Wyndham Rewards Gift Me Promotion offers members in U.S., Canada and Mexico the opportunity to earn over 20,000 bonus points with six hotel stays from November 17 through February 1, 2012. There is another promotion for European Wyndham Rewards members to earn up to 30,000 bonus points after six stays that I will discuss in a separate post.

The basic offer is 6,500 bonus points after the 2nd, 4th and 6th stays during the promotion period for a potential 19,500 bonus points. There is also the option to earn 1,000 airline miles instead of 6,500 bonus points, however, the excellent exchange rate for Wyndham Rewards points-to-miles means members who desire miles will earn more miles by choosing the points bonus and then converting points to miles at a later date (6,500 points = 2,600 miles in most programs).

There is also an online booking bonus of 1,000 points for your first three bookings after promotion registration. And if you have a Wyndham Rewards VISA card there is an additional 500 points bonus on your first three bookings for a maximum 1,500 bonus points with VISA payment.

Wyndham Rewards Hotel Brands:

  • Wyndham Hotels and Resorts®,
  • Ramada®,
  • Days Inn®,
  • Super 8®,
  • Wingate by Wyndham®,
  • Baymont Inn & Suites®,
  • Microtel Inns & Suites®,
  • Hawthorn Suites® by Wyndham,
  • TRYP by Wyndham™,
    Howard Johnson®,
  • Travelodge®
  • Knights Inn®

Loyalty Traveler Analysis

Assume you book six one-night hotel stays online and do not pay with Wyndham Rewards Visa during the promotion period. Wyndham has some of the lowest rates around with its economy brand hotel chains. Assume you choose hotels with an average nightly rate of $60. All Wyndham brands earn 10 points per dollar with the exception of Hawthorn Suites at 5 points/$1.

  • Stay 1 = 600 points ($60 x 10 points/$1) + 1,000 online booking bonus points = 1,600 points.
  • Stay 2 = 600 points ($60 x 10 points/$1) + 1,000 online booking bonus points + 6,500 Gift Me bonus points = 8,100 points.
  • Stay 3 = 600 points ($60 x 10 points/$1) + 1,000 online booking bonus points = 1,600 points.
  • Stay 4 = 600 points ($60 x 10 points/$1) + 6,500 Gift Me bonus points = 7,100 points.
  • Stay 5 = 600 points ($60 x 10 points/$1) = 600 points.
  • Stay 6 = 600 points ($60 x 10 points/$1) + 6,500 Gift Me bonus points = 7,100 points.

Total Points earned = 26,100 points for $360.

26,100 points can be converted into 10,000 airline miles or one to four hotel nights depending on where you choose to stay with your Wyndham Rewards points. I rank this offer as a good value 50% rebate potential if you plan your stays to maximize the promotion value of this offer. There are over 7,000 hotels in Wyndham Rewards and many hotels will offer savings over $100 on a 10,000 or 14,000 points reward night.

Redeeming Wyndham Rewards points

Most hotel rewards in Wyndham brands in the US and Canada are divided into four tiers:

  • Tier 1 = 6,000 points
  • Tier 2 = 10,000 points
  • Tier 3 = 14,000 points
  • Tier 4 = 16,000 points

These reward tiers cover most of the hotel brands except Wyndham Hotels and Resorts rewards which are as low as 10,000 points per night for Wyndham Oklahoma City up to 45,000 points per night for one of the two Wyndham Hotels in New York City (the other is only 25,000 points). Most Wyndham Hotels in the US are 15,000 or 20,000 points per night.

Wyndham Rewards Gift Me Promotion is a high value hotel stay rebate.

Wyndham Rewards fall promotion offers double points or double miles and up to $60 cash back on hotel stays from September 15 to November 18, 2011. The double points or miles offer is limited to first three stays.

The “Cash Back every Two Stays” component of the promotion provides a $20 Visa gift card for every two stays during the promotion, up to $60 cash back after six stays.

Wyndham Rewards $20 Cash back with every two stays terms:

  • Wyndham Rewards members must register for promotion at wyndhamrewards.com/cash or call 1-866-996-7937 to register.
  • Complete two separate stays between September 15 and November 18, 2011.
  • Earn a US$20 VISA gift card after the second (2nd), fourth (4th) and sixth (6th) stays.
  • Member will receive an email after each qualifying stay with instructions to complete an online redemption form for $20 VISA gift card.
  • VISA card online redemption form must be completed within 60 days of email.
  • Maximum $60 in VISA gift cards per member.
  • Checkout date after November 22, 2011 will not count for this offer.
  • Double points or miles can be earned for up to three rooms for each of first three stays.
  • Only residents of the U.S., Canada and Mexico are eligible for this offer. See below for a separate European residents promotion.
  • Super 8 China properties are not participating in this offer.
  • Double miles are only available with select airlines: American, Aeroplan, Aeromexico, Amtrak, Continental, Delta, Frontier, Southwest, Spirit, Sun Country, United, US Airways.

Wyndham fall 2011 US-Canada-Mexico promotion for Double Points or Miles and Cash Back.

Loyalty Traveler Analysis:

Wyndham Rewards has more hotel members than any other hotel loyalty program with over 6,500 hotels in the following brands:

  • Wyndham Resorts
  • Wyndham Garden
  • Wingate
  • Days Inn
  • Ramada
  • Super 8
  • Baymont Inn & Suites
  • Microtel Inn & Suites
  • Howard Johnson
  • Travelodge (Hotels in Canada do not participate in Wyndham Rewards)
  • Knights Inn
  • Hawthorn Suites

Too bad this offer is limited to double points or miles for only three stays and a cash back rebate for six stays. The ability to earn double points for up to three rooms on the first three stays is probably the most valuable feature of this promotion.

The high exchange rate of points-to-miles transfers with Wyndham Rewards generally makes earning points the better value during promotions.

Earning Double Miles vs. Double Points Comparison

Assume you spend $400 for three stays during this promotion. Wyndham Rewards members earn 10 points/$1 at all Wyndham hotel brands, except Hawthorn Suites at 5 points/$1.

  • $400 in hotel spend with double points earns 8,000 points = 3,200 miles.
  • $400 in hotel spend with double miles earns 1,600 miles.
  • Choosing double points and exchanging points-to-miles earns miles at twice the rate of double miles.

Wyndham Rewards points to miles exchange rate is static meaning the rate is the same regardless of the number of points transferred to miles. 10 points = 4 miles in most programs. Points-to-Miles transfers must be made in 8,000 or 17,500 or 30,000 blocks of points. Wyndham Rewards has the best exchange rate for points-to-miles transfers of any hotel loyalty program for smaller points transfers.

17,500 Wyndham Rewards points = 7,000 miles for American, Continental, Delta, United, US Airways.

 

European Version of this offer

European residents of Wyndham Rewards have a slightly different offer during the same promotion period of September 15 – November 18 for 8,800 bonus points after every two stays and bonus may be earned three times. The promotion advertises this as bonus points that may be exchanged for a 20GBP or 30EUR VISA gift card.

As shown above the points have better value for points-to-miles exchange or hotel stays. A European member in the states can get six stays at inexpensive Wyndham hotel brands for under $500 and earn over 30,000 points. Wyndham brands in New York City like Wingate and Ramada often have rates over $300 per night and the points can be redeemed for one or two nights at these locations.

