Topic: How To Invest

Power Growth Investor Hotline – Friday, October 28, 2022

Article Excerpt

WYNDHAM HOTELS & RESORTS INC., $76.16, New York symbol WH, is a buy. The company is the world’s largest hotel franchiser, with 836,000 rooms spread across 9,100 hotels in 95 countries. Its portfolio of 23 brands includes Super 8, Days Inn, Ramada, La Quinta and Wyndham. It has two new brands introduced in 2021: the Registry Collection Hotels, its first luxury brand, and Wyndham Alltra, its first all-inclusive brand. Wyndham’s revenue in the quarter ended September 30, 2022, fell 12.1%, to $407 million from $463 million a year earlier. The year-ago quarter included $34 million from the company’s now-sold low-cost hotel management business and associated hotels. However, earnings fell just 0.9%, to $108 million from $109 million. Per-share earnings rose 4.3%, to $1.21 from $0.95, on fewer shares outstanding. Profits fell less than revenue because the company has moved away from the tradition hotelier focus on filling up as many rooms as possible, even if discounting is required. Instead, Wyndham has adopted…