Most hotel chains have staked their future growth on Asia. North America and Europe are seen as mature markets with less opportunity for growth. The Middle East after a long boom in tourism is also rapidly reaching a saturation point and thus most large global hospitality brands are focused on Asia. Hotels are obsessed with Asia. And here’s why… it’s a huge market and getting bigger.
To demonstrate this we thought we’d look at Wyndham’s strategy. Wyndham Hotels & Resorts is currently the world’s largest hotel franchising company with approximately 9,200 hotels globally, and it has continued to expand its hotel network across the Asia Pacific Region with a series of recent openings, brand launches and new market entries.
With an Asia Pacific system of more than 173,000 rooms and 86 openings this year, Wyndham is clearly focused on the Asian continent. In this way they are quite similar to most of their competitors.
Wyndham Hotels is the largest international franchisor in Greater China with more than 1,500 properties and 149,000 rooms in its franchised system. Based on current trends, Wyndham expects to open about 500 hotels in Chinaover the next three years.
Leo Liu, president of Wyndham Hotels & Resorts, Greater China, said, “We have sustained our strong growth momentum and delivered robust hotel opening and net rooms growth figures in China. Working closely with owners and developers in the region, we are striving to further expand our presence across Greater China, especially in Hong Kongand in the northern and southwestern parts of China, where there is rapid growth and strong potential for further expansion of our footprint.”
Southeast Asiaand Pacific Rim(SEAPR)
Wyndham is also growing rapidly in the Southeast Asiaand Pacific Rim(SEAPR) region, which expanded by 22% year-over-year through the second quarter and includes more than 24,000 rooms.
“This is a hugely exciting region, where dynamic economies, rising affluence and strong intra-regional travel is creating exceptional conditions for growth. These trends give Wyndham plenty of scope for expansion, both in established and emerging markets,” said Joon Aun Ooi, president and managing director of Wyndham Hotels & Resorts, SEAPR. “We look forward to building strong partnerships with owners and developers across the region and introducing even more guests to our collection of innovative brands.”
To reinforce their Asian strategy, which mirrors that of Hyatt or Hilton, Wyndham Hotels has announced several notable market entries and expansions this year.
- In January, Wyndham introduced the Days Inn brand to New Zealandwith the opening of a new landmark hotel, Days Hotel & Suites by Wyndham Hamilton. The addition bolsters Wyndham’s presence in New Zealandand in Hamilton, the region’s fourth-most-populous city and a key growth market.
- Also in January, Wyndham introduced the Wyndham Grand brand in Myanmarwith the announcement of the opening of Wyndham Grand Yangon.
- In June, Wyndham opened the 222-room Ramada by Wyndham Daejeon, its 41sthotel in South Korea. This follows the March openings of the 592-room Ramada Encore by Wyndham Gimpo Han River and the 467-room Ramada Encore by Wyndham Jeongseon Sabuk.
As populations continue to grow in the region and income levels rise, Asia will become even more important to global hospitality chains. This is a trend which will continue for many years to come. Hotels are obsessed with Asia now and that’s going to become even more apparent in the years ahead.