Register at wyndhamrewards.com/freegift or wyndhamrewards.de/freegift.

Wyndham Fall 2011 European member promotion for 8,800 bonus points every two stays.

Wyndham Rewards has a summer promotion for residents of Europe offering 15,000 bonus points after two stays at any of ten Wyndham hotel brands from 1 July-30 September 2011. This bonus may be earned up to four times (8 stays) for 60,000 bonus points.  There are probably 4,000+ hotels globally eligible for this offer.

Participating Wyndham Rewards hotel brands for this promotion.

  • Ramada
  • Days Inn
  • Baymont Inn & Suites
  • Hawthorn Suites
  • Howard Johnson
  • Knights Inn
  • Super 8   (China excluded)
  • Travelodge   (U.S. only)
  • Wingate by Wyndham
  • Wyndham Hotels & Resorts  (Europe, North America, Caribbean, Latin America and China only)

Wyndham Rewards ‘Stay Twice and Earn a Free night” Promotion.

  1. Promotion for residents of Europe (LT Note: T&C do not define Europe by country.)
  2. Register at WyndhamRewards.com/freenight or wyndhamrewards.de/freenight using a valid email address.
  3. New members enrolled at property locations are automatically enrolled in promotion.
  4. Booking period 1 July – 31 August, 2011.
  5. Stay period from 1 July – 30 September, 2011.
  6. Stay must be completed by 30 September to qualify for promotion bonus of 15,000 points after two stays at any participating hotels.
  7. Members earning miles instead of Wyndham Rewards points are still eligible for 15,000 bonus points after two stays.
  8. 15,000 points bonus may be earned four times (8 total stays) during promotion period for 60,000 total bonus points.

Loyalty Traveler analysis:

This is a good deal for Europeans coming to the U.S. where many of these Wyndham brand hotels have rates under $60 per night. The cost of eight hotel stays is feasibly under $500USD all in for travel in the Super 8, Knights Inn, Howard Johnson and Travelodge brands. Baymont Inn, Ramada and Hawthorn Suites will run $60 to $120 in most places around the U.S.

Wyndham Hotels & Resorts have some nice properties. Many of the other Wyndham Rewards brands are budget and midscale hotel segments. Baymont Inn and Ramada are the upper midscale segments for Wyndham brands. Hawthorn Suites extended stay hotels were formerly part of a Hyatt Hotels purchase, then sold to Wyndham.  

Wyndham Rewards hotel brand descriptions.

Wyndham Hotels and Resorts room rates range from $100 to $300 per night, depending on location.

The high value of this promotion is the ability to earn 60,000 bonus points for as little as $500USD and have sufficient points to redeem four to eight free nights at hotels all over the U.S.

Wyndham Rewards U.S. and Canada Hotel Rewards link.

Wyndham brands in the U.S., aside from Wyndham Resorts, are categorized in four tiers:

Wyndham Reward Nights for Howard Johnson, Super 8, Days Inn, Knights Inn, Travelodge, Ramada, Baymont Inn

  • Tier 1 = 6,000 Points 
  • Tier 2 = 10,000 Points 
  • Tier 3 = 14,000 Points
  • Tier 4 = 16,000 Points    

Wyndham Rewards Global Hotel Rewards link.

Germany has several Ramada brand hotels ranging in reward cost from 6,000 points with most being 10,000 points and rising up to 20,000 and 30,000 points for locations like Berlin.

Ramada Hotels in Köln, Germany are 50 to 60EUR for weekend nights in July depending on rate type.

Wyndham Hotel Rewards property by State and Country link.

This promotion offers the possibility to earn at least two to three free nights at most Wyndham properties in the 20,000 or 25,000 points range.  Some Wyndham Hotels and Resorts in a city like New York, Amsterdam and St. Petersburg are 45,000 points for a free night.

This is a 5-key offer for European residents with the potential to earn a full rebate on hotel spend  in the next three months after 8 hotel stays. 60,000 bonus points is good for three to ten nights in free future Wyndham Rewards hotel stays.  

P.S.

Personally I found Wyndham Rewards free nights very easy to redeem at last minute during my 2,200 mile road trip last month through the Pacific Northwest of the USA.

Wyndham Rewards European promotion for 15,000 points after 2 stays 1 Jul-30 Sep.

 

Update July 6: [Note from Ric Garrido- This paragraph was written as a result of incorrect information posted on Wyndham Rewards sites for UK, Ireland, Germany which apparently caught the attention of Wyndham Rewards. See July 7 update].  Wyndham Rewards reduced the earn rate for hotels December 22, 2010. I just realized the earn rate for most Wyndham Rewards hotel brands dropped from 10 points/US$1 to 5 points/US$1 in December 2010 for all hotel brands except Wyndham and Hawthorn Suites remain at 10 points/US$1.

Interesting point is while European members still earn 10 points/US$1 for Hawthorn Suites, US/Canada members earn only 5 points/US$1 for stays at Hawthorn Suites as of December 2010.

Update July 7: Received an email from Wyndham Rewards today. Turns out their European website information is incorrect and the earning rates are the same for Europeans and Americans at 10 points/$1 for every Wyndham brand, except Hawthorn Suites at 5 points/$1. All you Europeans can thank me with a complimentary beer when you are visiting Monterey.

Or maybe Wyndham Rewards should give me complimentary top elite status. (That’s a hotel loyalty program joke some readers may get.)

Earn 1,000 bonus points per stay at Wyndham Rewards brand hotels in U.S. and Canada from June 1 – September 5, 2011. No registration required. All Wyndham Rewards brands regularly earn 10 points per $1, except Hawthorn Suites at 5 points/$1.

Members with earning preference of miles are also eligible for the 1,000 bonus points per stay. The good points-to-miles exchange rate of 10 points = 4 miles for most frequent flier programs means points are generally the better earning choice for Wyndham Rewards members who want miles, unless there is a miles bonus. The normal miles earn rate is only 2 miles per $1 when earning preference is set to miles rather than points.

Wyndham is a necessary choice sometimes when traveling rural America. There are many places where Best Western, Choice Hotels and Wyndham will be the only hotel loyalty program options and this 1,000 points bonus promotion provides some kind of hotel stay rebate.

Free nights with Wyndham Rewards for most hotel brands in U.S. are assigned to four tiers at 6,000 points, 10,000 points, 14,000 points and 16,000 points. Four $50 hotel stays during this promotion can be sufficient for a free 6,000 points award night. 

Also, keep in mind this summer that Best Western has three stays for one free night from June 19-August 14. I’ll write up this offer once the details are online, probably next week. The link gives the Best Western promotion details from FlyerTalk and Best Western representatives have confirmed details of this offer to me. 

Choice Hotels is offering 8,000 bonus points for two stays from May 19-August 11. Loyalty Traveler post May 16.

The last sentence of the Wyndham Rewards 1,000 bonus points per stay promotion terms raises concern for me: 

“Each individual hotel must elect to participate in the Promotion.”

That is way too vague for my comfort level when making hotel stay plans.

Do I need to call each hotel and ask?

There are too numerous to count brands in Wyndham Rewards. They seem to create new brands in their dreams at night. No wait…they actually added Dream and Night as two new hotel brands in Wyndham this year. 

