SHERIDAN, WYOMING – Feb. 18, 2025 – Wyndham Hotels & Resorts capped off 2024 with unprecedented growth, achieving record-breaking results across several key performance indicators, including net-room expansion, RevPAR, and franchisee engagement. The company's strategic focus on the burgeoning extended stay market, coupled with international expansion and a shift towards higher-fee properties, fueled this remarkable success.
Record-Breaking Expansion and Retention
Wyndham opened an impressive 69,000 new rooms in 2024, marking the largest annual organic room addition in the company's history. This represents a substantial 4% increase from the previous year. Demonstrating the strength of its brand portfolio and franchisee relationships, Wyndham also achieved an all-time high global retention rate of 95.7%, a 10 basis point improvement.
Strategic Focus on Extended Stay Fuels Domestic Growth
Domestically, Wyndham experienced significant expansion in its mid-scale and above brands, including conversions like the Wyndham Atlanta Buckhead Hotel and new La Quinta constructions in high-demand markets such as Dallas, Austin, and San Antonio. The company's Echo Suites brand made significant inroads into new markets, including Nashville, Indianapolis, Madison (Wis.), and Richmond (Va.), exceeding owner expectations for both market share and extended stay occupancy.
Recognizing the immense potential of the extended stay segment, projected to grow by nearly 30% from $21 billion in 2024 to $27 billion by 2028, Wyndham strategically expanded its presence with the launch of apartment-style Wyndham Residences in Washington, D.C., and downtown Houston. With Echo Suites, Hawthorn Suites, WaterWalk, and Wyndham Residences, the extended stay segment now comprises nearly one-third of Wyndham's domestic development pipeline.
International Markets Contribute Significantly to Growth
Wyndham's global expansion was equally impressive, with net rooms surging across all major regions. EMEA saw a 5% increase, highlighted by notable openings like the Wyndham Garden in Sonipat, India, and the Ramada by Wyndham Gaziantep in Turkey. Latin America experienced an 11% surge in net rooms, including the Wyndham Puerto Varas in Chile and the Wyndham Tulum in Mexico. The Southeast Asia and Pacific Rim region recorded a remarkable 16% growth, with significant openings in Thailand and Australia.
China also continued its strong growth trajectory, with Wyndham's direct franchising system expanding by 16% year-over-year. The company signed 150 direct franchise agreements in 2024, boosting the region's direct franchising pipeline to nearly 400 hotels, with a fee-per-available-room (feePAR) 40% higher than the current system.
RevPAR Growth Driven by Infrastructure and Leisure Travel
Wyndham's U.S. RevPAR grew by 5.3% in Q4, with infrastructure-driven demand playing a key role. Major infrastructure projects near Wyndham hotels contributed to a 6% RevPAR increase, while data center-driven demand fueled premium performance in markets like Silicon Valley, Dallas, Columbus (Ohio), and Jackson (Miss.).
"The surge in data center demand is defining this digital era and Wyndham is uniquely positioned to capture this opportunity. Our hotels near top U.S. data center projects saw a 500-basis-point RevPAR premium over the rest of our portfolio," said Wyndham Hotels & Resorts President and CEO Geoff Ballotti during the earnings call.
Leisure travel demand also remained robust, increasing 3% year-over-year, with longer booking lead times and longer average stays contributing to higher ancillary revenue.
Globally, RevPAR grew 6% year-over-year in constant currency. Latin America led the charge with a 32% surge, driven by pricing power and increased feePAR in Brazil, Mexico, and the Caribbean. EMEA recorded a 7% lift, fueled by strong performance in Spain, Turkey, Austria, and Greece, while Southeast Asia and Canada each posted 5% growth. China, however, experienced continued deflationary pressures, with RevPAR declining 11%.
Shift Toward Higher FeePAR and Affluent Clientele
Wyndham's strategic focus on enhancing fee structures and attracting a higher-income customer base has yielded impressive results. The company's loyalty program, Wyndham Rewards, reached 104 million members, an 8% year-over-year increase. The loyalty program now accounts for more than 50% of U.S. check-ins, driven by AI-powered technology and exclusive experiential travel offerings.
"Our guests’ average household income has risen by 9% to $104,000, with a notable increase in guests earning over $200,000. This reflects the success of our strategy to attract younger, more affluent travelers while retaining loyalty among older generations," Ballotti said.
Wyndham has also continued to refine its portfolio composition, adding higher royalty rate hotels while exiting lower-fee properties. The company reported a 36% feePAR premium on domestic openings versus exiting properties and a 27% feePAR premium on international additions.
"By focusing on high-value properties and premium markets, Wyndham is not only driving revenue growth but also strengthening its long-term value proposition," Ballotti said.
Looking forward, Wyndham remains confident in its direct franchising model as a key driver of sustainable growth, with a robust development pipeline poised to fuel expansion in high-growth markets worldwide.
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