Wyndham: Q4 RevPAR Slips Amid Choice 'Distraction'
Wyndham's U.S. RevPAR declined 4 percent in an environment of cooling leisure travel and the "distraction" of Choice Hotels International's hostile pursuit of the company. CEO Geoff Ballotti reiterated the Wyndham board's opposition to the bid in the company's...
Tekef
Wyndham Hotels & Resorts' fourth-quarter systemwide revenue per available room slipped year over year amid what president and CEO Geoff Ballotti on a Thursday earnings call termed the "distraction" of Choice Hotels International's hostile pursuit of the company.
Systemwide fourth-quarter RevPAR declined 1 percent year over year at constant-currency levels, and U.S. RevPAR declined 4 percent, Ballotti said, in part due to what he called a moderation of post-pandemic "revenge" leisure travel.
Still, Ballotti said Wyndham has seen a "double-digit increase" in the infrastructure bookings that make up the lion's share of the company's business travel bookings. He cited several projects made possible by U.S. federal infrastructure spending that Wyndham hopes to capitalize on, and he noted that the company has "increased our sales force that's selling to these infrastructure accounts by 25 percent."
Infrastructure-related travel bookings made up 22 percent of Wyndham's 2023 gross room revenues, according to a presentation for investors, with "logistics and other" chipping in another 5 percent and corporate transient accounting for 2 percent.
Ballotti again reiterated the Wyndham board's opposition to Choice's hostile bid for the company, citing "the inadequacy of the value of the offer," "the significant amount of Choice stock" in the offer and the possibility of federal regulatory review.
Q4 Metrics and Outlook
Wyndham's fourth-quarter global RevPAR decreased 1 percent year over year at constant currency to $38.90. U.S RevPAR declined 4 percent to $44.06. International RevPAR increased 7 percent to $32.12.
The company projected full-year 2024 systemwide RevPAR growth of 2 percent to 3 percent year over year.
Fourth-quarter net revenues were $321 million, compared with $334 million one year prior. Net income was $50 million, compared to $56 million in the fourth quarter of 2022.
Wyndham's total room count at the end of 2023 was 871,800 rooms, up about 3.5 percent from one year prior, with U.S. rooms up about 0.8. to 497,600. Ballotti highlighted Echo, Wyndham's new extended-stay brand, a dozen of which he said are now under construction, with 75 planned to be open in 2026.