Wyndham Hotel Group brands

 

Wyndham Hotel Group

  • Wyndham Hotels and Resorts
  • Wyndham Grand Collection
  • Wyndham Garden
  • Wingate by Wyndham
  • Hawthorn Suites by Wyndham
  • Ramada Worldwide
  • Days Inn
  • Super 8
  • Baymont Inn & Suites
  • Microtel Inn & Suites
  • Howard Johnson
  • Travelodge
  • Knights Inn
  • Planet Hollywood
  • Dream
  • Night
  • Tryp

You can buy up to 190,000 Wyndham Rewards points at 12 noon ET Wednesday, May 4 through DiscoverAmerica.com Daily Getaways offers. These are great discounts on Wyndham Rewards points for hotel nights or points-to-miles exchange.

$117 for two nights at a Wyndham Hotel is a deal you’d be hard to match with Priceline or Hotwire hotel buys.

Wyndham Rewards is one of the best hotel loyalty programs for low level points-to-miles exchanges with airlines. Wyndham Rewards has a fixed rate of exchange at 8,000 points = 3,200 miles with most major US airlines.

Buy 48,000 points for $135 (AmEx) or even $150 and convert to 19,200 miles in American, Air Canada Aeroplan, Continental, Delta, Frontier, United and US Airways and a few others.

Hotel Rewards in U.S. for most Wyndham Rewards brands like Ramada, Super 8, Days Inn, Howard Johnson, Travelodge, Knights Inn, Microtel Hawthorn Suites and Baymont are assigned to four tiers.

Wyndham Rewards for one hotel free night at most Wyndham brands:

  • Tier 1 = 6,000 points
  • Tier 2 = 10,000 points
  • Tier 3 = 14,000 points
  • Tier 4 = 16,000 points

Wyndham Hotels and Resorts are a separate category of rewards at 15,000 to 45,000 for properties around the world. In the U.S. most Wyndham hotels are in the 15,000 to 25,000 points range.

Wyndham Rewards points on Discover America Daily Getaway Wednesday May 4, 2011

16,000 points = $50 ($45.00 if payment with American Express). 725 sets available. Maximum purchase is two per member.

28,000 points = $69 ($62.10 if payment with American Express). 125 sets available. Maximum purchase is one per member.

32,000 points = $100 ($90.00 if payment with American Express). 400 sets available. Maximum purchase is one per member.

48,000 points = $150 ($135.00 if payment with American Express). 150 sets available. Maximum purchase is one per member.

50,000 points = $130 ($117.00 if payment with American Express). 298 sets available. Maximum purchase is one per member.

Oddly the price is not the same rate for these Wyndham Points packages. 28,000 points and 50,000 points are best buys with a rate around $2.50 for 1,000 points compared to $3.12 per 1,000 for the other three sets.

A member may purchase a maximum of six sets of Wyndham Rewards points from these five offers for a total of 190,000 points for $494.10.

This is really an excellent deal. 190,000 points can be converted to 76,000 airline miles (plus any bonuses like US Airways) or buy a whole lot of hotel nights or even a one week Wyndham Resort beach vacation. This deal certainly beats Starpoints at 20% off or $28 per 1,000 points for someone wanting frequent flyer miles.

Loyalty Traveler surveys world’s Top 20 Hotel Brands for loyalty program affiliation and hotel benefits.

The hotel industry generally ranks the world’s biggest hotel brands by different criteria than Loyalty Traveler. The hotel industry ranks hotel brands by the total number of rooms worldwide. That is the hotelier’s viewpoint since more rooms creates the potential for more money.

My viewpoint as a traveler is whether I will be able to find a hotel in a particular hotel brand in the location I am visiting.  I generally only need one or two rooms for my hotel stay. As a traveler I care less about whether a hotel has 100 rooms or 1,000 rooms and more about the number of hotels in my preferred brand for geographic coverage.

Therefore, Loyalty Traveler ranks hotel brand size by the number of hotels rather than the number of rooms. This results in a different hotel brand ranking order than will be found for most hotel chain size surveys.

When it comes to the number of hotels in a hotel brand you can forget about your upscale Hyatt’s and Hilton’s and Marriott’s being the leaders. There are no upscale market segment brands in the top 20 global hotel brands when ranked by number of hotels.

Marriott Hotels (550 hotels) and Hilton Hotels (540 hotels) just miss the Top 20 cut coming in at #21 and #22 respectively with the distinction of being the highest ranking upscale brands worldwide.

The Benefits of Economy and Mid-scale Hotels

Free internet and complimentary breakfast are the two most desired benefits for upscale hotel travelers. In recent years there has been a move among loyalty programs to add these benefits for elite members of Marriott Rewards, Hilton HHonors, Starwood Preferred Guest and Hyatt Gold Passport.

Travel in the economy hotel market segment pretty much guarantees you will have access to free internet and most of the top brands also offer a free breakfast as a benefit for all hotel guests. Downsizing your hotel brand may upsize your savings in more ways than room rate.

Family-Friendly Hotel Brands  

One of the biggest value benefits of the major economy/mid-scale hotel brands is a policy at six of the Top 20 Hotel Brands to let kids stay free in the room with an adult family member. This policy is extended to a high age limit of 19 years old for Holiday Inn and Holiday Inn Express which offers some interesting possibilities for taking Mom, Dad or Uncle Bob on spring break.

Children Stay Free Policies can be big savings for big families. Bring the sleeping bags.

Holiday Inn/Holiday Inn Express = Children 19 and under stay free in same room with adult guest.

La Quinta Inn = Children 18 and under stay free in same room with adult guest.

Super 8 = Children 17 and under stay free in same room with adult guest.

Motel 6 = Children 17 and under stay free in same room with adult guest.

Premier Inn (U.K.) = Children 15 and under stay free.

 

“Honey, I Just Fed the Kids!”

Some hotel brands even offer free restaurant meals to kids when an adult orders off the regular menu. The age limit is a bit lower than 19 for this benefit.

Holiday Inn (U.S. and Canada only) – ‘Kids Eat Free’ policy allows up to four children age 12 and under to eat free from kids menu any time of day when adult guest pays for meal from regular menu.

Premier Inn (U.K.) – free breakfast for up to two children (15 or under).

 

Loyalty traveler note on hotel numbers and Choice International hotel brands count:

The source of hotel numbers is primarily hotel brand website checks February 8-10, 2011 and data from the most recent financial reports. Choice Privileges only reported domestic properties in its Sep 30, 2010 financial statement. There were 1,140 international Choice Hotels Sep 30, 2010. This is the only detail on international franchised Choice Hotels properties I located without making a hand count by country.

My website checks indicate these 1,140 international hotels are primarily Comfort Inn & Suites and Quality Inn & Suites properties with about 150 Clarion and a handful of EconoLodge and Sleep Inn properties. Australia and New Zealand have more than 200 Choice Hotels.

Choice Hotels total hotel numbers for Days Inn and Quality Inn are from TopHotelChains.com Sep 2010. Hotel numbers for U.S. properties are taken from Choice International financial statements for Sep 30, 2010.

 

Loyalty Traveler Survey of the Top 20 Hotel Brands in the World

Loyalty Traveler Top 20 Hotel Brands by Number of Hotels Feb 11, 2011

Tip: Click on the spreadsheet picture to open in a new window and see in full size. (You may need to click on picture again in new window to magnify size).

