Factory Towns Are Quietly Lifting Wyndham’s Hotel Results

Wyndham Hotels & Resorts reported third-quarter U.S. revenue per available room up 6 percent, helped by industrial business travel. Texas, California and Florida, which together hold about a quarter of its U.S. rooms, rose 8 percent, while Iowa, Illinois and Ohio posted double-digit gains.

Globally the picture was flatter. Systemwide RevPAR rose 2 percent, with Europe, the Middle East and Africa up 2 percent and Canada up 7 percent. Greater China fell 10 percent, which the company attributed to softer demand, particularly in Tier 2 cities.

Net revenue was $410 million, up 7 percent, while net income fell 6 percent to $99 million. Wyndham now has more than 877,000 rooms worldwide, about 500,000 of them in the U.S., and its Wyndham Rewards program grew 10 percent to roughly 129 million members.

The development pipeline reached a record of more than 2,200 hotels and about 264,000 rooms, a figure that excludes rooms from Revo Hospitality Group, a European franchisee that declared insolvency earlier this year. Wyndham raised its full-year systemwide RevPAR growth outlook to 0.5 to 1 percent, up from flat to 1 percent.

Sources: Travel Weekly