Wyndham Hotels & Resorts is capitalizing on ramped-up construction of data centers and other infrastructure projects across the U.S. to support a boom in artificial intelligence and other technologies.
The world’s largest hotel franchisor said Thursday that it ended 2024 with a development pipeline of 252,000 rooms, a company record. The expansion of major infrastructure projects boosted demand for its properties, especially its economy and midscale extended-stay brands.
The company’s growth strategy has had some early wins, with Wyndham opening 68,700 new rooms last year—its highest-ever annual total—including nearly 28,000 U.S. properties.
“The demand for workforce lodging has never been stronger,” said Geoff Ballotti, Wyndham’s president and CEO. “With the record number of infrastructure projects underway, we’re seeing heightened interest from developers eager to join our system, particularly in high-growth corridors.”
The growth was fueled in part by increasing corporate investments in infrastructure, which drew an influx of contractors, engineers, and other workers in need of extended stays at budget-friendly hotels, a sweet spot for Wyndham’s portfolio.
Wyndham’s pipeline continues to expand at a steady clip, growing 5% year-over-year, with 7% U.S. growth. The company is also increasing its foothold in international markets, with nearly 60% of its pipeline outside the U.S., including major expansions in China, Latin America, Europe, and the Middle East.
Wyndham executives said they are carefully managing the composition of their hotel portfolio. The company has strategically allowed underperforming properties to exit while replacing them with higher-revenue hotels.
“Our focus remains on growing the right hotels in the right markets,” Ballotti said. “We’re not just adding more properties—we’re ensuring that the ones we bring in contribute higher franchise fees and greater long-term value.”
Last year, approximately 37,500 rooms left Wyndham’s system. The hotels added in their place carried an average FeePAR (fees per available room) premium of 36% domestically and 27% internationally compared to those that exited.
This disciplined approach aligns with Wyndham’s broader push to emphasize higher-fee brands and premium midscale offerings, which have been outperforming economy-tier hotels in key markets and that have higher retention rates on average. The company’s flagship brands, including La Quinta, Microtel, and Trademark Collection, have played a crucial role in this transition.