Please add a comment if there are other noteworthy features and benefits for these 20 brands; particularly some first-hand knowledge of Mercure and Ibis would be appreciated for these non-U.S. hotel brands.

Wyndham Rewards launches a new promotion today running February 3 through April 30, 2011.

  • Earn 2x points or miles on 2nd stay.
  • Earn 3x points or miles on 3rd stay.
  • Earn 4x points or miles on 4th stay.

Promotion registration is required.

Hotel stays must be completed by May 7th to qualify for this promotion.

There are no additional bonus points or miles for more than 4 stays during the promotion period. You do not earn 4x points for every stay after the 4th stay.

Earn 1,000 additional bonus points for hotel stays paid with Wyndham Visa card on 2nd, 3rd and 4th stays. Maximum credit card additional bonus is 3,000 points.

Wyndham Rewards hotel brands include over 6,500 hotels in Wyndham Hotels & Resorts, Wyndham Grand Collection, Wyndham Garden, Wingate, Hawthorn Suites, Ramada, Days Inn, Super 8, Baymont Inn & Suites, Microtel Inns & Suites, Howard Johnson, Travelodge and Knights Inn.

Loyalty Traveler Analysis

This promotion only offers a bonus on the 2nd, 3rd and 4th stays during the promotion period. Unlike recent promotions from other hotel loyalty programs, this offer does not apply 4x points to all previous stays.

Basically the best strategy is maximize the dollar spend on the 4th hotel stay. An expensive vacation or business stay or an extended stay could make this a high value points bonus.

My analysis below shows the best choice for members wanting to maximize miles is choosing bonus points. Wyndham Rewards points will likely result in more miles through points-to-miles exchange rather than choosing bonus miles for this promotion. Wyndham Rewards has the highest static exchange rate for points-to-miles of any hotel loyalty program. Static exchange rate means the rate is the same (2.5 Wyndham Rewards points = 1 mile) regardless of the number of points converted to miles.

High-end Wyndham Rewards hotels run 25,000 points to 45,000 points per night.

Assume $200 per stay for four stays.

  • Stay 1 = 2,000 points ($200 x 10 points/$1)
  • Stay 2 = 4,000 points ($200 x 20 points/$1)
  • Stay 3 = 6,000 points ($200 x 30 points/$1)
  • Stay 4 = 8,000 points ($200 x 40 points/$1)

$800 hotel spend over 4 hotel stays earns 20,000 points. You will have sufficient points for a Tier 4 award (16,000 points) or a low tier Wyndham Hotel (15,000), but you will have insufficient points for a high end Wyndham Hotel or Resort in locations like downtown  Chicago (25,000 to 45,000), New York (25,000 to 45,000) or Sugar Bay Resort, St. Thomas, U.S. Virgin Islands (45,000).

Earning Miles

Wyndham Rewards earns miles with 20 different airlines and Amtrak. Wyndham Rewards has one of the highest point-to-miles exchange rates among hotel loyalty programs. Programs like Marriott and goldpoints plus have higher exchange rates in their dynamic points-to-miles system, but that requires large numbers of points (100,000+) to get a better exchange rate than Wyndham Rewards.

Most airlines earn at the rate of 2 miles per $1 or 500 miles per stay at Wyndham Hotels and Hawthorn Suites. You will need to analyze earn rates to determine if more miles are earned choosing 2x, 3x and 4x miles or choosing points and making a points-to-miles exchange with a static exchange rate of 8,000 points = 3,200 miles or 2.5 points = 1 mile with most frequent flyer programs.

Here is a sample earning table:

Assume $200 per stay for four stays and United Mileage Plus.

  • Stay 1 (Microtel) = 2,000 points or 400 miles (base earning rate).
  •      ($200 x 2 miles/$1) Points are better = 800 miles.
  • Stay 2 (Hawthorn Suites) = 2,000 points ($200 x 10 points/$1) or 1,000 miles (double miles 2 x 500)
  •      (Miles are better choice since Hawthorn Suites has low 5 points/$1 earn rate. 2000 points = 800 miles).
  • Stay 3 (Super 8 ) = 6,000 points or 1,200 miles (triple miles)
  •      ($200 x 30 points/$1 or 6 miles/$1 = 1,200 miles) 6,000 points are better = 2,400 miles.
  • Stay 4 (Wyndham) = 8,000 points or  2,000 miles (4x miles).
  •      ($200 x 40 points/$1 or 500 miles per stay x 4). 8,000 points are better = 3,200 miles.

Bottom line: This promotion favors earning points rather than miles as long as you accrue 8,000 total points for a minimum points-to-miles exchange. The only time miles are the better choice is for Hawthorn Suites stays where points is based on 5 points/$1 earn rate. The earn rate for Hawthorn Suites quietly changed from 10 points/$1 to only 5 points/$1 in December 2010. This change does not even appear to have been mentioned by anyone on FlyerTalk to date.

Wyndham Rewards up to 4x points or miles Feb 3-April 30, 2011

Wyndham Rewards is offering double airline miles for up to four hotel stays per member from October 1 through December 31, 2010. Wyndham’s 13 hotels brands include several budget/economy market segment brands for cheap hotel nights. The promotion terms appear to prohibit getting more than four stays doubled during the promotion by simply switching to a different airline partner after four stays.

Participating airlines and travel partners are Aeromexico, Air Canada Aeroplan, Amtrak, Continental, Delta, Midwest, Southwest, Spirit, Sun Country, United and US Airways.

The catch is these promotions are hotel brand specific offers for most of the participating airlines, except Aeromexico and Air Canada Aeroplan.

 

Wyndham Rewards Hotel Brands and Double Miles Promotion Airline Partners

Wyndham Hotels & Resorts = Aeromexico, Air Canada Aeroplan, Amtrak, Sun Country

Hawthorn Suites = Aeromexico, Air Canada Aeroplan, Amtrak, Sun Country

Wingate = Aeromexico, Air Canada Aeroplan, Amtrak, Sun Country

Ramada = Delta

Days Inn = Southwest

Super 8 = United

Howard Johnson = US Airways

Baymont Inn & Suites = Continental

Microtel = Midwest

Travelodge = Spirit Airlines

Knights Inn = Aeromexico and Air Canada Aeroplan 

 

Double Miles Details:

Click on Airline Name below for Wyndham Rewards promotion link.

Aeromexico – All Wyndham brands: Ramada, Days Inn, Super 8, Wingate, Baymont inn, Microtel, Howard Johnson, TraveLodge (US only), Knights Inn, Hawthorne Suites, Wyndham Hotels & Resorts.

Wyndham Members will receive 4 (four) Premier miles (6.4 Premier Kilometers) instead of the standard 2 (two) Premier miles (3.2 Premier Kilometers) per US dollar spent on qualifying room rates at participating Ramada®, Days Inn®, Super 8®, Wingate® by Wyndham, Baymont Inn & Suites®, Microtel Inns & Suites®, Howard Johnson®, Travelodge® (US hotels only) and Knights Inn®. Miles are earned on the qualifying room rate only, not on taxes, food and beverage or other incidental expenses.  

For stays at participating Hawthorn Suites® by Wyndham and participating Wyndham Hotels and Resorts® properties, members earn 1000 (one thousand) Premier miles (1600 Premier Kilometers) instead of the standard 500 Premier miles (800 Premier Kilometers) per stay on qualifying room rates. 

 

Air Canada AeroplanAll Wyndham brands.

