Today, we will break down Wyndham Hotels, the world’s largest and most diverse hotel franchisor with more than 9,000 hotels across 20 brands in over 80 countries.   Wyndham is a brilliant example of a ubiquitous business that often goes unnoticed. In this breakdown, we’ll start by looking at just how vast Wyndham’s portfolio of hotels and brands is, how the Highway Act of 1956 played an important role in developing that scale, and explore the economics of hotel ownership, both from the franchisee and franchisor’s perspective.   Then we’ll dive into Wyndham’s growth algorithm, the factors that make the business resilient to external shocks, and the ways in which green programs are helping to drive higher cash-on-cash returns for franchisees.   To help break down Wyndham Hotels, host Patrick O’Shaughnessy is joined by Lauren Taylor Wolfe, co-founder and Managing Partner of Impactive Capital and a Wyndham shareholder. For the full show notes, transcript, and links to the best content to learn more, check out the episode page here. -----   Business Breakdowns is a property of Colossus, Inc. For more episodes of Business Breakdowns, visit joincolossus.com/episodes.   Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here.   Follow us on Twitter: @JoinColossus | @patrick_oshag | @jspujji | @zbfuss   Show Notes [00:02:48] - [First question] - What Wyndham is and the scope of their hotel franchise [00:04:17] - Defining what select-service hotels are compared to traditional ones  [00:04:49] - An overview of what the hotel business is and their important levers  [00:06:44] - Why Wyndham’s business model is so advantageous [00:09:22] - Franchisee expectations and the pros of franchising the brand  [00:12:22] - Whether or not Wyndham participates in loan and debt generation [00:13:36] - Overview of their award-winning loyalty program [00:17:36] - Customer acquisition for their loyalty program and how it drives spending [00:19:16] - Wyndham’s corporate history and how it affects them today [00:22:17] - Driving growth beyond their current real-estate footprint [00:24:30] - Possible positive or negative nonlinear events that could affect them [00:26:09] - Overview of the sales functions inside of their business [00:28:05] - Changes in hotel use trends as of late [00:30:05] - What hotel management means as a business [00:33:05] - Capital allocation and abundant free cash flow without much need for it [00:35:48] - Considering the ESG implications when evaluating the hotel industry [00:38:17] - Aspects of the business that make it both resilient and competitive [00:42:14] - Big variables that could cause Wyndham to fail [00:44:10] - What it is about Wyndham’s economic opportunity that is favorable for franchisees [00:46:19] - Unit economics and expenses at the individual hotel level [00:47:40] - Lessons learned about brand, investing in a brand, and identifying new brands to acquire [00:50:22] - What she’s learned most as an investor working with Wyndham [00:52:19] - Attractive opportunities Hilton could offer that Wyndham couldn’t [00:53:46] - What she’s learned about being a strong operator while working at Wyndham

Today, we will be breaking down SmileDirectClub, the oral care company known for its affordable clear aligner treatment. SmileDirectClub was founded in 2014 as a direct-to-consumer alternative to metal braces. It has since expanded to serve over 1 million customers in both the US and abroad.   To help break down the business, host Jesse Pujji is joined by current CFO Kyle Wailes.   In this breakdown, we discuss how SmileDirectClub differentiates itself relative to metal braces and clear aligner competitors like Invisalign. We touch on the company’s DTC roots, how they have expanded TAM in the oral care market, and what growth opportunities the business plans to pursue moving forward.   I’d highly recommend pairing this episode with our previous breakdown on Invisalign. It’s fun to contrast the two business models and their respective histories. There are so many fascinating details about the clear aligner industry.   I hope you enjoy this breakdown of SmileDirectClub.   For the full show notes, transcript, and links to the best content to learn more, check out the episode page here. -----   Business Breakdowns is a property of Colossus, Inc. For more episodes of Business Breakdowns, visit joincolossus.com/episodes.   Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here.   Follow us on Twitter: @JoinColossus | @patrick_oshag | @jspujji | @zbfuss   Show Notes [00:02:38] - [First question] - What is SmileDirectClub and their current scale [00:03:56] - Their economics and revenue over the past year [00:04:59] - What SmileDirectClub is from a consumer perspective  [00:07:19] - The core insight that lead to founding the company [00:08:55] - Early bets that paid off in the long run as they scaled [00:10:00] - Differences between clear liners and traditional braces [00:11:28] - Market size and cases that need servicing annually [00:13:21] - Invisalign; Direct to consumer model and unit economics   [00:15:57] - Customer acquisition funnel and diversified marketing approach  [00:20:17] - How shops became the major form of how they provide treatment [00:24:02] - Navigating the pandemic and reflections on 2020 [00:26:25] - Lessons learned and value unlock from a monthly subscription model [00:28:44] - Thoughts on the market size today and opportunity for the future [00:29:47] - Prioritizing international sales and market penetration [00:30:39] - Lessons learned from executing in international markets [00:31:42] - Competitors in this space and their vantage points [00:33:29] - How SmileDirect competes with Invisalign [00:34:55] - Their prior history with Invisalign and being an early investor [00:35:46] - How the market may play out in the next five to ten years [00:37:07] - What SmileDirect will have to get right to win over the next decade [00:40:10] - Why metallic solutions and braces have survived this long [00:42:44] - Their biggest risks over the coming decade that may threaten their growth [00:43:42] - Navigating legal risks and challenges faced with SmileDirect’s disruptive nature [00:45:39] - Lessons for builders when studying SmileDirect’s story [00:46:31] - Lessons for investors when studying SmileDirect’s story [00:47:07] - Resources for learning more; smiledirectclub.com