With the launch of Registry Collection Hotels, Wyndham Hotels & Resorts is dipping its toe into the luxury resort segment, but Brand Leader and Vice President of Operations Leo Danese said the company remains focused on its core guests who are more likely to stay at an economy to midscale hotel in a drive-to destination.
The company's 21st brand debuts with its flagship property — the 144-room Grand Residence Riviera Cancun, a Registry Collection Hotel, in Cancun, Mexico — which Danese said is emblematic in many ways.
"Luxury can be exclusive. This property is very inclusive ... a very family friendly resort. We didn't necessarily target that, but it plays very well into the Wyndham Rewards dynamic," he said.
"I'm already planning my next big trip, and I want it to be somewhere over the top. This property is [one] where you'd go for a once-in-a-lifetime experience. We want to be able to provide those redemption options for Wyndham Rewards members. ... We have a lot of families traveling midweek, earning points at a Super 8 or La Quinta, and to be able to redeem those points at a once-in-a-lifetime resort like this ... that's the guests we're going after."
While offering that option to guests, the new brand also presents a solution for owners of independent luxury resorts — many of which were hit hard by a demand collapse during the COVID-19 pandemic and now are looking for the support of a brand to rebound, he said.
"Six months ago, when we were ramping up the launch of the brand, we were having more conversations with luxury hotel owners than we ever have before — owners approaching us saying, 'Do you have a solution for us?'"
This was an opportunity for Wyndham to leverage up and pursue a chain scale it's not already in, Danese said.
"My job is to be very selective with what properties we bring into the portfolio," he said. "It will be very focused growth. It's a very opportunistic time in the luxury segment, to be able to partner with these owners as they come out of the pandemic and drive results for them with immediate opportunities to help them."
Wyndham President & CEO Geoff Ballotti said in a news release that "the creation of Registry Collection Hotels was a natural fit" for those owners seeking solutions.
"Registry Collection Hotels now fill an important space at the upper end of the Wyndham Hotels & Resorts portfolio, allowing us to very selectively provide support to independent hoteliers around the globe who meet the highest standards of luxury service and accommodations,” he said.
Danese said he expects Registry Collection could grow to between 20 and 25 hotels in the next five years, in top-tier leisure destinations in Latin America and the Caribbean, as well as Europe and North America.
"We do have some agreements in place," he said, noting that brand executives are in conversations with "lots of luxury, independent hotel owners," but "we want to be very selective with the hotels we bring into the collection."
One of the most important criteria is the relationship with owners, he said.
Royal Resorts, which owns and manages the brand's flagship hotel, already had a long-term relationship with Wyndham's vacation rental partner, Travel + Leisure, formerly Wyndham Destinations.
"It's been a special ownership group to partner with — exactly who you want to partner with when launching a brand," Danese said.
Kemil Rizk, president and CEO of Royal Resorts, said in the news release announcing the brand launch that the brand support Wyndham offers was a driving factor in the decision to carry the Registry Collection flag.
"What we value about Wyndham, in addition to their tremendous scale and distribution, is their appreciation for what makes Grand Residences Riviera Cancun unique and their passion for ensuring our individuality is never compromised," he said in the release. "The highly esteemed reputation of Wyndham makes us proud to be marking this milestone with them and we look forward to continuing to develop our brand alliance.”
Danese said flexibility is one of the appeals of the brand to owners of luxury, independent hotels.
"To appeal to these unique properties that have so much character behind them, we have to be more flexible on the brand standards side," he said.
"From a quality standpoint, the standards are extremely high. There's no flexibility on quality," he added, noting standards on things such as color schemes will be much more flexible.
"It's not going to be as specific as a Wyndham Grand," he said. "To not have to compromise on that individuality and personality, these owners see that as very important."
Danese said his job as brand leader will focus first on making sure the flagship Grand Residences Riviera Cancun is a "huge success story."
"I strongly believe in owner testimonials; that's what will help us grow the brand," he said. The second part of his job will be "talking to luxury hotel owners ... getting the word out that there is meaningful value we can provide."