Wyndham to add 25 new franchises in Latin America, first directly run hotel by year end

Wyndham Hotel Group, which calls itself the world´s biggest hotel company in number of hotels, will get 25 new franchises in Latin America and the Caribbean by the end of the year, adding to 146 already in place.

Wyndham also aims to set up its first own hotel operation in the region by year´s end.

¨In the first semester we opened 16 hotels (franchises) and we have a pipeline of 25 additional ones before the end of the year,¨ Luis Mirabelli, business development manager for Latin America, told Latin Business Daily during a telephone interview.

Mirabelli said that in 2012, when he took over the post, the goal for Wyndham was to increase from 12,000 rooms to a total of 17,000 rooms by 2017 – a goal that already has been met.

The franchises in Latin America and the Caribbean have generated income from royalties for the use of brands as well as commissions for reservations made through the Wyndham network with its 40 million registered clients.

The company also plans on opening its first directly run hotel in the region.

¨It will be our first operated property,¨ he said adding that the brand to be used will carry the Wyndham name.

There are 16 hotel brands owned by the company. Out of the more than 7,600 hotels that are part of the Wyndham network worldwide, some 200 are Wyndham´s own properties though none of those are in Latin America, he added.

Company brands that have been franchised in Latin America include Ramada, Howard Johnson, Super 8 and Travelodge.
Mirabelli said that of the 16 brands owned by the company just ¨a set¨ of those were chosen for the region as several compete against each other. They range from the lower cost to the upscale.

¨Our strength is that we have great brand recognition,¨ Mirabelli said. Brands in the hospitality industry work in the same way as in any other industry because they generate loyalty, and this lowers the cost of attracting clients, he added.

There are more opportunities in general in Latin America and the Caribbean in the value segment in part because ¨the market is like a pyramid¨ with more clients seeking economy.

¨Generally speaking, the region has very strong fundamentals for long-term growth,¨ he said. Mexico, Brazil, Peru and Colombia are the main markets now for the company and there is an ongoing effort to introduce economy brands in Chile.