Exclusive: Wyndham’s two-pronged development strategy for Australasia

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The outlook for Australasia hotels for 2022-2023 is positive as the return of travel brings confidence and continued investment to the market. Wyndham Hotels and Resorts Vice President of Development for Southeast Asia and the Pacific, Matt Holmes, discusses current market opportunities.

Through 2022 and 2023, Wyndham Hotels and Resorts Asia Pacific will focus on a two-pronged approach in Australasia, including franchise conversions and increasing our presence in key markets through franchises, licenses and distribution or management opportunities.

The Australian and New Zealand markets have long been geared towards owners looking for partners to manage their assets, particularly for large hotels and new builds. We don’t think that will change too much; However, we want to ensure that we also generate franchise opportunities, particularly for hotel conversions, and give owners the ability to control their own assets or choose preferred managers, layering this with a global brand and a world-class franchise system.

Our Trademark Collection by Wyndham is a solid option for this, allowing hotel owners to connect to a powerful distribution system without the costs and challenges associated with rebranding or operating procedures. Our partners are able to maintain their uniqueness while taking advantage of Wyndham’s global scale of distribution, customer service, and Wyndham Rewards loyalty program.

I think a lot of the activity around management opportunities will come through conversions as rising interest rates, rising construction costs and increased supply in some of the major markets begin to affect new buildings.

We will seek to increase our presence in certain key markets in which we are currently underrepresented. Our presence in Australia has grown significantly in regional and leisure-oriented destinations, which has been extremely beneficial over the past two years. However, we need to start looking more aggressively for opportunities (managed or franchised) in some of the key capitals where we have system-driven demand with no supply to meet.

We currently have 48 hotels open and operational across Australia, New Zealand and the South Pacific, and are eagerly approaching a key milestone of opening our 50th hotel in these regions. This will likely coincide with the opening of our first hotels in South Australia later this year, which we will no doubt be celebrating!

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