WEBVTT - Wyndham CEO on Expanding Extended Stay Business 0:00:02.400 --> 0:00:06.800 Bloomberg Audio Studios, Podcasts, radio news. 0:00:07.120 --> 0:00:10.960 This is Bloomberg Business Week with Carol Messer and Tim 0:00:11.000 --> 0:00:26.640 Steneveek on Bloomberg Radio. Just well, Wyndham Hotels and Resorts 0:00:26.680 --> 0:00:31.760 is some twenty five brands, ninety five countries, ninety one 0:00:31.800 --> 0:00:35.680 hundred plus hotels, and it just opened up the Echo 0:00:35.920 --> 0:00:40.400 Suits Extended Stay by Wyndham Dallas in Plano, Frisco, Texas. 0:00:40.440 --> 0:00:42.920 It's the second extended to say Echo property to open 0:00:43.040 --> 0:00:43.600 in the US. 0:00:43.720 --> 0:00:45.680 Yeah, here to talk about it and the hotel business 0:00:45.680 --> 0:00:48.239 and really what's up with leisure and business travelers. It's 0:00:48.240 --> 0:00:50.640 a great read on the economy. Is the president's CEO 0:00:50.640 --> 0:00:53.920 of Wyndham Hotels and Resorts, Jeff Blatti. He joins us 0:00:53.960 --> 0:00:57.040 from Plano, Texas. Jeff, great to have you here. We 0:00:57.120 --> 0:00:58.520 have kind of a million questions. 0:00:58.600 --> 0:01:01.080 I think he's in one of the rooms. Play is 0:01:01.080 --> 0:01:01.800 that true, Jeff? 0:01:01.880 --> 0:01:06.200 I am. I left here last night. It was it 0:01:06.240 --> 0:01:09.280 was a great sleep. Is for your viewers watching on 0:01:09.360 --> 0:01:13.479 YouTube who could see this beautifulum This is the first 0:01:13.480 --> 0:01:16.440 hotel that a developer of the name of Ian McClure 0:01:16.480 --> 0:01:19.199 of Gulf Coast Hospitality based here in Texas. 0:01:19.560 --> 0:01:21.200 Texas, a very important state for us. 0:01:21.959 --> 0:01:25.440 He's building twenty five of these echo suites by window. 0:01:25.520 --> 0:01:26.360 The demand for. 0:01:26.360 --> 0:01:29.200 This type of product's incredible. It's it's a very comfortable room. 0:01:29.240 --> 0:01:32.240 If you could, if you can see around, I won't 0:01:32.240 --> 0:01:34.760 give you a tour of my other unmade bed on 0:01:34.800 --> 0:01:36.040 the other side. 0:01:36.800 --> 0:01:40.600 Yeah, it's it was a great event we had yesterday, 0:01:40.640 --> 0:01:43.800 and it's it's our fastest growing brand because of the demand. 0:01:43.480 --> 0:01:44.000 That's out there. 0:01:44.200 --> 0:01:46.240 Well, tell us about that, why it is your fastest 0:01:46.240 --> 0:01:48.880 growing and what is the demand specifically? Who wants to 0:01:48.920 --> 0:01:51.240 stay there? Who's demanding like, hey, we need these kind 0:01:51.240 --> 0:01:51.760 of places. 0:01:53.120 --> 0:01:53.480 Gosh. 0:01:53.880 --> 0:01:58.880 Last month, I was sleeping up out in Spartanburg, South Carolina, 0:01:58.920 --> 0:02:03.760 where Spartanburg has received a billion of the nine billion 0:02:03.800 --> 0:02:07.320 that that state, that single state has been awarded of 0:02:07.360 --> 0:02:10.960 this want so far, of this one point five trillion 0:02:11.080 --> 0:02:15.680 dollar piece of legislation, the most historic piece of legislation 0:02:15.760 --> 0:02:19.160 this country's ever seen. There are one point eight million 0:02:19.240 --> 0:02:23.880 companies that are contracting their workers for projects that are 0:02:23.960 --> 0:02:28.520 now just beginning to get started, and they're looking for 0:02:28.560 --> 0:02:33.839 this type of affordable, a clean economy accommodation to put 0:02:33.880 --> 0:02:34.120 them in. 0:02:34.200 --> 0:02:37.040 I mean here in Plano, perfect example. There is so 0:02:37.360 --> 0:02:38.760 much development. 