4 miles per $1 or 500 miles (whichever is greater) at Ramada, Days Inn, Super 8, Wingate, Baymont inn, Microtel, Howard Johnson, Travelodge (US only), Knights Inn.

1,000 miles per stay at Hawthorne Suites and Wyndham Hotels & Resorts.

Amtrak Guest RewardsWingate, Wyndham, Hawthorn Suites

4 miles per $1 at Wingate Hotels or 1,000 miles per stay at Wyndham Hotels and Hawthorn Suites.

Continental OnePass – Baymont Inn & Suites

  • 4 miles per $1

 

Delta Skymiles – Ramada Inn

  • 4 miles per $1

 

Midwest Miles – Microtel Inn & Suites

  • 4 miles per $1

 

Southwest Rapid Rewards – Days Inn

  • 1 credit per stay

 

Spirit Airlines – Travelodge

  • 4 miles per $1.

 

Sun Country UFly Rewards – Wyndham Hotels & Resorts, Hawthorn Suites, Wingate

  • 2 UFly Rewards points for Wingate 
  • 4 UFly points for Wyndham or Hawthorn.

 

United Airlines Mileage Plus – Super 8

  • 4 miles per $1

 

US Airways – Howard Johnson

  • 4 miles per $1

 

Loyalty Traveler promotion rating = 2 keys of 5 promotion (due to 4 stays earning limit)

 Related link: Wyndham Rewards Airline Partners and regular earning rate for hotel stays

The Economy/Budget segment of the hotel market scale is sometimes where the price of a hotel room forces your hand. These are brands with average daily rates usually under $75 per night and generally in the $40 to $65 range in most locations. Do you really want to spend $200 to stay in a nice airport hotel when you can have that bed for six hours of sleep at a $40 to $65 rate before you hop back on the plane?

These JD Power economy-budget brand circle ratings are quite useful to me for helping choose a budget hotel brand. I honestly can’t remember the last time I stayed in one of the eleven brands listed in the JD Power 2010 North America Hotel Guest Satisfaction Index Study for the Economy/Budget segment.

When I drove cross-country three times in the 1990s I am sure I visited several of these brands. Those road trips in the 90s were one of the motivators for getting into loyalty travel as a means to better hotel stays.

Sources: JD Power 2010 North America Hotel Guest Satisfaction Index Study press release

                JD Power 2010 Economy/Budget Hotel Market Segment Full Report

Loyalty traveler commentary:

The economy/budget segment of hotels is dominated by Wyndham Rewards and Choice Privileges.

Wyndham Rewards is the major economy/budget segment hotel loyalty program with six of the eleven JD Power rated brands of Microtel Inns and Suites, Howard Johnson Express, Super 8, Days Inn, Travelodge and Knights Inn. One of the better features of Wyndham Rewards is the good points-to-miles exchange rate for converting Wyndham Rewards points into airline miles.

EconoLodge and Rodeway Inn are hotel brands participating in Choice Privileges. The primary disadvantage with these budget brands is a 50% reduction in points earned for stays. Most Choice Privileges hotel brands earn 10 points per $1, but only 5 points per $1 is earned with EconoLodge and Rodeway Inns. Wyndham Rewards earns 10 points per $1 for all its economy/budget brands.

Red Roof Inn and Americas Best Value Inn are independent chains with their own loyalty programs.

Motel 6 is the ugly stepchild of French-based Accor Hotels. Motel 6 currently has a limited time offer participating in Accor’s A-Club hotel loyalty program for the opportunity to redeem 2,000 A-Club points for $60 cash vouchers valid at North America Motel 6 properties through October 31, 2010. In general, Motel 6 and Accor’s European budget brand hotels do not participate in the Accor A-Club hotel loyalty program.

 

Hotel Brands ordered by Number of Hotels in North America

Super 8 Motel (Wyndham Rewards) = 2,137 hotels; mostly in North America, although growing rapidly in China. (ADR = $56.67) Super 8 is the largest economy hotel brand in North America. Free breakfast, free internet and loyalty points or miles are added benefits of this JD Power three circle rated brand.

 

Days Inn (Wyndham Rewards) = 1,858 global properties (ADR $62.24). Properties offer free internet and most offer a complimentary breakfast and swimming pool.

 

Motel 6 (Accor A-Club limited participation) = 1,000+ properties in North America. Motel 6 locations.

 

Americas Best Value Inn (Value Club) = 900 hotels in North America. Hotel locations search. Hotel Directory. Americas Best Value Inn hotel loyalty program – Value Club does not appear to be a points-based program, but rather a value-added on stays program which is common to luxury and independent upscale market brands. Value Club rates give a 15% room discount to members and an opportunity for a complimentary upgrade and late checkout.

 

EconoLodge (Choice Privileges) = 785 hotels (2010 ADR $51.21). Free wi-fi, continental breakfast and USA Today on weekdays.

 

Howard Johnson Inns and Express Inns (Wyndham Rewards) = 500+ hotels globally. (ADR = $61.22) Howard Johnson Hotels and Inns operate in three different market segments with some properties in the midscale and some in the economy segment in North America. Internationally in Asia and Latin America the brand tends to be positioned in the midscale to upscale market. I was unable to locate a breakdown of this brand by market segment.

Howard Johnson Hotels USA Directory (pdf)

Howard Johnson Hotels Canada Directory (pdf)

 

Travelodge (Wyndham Rewards) = 460 hotels in North America. The brand is mostly an economy segment hotel in the U.S. but midscale with food and beverage market segment for hotels in Canada.

 

Rodeway Inn (Choice Privileges) = 381 hotels (2010 ADR $47.06). Free local calls, continental breakfast, and morning newspaper on weekdays.

 

Red Roof Inn (RediCard Rewards program) = 345 hotels in  36 states. This brand has slight familiarity due to its promotion earlier this year for 1 cent room rates. Red Roof Inn locations.

 

Knights Inn (Wyndham Rewards) = 340 hotels in North America. This chain falls squarely in the budget hotel market segment with an average daily rate at $42.46, significantly below the other Wyndham Rewards hotel brands. You apparently get what you pay for with a JD Power hotel guest satisfaction rating of two circles and ranked last on the economy/budget hotel segment report.

 

Microtel Inns and Suites (Wyndham Rewards) = 320 hotels in North America. (ADR = $56.72) This brand has won the JD Power Hotel Guest Satisfaction Award for Economy/Budget brands 9 years in a row, achieving the only JD Power 5 circle rating for an economy/budget hotel brand in the 2010 study. Microtel Inns founded in 1989 are newly constructed properties rather than rebranded hotels which may account for the overall high satisfaction with the brand.

The Microtel brand was purchased by Wyndham in July 2008. A Microtel Inn promotion is currently in play to celebrate the JD Power achievement. Book a Microtel Inn room between August 9 and September 12 and you could win a free night, a $25 Visa gift card or a $50 Visa gift card. Nine prizes in each category for 27 prizes each week to be awarded.

Microtel promotion link and more details of the promotion can be found in this August 9 press release.

Data sources:

Wyndham Hotels property numbers and ADR data taken from this Wyndham Hotels 2009 10K Report.

Choice Privileges data taken from Choice Hotels 2010 Q2 June 30 financial results.

