The U.S. economy segment has posted more than 18 months of consecutive revenue declines, as inflation impacts operating costs and consumer demand. Yet Wyndham is expanding in the sector.
The hotel franchisor grew its economy room count by 4% on a gross basis through the third quarter — the fastest pace in recent years, CEO Geoff Ballotti said in an exclusive Skift interview at the American Lodging Investment Summit in late January.
“Economy has been a real concern for brands, owners, and management companies alike,” Ballotti said. “But I think back optimistically to how economy and mid-scale hotels were the first to come back after the pandemic.”
Doubling down on budget hotels is on a list of things that supposedly can’t work well. Other pieces of conventional wisdom include that subscriptions don’t work in travel, and overseas growth for hotel groups requires handing control to local developers.
Ballotti pushed back on these and other bits