0:02:38.639 --> 0:02:42.520 Going on around the community here that I'm in today 0:02:42.919 --> 0:02:45.600 and that i'll be this evening with developers looking to 0:02:45.639 --> 0:02:49.720 build more of these in other brands, from a medical profession, 0:02:49.800 --> 0:02:56.240 from the automotive profession, and a litany of projects that 0:02:56.480 --> 0:03:01.119 haven't yet begun that are going to begin. Zoon and 0:03:01.919 --> 0:03:05.880 companies are out contracting right now for lodging accommodations like this. 0:03:06.040 --> 0:03:09.040 It's it really is. It's it's an amazing I've been 0:03:09.040 --> 0:03:11.200 in this industry for thirty years. I've never seen anything 0:03:11.240 --> 0:03:11.880 quite like it. 0:03:11.880 --> 0:03:14.120 It's really fascinating. I'm just kind of going back to 0:03:14.160 --> 0:03:16.200 what you kind of kicked off with. So you're talking 0:03:16.200 --> 0:03:20.200 about the spending bills and the legislation that's come out 0:03:20.240 --> 0:03:23.000 of the US Congress, and that is really shaping kind 0:03:23.040 --> 0:03:25.880 of where you develop exactly. 0:03:25.919 --> 0:03:30.399 I mean, our teams have identified about four thousand of 0:03:30.440 --> 0:03:35.320 the forty thousand projects that will be funded by the 0:03:35.480 --> 0:03:38.960 one point five trillion dollar bill and the two hundred 0:03:38.960 --> 0:03:41.200 and fifty billion dollar Chips. 0:03:40.920 --> 0:03:43.920 Act bill, those Chip Acts built. 0:03:43.960 --> 0:03:49.080 That bill has has begun funding projects in here in 0:03:49.160 --> 0:03:51.640 Texas as well. We have this this is our six 0:03:51.800 --> 0:03:55.640 hundred and ninety first hotel that we've opened as a 0:03:55.680 --> 0:04:01.720 company yesterday. But in Taylor Tech this Samsung is building 0:04:01.720 --> 0:04:05.600 a plant where they will a chip plant where they 0:04:05.640 --> 0:04:10.640 will spend seventeen billion dollars over the next ten years. 0:04:11.320 --> 0:04:14.800 And they have thousands of workers right now who are 0:04:14.840 --> 0:04:20.359 looking for long term lodging accommodation. They're checking in for five, six, 0:04:20.480 --> 0:04:22.080 seven months, some are checking in for. 0:04:22.120 --> 0:04:22.760 Over a year. 0:04:23.120 --> 0:04:27.000 Many are from other parts of Texas and driving home 0:04:27.000 --> 0:04:27.719 on the weekends. 0:04:28.240 --> 0:04:29.240 But they want a. 0:04:29.200 --> 0:04:32.359 Place that they can that they could cook. As you 0:04:32.400 --> 0:04:36.320 see behind me, the two soaptops put their dishes in 0:04:36.400 --> 0:04:41.080 a full sized dishwasher, having full sized refrigerator and in 0:04:41.120 --> 0:04:44.000 a great microwave. They want a place that feels like home. 0:04:44.120 --> 0:04:47.719 And and that's what's that's what's fuel and Carroll demand. 0:04:48.400 --> 0:04:50.680 You know, what does it feel like? Waterville, Maine, Jeff, 0:04:50.960 --> 0:04:55.280 which is I'm just now learning where you and I 0:04:55.360 --> 0:04:59.080 both went to college, a small school called Colby, where 0:04:59.080 --> 0:05:04.919 we found ourselves freezing pretty much November through April every year, 0:05:05.720 --> 0:05:08.400 hold up in our dorm rooms playing beer pong because 0:05:08.400 --> 0:05:14.120 it was so cold. And main it's main, I know, Tim. 0:05:14.040 --> 0:05:16.599 I don't know if you've been back to Waterville lately, 0:05:16.680 --> 0:05:20.040 but it has been transformed. The development that's going on 0:05:20.440 --> 0:05:23.280 in downtown Waterville is really impressive to see, and I 0:05:23.360 --> 0:05:25.800 was thinking to myself, it's fine, I'm smiling so lively 0:05:26.160 --> 0:05:29.480 that Waterville needs an echo. Sweet's extended stay by Windham 0:05:29.520 --> 0:05:32.800 because we would kill it in that market, as you know, 0:05:32.960 --> 0:05:35.760 with parents who did not have the logic accommodation, so 0:05:35.920 --> 0:05:38.919 when we were there that are available today. 