Wyndham Hotels & Resorts has long been defined by its economy brands — Super 8, Days Inn, Microtel. But a deliberate portfolio overhaul is underway, and the numbers tell the story.

According to Skift, the company’s U.S. room count remained essentially flat year-over-year at 501,100. Yet beneath that headline figure, a systematic swap is taking place: lower-fee economy hotels are being replaced by higher-fee midscale properties.

CEO Geoff Ballotti outlined the strategy on the company’s second-quarter earnings call Thursday. ‘We’re very focused on replacing those lower quality, lower FeePAR [fee per available room] rooms with higher quality, higher FeePAR rooms,’ he said.

The shift is clear in the data. Economy rooms in the U.S. are down 3%, to 216,600, while midscale and above is up 2%. The net effect is a portfolio that generates higher fees per room without expanding overall supply.

For travelers, this means fewer budget options under the Wyndham umbrella and more midscale choices. The move reflects a broader industry trend toward maximizing revenue per room rather than sheer volume.

Wyndham’s strategy is a calculated bet that higher-quality properties will attract more profitable guests, even if it means losing some of the budget travelers that built the company’s reputation.