Trademark Collection Hotel vs Tempo by Hilton Franchise Comparison

Trademark Collection by Wyndham is the Company's fastest-growing brand, and experienced a 19% growth in rooms year-over-year as of December 31, 2019.  The growth comes at a time when soft brands have strong appeal for independent owners seeking the support of a branded partner as the travel industry prepares for recovery of domestic, leisure travel. With Trademark Collection, hoteliers gain access to Wyndham's 83 million Wyndham Rewards loyalty members and the company's global distribution network without having to sacrifice their properties' own unique branding and identities. As a leader in economy and midscale lodging, Wyndham is uniquely positioned to champion hoteliers in these segments, helping them compete in an ever-changing distribution environment with brand-backed support. With over 15,000 independent economy and midscale hotels in the U.S., converting independent hotels to Wyndham brands remains an important source of consistent rooms. Wyndham has a proven track record of growing net rooms during lodging cycle downturns, fueled by the strong value proposition across its portfolio of well-known brands. In the first quarter, Wyndham's conversion pipeline increased 8% globally year-over-year. 

The success of its owner base is critical to Wyndham's business, and the Company is taking an owner-first approach to endurance and recovery in the wake of COVID-19 crisis. Wyndham is assisting owners by suspending certain fees, providing payment relief and deferring property improvement plans for nonessential brand standards in an effort to reduce operating costs in the near term while the industry recovers. The Company also took efforts to secure government assistance for franchisees, partnering with industry organizations to advocate on their behalf while guiding them through available relief, like the CARES act.

Wyndham has also expanded its relationship with industry leader Ecolab on requiring consistent use of Ecolab's EPA-approved disinfectants in guestrooms and public spaces nationwide.

The total investment necessary to begin operation of a typical 100 room Trademark Collection hotel for a new construction project ranges from $8,087,199 to $12,854,531.

The total investment necessary to begin operation of a typical 100 room Trademark Collection hotel if you already own a facility ranges from $198,558 to $4,409,581. Land acquisition costs are not included in these ranges. The above amounts include a range of $43,400 to $74,725 that must be paid to the Franchisor or its affiliate(s).

Hilton expects the first Tempo property to open in 2021 and is looking to target mainly urban and surban (areas just outside a major city that still offer a range of urban amenities) markets.Hilton has long championed the efficiencies of multi-brand properties, and Tempo by Hilton will pursue those opportunities when they are a good fit for a particular destination. Currently, there’s neither a set cost per key nor a minimum/maximum on room counts. The numbers will be market dependent, although the company anticipates 150 keys on average and is positioning Tempo to compete at roughly a 15 percent higher average daily rate than a Hilton Garden Inn in the same market.