Optimistic about its expansion plans in India, Wyndham Hotels & Resorts, which is the world’s largest hotel franchise company in terms of properties, will open nearly 29 additional hotels in the next two to three years in the country, according to a senior company official.
Wyndham Hotels & Resorts has approximately 9,000 hotels in 95 countries around the world. Present in the economy and midscale segments, it has a network of more than 810,000 rooms. Its portfolio includes 22 hotel brands, including Super 8, Days Inn, Ramada, Microtel, La Quinta, Baymont, Wingate, AmericInn, Hawthorn Suites, Trademark Collection and Wyndham.
In India, Wyndham Hotels & Resorts currently has 50 hotels. Talking about expansion plans, Dimitris Manikis, President of Wyndham Hotels & Resorts (Europe, Middle East, Eurasia and Africa), told FE that there is a huge opportunity for growth in India.
“We have an extremely strong pipeline right now. We have completed approximately 29 hotels that are scheduled to open in the next two to three years. We have a plan to introduce more brands and increase the number of properties,” Manikis said.
“Our presence in India is tied to the number of people we hire, the investments we make and we believe that franchising in India will be a huge opportunity for us in the next two to three years,” he added. The combined number of employees for all Wyndham Hotels & Resorts properties in India is over 4,000.
According to the company, its RevPAR (revenue per available room) fluctuated between (-)7% and (+)5% on an annual basis in India in CY 2022.
Additionally, hotel occupancy has been consistently above 60% since mid-February, with the ADR (average daily rate) for rooms being above $50 (Rs 3,797).
HVS Anarock said in a recent report that the Indian hotel sector ended CY 2021 with nationwide occupancy of 42-45%, up 10-13 percentage points year-on-year, this which resulted in a 24-27% increase in RevPAR. at Rs 1,800-2,100. The company expects nationwide occupancy to improve to 66% in CY 2022, which together with a 28% increase in ARR (average room rate) will push the RevPAR at Rs 3,731 during the year.
Manikis observed that there is a huge opportunity for inbound tourism in India which will see phenomenal growth in the next five years with better infrastructure.
“I think the more infrastructure you develop in India, the more tourists you will attract from Germany, UK, USA and other countries. I think this is a real untapped opportunity for India. India,” he added.
Although Wyndham Hotels & Resorts’ business in India will remain primarily domestic, Manikis noted that association with an international brand offers more opportunities. The company has more than 92 million members enrolled in its Wyndham Rewards loyalty program.
“When someone wants to come to India, they are most likely to stay at one of our properties because they are a member of our Wyndham Rewards. They feel comfortable with us and with the type of services we provide,” he said.