THE THIRD QUARTER of 2018 was the first full quarter for La Quinta by Wyndham to operate under Wyndham Hotels & Resorts, which acquired the midscale brand in May. It’s been a strong beginning under the new flag as La Quinta added seven new hotels and made strong contributions to Wyndham’s revenue stream.
The new properties include the La Quinta Inn & Suites Opelika-Auburn in Opelika, Alabama; La Quinta Inn & Suites Tuscaloosa-McFarland in Tuscaloosa, Alabama; La Quinta Inn & Suites Aberdeen APG in Aberdeen, Maryland; La Quinta Inn & Suites Dallas-Duncanville in Duncanville, Texas; La Quinta Inn & Suites South Jordan in South Jordan, Utah; La Quinta Inn & Suites Kanab in Kanab, Utah; and the La Quinta Inn & Suites Columbus in Columbus, Mississippi, which underwent a complete renovation.
The new hotels are based on La Quinta’s Del Sol prototype, which includes 35 hotels under construction and 40 already open. Del Sol properties feature a common area with a focus on social gathering spaces, as well as amenities like fitness centers, WiFi and meeting spaces.
“These recent additions represent the best of what La Quinta has to offer, and our robust new-construction pipeline is testament to the brand’s tenacious growth potential,” said Rajiv Trivedi, La Quinta’s president.
Wyndham also entered 10 La Quinta franchise agreements between July 1 and Sept. 30, nine of which were new construction deals. As of September, 90 percent of the 260 hotels in the brand’s pipeline were new construction.
La Quinta has surpassed the 900-hotel mark and expanded into Central and South America.
“The growing global middle class, which is expected to grow by 160 million people each year for the next five years, is traveling more and seeking out value-driven experiences, steering the need for quality accommodations at affordable price points around the world,” said Bob Loewen, Wyndham’s executive vice president and chief operating officer.
Wyndham’s acquisition of La Quinta gave it control of about 37 percent of branded midscale rooms in the U.S. It boosted Wyndham’s revenue by 74 percent, including $238 million in incremental revenue, said Geoff Ballotti, Wyndham’s president and CEO, during the company’s recent third quarter earnings call. Wyndham also saw royalty and franchise fee revenue increase by $31 million or 29 percent, most of that because of La Quinta’s contribution.
Wyndham signed nine new La Quinta licensing contracts, growing its pipeline by 2 percent. It expects to open more than 1,000 La Quinta rooms in the fourth quarter.
“We’re off to a strong start as the newest public company in the industry and we see tremendous opportunity ahead both domestically and internationally,” Ballotti said.