0:05:39.320 --> 0:05:40.479 On the new construction round. 0:05:40.680 --> 0:05:43.080 Yeah, just so everybody knows. It's an old mill town that, 0:05:43.800 --> 0:05:45.719 like many mill towns in New England, had fallen on 0:05:45.760 --> 0:05:48.480 hard times years ago. The college and the hospital, at 0:05:48.520 --> 0:05:50.280 least when I was there in Waterville, main were the 0:05:50.279 --> 0:05:53.760 biggest employers and you can see it. But since I've 0:05:53.800 --> 0:05:57.279 been there, I graduated close to twenty years ago, and 0:05:57.760 --> 0:06:00.479 there has been incredible development in the area, really a 0:06:00.480 --> 0:06:02.840 revitalization of downtown, which makes sense to. 0:06:03.120 --> 0:06:05.880 Yourself, you're laughing, Wait, how many years ago did you graduate? 0:06:05.960 --> 0:06:08.880 Or can I not even aunk that I want to. 0:06:08.880 --> 0:06:10.240 I think I'm older than we were. 0:06:10.640 --> 0:06:13.440 We weren't pumping the kegs together, we. 0:06:13.279 --> 0:06:13.640 Were not. 0:06:15.640 --> 0:06:19.440 All right, So I'm curious though, so exciting growth development. 0:06:19.520 --> 0:06:22.120 But what happens I don't know when the money kind 0:06:22.120 --> 0:06:25.240 of runs out in terms of the development from like legislation. 0:06:25.320 --> 0:06:28.200 Do you worry about that you won't have the people 0:06:28.200 --> 0:06:30.960 who will be demanding these kind of rooms in Plano, 0:06:31.000 --> 0:06:32.560 Texas or elsewhere throughout. 0:06:32.240 --> 0:06:35.800 The state that Carol, that is a long time away. 0:06:36.120 --> 0:06:39.400 I mean we are in the very early endings less 0:06:39.440 --> 0:06:42.400 than twenty percent. I think the figure from the COB 0:06:42.600 --> 0:06:45.680 is less than seventeen percent of the one point five 0:06:45.800 --> 0:06:49.960 trillion has been allocated, and even a smaller percentage of 0:06:50.000 --> 0:06:53.080 that has been spent in terms of shovels on the ground. 0:06:53.320 --> 0:06:56.359 The projects that you and Tim are probably hearing about 0:06:56.400 --> 0:06:58.880 and reading about, I mean you think about big projects 0:06:58.920 --> 0:07:01.760 in the New York area like the Hudson Top, those 0:07:01.839 --> 0:07:06.000 projects are so far out there. This is certainly helping 0:07:06.160 --> 0:07:09.960 us from a demand standpoint, demand generation standpoint. I mentioned 0:07:10.000 --> 0:07:13.080 that we've identified four thousand of those forty thousand projects 0:07:13.120 --> 0:07:15.360 so far, and maybe there'll be thousands more. 0:07:15.280 --> 0:07:18.400 That will be funded, but that is that is a 0:07:18.440 --> 0:07:21.760 long long way away. I'm not thinking that far out. 0:07:21.800 --> 0:07:24.920 It's at least ten years, and who knows in ten 0:07:25.000 --> 0:07:29.200 years what's to come in terms of new projects that 0:07:29.320 --> 0:07:33.440 could be could be funded. There is again just such 0:07:33.480 --> 0:07:36.760 a lack of demand for this, for this type of 0:07:36.800 --> 0:07:40.480 extended to day lodging product. And that's what has our 0:07:40.520 --> 0:07:44.240 two hundred and seventy developers who have signed contracts and 0:07:44.280 --> 0:07:48.240 been warted territories to build this type of lodging so excited. 