Wyndham CEO Says Hotel Industry Seeing A Rebound As Occupancy Rates Climb

Overall, the U.S. hotel industry saw its worst year on record in 2020 as the pandemic pummeled the business. Data from STR reported all-time lows in occupancy and revenue per available room.

In the past two weeks, however, the industry booked its highest occupancy levels since the start of the coronavirus pandemic last March, said the CEO of Wyndham Hotels and Resorts, Geoff Ballotti. He told CNBC that people are again taking to travel as the spring begins and vaccination programs sweep the U.S.

“To see occupancy levels now back to 85 percent of where they were in 2019 is impressive,” said Ballotti. He added that the hotel industry is seeing a big increase in occupancy levels this month.

His hotel chain includes such brands as Ramada, Days Inn, AmericInn, Super 8 and Hawthorn Suites.

While the pandemic sank the industry, hotels are also facing competition from Airbnb and other home rental services. Ballotti said that Wyndham’s business has a solid customer base.

“We appeal to families who are out on the road and traveling, and we appeal to that everyday business traveler,” he said. Ballotti added that workers who book short-term lodgings generally don’t opt for vacation rentals. And stays at Wyndham hotels tend to be considerably shorter, averaging less than two nights.

The Wyndham CEO said he likes the idea of a digital vaccination credential.

“I think the industry certainly needs to develop a uniform digital health credential on testing,” Ballotti said on CNBC. “That could make travel easier, that could make travel safer.”

One big question as the pandemic eases: What will consumers do? While there is no one answer to that question, a lot of consumers are eager to return to many of their previous activities.

PYMNTS’ most recent survey shows 65 percent report that the thing they are most looking forward to is seeing their friends and family. In addition, 60 percent say they want to be able to travel within the U.S. again and 59 percent would like to participate in leisure activities like playing sports, seeing movies and attending concerts and other events.