In the face of a takeover bid from Choice Hotels, Wyndham Hotels & Resorts reported a decline in revenue for the third quarter. However, the Parsippany, N.J.-based hotel company's results exceeded expectations.
Financial Performance
- The company recorded a third-quarter profit of $103 million, or $1.21 per share, compared to $101 million, or $1.13 per share, in the same period last year.
- Analysts had anticipated per-share earnings of $1.22.
- Adjusted per-share earnings, excluding certain one-time items, reached $1.31, surpassing analysts' forecast of $1.24.
Revenue
- Despite a decrease in revenue from $407 million to $402 million year-over-year, the figure still outperformed analysts' projected amount of $395.4 million.
Growth
- Wyndham Hotels & Resorts reported a 3% increase in global revenue per available room.
- The company also achieved a 3% growth in system-wide rooms.
Commitment to Independence
- CEO Geoff Ballotti emphasized the hotel company's belief that it is better off remaining a standalone entity after rejecting a $7.8 billion acquisition offer from Choice Hotels.
Outlook
- Wyndham Hotels & Resorts reiterated its full-year outlook for various key metrics, including rooms growth, revenue per available room growth, fee-related and other revenues, and adjusted profit.
For more information, please contact Ben Glickman.
