Wyndham opens first Echo Suites

SPARTANBURG, South Carolina - One down and 299 more to go for Wyndham Hotels & Resorts' new-build, economy extended-stay brand, Echo Suites Extended Stay by Wyndham. With a goal of reaching 300 hotels open by 2032 and already nearly 270 contracts signed (33,000 rooms) since its launch in 2022, the first Echo Suites opened this week in Spartanburg, South Carolina.

Spartanburg property owner Cox Universal Group, which has signed on to develop 10 Echo Suites, along with property manager Sandpiper Hospitality, are banking on the fact that the new-build only brand will drive greater profitability based on residuals from $1.2 trillion in approved U.S. infrastructure investments, an increasingly mobile workforce, as well as a fresh and efficiently designed product. Add in another $280 billion as part of the CHIPS and Science Act of 2022 that will drive construction of new chip manufacturing plants across the U.S.

Wyndham said all that infrastructure work is expected to bring a $3.3 billion opportunity in additional room revenue to its franchisees over the multi-year period of spending. As a result, CEO Geoff Ballotti is continually boasting the brand will best industry average GOP margins coming in at about 60%.

Guest room at the Echo Suites Spartanburg

Wyndham’s Head of Architecture, Design and Construction Krishna Paliwal said ADR will vary by property based on a variety of factors. “That said, we anticipate RevPAR in the mid-$60 range with occupancy running between 80% to 85%,” he said.

Philip Cox, co-CEO for Cox Universal Group, said development costs for the first project were about $117,000 per key, not including developer fees. He added that challenges along the way were all things typical in the world of new construction such as delays or issues with vendors. “All were able to be overcome with persistence,” he said.

Among the efficiencies that will drive GOP are requirements for just seven to eight full-time equivalents, the use of only queen size beds to keep linen costs down, F&B limited to only vending machines, and no meeting rooms or swimming pools to service.

Pipeline expectations

Additional Echo Suites are slated to open in Texas and Virginia this year with an expectation that 75 more hotels will open or break ground by the end of 2026. The next Echo Suites is slated to open next month in Plano, Texas, and is being developed by Gulf Coast Hotel Management. By 2032, Wyndham wants 300 Echo Suites open.

Philip Cox,Cox Universal Group (l.), and Wyndham's Krishna Paliwal in the lobby at the first Echo Suites.

The purpose-built, all new-construction, 124-room Echo Suites prototype requires under two acres of land. Coming in at approximately 50,000 square-feet, the prototype is designed to offer 79% of revenue-generating square footage. Rooms consist of single- and two-queen studio suites with kitchens as well as efficiently-designed public spaces—a lobby, fitness center and 24/7 guest laundry—that are designed to help limit labor needs.

To keep the momentum rolling, this week Wyndham also introduced Mandeep Singh as vice president, Extended Stay Operations. Singh brings over 20 years of global experience in extended-stay hotels, corporate housing, serviced-apartments and multi-family properties. In this new role, he will oversee Wyndham’s portfolio of extended-stay brands with a focus on Echo Suites and the new Waterwalk Extended Stay by Wyndham brand.

“With the addition of Mandeep Singh, we're reinforcing our commitment to our Owner First philosophy as we continue to grow Echo Suites to meet the needs of today's guests,” Paliwal said.