96%, including their economy brands, which is among the highest in the industry.

How much has Wyndham (WH) invested in technology since going public?

Wyndham has invested nearly $350 million in best-in-class technology since going public in 2018.