Budget Hotels Are Struggling. Wyndham’s CEO Sees Opportunity
Summary
While budget hotels are struggling due to rising costs and fluctuating demand, Wyndham is expanding in the economy sector, which proved resilient during the pandemic. This strategic move challenges conventional travel wisdom. This expansion indicates a potential shift in the lodging market, and hosts should monitor trends.
Key Insights
- •Wyndham grew its economy room count by 4% on a gross basis through the third quarter.
- •The U.S. economy segment has posted more than 18 months of consecutive revenue declines.
Action Items
- ✓Consider the impact of shifting demand and investment in budget-friendly lodging.Effort: lowImpact: medium
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