Roadside Hotels Could Draw Investor Interest From a Biden Boost for Infrastructure
Skift Take
Building better roads and airports across the U.S. will help build hotel profits, but not everyone will see an infrastructure windfall. This is largely a boost to brands like Choice and Wyndham — already profitable and not facing the uncertain recovery hurdles that some competitors face with business travel.
Early Check-In
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Most of the world’s major hotel companies reported first quarter earnings over the last two weeks, and executives largely focused on expected record levels of summer leisure travel.
But the CEOs of the only two companies to post a profit — Wyndham and Choice Hotels — also focused their rosy outlook on another potential growth driver: U.S. President Joe Biden’s $2 trillion infrastructure package.
“We're really excited,” Wyndham CEO Geoff Ballotti said. “Whatever shape the country's infrastructure plans might take, our teams are working at trying to find new infrastructure accounts.”
Wyndham, with brands like Ramada and Days Inn, and Choice Hotels, with Comfort and Woodspring Suites, both have extensive portfolios of roadside hotels. More than 4,000 Choice Hotels properties in the U.S. are located within a mile of an interstate highway exit. These are the kind of hotels construction companies would likely book blocks of rooms for employees to stay while they work on re
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