The
soft brand, which debuts today in Florida, is targeting the 16,000-plus economy
independent hotels in the US.
PARSIPPANY, New Jersey — Wyndham Hotels & Resorts has
announced Dazzler Select by Wyndham, in what it calls the “lifestyle economy”
space, which it says will fill a long-overlooked hole in the soft-brand
landscape.
The soft brand is targeting the 16,000-plus economy,
independent hotels in the U.S. Wyndham said it doesn’t see this as a new brand,
just an extension of its pre-existing, boutique-inspired Dazzler by Wyndham
brand.
Amit Sripathi, chief development officer at Wyndham Hotels
& Resorts, said the company’s strength in the economy gave it the unique
opportunity to recognize that this space existed from both a guest and owner’s
perspective.
“Independent owners in particular have often been
overlooked, whether it be from a technology support standpoint [or] for
distribution and from a soft brand perspective,” he said during a press
conference last week. “It allows owners to preserve their individuality. It
affords guests to stay at an experience and experience that is a really unique,
cool hotel at an affordable price point, but [one that] gets all of the
elements that they value from Wyndham.”
The first Dazzler Select debuts today with the conversion
of Magic Moment Resort & Kids Club in Kissimmee, Florida. Wyndham said it
has signed agreements with two additional hotels for the soft brand and is in
active discussions with more than 25 additional developers.
Sripathi said Wyndham’s goal is to have 50 hotels within the
next five years, and possibly more. He said the average hotel key count would
be 50.
The first Dazzler Select hotel is the Magic Moment Resort & Kids Club in Kissimmee, Florida.
Dazzler Select hotels pay a flat monthly brand fee, which
covers traditional royalty and marketing fees, as Wyndham said, lowering the
barrier to entry for independent hotels.
Leo Danese, brand leader for upscale and lifestyle at
Wyndham, said Dazzler Select was developed based on what the company’s guests
and owners said they needed, and it also taps into a clear trend.
“At its heart, Dazzler Select is really giving our guests
something that they’re asking for and owners something that they need,” he
said. “It’s lifestyle inspired, it’s boutique in its feel, but it’s
approachable in its price point. Consistency and quality are key.”
Danese said Wyndham is requiring Dazzler hotels to have a
rating of 4.0 or higher on Google.
“A lot of the properties that we’re reviewing right now and
that are in the pipeline are quite honestly higher than that,” he said.
The lifestyle, economy space
The term “lifestyle economy” may sound contradictory, but
Danese said that’s really because lifestyle has long been associated with the
highest chain scales.
“We feel with this brand, lifestyle doesn’t have to mean
luxury. It doesn’t have to break the bank,” he said. “It’s really all about
emotion and that experience that these hotels will deliver.”
Danese said there are several examples of independent
hotels that showcase a lifestyle at a lower price point, not just with the
Magic Moment property.
“Obviously, with our flagship hotel, but the 30 or 40 or so
properties that I’ve been reviewing over the past month or so, they’re so cool
and hip,” he said. “They may not have marble columns or gold-plated toilets,
but they have the key elements that guests and travelers nowadays want.”
Sripathi said it’s because Wyndham knows its guests so well
that it recognized the opportunity in this space over the past year.
“We’ve known this customer better than anyone else, and
there was a clear gap for this type of product in the space,” he said.
The soft brand will initially focus on seeking conversion
opportunities in the U.S. for independent hotels only, as opposed to attempting
to convert hotels currently hard-branded to another company, Sripathi said.
We’ve known this customer better than anyone else, and there was a clear gap for this type of product in the space.
Amit Sripathi
“They could be in college towns, they could be beachside or
by a national park or near a landmark that has its own unique identity,” he
said. “There’s clearly a void. We are the only hotel company, with the launch
of Dazzler Select, to cater to soft brands in all segments: economy, midscale,
upscale and upper upscale. This is why we believe there’s a need for a soft
brand in this segment.”
Danese said Dazzler Select will be similar to its
counterpart in Wyndham’s Trademark Collection, where the name of the hotel is
the primary piece of the nomenclature. The hotels will require no exterior
signage and just need a black plaque behind the front desk. Dazzler Select
hotels will be required to provide one breakfast item, which will vary by
location.
When asked if Dazzler Select hotels will be competing
against other economy Wyndham brands in markets, Sripathi said this new offering
fills a niche that doesn’t currently exist for the company.
“These are guests who are looking for more of a boutique
lifestyle experience at an affordable price point,” he said. “They may have
otherwise stayed in an independent hotel or tried to look for an independent
hotel in search of which, as you know, can require a lot of effort.”