Wyndham Hotels & Resorts conducted its first earnings call as an independent company on Wednesday, following its spinoff of Wyndham Worldwide, now Wyndham Destinations. The company's global revenue per available room increased 9 percent year over year during the second quarter, or 4 percent on a constant dollar basis, excluding recently acquired La Quinta and recently divested Knights Inn.
Wyndham Hotels' president and CEO Geoff Ballotti said Wyndham's buy of La Quinta has already given the midscale brand a boost; Wyndham has signed 15 new-construction deals for La Quinta since the acquisition closed, and the brand's pipeline is at a record 260 hotels. Wyndham's total development pipeline grew to almost 1,400 hotels, or 171,000 rooms, a 13 percent year-over-year room increase.
Ballotti said Wyndham Hotels plans to add the "by Wyndham" attribution to all 20 of its brands, including La Quinta, which he expects will elevate Wyndham's economy brands. The company's second-quarter net income totaled $21 million, a 56 percent year-over-year decline that Wyndham attributed to separation and acquisition costs.