0:07:48.400 --> 0:07:51.280 So you don't ever say the word right now recession 0:07:51.600 --> 0:07:53.320 based on what you're seeing. Is that fair? 0:07:54.560 --> 0:07:54.800 Well? 0:07:55.040 --> 0:08:01.320 Look, I mean, our brands have always outperformed anydownturn they 0:08:01.360 --> 0:08:05.000 did after nine to eleven. They certainly did during the 0:08:05.280 --> 0:08:09.760 eight and nine Great Financial Crisis, and there was no 0:08:09.880 --> 0:08:14.120 better outperformance in the industry than the economy and mid 0:08:14.160 --> 0:08:18.440 scale lodging brands of Wyndham hotels and resorts throughout Covid. 0:08:18.520 --> 0:08:22.080 Our brands were the very first to recover. Our brands 0:08:22.120 --> 0:08:23.400 are known as. 0:08:23.520 --> 0:08:28.680 Days In by Windom, Super eight by Windom, Lakita by Windom, 0:08:28.960 --> 0:08:32.920 very large systems of thousands of units in this country 0:08:32.960 --> 0:08:37.560 that have great brand recognition, where franchisees never had to 0:08:37.679 --> 0:08:41.560 close their hotels because they were able to break even 0:08:41.640 --> 0:08:43.239 at thirty percent occupancy. 0:08:43.600 --> 0:08:45.800 Where there while we're a leisure. 0:08:45.440 --> 0:08:48.600 Based company, and seventy percent of our business is relying 0:08:48.640 --> 0:08:51.440 on the leisure travel demand, which is still pointed still 0:08:51.440 --> 0:08:51.840 out there. 0:08:52.240 --> 0:08:54.240 That thirty percent that is non leisure. 0:08:54.440 --> 0:08:59.040 Is that essential everyday worker whose offices is not in 0:08:59.200 --> 0:09:02.680 downtown office building that's been closed as it was throughout COVID, 0:09:02.960 --> 0:09:07.280 but whose office is the front seat of their construction 0:09:07.400 --> 0:09:11.440 or utility vehicle, or is one of my traveling nurse 0:09:11.520 --> 0:09:15.400 daughters who who have to go to work that that 0:09:15.480 --> 0:09:18.280 are are traveling and need accommodation. 0:09:17.760 --> 0:09:18.280 During the week. 0:09:19.440 --> 0:09:24.280 So yeah, again, our brands have always outperformed right in 0:09:24.360 --> 0:09:28.920 economic downturms. We're not seeing our recession to your point 0:09:29.000 --> 0:09:32.559 right now, and we're feeling very confident about the about 0:09:32.559 --> 0:09:33.160 the year ahead. 0:09:33.640 --> 0:09:35.440 I think room Service is knocking on the door. I'm 0:09:35.440 --> 0:09:37.360 only kidding. We're going to take a break, do some news. 0:09:37.360 --> 0:09:39.479 Are we going to come back and continue the conversation. 0:09:39.760 --> 0:09:41.959 We're going to come back with president CEO of Wyndham 0:09:41.960 --> 0:09:44.320 Hotels and Resorts, Jeff Fialotti. We're talking with him. He 0:09:44.400 --> 0:09:46.920 is in Plano, Texas, which, as we just talked about, 0:09:46.960 --> 0:09:50.360 just opening up another Echo Suites extended stay. Uh they 0:09:50.400 --> 0:09:52.480 did that. I believe yesterday, So we'll continue because I 0:09:52.480 --> 0:09:54.640 want to get a little bit more too on curious 0:09:54.640 --> 0:09:56.280 about the leisure business, a little bit what it says 0:09:56.280 --> 0:09:58.000 about the consumer, and just talk a little bit more 0:09:58.000 --> 0:09:58.600 about their model. 0:09:58.679 --> 0:10:00.800 Yeah, and also remember there are those other brands, Hawthorne, 0:10:00.800 --> 0:10:03.760 the Missisi, so many, water Walk, the Upscale brand, so 0:10:04.120 --> 0:10:06.120 you know there's a lot of segmentation happening. I want 0:10:06.160 --> 0:10:08.679 to get right back to Jeff Belati, the president and 0:10:08.720 --> 0:10:12.200 CEO of Wyndham Hotels and Resorts. He joins us from Plano, Texas. Jeff, 0:10:12.480 --> 0:10:16.439 just remind everyone of Wyndhom Hotels and Resorts business model. 