US: Wyndham Hotels & Resorts has signed the first 50 properties for its new economy extended stay hotel brand, currently known as “Economy Hotel Opportunity” or ECHO.
The newly awarded contracts to develop 50 new construction projects are with the brand’s with its first two partners Sandpiper Hospitality and Gulf Coast Hotel Management.
“Over the last two years, economy extended-stay hotels outperformed all other segments, and in 2021, set new records for occupancy, ADR and RevPAR,” said Geoff Ballotti, president and chief executive officer, Wyndham Hotels & Resorts. “Demand for these accommodations only continues to climb—both from guests and developers alike—making now the right time for Wyndham, the definitive leader in the economy segment, to bring our experience and expertise to this high-potential space.”
Project ECHO was created with the help of a seven-member development council, which includes some of the largest owners and operators currently in the economy extended stay segment.
“Wyndham not only understands its owners and developers but listens to and acts on their needs” said Carter Rise, chairman and chief executive officer at Sandpiper Lodging Trust. “That commitment, paired with best-in-class design and a deep, fundamental understanding of the economy guest, is a differentiator in our industry and is ultimately why we chose to partner with Wyndham.”
Wyndham says: “The purpose-built, 124-room Project ECHO prototype requires just under two acres of land, has a highly competitive cost per key, and features multiple characteristics that intentionally separate it from traditional economy brands. Coming in at just over 50,000 square-feet—nearly 74 per cent of which is rentable—individual rooms average 300 square-feet and consist of single and two-queen studio suites with in-suite kitchenettes while efficiently-designed public spaces—a lobby, fitness centre and guest laundry—help to limit labour needs.”
Ian McClure, chief executive officer, Gulf Coast Hotel Management, said: “From day one, Wyndham has made a point of reaching out and asking, ‘What should be done differently?’ It wasn’t about dictating to us what the brand would be but rather, wanting to understand its potential and how our experience and expertise could best help developers meet their goals,” said “For us, that went a long way. It showed they’re committed to getting this brand right.”
With 50 hotels already in the initial pipeline — 25 each from Sandpiper and Gulf Coast over the next five years — Wyndham is now eyeing additional growth opportunities. The brand expects to open its first hotel in 2023 and is actively talking to additional, multi-unit operators with experience in the segment, a key part of the brand’s growth strategy.
Additional details around Project ECHO — including the brand’s official name — are scheduled to be announced when the brand formally launches later this year.
