Travel rebound will power their future gains

Article Excerpt

The coronavirus pandemic forced the cancellation of most vacation plans. However, the reopening of the economy is spurring strong demand for travel—and both Wyndham, and Travel + Leisure should benefit from that surge. We see both as buys. WYNDHAM HOTELS & RESORTS, $71.02, is suitable for your new buying. The company (New York symbol WH; TSINetwork Rating: Extra Risk) (; Shares outstanding: 92.1 million; Market cap: $6.5 billion; Dividend yield: 1.8%) is the world’s largest hotel franchiser, with 813,000 rooms spread across 8,900 hotels in 95 countries. Its portfolio of 20 brands includes Super 8, Days Inn, Ramada, La Quinta and Wyndham. Revenue in the quarter ended March 31, 2022, rose 22.4%, to $371 million from $303 million a year earlier. Earnings jumped 166.7%, to $88 million, or $0.95 a share, from $33 million, or $0.36. The company is building or converting more than 1,600 hotels worldwide over the next few years. On the whole, their addition will add more than 204,000 rooms to its network. Approximately…

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