Skeptics of the Wyndham-choice integration


Take and change

Today’s edition features Skift’s daily podcast picks and Wyndham Combo, a good ‘dirty’ hostel company and Memorial Day travel in the US.

– Rashad Jordan

Good morning from Skift. The date is Thursday, May 25. Here’s what you need to know about the travel business today.

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Episode notes

According to a recent report in the Wall Street Journal, Choice Hotels International is considering buying Wyndham Hotels and Resorts. But hotel industry analysts are skeptical, reports Sean O’Neill.

O’Neill wrote that a Choice Hotels-Wyndham merger could create the largest hotel franchisor in the U.S., but cited two analysts who explained why it might not happen in a Truist Securities research report. Choice Hotels will need to add more budget properties to its portfolio, which could undermine its strategy to grow its portfolio of high-end properties. Additionally, the merger may face pressure from antitrust authorities. The two companies together account for more than 50 percent of the U.S. economy hotel market.

Still, O’Neill added, integration can make sense in some ways. A general rule in hotel marketing, franchising and management states that bigger is better.

Next, short-term rental reporter Srividya Kaliaraman profiles A&O Hostels, a Berlin-based company that demolishes buildings as part of its pursuit of a dirty, net-zero carbon footprint.

A&o CEO Oliver Winter said the company, which aspires to be Europe’s “zero emissions hostel chain” by 2025, envisages dirty and ugly buildings that could turn cities into hostels. Kalyanaraman writes that this is a big part of its net-zero goal, as it allows the company to open new properties with a zero carbon footprint. Winter added that &o’s strategy appeals to Gen Z consumers who are looking for a greener ride.

Winters said using refurbished buildings is extremely economical for &o, given the high costs it would face if it built new properties.

Finally, despite widespread concerns about inflation, the percentage of American adults planning a Memorial Day trip is poised to jump from last year, reports co-author Rashad Jordan.

A recent survey by travel news site The Vacationer found that 64 percent of American adults plan to travel on Memorial Day weekend, up nearly 5 percentage points from 2022. For the travel industry.

However, Jones acknowledged that inflation could make travel this coming holiday weekend difficult for some people. In The Vacationer’s survey, 66 percent of respondents said inflation is affecting their Memorial Day travel plans. Jones added that some people eager to travel are staying home because they can’t afford the rising prices.

Photo credit: Outdoor Choice Hotels headquartered in Phoenix.

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