 

Related Loyalty Traveler posts on JD Power 2010 North America Hotel Guest Satisfaction Index Study

Overview JD Power 2010 North America Hotel Guest Satisfaction Study (Aug 10)

Comments on JD Power 2010 Luxury Hotel Satisfaction Index (Aug 11)

Comments on JD Power 2010 Upscale Hotel Satisfaction Index (Aug 11)

Comments on JD Power 2010 Midscale Full Service Hotel Satisfaction Index (Aug 13)

Comments on JD Power 2010 Midscale Limited Service Hotels Satisfaction Index (Aug 15)

Comments on JD Power 2010 Extended Stay Hotels Satisfaction Index (Aug 17)

Wyndham Hotels has an online summer game if you like to play games. Pick a traveler identity from

a)      The Fun-seeking Family

b)      The Flocking Friends of a Feather

c)       The On-the-Go Business Pros

d)      The Continent Exploring Couple

e)      The Gallivanting Grandparents

You can play a weekly trivia game with your Wyndham avatar for a chance to win a five-night hotel stay, $25 gift card, or a three-day golf getaway.

If games are not your thing, then you can skip the trivia questions and go directly to an opportunity for an instant win. The trivia questions were actually challenging and opening up a second browser I actually kicked myself out of the game for this week after answering two questions.

Contest begins May 13 and ends September 7. Open to residents of 50 US states and D.C. and Canada. Contest is not valid for residents of Puerto Rico and US territories.

I wouldn’t bother writing about this promotion if it were only a chance at a contest prize.

The real value of Wyndham’s Mission: Save Summer is a list of 20 discount opportunities for Wyndham brand hotel stays for the summer months and beyond.

  1. Wyndham Resorts – Stay 3 consecutive nights before August 31 and save 30% on Best Available Rate.
  2. Wingate – Book 3 consecutive nights before December 31 and save 30% on Best Available Rate.
  3. Hawthorn Suites – Book 3 consecutive nights before December 31 and save 30% on Best Available Rate.
  4. Ramada – Save 20% on stays of 3 nights or longer.
  5. Ramada- Save 15% on Best Available Rate for reservations made 14 days in advance. Prepaid rate.
  6. Days Inn – Save 15% for two consecutive nights.
  7. Days Inn – Save 20% on 3 night or longer stays through December 31.
  8. Days Inn – Book 14 days in advance and save 20% on Best Available Rate. Prepaid and no changes allowed.
  9. Super 8 – Save 15% on Best Available Rate when booking 8 days in advance. Prepaid and no changes allowed.
  10. Baymont – Save $10 per night when you stay at least 3 consecutive nights and book by May 31.
  11. Microtel – Save $10 per night when you stay at least 3 consecutive nights by September 1.
  12. Microtel – Book 14 days in advance and save 20% on Best Available Rate. Prepaid and no changes allowed.
  13. Howard Johnson – Save 15% on Best Available Rate when you book two or more consecutive nights for stays through June 15.
  14. Howard Johnson – Book 3 consecutive nights and stay by June 15 and save 30% on Best Available Rate.
  15. Howard Johnson – Book 14 days in advance and save 20% on Best Available Rate for stays through June 15. Prepaid and no changes allowed.
  16. Travelodge – Save 15% on Best Available Rate when you book two or more consecutive nights for stays through June 15.
  17. Travelodge – Book 3 consecutive nights and stay by June 15 and save 30% on Best Available Rate.
  18. Travelodge – Book 14 days in advance and save 20% on Best Available Rate. Prepaid and no changes allowed.
  19. Knights Inn – Book 3 consecutive nights before December 31 and save 20% on Best Available Rate.
  20. Knights Inn – Book 7 days in advance and save 15% on Best Available Rate for stays through December 31, 2010. Prepaid and no changes allowed.

Wyndham Rewards has a good American Airlines 13,500 miles offer to take advantage of with your hotel stays at Wyndham, Wingate, or Hawthorn Suites through September 30.

Tables in this article show the year over year changes in average room rates and occupancy for the various brands in five major hotel chains including Choice Hotels International, InterContinental Hotels Group, Marriott Hotels, Starwood Hotels, and Wyndham Hotels Group. These five chains represent over 40 hotel brands in the USA and around the world. I was unable to locate comparable data on the web for Hilton Hotels or Hyatt Hotels.

Financial reports data from the first quarter of 2009 was used to show the average daily room rate changes and occupancy declines from 2008 to 2009. In the next couple of weeks the financial reports for April through June will be released by the major hotel corporations. Expect the data to show even more dramatic declines in rates and occupancy. After all, this recession is a whopper.

A discussion on FlyerTalk got me thinking about what the impact of the global recession across hotel market segments and different hotel chains. And are we truly travelers in a time of global recession for the hotel industry?

Smith Travel Research is the kind of company that has hotel rate and occupancy data compiled for a numbers geek like me. I like to periodically check their reports. Unfortunately, I did not see as many reports available online for free viewing as I remember finding last year. They are in the business of making money after all.

I am in the business of making money too when I can, but here is my preliminary research for a free layman’s guide to hotel pricing and the impact of the global recession on travel. 

In the next couple of weeks the major hotel chains will release 2009 Second Quarter financial data. The great thing about quarterly financial reports is public access to the hotel chain’s statistics for number of hotels, average room rates, and average occupancy.  

I have never worked in the field of hospitality and certainly never been in management so I have limited interest in hotel chains’ financial data. My interest is hotel properties, room rates, and occupancy rates that has direct relevance to the frequent guest.

And now for the numbers:

Starwood Hotels Brands

 

Market Segment

 

Number Hotels

U.S. Average Daily Rate

(12 month rate change)

March 2009

 

US Average Occupancy March 2009

Average Daily Rate

International

Hotels

 March 2009

 

Occupancy Rate International Hotels

March 2009

Luxury Collection

Upper upscale to luxury

62

 

$342.04

Starwood data is combined with St. Regis brand

(-12.1%)

57.7%

(-11.8)

$261.30

Starwood data is combined with St. Regis

(-26.5%)

48.4%

(-10.9)

St. Regis

Luxury

14

 

See above

See above

See above

See above

W Hotels

Upper upscale to luxury

28

 

$226.03

(-19.5%)

 

57.4%

(-14.9)

$384.63

(-18.0%)

54.2%

(-1.1)

 

Le Meridien

Upper upscale to luxury 107

 

$208.87

(-25.7%)

61.8%

(-5.1%)

$182.37

(-17.9%)

 

59.6%

(-8.4)

Westin Hotels

Upper upscale

162

 

$175.77

(-11.2%)

59.8%

(-6.9)

$175.10

(-17.4%)

58.3%

(-5.4)

Sheraton Hotels

Upscale

405

 

$143.34

(-11.3%)

56.3%

(-7.9)

$158.26

(- 9.9%)

56.2%

(-7.0)

Aloft

upscale

21

 

$148.62

(-6.0%)

No data

na

na

Four Points

Midscale

135

 

$97.27

(-11.8%)

56.9%

(-5.9)

$115.69

(-16.5%)

60.4%

(-3.9)

Element

Extended stay

3

 

No data

 

No data

No data

W Hotels are suffering big time in the USA which may account for why W San Diego and W Scottsdale are in financial trouble.

