The May acquisition of La Quinta continues to bolster Wyndham Hotels & Resorts. The hotel company's revenue grew from $312 million in the fourth quarter of 2017 to $527 million in the fourth quarter of 2018. La Quinta was responsible for $198 million of that $215 million in incremental growth.
La Quinta's share growth excites Wyndham CEO Geoff Ballotti, and the brand's revenue per available room has picked up compared with competitors, he said. Wyndham's systemwide RevPAR increased 8 percent year over year in the fourth quarter to $37.54. However, U.S. RevPAR jumped 13 percent to $41.28.
Ballotti said Wyndham plans new prototypes for many midscale and economy brands, having implemented one successfully at Super 8. The company already is working with franchisees to improve the sleep experience and adapt the overall standards for Days Inn. "A disciplined focus on developing new and refreshed design prototypes and standards is what we're focused on in the years ahead for all of our brands," Ballotti said.
Wyndham lost about 20,100 U.S. economy rooms when it divested Knights Inn, but the La Quinta acquisition more than made up for it, adding 86,900 midscale and upper-midscale rooms in the U.S. La Quinta also accounts for 25,000 rooms in Wyndham's pipeline. Systemwide, Wyndham had 810,000 rooms across approximately 9,200 properties at the end of 2018, 11 percent more rooms than a year prior. The company's pipeline also grew, to 180,000 rooms across 1,400 hotels, a 21 percent increase in rooms. New construction accounts for 73 percent of Wyndham's pipeline.
Excluding the impact from 2018 acquisitions and divestitures, Wyndham's fourth-quarter revenue increased 6 percent, owing primarily to higher license and other fees. Wyndham's adjusted net income, $57 million, represented a 50 percent year-over-year increase.
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