Wyndham's ECHO Suites pipeline reaches 200 hotels in 1 year

One year after Wyndham Hotels & Resorts announced its ECHO Suites Extended Stay concept, the yet-to-debut brand has more than 200 hotels in its development pipeline. The milestone comes almost exactly six months after the brand announced the 100th hotel in its pipeline. Late last year, the brand broke ground on its first three hotels and nearly two dozen more ground breaks are expected for this year. The first ECHO Suites hotel is on track to open by the end of this year with additional hotels following in 2024.

“By virtually every metric, ECHO Suites is a phenomenal success, becoming not only the fastest-growing brand in our industry but the largest brand launch in the history of Wyndham,” Chip Ohlsson, chief development officer, Wyndham Hotels & Resorts, said in a statement. “Its rapid growth is a testament to the power that comes with the scale and resources of the world’s largest hotel franchising company and what can happen when brands take the time to truly engage and understand the needs of the development community.”

Infrastructure Tailwinds

The arrival of ECHO Suites coincides with historic infrastructure investments in the U.S., including $1.2 trillion in approved funding as part of the 2021 Infrastructure Investment and Jobs Act, the largest in the nation’s history. Concentrated on repairing the nation’s major roads and highways, bridges, airports and rail system—among other investments—these projects are “creating a tailwind” for Wyndham and the everyday business traveler, the company claimed, particularly construction and other trade workers, many of whom will be in need of long-term accommodations as they travel to job sites. The company said it was already seeing a lift as a result of investments made to grow its share, with general infrastructure-related revenues up more than 20 percent in Q4 2022, the seventh-consecutive quarter of double-digit growth.

Compounding the opportunities created by the Infrastructure Investment and Jobs Act is the $280 billion CHIPS and Science Act of 2022, of which more than $50 billion is for American semiconductor research, development and manufacturing. The Act is driving construction of new chip manufacturing plants across the U.S., and since the Act was first signed, more than 22 plants have been announced in Arizona, Texas, Ohio and Indiana. Collectively, between the two pieces of legislation, Wyndham believes there is a long-term opportunity for franchisees to realize $3.3 billion in additional room revenue, generating more than $150 million in incremental royalties for the company over the multiyear period of spend.

“The investments we’re seeing in infrastructure represent an incredible opportunity poised to pay dividends for select-service and extended-stay hoteliers for years to come. It’s truly one of the most exciting times to be a part of our industry, Wyndham and ECHO Suites,” Ohlsson added.

ROI-Focused Design

ECHO Suites was crafted with the help of development council of owners and operators. Their insights were paired with Wyndham's in-house design and construction team, which spearheaded the creation of La Quinta by Wyndham's Del Sol prototype and more recently, Microtel by Wyndham's Moda prototype

At a time when rising construction costs are driving the need for ultra-efficiency, the company said all three prototypes prioritize owner return on investment with an emphasis on value engineering and streamlined operations, helping optimize operating margins on a recurring basis. 

Dennis Wong, co-founder of SPI Holdings, and his business partner, Richard Squires of Lennox Capital, recently signed a deal with Wyndham to develop multiple ECHO Suites hotels in markets like San Diego, Las Vegas and Seattle, among others. “Extended-stay is the hot segment within hospitality right now and ECHO Suites Extended Stay by Wyndham is undoubtedly the hot brand within that segment,” Wong said. “What differentiates Wyndham is their owner-first approach, a commitment to ROI-driven design and best-in-class technology, marketing and distribution. As developers—it’s everything we’re looking for.”

The purpose-built, all new-construction, 124-room ECHO Suites prototype requires less than two acres of land and has a cost per key that the company calls “highly competitive.” Coming in at approximately 50,000 square feet—nearly 74 percent of which is rentable—individual rooms average 300 square feet. The rooms consist of single- and two-queen studio suites with kitchens. Public spaces include a lobby, fitness center and 24/7 guest laundry. The prototype was designed to limit labor needs.

Wyndham Hotels & Resorts has approximately 9,100 hotels in more than 95 countries.