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 fast 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,” said Chip Ohlsson, chief development officer, Wyndham Hotels & Resorts. “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.”
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 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, particularly construction and other trade workers, many of whom will be in need of long-term accommodations as they travel to job sites across the country, according to the company. Even in the act’s infancy, Wyndham and its brands are already seeing a lift as a result of investments made to grow its share, with general infrastructure-related revenues up more than 20% in Q4 2022, the seventh-consecutive quarter of double-digit growth.
Compounding the opportunities created by the Infrastructure 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, which is driving construction of new chip manufacturing plants across the U.S. Since the act was first signed, more than 22 plants have been announced in states including 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.
Added Ohlsson, “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.”
ECHO Suites was crafted with the help of a development council consisting of some of the most experienced owners and operators currently in the extended-stay segment. The council’s insights were paired with the experience and expertise of 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, 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, according to the company. That attention to owner ROI is a key part of what attracted Dennis Wong, cofounder of SPI Holdings, and his business partner, Richard Squires of Lennox Capital, to recently sign a deal with Wyndham to develop multiple ECHO Suites hotels, focusing on 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,” said Wong. “What differentiates Wyndham is its 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 under two acres of land. Coming in at approximately 50,000 sq. ft.—nearly 74% of which is rentable—individual rooms average 300 sq. ft. The rooms consist of single- and two-queen studio suites with kitchens.
Tags: Chip Ohlsson, Dennis Wong, ECHO Suites Extended Stay by Wyndham, Lennox Capital, Richard Squires, SPI Holdings, Wyndham Hotels & Resorts
