Despite economic uncertainty, owners remain confident in long-term growth and expansion. Wyndham Hotels & Resorts has released its first-ever Hotel Owner Trends Report, conducted in partnership with Wakefield Research and based on two surveys of hotel owners and developers across the industry.
The first survey was conducted among 325 hotel owners and hotel property developers in the United States, Canada and the Caribbean, in February, while the follow-up survey was conducted in May.
“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,” said Amit Sripathi, chief development officer, Wyndham Hotels & Resorts.
According to the report, 80% of respondents plan to expand their portfolios in the next five years despite concerns about inflation, interest rates and broader volatility. In addition, growth interest spanned all segments. Lifestyle and boutique hotels drew interest from 39% of respondents, followed by midscale and upper-midscale at 36% and economy at 35%.
Nearly all surveyed (98%) said they are open to new branded offerings. Of those, 55% are interested in traditional or hard brands, while 45% are looking at soft brand opportunities. When asked about top factors in selecting a brand, owners cited expert support in areas like marketing and operations, followed by access to executive leadership. Over 80% said a strong loyalty program is very important or critical, and 62% of those open to joining or switching brands included loyalty among their top five considerations.
EXTENDED-STAY CRAVING
Extended-stay hotels continue to be front and center for hotel owners and developers. Nearly all surveyed (96%) see opportunity in the segment, highlighting it as an investment with great potential. About 59% acknowledged that extended-stay requires a unique operating model. Owners also expect a rise in business over the next five years, linked to increased infrastructure spending.
More than 80% described cross-sell and upsell opportunities as critical or very important to their success, both in extended-stay and other segments. Since going public in 2018, Wyndham has invested nearly $350 million in technology and launched brands like ECHO Suites and WaterWalk to capitalize on extended-stay growth.
TECH PRIORITY
Technology also emerged as a core focus. Most owners listed access to best-in-class tech as one of their top five brand selection factors, while one in five said tech investment is how they plan to stand out from competitors.
Moreover, 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.
AI has taken over the world and hoteliers are already harnessing its power as much as possible. Over 90% of hotel owners are already leveraging AI in some capacity; more than 70% are deploying the technology to support operations; and 60% are using it for guest-facing services.
Another central point of technology development is platforms to enhance the guest experience. One-in-three hotels (33%) are already utilizing guest messaging platforms, 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.
“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,” said Scott Strickland, chief commercial officer, Wyndham Hotels & Resorts. “The good news? That’s exactly what Wyndham offers, and it’s why our franchisee retention rate has grown to nearly 96%, including our economy brands, which are among the highest in the industry.”
