Wyndham Hotels & Resorts is closing on a target of 600 hotels signed under franchise agreements in China, over the last five years.
With China looking likely to be the world’s largest country market for travel and tourism by 2035, Wyndham in common with many other global hotel groups is keen to ensure it has a part of that business. The momentum of the last five years has ensured Wyndham today lays claim to being the largest US-based hotel company in China, by number of hotels.
Refining the approach
Earlier attempts to grow in China saw hotel groups taking differing approaches. Initially, Wyndham signed master license agreements with local partners. But, in 2019, the group reacquired direct franchising rights for its Days Inn brand in the country, an acknowledgement that the right approach as the market moved, would be to work direct in China.
Today, Wyndham’s growth has taken it to a market presence of more than 1,600 hotels in China, with more than 180,000 rooms and a representation of 13 of the group’s 25 brands in its portfolio. During the first half of 2024, Wyndham signed more than 70 direct franchise agreements, further consolidating that lead.
“We have an industry-leading footprint in China, and as the country’s tourism segment continues to grow, it’s more important than ever to showcase the value of joining forces with the world’s largest hotel franchisor,” said Joon Ain Ooi, Wyndham’s president in Asia Pacific. “Through direct franchising, we gain greater control over the consistency and direction of our brands in China while unlocking the benefit of building long-term relationships with franchisees—all of which are key to driving further expansion.”
In the first half of 2024, Wyndham reported it signed more than 120 hotels across its Asia Pacific region, a signing pace that was up 22% year on year. And of those 120, fully 108 were in Greater China. It also opened 74 properties, with the volume helped by the launch of the updated Microtel brand. Openings for Microtel in early 2024 included Handan New Century, Xishuangbanna Mengle and Qingdao Huangdao.
Expanding across all the brands
Pipeline properties range from the group’s economy brands, right up to luxury properties. Wyndham Grand, the group’s five star brand, has several sites under construction including the 265 room Grand Wyndham Yichang International Plaza, due to open in early 2025, and the 255 room Fuqing Wyndham Grand Hotel Fuzhou which will also open next year. Further additions for the brand are planned in Hengyang, Xiamen and Nantong. The group’s Wyndham Garden hotel also has more hotels in the wings, including Wyndham Garden Hotel Ganzhou and Wyndham Hotel Guangzhou Conghua Bio Town.
The group has been investing in technology to improve performance, and make the lives of owners easier. Among improvements made has been the introduction of WeChat Mini, which allows 110 million members to book accommodation via the WeChat app.
by Chris Bown
