Wyndham Hotels & Resorts' select-service franchise business helped the company start 2021 better than expected, with domestic revenue per available room down 25 percent from 2019’s numbers but tracking ahead of what the company had estimated internally for the first quarter.
“And with consumer demand continuing to increase, our RevPAR has also improved significantly throughout the month of April,” President and CEO Geoff Ballotti said during the company’s Q1 earnings call with investors.
According to STR in 2019, occupancies for branded hotels in Wyndham’s core segments were 300 basis points higher than nonbranded hotels, while costs were 500 basis points lower. In 2020, STR reported that branded hotels in the economy segment outperformed independent hotels by 1,300 basis points, while midscale branded hotels outperformed independent hotels by 500 basis points.
“Prospective new franchisees are looking for immediately recognizable brands like ours in the economy and midscale space—brands that can provide strong central system contribution at a lower distribution cost,” Ballotti said.