Wyndham, Choice See Quarterly Hotel Room Revenue Improve, Rates Decline - Business Travel News

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Wyndham, Choice See Quarterly Hotel Room Revenue Improve, Rates Decline

July 28, 2010 - 01:25 PM ET

By Michael B. Baker

Wyndham Hotel Group and Choice Hotels International both reported stable revenue per available room but declining rates in the second quarter.

Wyndham on Wednesday reported that average daily rate decreased by 2.9 percent during the quarter compared with the second quarter of 2009. Rates were steady at its upscale flagship brand but decreased across several of its midprice and economy brands.

Taking foreign currency fluctuations into consideration, Wyndham's year-over-year systemwide RevPAR was about flat. The company, however, raised its RevPAR expectations for the full year. It now expects systemwide RevPAR to range from flat to a 3 percent increase compared with 2009, whereas its earlier expectations were that RevPAR would range from flat to down 3 percent.

Choice, meanwhile, reported on Tuesday that second-quarter RevPAR was up 0.3 percent compared with the previous year. Occupancy was up 1.3 percentage points, but rates were down by 2.2 percent, according to Choice.

"We're pleased to report positive domestic RevPAR for the first time since the second quarter of 2008, due in large part to gains in occupancy and a gradually improving average daily rate environment from this year's first quarter," Choice president and CEO Stephen Joyce said in a statement.

Choice expects RevPAR to increase by 6 percent in the third quarter and range from flat to up 2 percent for the full year.

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