0:10:16.440 --> 0:10:20.079 Are you one hundred percent franchise owned and operated? 0:10:20.320 --> 0:10:20.640 I e. 0:10:20.960 --> 0:10:23.160 You guys actually don't own and operate any of the 0:10:23.240 --> 0:10:28.200 Windom resorts and hotels that that people see exactly. 0:10:27.800 --> 0:10:30.280 Tim, and that's what investors wanted to see when we 0:10:30.320 --> 0:10:33.000 went public five six years ago. They wanted to see 0:10:33.000 --> 0:10:35.560 a company that got out of the ownership game we 0:10:35.600 --> 0:10:37.720 had owned hotels at that point in time, out of 0:10:37.720 --> 0:10:39.440 the management game, which we have. We are a one 0:10:39.520 --> 0:10:43.920 hundred percent franchise company. We're the world's largest hotel franchise company. 0:10:44.000 --> 0:10:47.200 We franchise about six thousand hotels here in the United 0:10:47.200 --> 0:10:50.560 States and another three thousand, two hundred and ninety five 0:10:50.559 --> 0:10:51.559 countries around the world. 0:10:52.640 --> 0:10:55.559 So it's it's it's less risky, right. 0:10:56.520 --> 0:10:57.280 Oh, completely. 0:10:57.320 --> 0:11:01.400 You know, our business model is extremely as we were 0:11:01.440 --> 0:11:05.360 talking about, in periods of downturns, we've actually been able 0:11:05.400 --> 0:11:08.199 to even in periods we're revenue per available room might 0:11:08.840 --> 0:11:11.239 generate more earnings for investors. 0:11:11.280 --> 0:11:12.960 We have. We have many levers to pull. 0:11:14.880 --> 0:11:16.760 One thing I'm curious about, and the levers, like you 0:11:16.800 --> 0:11:19.000 have lots of different brands and you hit at different 0:11:19.160 --> 0:11:24.719 you know, economic individuals or families or consumers. So I 0:11:24.760 --> 0:11:26.560 am curious about. You know, I was looking at some 0:11:26.600 --> 0:11:29.720 of the bi research our our team does and it 0:11:29.760 --> 0:11:32.679 talked about your US room base, including a larger percentage 0:11:32.720 --> 0:11:35.640 of lower price economy hotels and other lodging companies. You 0:11:35.760 --> 0:11:40.160 did though by American American Inn and Lacinta la Quinta 0:11:40.200 --> 0:11:45.160 excuse me, and that he like he died. Sorry, sorry, 0:11:45.240 --> 0:11:48.080 You're right that that really helped boost your mid scale 0:11:48.080 --> 0:11:50.640 and upper mid scale presence UH and fee exposure. But 0:11:50.760 --> 0:11:53.480 I do wonder that you do have some exposure if 0:11:53.480 --> 0:11:59.000 there's a downturn an economic downturn. So you sound upbeat. 0:12:00.080 --> 0:12:03.080 We talked about that before, but there is some exposure 0:12:03.160 --> 0:12:07.360 right if especially the lower income consumer who continues to 0:12:07.400 --> 0:12:09.280 be squeezed, and we talk about that a lot here at. 0:12:09.200 --> 0:12:14.359 Bloomberg and your previous guest Amy talking about. 0:12:14.080 --> 0:12:16.160 The great prints from three great companies. 0:12:16.400 --> 0:12:18.600 I think one of the biggest missobers is that our 0:12:19.200 --> 0:12:20.880 guest is low income. 0:12:21.440 --> 0:12:23.960 It is squarely middle class. 0:12:24.320 --> 0:12:26.600 When you look at the demographics of our guests, and 0:12:26.640 --> 0:12:31.360 those middle class income Americans who are staying at Thank 0:12:31.400 --> 0:12:34.679 You American or Lakita or Days In or Super eight 0:12:35.280 --> 0:12:40.160 are feeling better about life today than they were, certainly 0:12:40.200 --> 0:12:43.640 in the middle of COVID or pre COVID levels, and 0:12:43.640 --> 0:12:47.760 in the consumer sentiment that we're seeing continues to improve. 