After terminating 50,000 guestrooms last year because of quality issues, the new culture at Wyndham Hotel Group is all about clarity and loyalty.

New-construction hotels, like the Maritime Wyndham Tryp at Marina Bay Resort in Fort Lauderdale, Florida, are a big part of Wyndham Hotel Group's focus. (Photo rendering: Wyndham Hotel Group)

There's a new culture at Wyndham Hotel Group, as the company’s mantra has changed to "growth, but growth with quality."

That's being accomplished through a committed push to quality, according to Wyndham EVP and chief development officer Chip Ohlsson, who spoke to HNN during a break at the Asian American Hotel Owners Association conference in March.

"We're changing the culture at Wyndham," Ohlsson said. "We've rolled out a three-prong selling approach that centers around each brand's value propositions, our technology platform and Wyndham Rewards."

These changes all center around the idea of quality over quantity and speed, Ohlsson said.

"This year is our push to quality,” he said. “We terminated 50,000 guestrooms last year all because of quality. We want to elevate our portfolio."*

That means being stricter with brand standards and taking more time during the opening process to make sure franchises are represented well on all distribution and technology platforms, Ohlsson said.

Brands in focus

The brand is focusing in on some high-profile additions, as well as emphasizing certain brands that make sense in hot markets during this part of the cycle.

"Right now we're in a growth cycle that supports new construction, so we have a real focus on our Microtel and Wingate brands, and Wyndham Garden Inn," Ohlsson said.

The Wyndham family of brands, which includes the Wyndham Hotels and Resorts, Wyndham Grand and Wyndham Garden brands—as well as the brands that include "by Wyndham" in their titles such as Tryp, Wingate, Hawthorn Suites and Microtel—has been a particular focus for the company.

The company rolled its lifestyle Tryp by Wyndham brand into that family about a year and a half ago, and the result has been a product that is "a great vehicle for Wyndham Rewards guests," Ohlsson said.

The latest Tryp recently broke ground in Fort Lauderdale, Florida. The 150-room hotel will be part of the city’s Marina Mile district.

The company continues to sign new Wyndham properties, and Ohlsson said there are 10 new-construction Wyndham Garden hotels in the pipeline. The company also recently signed a deal for 10 Wingates in western Canada.

As for particular U.S. markets, Ohlsson said Wyndham has a brand for everywhere.

"We still see Texas as a very strong market. We're seeing a big uptick in New York state, and the Midwest has been strong as well," he said. "We understand the secondary and tertiary markets."

Investing in technology and loyalty

In March 2015, the company announced its plan to develop a cloud-based property-management system.

"We're going to be the first with a cloud-based PMS that will be companywide," Ohlsson said.

More than 300 Wyndham properties are currently rolled into the system, and Ohlsson said he expects 350 additional properties will convert each month.

"The properties under this have achieved a two-point revenue-per-available-room index increase so far, only 90 days in," he said.

In addition to technology investments, the company has made several key loyalty program changes.

Last year, the company changed its Wyndham Rewards loyalty program to eliminate tiers and create a simplified structure that rewards members with a free night for 15,000 points.

"The brilliance is in the simplicity," Ohlsson said. "Redemptions are up more than 70%. For every dollar spent, guests get 10 points across the board. Redemption comes at 15,000 points with no blackouts. For people to be able to go to Disney and stay at the Wyndham Bonnet Creek Resort over Christmas break is incredible. It's really resonating with customers."

Ohlsson rejoined Wyndham seven months ago (he previously worked for the company and its precursor, Cendant) after spending nine years with Starwood Hotels & Resorts Worldwide, most recently as EVP of North American development.

"I really learned the value of branding and the value proposition of brands," he said of his time withStarwood.

That extends to loyalty, Ohlsson said.

"We need to create that loyalty, that guest who wants to stay only at a Wyndham product,” Ohlsson said. “People now are loyal to loyalty programs. Back in the ‘80s and ‘90s, people became loyal to segments. Now thanks to the internet, those lines have blurred and people are loyal to a program."

Going simple with Wyndham Rewards has increased traction, he said.

"People are really reacting to it,” Ohlsson said. “Now we're trying to make them stay loyal to our program."

Correction, 13 April 2016: An earlier version of this story said Wyndham terminated 65,000 rooms due to quality issues, according to Chip Ohlsson. The company has updated that figure to 50,000.