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Wyndham Hotels Q2 Earnings Top Estimates Helped By High Demand

In This Article:

  • Wyndham Hotels & Resorts Inc (NYSE: WHreported a second-quarter FY22 sales decline of 4.9% year-on-year, to $386 million, beating the consensus of $359.09 million.

  • Global revenue per available room (RevPAR) climbed 23% Y/Y in constant currency.

  • System-wide rooms grew 3% Y/Y, with a 2% rise in the U.S. and a 4% increase internationally.

  • Segment Revenue: Hotel Franchising increased 18% to $335 million, and Hotel Management declined 59% to $51 million.

  • Total expenses for the quarter fell 11.7% to $241 million.

  • The operating margin was 37.5%, and operating income for the quarter rose 9% to $145 million.

  • The company held $400 million in cash and equivalents as of June 30, 2022.

  • Cash provided by operating activities year-to-date totaled $242 million, and the free cash flow was $224 million.

  • Adjusted EBITDA increased 4% Y/Y to $175 million.

  • Adjusted EPS of $1.07 beat the analyst consensus of $0.93.

  • "We kicked off our high-demand summer season with the strongest Memorial Day we've ever experienced, as guests traveled further, stayed longer, and spent more at our hotels than they did pre-pandemic," said CEO Geoffrey A. Ballotti.

  • Outlook: Wyndham sees FY22 adjusted EPS of $3.51 - $3.63 (prior view $3.39 - $3.51), against the consensus of $3.55.

  • It continues to expect FY22 RevPAR growth of 12% - 16% and adjusted EBITDA of $611 million - $631 million (previously $605 million - $625 million).

  • Price Action: WH shares closed lower by 1.84% at $69.24 on Tuesday.

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