Wyndham Enters India - Analyst Blog

Wyndham Worldwide Corporation (WYN), through its subsidiary Wyndham Hotel Group, is finally entering the Indian market. The hospitality company signed a franchise agreement with Tirupati Buildings & Offices Pvt. Ltd to open its first hotel in India.

The 394 room hotel will be located in New Delhi, the Indian capital, and is expected to open in April 2011. The hotel will include facilities like restaurants, nightclub, swimming pool, spa, fitness and business center as well as 14,000 square feet of space for meeting and dinner purposes. Moreover, to attract a higher number of guests, a shopping mall is also planned near the hotel.

The hotel is strategically located as it is near the international airport, enabling easy visits by business and leisure travelers from all over the world. 

The Parsippany, New Jersey-based company is all set to accelerate its growth in the Asia Pacific region in 2011, as demand for hotels is greater in the international market than in the U.S. Other than the Indian market, Wyndham expects China to offer significant possibilities for growth, as 6 hotels are slated to open and 7 are under construction.

One of its competitors, Marriott International Inc (MAR) plans to open 100 hotels over the next five years in India. Other hoteliers such as Starwood Hotels & Resorts Worldwide Inc (HOT) and Hyatt Hotels Corp. (H) are also increasing their presence in the Indian market.

The demand for hotels considerably outpaces supply in India, as the country is expected to have the second largest hotel development pipeline in Asia. Thus, we view the opening of the first hotel in  India as a great growth opportunity for the company. Additionally, India is expected to experience a meaningful increase in gross domestic product (GDP) within the next few years.

 
HYATT HOTELS CP (H): Free Stock Analysis Report
 
STARWOOD HOTELS (HOT): Free Stock Analysis Report
 
MARRIOTT INTL-A (MAR): Free Stock Analysis Report
 
WYNDHAM WORLDWD (WYN): Free Stock Analysis Report
 
Zacks Investment Research