Trademark Collection Hotel vs Le Meridien 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).

Le Méridien, the Paris-born hotel brand currently represented by nearly 100 properties in more than 40 countries, was acquired by Starwood Hotels & Resorts Worldwide, Inc. (NYSE: HOT) in November 2005. With more than 80 of its properties located in Europe, Africa, the Middle East, and Asia-Pacific, Le Méridien provided a strong international complement to Starwood’s then primarily North American holdings at the time of purchase. Since then, Le Méridien has gone through a brand re-launch, which included a large scale hotels product consolidation as well as redefining its brand strategy. Through creation of the LM100 artist community, Le Méridien has transformed numerous guest touch points, thus bringing unique, interactive and curated experiences to its guests. Plans call for dynamic expansion of Le Méridien Hotels and Resorts , concentrating on markets in Asia-Pacific and the Americas.

The total investment necessary to begin operation of a newly-constructed Le Méridien hotel, excluding the cost of real estate and related costs (building permit, tap, and impact fees), ranges from $61,886,490 to $96,761,490 for a 250-guestroom hotel. This includes approximately $317,000 to
$399,000 that must be paid to the franchisor or an affiliate.