Wyndham Expands South Korea Presence With Trademark Debut

Wyndham Hotels & Resorts, Inc. WH unveiled its first Trademark Collection hotel in South Korea with the opening of La Vie D'or Hotel and Resort. This new addition brings WH's hotel count in South Korea to more than 30 and expands its Trademark Collection presence in Asia Pacific to nearly 20 hotels.

Situated in the scenic city of Hwaseong-si, South Korea and just 30 minutes from Seoul, La Vie D'or Hotel and Resort provides a tranquil escape for business and leisure travelers. Covering 330,000 square meters, the resort features a nine-hole golf course, fitness center, saunas, swimming pools and diverse dining options.

Guests can enjoy nearby attractions such as the Yungneung and Geolleung Royal Tombs and Yongjusa Temple and have easy access to Seoul and Suwon. The resort also offers convenient facilities for business travelers, including conference space and Wi-Fi, with proximity to major companies like Samsung Electronics and Hyundai-Kia Motors.

Hotel owners in Asia Pacific are benefiting from Wyndham Advantage. This program offers global brand exposure, advanced technology and a growing loyalty base. The move helps independent owners in South Korea capitalize on the market while offering unique experiences at each hotel for visitors exploring the country.

The country welcomed about 11 million inbound visitors in 2023, marking a strong recovery post-pandemic. The travel and tourism market is projected to reach $13.66 billion by 2024. WH's expansion with La Vie D'or Hotel and Resort targets the growing demand for business and leisure travel in South Korea, aligning with the government's push to enhance the tourism sector.

Focus on Expansion

Wyndham is focused on expanding its geographic footprint and product offerings across all segments by leveraging its diversified brand portfolio. This accretive aim of the company is backed by its disciplined capital allocation strategy, which encompasses investments in high-return businesses accompanied by strategic collaborations and buyouts.

During second-quarter 2024, the company opened more than 18,000 rooms globally, marking 16% year-over-year growth. As of Jun 30, 2024, WH had 884,900 rooms globally, up 4% from 851,500 rooms at the prior-year quarter end. During the quarter, it opened its first ECHO Suites in Spartanburg, SC. This location is in the 12th fastest-growing county in America, which attracted 80 economic development projects in the past three years.

As of Jun 30, 2024, WH's global development pipeline consisted of nearly 2,000 hotels and approximately 245,000 rooms, showcasing a 7% year-over-year increase. Among the total pipeline, about 58% of it is international.

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Shares of this American hotel franchisor moved up 0.5% in the past year compared with the Zacks Hotels and Motels industry's 13.6% growth. Although the stock has underperformed the industry, the ongoing expansion initiatives are likely to foster growth in the upcoming period.

Zacks Rank & Key Picks

Wyndham Hotels currently carries a Zacks Rank #3 (Hold).

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