0:12:48.160 --> 0:12:51.640 We look at many leading indicators in terms of how 0:12:51.679 --> 0:12:57.040 we believe the consumer is feeling. Booking windows continue to increase. 0:12:57.320 --> 0:13:00.760 People have reprioritized their vacations as to the very top 0:13:00.800 --> 0:13:04.760 of the list. They want to spend their disposable income 0:13:05.000 --> 0:13:11.120 on vacations more than on any other consumer spend we're seeing. 0:13:11.280 --> 0:13:15.600 We're seeing longer lengths of stay and certainly the ability 0:13:15.880 --> 0:13:19.120 for so many of our consumers to work remotely on 0:13:19.120 --> 0:13:23.360 a Monday and Friday is helping drive that trend. And 0:13:24.120 --> 0:13:27.360 we're seeing demand can continue to pick up after the 0:13:27.400 --> 0:13:30.600 normalization of that revenge travel that we all knew had 0:13:30.640 --> 0:13:31.359 to normalize. 0:13:31.360 --> 0:13:34.360 So we're seeing the. 0:13:34.320 --> 0:13:38.800 Start of we're not we're heading towards obviously Labor Day, 0:13:39.120 --> 0:13:41.319 but Memorial Day was very strong. It was up four 0:13:41.360 --> 0:13:44.520 percent versus last Memorial Day here in the United States. 0:13:45.760 --> 0:13:49.200 July fourth, Triple A reported was up eight percent versus 0:13:49.240 --> 0:13:53.920 where it was versus last July fourth, and we're expecting 0:13:54.280 --> 0:13:57.880 the same for Labor Day. So these middle income Americans 0:13:58.120 --> 0:14:01.960 want to travel. The number one preference for vacations in 0:14:02.000 --> 0:14:05.319 the United States of America is drive to, and ninety 0:14:05.400 --> 0:14:09.319 percent of our business is drived to. And these middle 0:14:09.360 --> 0:14:13.360 income travelers are with unemployment where it is, as we 0:14:13.400 --> 0:14:15.880 all know, more employed than they were, yeah, and most 0:14:16.120 --> 0:14:19.440 more savings in their bank accounts than they did pre COVID. 0:14:19.480 --> 0:14:22.560 So Jeff, help us understand, Help help us understand the 0:14:22.600 --> 0:14:26.200 segmentation because ECHO is for the you know, economy traveler, 0:14:26.240 --> 0:14:28.200 that's where where you are right. 0:14:28.040 --> 0:14:31.240 Now, and the economy business travel. 0:14:31.080 --> 0:14:35.080 Economy business travel. Okay, where really blue collar water Walk. 0:14:36.360 --> 0:14:39.720 Water Walk is upscale, more upscale, and then you have 0:14:39.720 --> 0:14:41.680 Hawthorn and mid scale. Give us sort of the price 0:14:41.720 --> 0:14:45.400 point for Echo versus water Walk, Yeah, I. 0:14:45.320 --> 0:14:49.600 Mean price points look obviously are determined by the. 0:14:49.520 --> 0:14:51.480 Markets and the location they're they're in. 0:14:51.680 --> 0:14:54.880 But the Hope guest room I'm in tonight, we'll be 0:14:54.960 --> 0:14:57.720 checking guests in at an eighty dollars price point that 0:14:57.800 --> 0:15:01.320 water Walk average daily right, it could be depending on 0:15:01.320 --> 0:15:04.480 the market double that. And sure we have but we 0:15:04.520 --> 0:15:10.440 have lots of aspirational windows Windom, Grands, Doulce. We have 0:15:10.720 --> 0:15:15.200 a new luxury brand, the Registry Collection, which which might 0:15:15.240 --> 0:15:18.160 have a three or four hundred dollars handle to its 0:15:18.200 --> 0:15:21.520 average daily rate. But but for the for that blue 0:15:21.520 --> 0:15:25.360 collar travelers who's staying at an Echo suites, uh, it 