PARSIPPANY, New Jersey—Wyndham Hotels & Resorts 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 show an industry that, despite the tumultuous news cycle, remains confident in its resilience and long-term growth prospects.
“There’s a lot of noise in the marketplace right now, and yet, more than 90 percent 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,” said Amit Sripathi, chief development officer, Wyndham Hotels & Resorts.
Brands Matter
Highlighting the role brands play in hotel ownership, virtually all surveyed (98 percent) 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 percent) are interested in traditional or hard brands, while just under half (45 percent) are seeking soft brand opportunities.
Here’s what owners and developers are also looking for:
- 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.
- More than 80 percent 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 percent) of those open to joining a brand or switching brands citing it as a top five factor they consider.
- When looking at expansion, interest spans virtually all segments. Just over a third (39 percent) have lifestyle and boutique hotels in their sights, while a similar number (36 percent) are looking at midscale and upper-midscale. The same is true for economy (35 percent).
- 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 percent) 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:
- Operating in extended-stay means operating in a way that’s different from traditional brands. Nearly three out of five surveyed (59 percent) recognize this, a highlight that embracing the operating model of extended-stay is critical to success.
- With historic multi-year infrastructure spend on the rise, 100 percent 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.
- Both in extended-stay and beyond, when it comes to driving increased revenue, more than 80 percent 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.
- When choosing a brand, the majority of owners and developers list access to technology as one of their top five factors. What’s more, one-in-five (20 percent) 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:
- Recognizing the role technology plays in delivering a great guest experience, nearly two-thirds (61 percent) 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 percent) have done or are considering the same when it comes to EV charging stations.
- Over 90 percent of hotel owners are already leveraging AI in some capacity. More than 70 percent are deploying the technology to support operations, while more than 60 percent are using it for guest-facing services.
- When it comes to guest messaging platforms, one-in-three hotels (33 percent) are already using this technology, with nearly another third (30 percent) looking to invest in or increase their investment in it. The same is true for mobile tipping: a third of those surveyed (33 percent) say they already offer mobile tipping, with nearly another third (30 percent) expecting to invest or increase their investment in it.
“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,” said Scott Strickland, chief commercial officer, Wyndham Hotels & Resorts.
