Wyndham Ramps Up New Brand To Capitalize On Extended-Stay Boom
Hotel giant Wyndham Hotels & Resorts is ramping up development of its new brand, Echo Suites Extended Stay by Wyndham, to take advantage of the growing extended-stay sector in the hospitality industry.
The brand is specifically targeting workers on infrastructure projects, which are expanding nationwide as developments paid for by the 2021 infrastructure bill begin in earnest. Those workers will need to stay somewhere, and Wyndham wants them in its properties.
“They often stay for months,” Wyndham CEO Geoff Ballotti told Forbes, adding that an average worker will need a room for between 24 and 34 days, which is much longer than leisure travelers.
The company rolled out the brand last year with 120 properties in the pipeline. Because of developer and investor interest, the pipeline has grown to more than 200 properties as of this week. The first Echo Suites hotel will open by the end of this year, with additional locations following in 2024.
The properties will measure about 50K SF, three-quarters of which is rentable, with each room coming in at about 300 SF. The rooms will consist of single- and two-queen studio suites with kitchens. The properties' public spaces include a lobby, fitness center and 24/7 guest laundry.
In recent years, select-service and extended-stay hotels have proven more insulated during periods of economic disruption and have achieved higher and more consistent yields relative to other commercial real estate property types, according to a January JLL report on the sector.
Wyndham isn't the only hotelier aiming to capitalize on the growth in the extended-stay sector. Late last year, BWH Hotel Group, whose brands include Best Western Hotels & Resorts, launched Home by BWH, a midtier extended-stay brand.
“The extended-stay segment has been outperforming the industry, is driving 25% higher revenue than in 2019, and it is showing no signs of slowing down,” BWH Hotel Group Chief Development Officer Brad LeBlanc said in a statement at the time of the launch.
