NEW YORK— Delivering the 2006-2007 Stephen Brener Lecture in Hospitality Management here last night, Wyndham Hotel Group President and CEO Steven Rudnitsky made a strong business case for U.S. lodging companies aggressively pursuing international development. “While the U.S. lodging industry is expected to see RevPAR growth of 5.8% in 2007, this pales compared to the rate of growth expected in many international markets, particularly in emerging destinations,” Rudnitsky said in the annual lecture sponsored by the Tisch Center for Hospitality, Tourism, and Sports Management of New York University. As examples, China is expected to see annual RevPAR growth this year of 15%, while RevPar growth in Eastern Europe is projected to be 14.1%. Compounding the opportunity for companies like Wyndham, which has 10 brands and 6,400—most franchise–hotels worldwide, representing 534,000 rooms, is that a large percentage of hotels in international locations are unbranded. “As we build the visibility and reputation of these brands globally, this represents a tremendous growth opportunity for us,” Rudnitsky confirmed, noting that only 39% of hotels in Europe and 52% of hotels in Asia Pacific are presently branded. By comparison, 67% of hotels in the U.S. are branded. Among the benefits of branding, according to Rudnitsky—when the brand is internationally known—are access to a central reservations system and points-and-miles frequent guest program. Yet hotel companies have to be sure to proceed with caution when expanding internationally, balancing the need for brand standards, quality assurance, and consistency with the need to customize the product and service offering to individual markets. “It’s really a matter of growing market by market and in markets the size of China it’s really on a region by region—and even city by city—basis. That’s how widely local tastes and preferences can vary,” explained Rudnitsky, who cited his pre-Wyndham experience in international marketing at PepsiCo for teaching him this important lesson. Rudnitsky mentioned two milestone events in particular at Wyndham in the past few years that spurred its international growth: the 2004 acquisition of the international portfolio of Ramada from Marriott International, which allowed Wyndham (then known as the Cendant Hotel Group) to combine the North America and international branches of the brand into one entity; and a 2006 joint venture with Europe-based Corinthia Hotels International, which affixed the Wyndham name on upscale properties in such markets as Budapest and Prague. The Brener Lecture Series is named in memory of pioneering hospitality industry analyst Stephen Brener, who was a strong proponent of industry leaders sharing their expertise with students. The series began in 1994, the year of Brener’s death.
Wyndham Hotel Group president/CEO Steven Rudnitsky