Wyndham Hotels & Resorts is focusing on India’s new generation of hotel owners who seek control over operations as a means to facilitate expansion without the costs associated with property management. CEO Geoffrey A. Ballotti highlights India’s infrastructure growth as a major opportunity that will stimulate demand for quality hotels. Wyndham aims to significantly increase its footprint in India, projecting growth in hotel rooms and expanding its brand offerings in the coming years.
Wyndham Hotels & Resorts, an American hospitality chain, is strategically targeting India’s emerging hotel developers to fuel its growth. Recognizing a shift in ownership preferences, where younger owners seek more control over their operations, Wyndham aims to expand its presence without the overhead costs of managing properties directly. This new approach has facilitated almost a doubling of its hotel footprint in India within seven years, from 35 to nearly 70 hotels, with more expected in the future.
During a recent hospitality summit in Goa, Wyndham’s CEO Geoffrey A. Ballotti emphasized that the current crop of hotel owners in India is eager to operate independently without reliance on traditional management contracts. This trend has enabled Wyndham to strengthen its development pipeline significantly, from about a dozen to over 50 additional hotels planned across various segments.
Wyndham’s expansion strategy also hinges on India’s robust infrastructure development, which Ballotti believes will boost demand for affordable, quality accommodations. He noted, “Your prime minister is probably more ahead of us in terms of that ramp-up of infrastructure… India’s infrastructure spending is beginning to catch up.”, hinting at the vast opportunities ahead with ongoing projects across the country.
Ballotti expressed confidence about the future, with projections for 2025 showing promising growth. He cited a 20% year-on-year increase in Wyndham’s service pipeline for 2024. The overall economic indicators are favorable, suggesting a rising demand for hotel rooms. He stated, “Every leading economic indicator around the world speaks to rising demand (for hotel rooms).”
While acknowledging global increases in hotel prices, he indicated that current hotel rates still lag behind inflation for consumer goods. Nevertheless, he asserted that there exists significant pricing power within the industry. Wyndham recently launched its Trademark brand in India, contributing to the anticipated growth of branded hotel rooms in the country to over 300,000 by 2029.
Wyndham is also set to introduce its Microtel brand, expanding on its existing eight brands in India. Notably, India now leads the company’s franchising pipeline in the EMEA region, reflecting impressive growth metrics compared to other geographies. The hotel network globally has seen a 4% increase, primarily driven by midscale segments, indicating the company’s ongoing commitment to those markets.
In conclusion, Wyndham Hotels & Resorts is strategically positioning itself for growth in India by leveraging the ambitions of new hotel owners who prefer operational autonomy. The combination of India’s expanding infrastructure, favorable economic indicators, and an increasing demand for quality hotel accommodations presents significant opportunities for Wyndham’s expansion, particularly in the midscale and upper segments. Looking ahead, the company remains committed to developing its diverse brand portfolio while maintaining its focus on the economy sector. Wyndham’s growth strategy is robust, emphasizing franchising along with infrastructural advantages, setting a promising trajectory for future developments in the Indian hospitality sector.
Original Source: www.livemint.com
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