While U.S. hotel players report some concern over current economic volatility, their overall outlooks on the future of hospitality remain positive, according to Wyndham Hotels & Resorts’ first-annual Hotel Owner Trends Report.
More than 90% of hotel owners and developers are optimistic about the next five years, saying they plan to expand their portfolios during this period, according to Wyndham Chief Development Officer Amit Sripathi, quoted in the report.
Hotel players will prioritize growing their portfolios with “the right brands and the right partners,” per Wyndham Chief Commercial Officer Scott Strickland. The report found that hoteliers are open to exploring new branded offerings, with the extended stay segment being top of mind.
Brand opportunities remain important
Wyndham’s Hotel Owner Trends Report found that 98% of owners and developers across the hotel industry remain interested in growing their portfolios through brand opportunities, rather than operating as an independent.
Most hotel players (55%) are interested in traditional or hard brands, while just under half (45%) are seeking soft brand opportunities, according to the report.
The Wyndham survey was conducted among 325 hotel owners and developers across the U.S., Canada and the Caribbean between Feb. 4 and Feb. 12. A follow-up survey was conducted between May 16 and May 27 with another 325 hotel players. The data reflects responses from hotel owners and developers industrywide and was not limited to Wyndham hotel owners, per the company.
The top two factors owners and developers look for when choosing which brand to join, per the survey, are support from industry experts — including marketing, revenue management and operational expertise — and access to executive leadership.
Additionally, more than 80% of respondents said a strong loyalty program is “very important or critical to a hotel’s success,” according to the report.
At this week’s NYU International Hospitality Investment Forum, hotel CEOs discussed how guest loyalty is a driving factor in brand proliferation across the industry.
Hotel loyalty membership across Wyndham, Choice Hotels International, Hilton, Hyatt Hotels and Marriott International surged 14.5% year over year in 2024, CBRE reported in April.
Hotel players also cited access to best-in-class technology as one of the top five factors they consider when selecting a brand, per Wyndham’s report.
Some 61% of hotel owners have or are considering investing in technology like streaming, digital room keys and self-service kiosks because of the tools’ impact on guest experience, according to the report. Meanwhile, 46% have or are considering implementing EV charging stations, and more than 90% of hotel owners are already leveraging AI in some capacity.
For hotel players looking to expand via brand opportunities, interest spans virtually all segments, according to the report. Some 39% of hotel owners and developers are looking to get involved with lifestyle and boutique hotels, while 36% are interested in the midscale and upper-midscale chain scales. Another 35% are looking for economy segment opportunities.
Extended stay is top of mind
Across segments, extended stay accommodations are top of mind for hotel players, the report found. Nearly all respondents (96%) said they see opportunity in extended stay, highlighting it as “an investment with great potential.”
Some 59% of respondents said that embracing extended stay’s unique operating model is critical to success, per the report.
All of the respondents (100%) said they anticipate an increase in new extended stay business over the next five years, driven by historic spending on infrastructure projects.
U.S. hotel professionals previously told Hotel Dive that infrastructure projects funded by laws like the CHIPS and Science Act are driving significant demand for long-term accommodations. Wyndham, specifically, has stated infrastructure projects pose a $3.3 billion room revenue opportunity for Wyndham franchisees.
Earlier this year, President Donald Trump called on legislators to kill the $52.7 billion CHIPS and Science Act, which was introduced and passed under the Biden administration. Presently, the law remains in effect.
Multiple hotel companies are expanding their extended stay brands, including Marriott, which opened its inaugural StudioRes hotel earlier this week; Wyndham, with recent Echo Suites openings; and Choice Hotels, growing its Everhome Suites portfolio.
In a first-quarter earnings call, Choice CEO Patrick Pacious noted that extended stay — one of the two segments “with the highest developer and guest demand” — remains a beacon for the company amid mounting economic uncertainty.
