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Wyndham’s Portfolio Overhaul: Budget Hotels Are Out, Higher Fees Are In

Wyndham’s Portfolio Overhaul: Budget Hotels Are Out, Higher Fees Are In

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Wyndham’s Portfolio Overhaul: Budget Hotels Are Out, Higher Fees Are In

Photo Credit: Super 8 by Wyndham Orlando Near Florida Mall. Wyndham

Wyndham’s U.S. room count looks stable. What’s actually happening is a systematic swap — lower-fee economy hotels out, higher-fee midscale in.

LinkedIn X Facebook Email Gift What are the financial risks of relying on upfront incentive payments to attract higher-fee hotels? How does Wyndham's midscale and upscale push compare to competitors like Choice Hotels and Marriott? How will Wyndham retain existing economy franchisees while shifting its strategic focus upmarket? Select a question above or ask something else

Wyndham Hotels & Resorts has long been defined by scale in the economy segment. Super 8, Days Inn, Microtel — the brands that built the company are firmly budget.

But a deliberate portfolio overhaul is underway, and look past the headline U.S. room count — essentially flat year-over-year at 501,100 — and the shift is clear.

CEO Geoff Ballotti outlined the strategy on the company’s second-quarter earnings call Thursday: “We’re very focused on replacing those lower quality, lower FeePAR [fee per available room] rooms with higher quality, higher FeePAR rooms.”

Economy rooms in the U.S. are down 3%, to 216,600, while midscale and above is up 2%, to

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