Luxury Collection/St. Regis average daily rate calculation:

2008 Average Daily Rate = $370.04

2009 Average Daily Rate = $296.56

The rate change is calculated by the equation ($370.04 – $296.56) / $370.04 = .199

The average daily rate dropped 19.9% year over year from the average room rate in Q12008 to Q1 2009.

Luxury Collection/St. Regis Occupancy Rates seem skewed to me because the decline in hotel occupancy is shown based on total rooms and not as a percentage decline in occupancy from the previous year.

For example: Luxury Collection/St. Regis Occupancy Rate numbers for International Hotels

2008 Average Occupancy Rate = 59.3%

2009 Average Occupancy rate = 48.4%

Starwood hotels reports this as a -10.9 variance. But the occupancy decrease is not actually 10.9% from 2008 to 2009.

My elementary math logic calculates this year-over-year occupancy drop as a higher percentage decline in that (59.3 – 48.4) / 59.3 = 18.4% fewer hotel guest rooms occupied in 2009 than 2008.

Regardless of how the calculation is done, the numbers all look pretty bad to me with regard to falling hotel occupancy from the first quarter 2008 to first quarter 2009.

Take the Travelodge brand and there are even strong signs of a dramatic decline in hotel room occupancy in the economy segment of hotels.

2008 Average Occupancy Rate = 45.2%

2009 Average Occupancy rate = 39.6%

Following Starwood Hotels method this is a -5.6 decline in 2009 from 2008.

Calculate this as a percentage decrease in occupied rooms from March 2008 to March 2009 and the rate decline is much more dramatic:

(45.2-39.6) / 45.2 = 12.4% occupancy decline in occupied rooms from 2008 to 2009 at Travelodge Hotels around the country. This occupancy decline is in the face of a 16% decline in average room rates.

Wyndham Hotels Group

Wyndham  Hotel Group brands –Market Segment- Number Hotels

(March 2009)

U.S. Average Daily Rate and 12 month ADR rate change

(March 2009)

 

March 2008 Average Daily Rate

Average Occupancy rate for Q1 2009

Average Occupancy rate for

Q1 2008

Wyndham Hotels and Resorts

Upscale

82 Hotels

 

$124.60

(+6.9%)

$116.61

51.6%

(-9.2)

61.8%

 

Hawthorn Suites

Extended Stay

90 Hotels

 

$89.93

No data (brand acquired from Hyatt in 2008)

50.6%

No data (brand acquired from Hyatt in 2008)

Wingate Inn

Midscale

166 Hotels

 

$85.17

(-7.3%)

$91.84

50.7%

(-7.4)

 

58.1%

 

Ramada

Midscale

885 Hotels

$74.44

(-6.6%)

$79.69

44.0%

(-6.1)

50.1%

 

Days Inn

Economy

1,851 hotels

$59.30

(-4.3%)

$61.99

41.4%

(-4.5)

45.9%

 

Super 8

Economy

2,105 Hotels

$54.67

(-3.7%)

$56.78

43.6%

(-4.9)

48.5%

 

Baymont Inn

Midscale

225 Hotels

 

$61.63

(-6.1%)

$65.66

43.8%

(-2.2)

46.0%

 

Howard Johnson

Midscale

475 Hotels

$60.02

(-4.9%)

$63.11

39.9%

(-3.9)

43.8%

 

Travelodge

Economy

471 Hotels

$57.07

(-15.7%)

$67.68

39.6%

(-5.6)

45.2%

 

Microtel Inn

Economy

313 Hotels

$55.96

No data

45.5%

No data

Knights Inn

Economy

309 Hotels

 

$41.08

(+0.5%)

$40.88

36.1%

(-1.8)

37.9%

 

Wyndham Hotels Group 2009 Q1 Financial Report

Small changes in average daily rate of $3 to $5 per night equate to a 5% to 8% rate drop for these economy and midscale chains in Wyndham Hotels Group. These year over year rate declines are on par with rate declines in Marriott and IHG chains. Starwood with its focus on upper upscale hotel market segment the room rate declines have been proportionately higher across the hotel chain.

Wyndham Hotels and Resorts actually saw an average daily rate increase from March 2008 to March 2009 and bucked the trend for the other hotel chains. Starwood, Marriott, and IHG all had the greatest percentage average room rate decline in its highest market segment brands. The Starwood Hotels brands of St. Regis/Luxury Collection (down 12% in US and over 25% internationally), W Hotels (about 19% globally), and Le Meridien (about 20% globally) showed double digit declines for average room rate. Marriott Hotels was down about 9% while its Ritz-Carlton luxury brand dropped room rates an average 10%. IHG held its rate average fairly well over the year compared to Starwood and Marriott.

Marriott Hotels

Marriott International

Hotel Brands,

Market Segment, and Number

(March 2009)

U.S. Average Daily Rate and 12 month rate rate change

(March 2009)

 

US Hotels Average Occupancy and year-to-year rate change

(March 2009)

Ritz-Carlton

Luxury

74

$337.03

(-10.4%)

57.0%

(-13.1)

J.W. Marriott

Luxury

43

(in Marriott Hotels data)

(in Marriott Hotels data)

Marriott Hotels

Upper upscale

480 Hotels

$154.31

(-8.2%)

59.7%

(-5.9)

Renaissance Hotels

Upper upscale

142

$153.75

(-5.0%)

60.5%

(-6.0)

Courtyard by Marriott

Upscale

821

$117.05

(-8.9%)

59.1%

(-5.8)

 

Residence Inn

Extended Stay

574

$119.02

(-6.3%)

66.7%

(-5.4)

SpringHill Suites

Midscale

218

$105.24

(-5.8%)

59.2%

(-5.9)

 

TownePlace Suites

Extended Stay

166

$87.61

(-4.3%)

58.6%

(-7.1)

Fairfield Inn

Midscale

583

$87.12

(-5.9%)

56.5%

(-5.8)

Marriott Vacation Club

Timeshare villas

50

No data

No data

Marriott Conference Centers

Upscale

11

No data

No data

Marriott Executive Apartments

Upscale

21

No data

No data

Bulgari Hotels

Luxury

2

No data

No data

http://investor.shareholder.com/mar/releasedetail.cfm?ReleaseID=379246

Marriott International Average Daily Rates by Brand and Region – March 2009

Marriott Hotels International

Average Daily Rate

by Region for all brands

and year-to-year rate change

(March 2009)

 

Marriott Hotels International

Average Occupancy

by region and year-to-year decline

(March 2009)

USA/Canada

$129.44

(-7.9%)

60.2%

(-6.0)

Caribbean / Latin America

$188.32

(-4.7%)

63.6%

(-7.0)

Asia/Pacific

$142.15

(-6.1%)

59.0

(-9.2)

Continental Europe $161.87

(-4.7%)

52.1%

(-8.8)

UK

$129.13

(-6.9%)

61.5%

(-6.0)

Middle East / Africa

$155.41

(+2.5%)

66.5%

(-9.7)

 

InterContinental Hotels Group US Hotels Average Daily Rates by Brand – March 2009

InterContinental Hotels Group IHG Brands

Number of Hotels (3-09)

4,202 hotels

Market Segment

U.S. Average Daily Rate and 12 month ADR rate change

(March 2009)

 

U.S. Average Occupancy Rate and 12 month rate change

(March 2009)

 

InterContinental Hotels

158

Upper Upscale to Luxury

$161.40

(-5.0%)

60.2%

(-8.0%)

