Wyndham Hotels & Resorts posted a 2
percent year-over-year increase in U.S. revenue per available room during the
second quarter, the company reported on a Thursday earnings call.
U.S. RevPAR reached $54.50, bolstered by a
60-basis-point increase in occupancy and a 160-basis-point lift in average
daily rate, according to Wyndham CEO Geoff Ballotti. For the second consecutive
quarter, industrial and infrastructure projects, particularly in Midwestern
states, drove positive U.S. performance.
"Many of our hotels located in
project-adjacent markets are serving some of America’s largest transportation,
AI, data center, and industrial projects now ramping up across the
country," Ballotti said.
RevPAR at properties in Texas, California and
Florida—which account for one-quarter of Wyndham's U.S. portfolio, according to
Ballotti—grew 4 percent year over year, an improvement on the 3 percent
year-over-year decline during the first quarter.
Despite the strength in Wyndham's domestic
market, systemwide RevPAR declined 1 percent year over year to $47.01, dragged
down by a 6 percent year-over-year drop in international RevPAR to $37.31.
RevPAR for the Europe, Middle East and Africa
region fell 6 percent year over year, driven by a 45 percent RevPAR decrease in
the Middle East. Latin America RevPAR declined 7 percent, due to reduced
cross-border demand in Mexico. Greater China RevPAR dropped 5 percent, owing to
continued deflationary pricing pressure.
The company raised its full-year RevPAR
outlook, now projecting systemwide RevPAR growth of flat to 1 percent and U.S.
RevPAR growth of flat to 2 percent.
Wyndham Q2 Metrics
Second-quarter net revenue totaled $375
million, down 6 percent year-over-year. Net income was $102 million, up 17
percent.
Wyndham opened nearly 18,000 rooms during the
second quarter, a company record and a 7 percent year over year increase. As of
June 30, Wyndham had more than 873,000 rooms in its system globally, up 3
percent, with U.S. rooms totaling more than 501,000.
The company's development pipeline at the end
of the second quarter included more than 2,200 hotels and approximately 261,000
rooms, up 4 percent year over year, excluding rooms from European franchisee
Revo Hospitality Group, which declared insolvency earlier this year.