The news of a possible deal between Choice Hotels International and Wyndham Hotels & Resorts sent a “shockwave” through the Asian American Hotel Owners Association.
In a podcast interview at the Americas Lodging Investment Summit, AAHOA President and CEO Laura Lee Blake said the hotel owners that her organization represents are worried about the impact the acquisition of Wyndham would have on their economy- and midscale-branded hotels.
“The thought that one franchisor would have such a dominant role in those segments raises some high concerns across the membership,” she said.
To get a better understanding of how AAHOA members were feeling, the association sent a survey to members who were owners of hotels affiliated with a Choice brand, Wyndham brand or both, Blake said. More than 1,000 owners responded.
On average, 70% of those three groups said they believed Choice buying Wyndham would have a negative impact on their business, she said. More than two-thirds said they were likely or very likely to not continue with their franchise — if that option were available — if the acquisition occurred.
Having such a dominant share of brands operating in the economy and midscale segments would leave few other options, Blake said. In some geographic locations, that may not even be available because those particular brands are already there.
“It really limits what our members could do and what the future looks like, so there’s high concerns as to what this means,” she said.
For more on the Choice and Wyndham deal, the New Jersey hotel franchise bill and AAHOA’s HYPE Ownership Initiative, listen to the podcast above.