Hotel Indigo

25

Upscale

$112.13

(-11.2%)

51.3%

(-0.1%)

Crowne Plaza

349

Upscale to Upper Upscale

$105.40

(-4.9%)

52.9%

(-6.3%)

Staybridge Suites

157

Extended Stay

$101.66

(-3.4%)

61.7%

(-6.6%)

Holiday Inn Express

1,958

Midscale

$94.40

(-2.4%)

55.3%

(-5.7%)

Holiday Inn

1,342

Midscale to Upscale

$92.15

(-3.9%)

50.9%

(-6.5%)

Candlewood Suites

213

Extended Stay

$69.62

(-4.0%)

61.8%

(-4.6%)

 

http://www.ihgplc.com/files/results/results09Q1/downloads/slides09Q1.pdf

 

 

 

InterContinental Hotels Group IHG Brands

Europe-Middle East-Africa International

Average Daily Rate

(March 2009)

 

Europe-Middle East-Africa Occupancy Rate and 12 month rate change

(March 2009)

 

 

Asia Pacific

Average Daily Rate

(March 2009)

 

Asia Pacific

Occupancy Rate and 12 month rate change

(March 2009)

 

InterContinental Hotels

$223.91

(+2.5%)

55.3%

(-7.8%)

$171.13

(-8.9%)

57.3%

(-7.4%)

Crowne Plaza

$149.85

(-6.6%)

58.3%

(-3.9%)

$106.04

(-6.6%)

62.7%

(-4.3%)

Holiday Inn

$110.78

(-4.6%)

56.8%

(-4.8%)

$82.81

(-5.2%)

59.4%

(-8.5%)

Holiday Inn Express

$87.88

(-4.7%)

60.6%

(-4.8%)

$48.90

(-12.7%)

54.9%

(+2.2%)

Hotel Room Occupancy dropped globally in 2009. There are no upsides to the occupancy numbers for hotels. From the USA and Americas and other regions of Europe, Africa/Middle East, and Asia/Pacific the hotel guest numbers have dropped from 5% to 10% in all areas across all hotel brands. Ritz-Carlton in the Americas suffered a 13% drop in occupancy over the year.

The upside for the frequent guest is the ability to secure a good upgrade at low cost or even complimentary.

First quarter 2009 numbers are data compiled in February and March this year just as the stock markets were taking massive hits in value losses. 

The major hotel chains went all out trying to stimulate loyalty promotion activity over the past few months. Rates continued to drop according to Smith Travel Research weekly data and occupancy also declined. The Q2 data should continue to paint a picture of lower rates for consumers. Unfortunately, my observation has been the lower revenue going into hotels has had the impact of fewer hotel staff working to handle customer needs.

Choice Hotels International US domestic data

Choice Hotels International brands

Market Segment- Number Hotels

(March 2009)

U.S. Average Daily Rate and 12 month ADR rate change

(March 2009)

 

March 2008 Average Daily Rate

Average Occupancy rate for Q1 2009

Average Occupancy rate for

Q1 2008

Comfort Suites

Midscale w/o F&B

560

$84.48

(-1.8%)

 

 

$86.06

47.1%

(-6.9)

54.0%

Clarion

Midscale with F&B

155 (US)

 

$74.03

(-7.2%)

$79.75

37.0%

(-4.4)

41.4%

Comfort Inn

Midscale w/o F&B

1,452 (US only)

 

$73.96

(+0.4%)

$73.70

45.9%

(-4.6)

50.5%

MainStay Suites

Extended Stay

37

$71.08

(+3.0%)

$69.02

50.5%

(-7.7)

58.2%

Sleep Inn

Midscale w/o F&B

366 hotels

$67.49

(-0.3%)

$67.66

44.9

(-5.3)

50.2%

Quality Inn

Midscale with F&B

926 (US)

 

$64.73

(-2.5%)

 

$66.36

39.1%

(-4.2)

43.3%

Econolodge

Economy

821

$51.65

(+1.4%)

$50.93

37.1%

(-1.4)

38.5%

Rodeway Inn

Economy

352

$49.60

(+0.2%)

$49.52

37.0%

(-3.9)

40.9%

Suburban

Extended Stay

64

$42.60

(+3.8%)

$41.05

52.0%

(-7.3)

59.3%

Ascend Collection

Upscale

21

No data

No data

No data

No data

Cambria Suites

Upscale

13

No data

No data

No data

No data

 

Choice Hotels bucks the prevalent trend of declining room rates from March 2008 to March 2009 with Average Daily Rate year-over-year increases for five of the nine brands with data. These brands must be managed by Cornell CHR grads. All brands still had occupancy declines.

What I find interesting about Choice Hotels is the greatest average daily rate increases were in the extended stay brands of MainStay Suites and Suburban. These two brands also had the greatest decrease in occupancy.

Concluding thoughts:

The industry is crying over the downturn in the economy and the numbers clearly reflect a significant downturn in average daily room rates and hotel guests between March 2008 and March 2009.

My sentiment is the hotel industry was skipping and laughing all the way to the bank when room rates were increasing by double-digit amounts in some locations from 2003 to 2007; well above the historical average room rate increase of the past few decades.

As a leisure traveler I was motivated to start Loyalty Traveler as an informational resource to help people needing to find a way to get major urban hotels at a discount price.

Rates are dropping in 2009, but don’t cry to me about Argentina. I paid $165 a night for the Sheraton Libertador, Buenos Aires in 2007 and that was one of the cheapest options I found for the major hotel chains. And that was $100 per night cheaper than the average rate at the chain hotels in Washington, D.C. where I ended up using Priceline to get a room for just over $100 before flying to Buenos Aires. Moscow had average rates over $400 per night two years ago. Paris and New York had astronomical hotel rates in 2008.

All you hoteliers had me worried in 2007 that the leisure traveler would be completely priced out of the upscale hotel market. Well, now the economy has forced hotels to bring prices back to earth in 2009.

The numbers show there is a need for retrenchment on the side of the hotel industry. Times are tough as a manager and as an employee hoping to retain a job. 

My gut feeling, based on my labor economics background,  is hotels will need to let prices fall a bit more in 2009 and 2010. Cornell’s Center for Hospitality Research may be barking “Steady as You Go” to hold rates higher in spite of the global economic recession, however, as the voice of the reasoned and seasoned traveler, I have to shout back “Enough is enough.” The new economic mantra has to become “sustainable rates for a traveling public”.

Are there really enough people with sufficient spare capital to pay $400 per night for a W Hotel or InterContinental Hotel stay? If so, then hotel chains need to start building some multi-thousand capsule bedrooms at 100 square feet for the masses who want to visit Paris, New York, or Miami during their lifetime.

Did you really think 10+ percent rate increases were sustainable? How many people make 10% raises per year?  Hotels quickly priced out a large portion of the traveling population in just a couple of years.

The data I have compiled is a reality check. There are still some high average daily rates in several market segments that I do not see as sustainable in the long run for travelers. Business has cut back significantly leading to a drop in the upper high-end rates typically commanded during conferences and peak holiday seasons. I still think there is room on the low-end of upscale hotels for reducing rates more for leisure travelers.

The Economy Hotel market segment is where I predict the real damage will be felt this year and into 2010.  Economy hotel prices are already low in most market segments, yet the occupancy rate is still plummeting despite average rates under $50 per night in many locations.

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