April 02, 2024

Wyndham Adds 25th Brand, Hybrid of Hotels and Short-Term Rentals

Wyndham Hotels & Resorts announced its 25th brand Tuesday, WaterWalk Extended Stay by Wyndham.

WaterWalk, a set of 11 properties, stands out from other hotel brands in that it lets owners sell a mix of rooms, with about 60% marketed as extended-stay hotel rooms and about 40% marketed as short-term rentals.

“WaterWalk retains ownership of the brand,” a spokesperson said. “However, the brand has become fully integrated into the Wyndham portfolio.”

The franchisees have become Wyndham franchisees, and Wyndham is now responsible for the brand’s long-term growth by identifying and selling new franchises. Financial terms for the strategic partnership weren’t publicized.

WaterWalk is a Wichita-based company that, in 2014, created the hybrid hotel and apartment brand. It offers one-, two- and three-bedroom units that are either furnished or unfurnished upon rental.

WaterWalk’s early partner was Rockford Development Group, which developed eight WaterWalk franchises in San Antonio, Dallas, Austin, and Denver at a cost of roughly $150 million. In 2015, it signed a $100 million deal with UK-based private equity real estate firm, Henley, to build five WaterWalk sites in other U.S. locations. In 2021, an undisclosed global investment management took a significant stake.

For Wyndham, the deal is a strategic expansion beyond its existing extended-stay play. In 2022, it created ECHO Suites, which has 265 new-construction hotels in its development pipeline and is focused on the economy segment. Its Hawthorn brand, which saw 30% growth in its development pipeline last year, is a midscale brand.

WaterWalk is an upscale brand in the extended-stay space. It offers amenities that lower-tier brands lack, such as washers and dryers in each unit, full-sized appliances and granite countertops in every kitchen, and a fully equipped gym in each complex.

Perhaps the biggest opportunity for the brand will be converting properties that were once top-of-the-line extended-stays decades ago but now need refurbishment. However, the latest WaterWalk template can be new construction.

Guests staying 90 days or more can rent an unfurnished room. All guests, regardless of length of stay, can enjoy shared common spaces that, in its latest versions, have espresso-making machines, wall-mounted games, and an outdoor area with gas grills, fire pits, and occasionally enclosed swimming pools.

Copyright 2024 Skift. All rights reserved. From https://finance.yahoo.com. By Sean O'Neill.

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