Hotel Owners Bet on Brand Strength and Technology for Future Growth, Wyndham Survey Finds

Hotel Industry Shows Resilience and Growth Despite Economic Challenges, According to Wyndham’s Report

Despite current economic uncertainties, Wyndham Hotels & Resorts recently released its inaugural Hotel Owner Trends Report, which reveals a generally optimistic outlook among hotel owners and developers. Based on surveys conducted over several months, the report indicates a strong belief in the industry’s resilience and potential for long-term growth.

Confidence Amidst Uncertainty

Despite a challenging economic environment marked by tariffs, inflation, and fluctuating interest rates, over 90% of the respondents expressed optimism about the future. Amit Sripathi, Chief Development Officer at Wyndham, highlighted that most hotel owners and developers are planning to expand their portfolios within the next five years, demonstrating a robust confidence in the hospitality sector’s long-term prospects.

The Importance of Branding

The survey underscored the significant role that branding plays in the hotel industry. An overwhelming 98% of participants are open to exploring new branded opportunities, with a preference for traditional or hard brands (55%) over soft brands (45%). The key factors influencing their choice include support from industry experts, access to executive leadership, and the strength of the loyalty program, which more than 80% of respondents deemed critical to a hotel’s success.

Extended-Stay Hotels: A Growing Focus

The report also highlighted the increasing interest in extended-stay hotels, which are seen as lucrative due to high demand and return on investment. Nearly all surveyed (96%) recognize the potential in the extended-stay market. The unique operating model of extended-stay hotels and the anticipated increase in business due to infrastructure spending were noted as key factors contributing to this optimism.

Technology as a Differentiator

Technology investment is another area where hotel owners see an opportunity to stand out. Access to cutting-edge technology is a top consideration for many owners when selecting a brand. Investments are being made in digital room keys, self-service kiosks, and electric vehicle charging stations. Additionally, artificial intelligence is prevalent, with applications ranging from operational support to guest-facing services.

Conclusion

The Wyndham Hotel Owner Trends Report paints a picture of an industry that, despite facing economic headwinds, is poised for growth and innovation. Hotel owners and developers are looking to expand their portfolios and are keen on aligning with brands that offer robust support, advanced technology, and strong loyalty programs. Scott Strickland, Chief Commercial Officer at Wyndham, emphasized the company’s commitment to meeting these needs, which is reflected in their high franchisee retention rates.