The $6.48-billion Wyndham Worldwide Corporation is the holding company for Wyndham Hotels Group with its 7,700 affiliate hotels spanning 15 hotel brands, 4,500 timeshare brand RCI resorts, and over 30 exchange and rental brands. During a recent visit to India, its Chairman and Chief Executive Officer Stephen P Holmes found time to sit down with Georgy S Thomas of Deccan Herald to share his sense of excitement about the opportunities here. Excerpts:
What is new for Wyndham Worldwide in India?
It is an exciting time for both Wyndham and for RCI. The latter has recently signed up new affiliates. Right now we have 130 resorts under RCI. We are planning to add more than 40 in the next three to five years. I am more excited than when I arrived. There is so much opportunity in both the businesses that we engage here in India — the hotel and the RCI business.
There is a feeling that these new disruptors in the market like Airbnb have made you the Old Economy?
For RCI, they are not relevant because we have a membership model. For the hotel business, we view them to a degree as partners. They are a distribution channel. Our Ramada brand might be distributed through some of these OTAs (online travel agents) like Expedia and others whom people call as disruptors, but they are really just distribution channels. We don’t view them as a threat. In Europe, we have a very large rental business. We rent homes, villas, and cottages to consumers. We have had those businesses in some cases for 70 years.
Under which brands do you operate those rental businesses?
Brands like Hoseasons, Landal GreenParks, Novasol, English Country Cottages, etc. We are by far the largest for serviced rental apartments. Airbnb is been in that market for less than 10 years, maybe. Our business continues to grow. I guess that is the perfect example of how we are co-existing in the same market place. Some people who own second homes, they don’t want to put it into a listing service. They want somebody to manage it for them and make sure that the accommodations are being used appropriately and taken care of.
Why did that business not grow big like Airbnb, which is valued in the billions? Are you not leveraging technology?
We are very much leveraging technology. Most of our businesses are done online. There is just a difference between how the world values something like Airbnb. I don’t know what Airbnb’s value is because it is not a public company. We are a public company, and we have about $9 billion in market value. They may have a much higher perceived market cap. They may come out at some point as a public company and trade very well. Good for them.
It doesn’t mean that our value is diminished at all. But it probably means our business is more valuable because we do a lot of the same things that they do.
Is rental a growth business for you?
Yes it is one of our largest and fastest growing businesses in markets like Europe and North America, and maybe in India at some point.
How do you distinguish between your hotel brands?
They attract different consumers by the way that they are marketed and by their physical appearance. We have everything from a low-cost budget brand all the way up to an upper upscale brand like Wyndham or Wyndham Grand. Our top brands are Wyndham Grand and Dolce. The latter is a conference facility brand of which we have quite a few in Europe, which is very high-end in conferences.
How many hotel properties do you have in India?
We only have about 25 hotel franchise properties in India. We don’t have nearly as many as we should. Around the world, we have 7,700 hotels that are affiliated with us. In China alone, we have 1,000 affiliate hotels, and are the largest US hotel brand. In India, where we have started at the same time as we did in China, we have only about 25.
What happened in India?
The regulations in India were not friendly to business as in other markets. But I think the potential is certainly there for us.
Which regulation would you like to see changed?
I think some regulations have changed. For example, the visa on arrival is great for tourists. For the growth of the hotel market, you need a more open environment for approval of buildings, allowing real estate to be controlled and built for hotels, etc.
What are your expansion plans?
We have signed 42 more contracts that we expect to open over the next two to three years. with two to three of those coming up in Bangladesh. The hotels that we have signed up for will come under the Ramada, Howard Johnson’s, and Wyndham brands. There will be a Days Inn coming up in Bangladesh.
You have the opportunity to provide quality products at the right price point?
We have four of our brands in India now. We are going to bring the Super 8 brand here shortly. Super 8 is a mid-market hotel that is priced appropriately for a value-conscious brand. In China, Super 8 is our biggest brand.
Published 18 October 2015, 16:15 IST