Dive Brief:
- Wyndham Hotels & Resorts has expanded its Manufacturer Direct program to its U.S. Ramada and Microtel franchisees, allowing them to project manage all aspects of their renovations, including placing orders, handling installations and tracking timelines.
- Through the Manufacturer Direct program, Wyndham estimates franchisees can save an average of 20% or more in cost versus traditional renovation programs.
- Hundreds of Wyndham Days Inn hotels utilized the Manufacturer Direct program following its launch last year, resulting in millions of dollars in renovations — promising numbers for an industry rocked by pandemic-related supply chain challenges.
Dive Insight:
Following a wave of supply chain issues — including increased product and delivery costs and delayed shipping — felt by hotel owners across the board, Wyndham is expanding its Manufacturer Direct program to optimize renovation project timelines and savings for franchisees.
According to an American Hotel & Lodging Association study from December 2021, 86% of hotels surveyed said they experienced a moderate to significant impact on their operations because of supply chain disruptions. Research by Procure Hospitality shows that in mid-2021, average lead times for product delivery from China to Long Beach, California, were up by 10 to 14 days. Vessel capacity also was reduced, leading carriers to increase rates — with ocean rate costs rising from roughly $1,650 to $9,000 per container.
With Wyndham’s Manufacturer Direct program, Days Inn, Ramada and Microtel franchisees gain full line of sight into costs and lead times, as well as access to preapproved furniture, fixtures and equipment vendors.
David Kellam, vice president of design and construction at Wyndham, said by ordering everything directly through said vendors, franchisees are realizing “substantial” cost-savings — as much as $50,000 on a 90-room Days Inn “Dawn” renovation.
A full Dawn room package through Wyndham's Manufacturer Direct program costs approximately $2,400 per room for all furniture, fixtures and soft goods. The new Ramada Ruby package will cost franchisees about $2,600, and the Microtel Moda package will cost $2,800.