0:15:25.400 --> 0:15:27.680 is it is by and large often being paid for 0:15:27.800 --> 0:15:32.280 by their obviously their their employer. And and also the 0:15:32.600 --> 0:15:35.000 demand for this type of product is being driven by 0:15:35.080 --> 0:15:39.800 how much transient motion there is out there in our 0:15:39.880 --> 0:15:43.880 country for people looking for short term and meetium term 0:15:43.920 --> 0:15:45.760 and long term accommodations on. 0:15:45.760 --> 0:15:48.520 The relocation front, given al act of housing in this. 0:15:48.400 --> 0:15:50.360 Country, Hey, one thing I want to do what's cool 0:15:50.440 --> 0:15:53.640 is you guys are global your second quarter reb par, 0:15:53.760 --> 0:15:56.120 so we're talking about revenue per available rooms, so key 0:15:56.160 --> 0:15:59.240 when we're talking about anybody in the hospitality industry. Second 0:15:59.320 --> 0:16:01.360 quarter red par was flat for the US, down two 0:16:01.400 --> 0:16:05.360 percent for economy hotels up seven percent internationally, and you 0:16:05.400 --> 0:16:07.840 had a thirty seven percent gain in Latin American and 0:16:07.880 --> 0:16:11.360 fifteen percent in Europe and Middle East Africa. What can 0:16:11.400 --> 0:16:13.800 you tell us about kind of the global economy based 0:16:13.800 --> 0:16:15.000 on what you guys are seeing. 0:16:16.320 --> 0:16:19.720 The biggest trend for all of the lodging companies out 0:16:19.720 --> 0:16:22.720 there for the next quarter, the quarter ahead, in the 0:16:22.760 --> 0:16:25.440 year ahead is still there is a lot of occupancy 0:16:26.040 --> 0:16:31.000 still left to recover. The occupancy tailwind really around the world, 0:16:31.360 --> 0:16:35.080 with very few exceptions, country by country, still has room 0:16:35.120 --> 0:16:37.680 to grow. And so yes, international it was a big 0:16:37.760 --> 0:16:40.920 bright spot for US. Our international red park revenue per 0:16:40.920 --> 0:16:44.000 available room was up seven percent in the quarter versus 0:16:44.000 --> 0:16:47.600 the same time last year. And here where things normalized. Economy, 0:16:47.640 --> 0:16:50.479 as you pointed out, was down, but it was improving 0:16:50.640 --> 0:16:53.400 from where it was last year. Is things normalized, and 0:16:53.480 --> 0:16:56.720 it was up in some of the other segments. There's 0:16:56.800 --> 0:17:02.240 great pricing power out there, Carol, I always remind investors 0:17:02.240 --> 0:17:06.000 that that pricing still hasn't caught up in the lodging 0:17:06.040 --> 0:17:09.040 industry to inflation. I think inflation's up something like twenty 0:17:09.119 --> 0:17:12.960 three twenty four percent pre COVID days, and our average 0:17:13.040 --> 0:17:17.200 daily rate is up over only seventeen percent. Our hotels 0:17:17.280 --> 0:17:23.600 are operated by small, mom and pop business owners who 0:17:23.880 --> 0:17:27.040 feel very confident about holding on to that average rate 0:17:27.160 --> 0:17:27.680 the gain. 0:17:27.600 --> 0:17:30.000 During COVID and continuing. 0:17:29.720 --> 0:17:31.960 To improve it, but at the same time building the 0:17:32.080 --> 0:17:35.360 business base of business on the book with a business 0:17:35.359 --> 0:17:38.239 transient that allows them in periods of demand to price up. 0:17:38.480 --> 0:17:40.639 Jeff, great to check in with. You really appreciate it, 0:17:40.680 --> 0:17:44.280 Jeff Bilotti. He's the PRESIDENCYEO of Wyndhom Hotels and Resorts, 0:17:44.359 --> 0:17:45.520 joining us from Plano, tex As. 0:17:45.600 --> 0:17:45.879 Jeff B. 0:17:46.000 --> 0:17:48.680 Well, you're listening and watching Bloomberg Business Week.