Expanding All-Inclusive Reach
Wyndham Hotels & Resorts, Inc. (WH) recently joined forces with Decameron All Inclusive Hotels & Resorts, undertaking a significant stride that amplifies its all-inclusive footprint to over 50 resorts worldwide.
This collaboration brings nine fresh all-inclusive retreats from Decameron in Mexico, Panama, and Jamaica under the Wyndham umbrella. This union not only diversifies Wyndham’s portfolio but also extends its tentacles deep into the global market arena. Moreover, these new properties are now part of Wyndham Rewards, the company’s loyalty program, providing members with points for their stays.
Split between Wyndham’s prestigious Trademark Collection and Ramada brands, the nine resorts include renowned properties like Grand Decameron Complex BucerÃas, Grand Decameron Panama, Grand Decameron Los Cabos, Grand Decameron Montego Beach, Grand Decameron Cornwall Beach, Decameron Los Cocos Guayabitos, Decameron La Marina Guayabitos, Decameron Isla Coral Guayabitos, and Decameron Club Caribbean Runaway Bay.
Accelerating Expansion
Wyndham has been on a relentless expansion drive, targeting geographic diversity and product enhancement across all categories by leveraging its versatile brand portfolio. Bolstered by its strategic capital allocation strategy, the company has significantly expanded its room count, witnessing a remarkable 27% year-over-year growth in the first quarter of 2024.
By the end of March 2024, Wyndham boasted a global room count of 876,300, marking a 4% increase from the same period last year. During this quarter, Wyndham added 50 new hotels in the United States, with key locations including Charlotte, Raleigh, Tucson, and Jacksonville. Noteworthy openings feature 11 hotel conversions under the WaterWalk Extended Stay by Wyndham brand. The company is also looking forward to launching its new ECHO Suites brand in 2024, offering various extended-stay options.
With a global development pipeline showcasing nearly 2,000 hotels and around 243,000 rooms, reflecting an 8% year-over-year rise, Wyndham’s growth trajectory appears promising. Notably, more than half of this pipeline constitutes international projects, underpinning the company’s quest for global expansion.
Forthcoming Potential
Despite underperforming the industry with shares climbing 8.7% compared to the Hotels and Motels sector’s 29.2% uptick over the past year, Wyndham’s strategic expansion initiatives are poised to fuel future growth. The company is firmly positioned to tap into evolving consumer preferences and travel demands, further solidifying its market presence.
Riding on its Zacks Rank #3 (Hold), Wyndham stands as a beacon of promise in the realm of hospitality and leisure. As the company continues to forge new partnerships and enhance its offerings, investors can anticipate a compelling narrative of growth and resilience in the months to come.