WH Expands Super 8 Brand to Support Saudi Arabia's Tourism Growth

Wyndham Hotels & Resorts, Inc. WH has signed an exclusive development agreement with Le Park Concord Company to expand its Super 8 brand in Saudi Arabia. The company plans to open 100 hotels over the next 10 years as part of this agreement. This move reflects Wyndham's long-term focus on accessible and sustainable hospitality growth in the region.

The signing was supported by the Ministry of Tourism of Saudi Arabia. The agreement aligns with the Kingdom of Saudi Arabia’s Vision 2030 and aims to improve travel accessibility across the country.

WH Supports Saudi Arabia's Tourism Growth

As Saudi Arabia moves forward with Vision 2030, WH and Le Park Concord Company aim to address the growing need for affordable lodging. In 2024, the country recorded 30 million international visitors, a 9.5% rise from the previous year. The Ministry of Tourism expects this number to reach 150 million annually by the end of the decade.

The agreement will bring the Super 8 brand to Saudi Arabia. WH will focus on expanding affordable accommodation options across key cities and major highways. The move supports increasing demand from both business and leisure travelers.

The first Super 8 hotel is expected to open in 2026. Upcoming locations include Riyadh, Jeddah, Makkah, Madinah and Al Khobar. Most properties will follow modular construction methods and include eco-conscious features to support guest comfort and efficiency.

WH’s Focus on Expansion

Wyndham is focused on expanding its geographic footprint and product offerings across all segments by leveraging its diversified brand portfolio. This accretive aim of the company is backed by its disciplined capital allocation strategy, which encompasses investments in high-return businesses accompanied by strategic collaborations and buyouts.

During first-quarter 2025, the company opened more than 15,000 rooms globally, marking 13% year-over-year growth. As of March 31, 2025, WH had 907,200 rooms globally, up 4% from 876,300 rooms at the prior-year quarter end. The company remains on track to achieve net room growth of 3.6% to 4.6% in 2025.

As of March 31, 2025, WH’s global development pipeline consisted of nearly 2,140 hotels and approximately 254,000 rooms, showcasing a record high level and a 5% year-over-year increase. Among the total pipeline, about 58% is international.

Shares of this hotel franchisor from America have lost 20.8% in the past three months compared with the Zacks Hotels and Motels industry’s 15.3% decline. Although the stock has underperformed the industry, the ongoing expansion initiatives are likely to foster growth in the upcoming period.

WH’s Zacks Rank & Key Picks

Wyndham Hotels currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the Zacks Consumer Discretionary sector are Stride, Inc. LRN, Roblox Corporation RBLX and Universal Technical Institute, Inc. UTI.

Stride currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Stride delivered a trailing four-quarter negative earnings surprise of 94.7%, on average. The stock has increased 48.5% in the past year. The Zacks Consensus Estimate for Stride‘s fiscal 2025 sales and earnings per share (EPS) indicates growth of 16.7% and 51.2%, respectively, from year-ago levels.

Roblox carries a Zacks Rank #2 at present. The company delivered a trailing four-quarter earnings surprise of 16.6%, on average. The stock has gained 141.2% in the past year.

The Zacks Consensus Estimate for Roblox’s 2025 sales and EPS indicates growth of 22.5% and 2.1%, respectively, from the year-ago levels.

Universal Technical carries a Zacks Rank #2 at present. The company delivered a trailing four-quarter earnings surprise of 59.8%, on average. The stock has gained 115.4% in the past year.

The Zacks Consensus Estimate for Universal Technical’s fiscal 2025 sales and EPS indicates growth of 13.3% and 41.3%, respectively, from the year-ago levels.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research