In January 2011, Wyndham Worldwide Corp signed strategic agreements that gives the hotel chain exclusive rights to franchise and manage the Planet Hollywood, the Dream and the Night hotel brands globally.
Fill an important gap
The initiatives fill in a gap in the Wyndham hotel portfolio, which is composed mostly of economy and mid scale brands. All three new lifestyle brands are expected to attract an entirely new consumer base which demands more sophisticated hotels. The franchising of lifestyle hotels are a quick and relatively low cost way for Wyndham to gain penetration worldwide and further add value to its hotel portfolio.
Night and Day in prime destinations
As of 2011, Dream and Night hotel portfolio included the 216-room Dream New York, the 72-room urban Night Hotel in Manhattan, New York, the 195-room Dream Hotel Bangkok and the 151-room Dream Cochin in India. There are plans to open a Dream hotel in Florida, another one in New York and even Asia Pacific in the upcoming years.
Capitalising on the power of the Planet Hollywood brand
The popularity of the Planet Hollywood brand worldwide has led Wyndham to enter a master franchise agreement to develop Planet Hollywood hotels into a global brand. The partnership presents an opportunity for both Planet Hollywood and Wyndham, as the latter benefits from the strong appeal of movies, sports, celebrity and entertainment-based themes to boost its global expansion strategy with a recognised brand and Planet Hollywood gains a stronger foothold in the global hotel industry.
According to Wyndham, London is the first prime target for the global expansion of Planet Hollywood hotels. As of 2011, the Planet Hollywood brand is mostly associated to restaurants and a single hotel, the Planet Hollywood Resort & Casino in Las Vegas.
More value to Wyndham in future
Franchising agreements such as the ones signed in 2011, present an opportunity for Wyndham to continue to add value to its hotel offering with unique characteristics not currently offered by its luxury Wyndham Hotels and Resorts brand. This will help Wyndham to boost its luxury brand portfolio and grow away from an under performing US market.
The Planet Hollywood hotels brand is likely to be easily exported by Wyndham with much greater acceptance worldwide. This will not be an easy task, however, as Wyndham will face strong competition from hotels like Starwood and Hyatt and their ever growing international lifestyle hotel brands.