Wyndham Hotels & Resorts’ U.S. revenue per available room rose 6 percent year over year in the third quarter, fueled by strong demand bolstered by "everyday business travel," president and CEO Geoff Ballotti said Thursday on the company’s earnings call.
Ballotti said RevPAR in Wyndham's three largest states, Texas, California and Florida—which represent about one-quarter of its U.S. rooms—increased 8 percent in the third quarter, a roughly 400-basis-point improvement on second-quarter results.
Wyndham reported continued strength across the Midwest and industrial states, with double-digit percentage RevPAR growth in Iowa, Illinois and Ohio, "highlighting a portfolio well-positioned to benefit from increasing infrastructure-related demand," Ballotti said.
Looking ahead, Ballotti said he expects industrial and manufacturing to continue providing tailwinds for growth among Wyndham's select-service brands.
"Our teams are out there contracting," Ballotti said. "They are seeing ongoing highway expansion. They are seeing ongoing and increasing manufacturer builds, big utility grid upgrades, and companies that are continuing to deploy field crews and regional service teams across the country."
Third-quarter systemwide RevPAR rose 2 percent year over year, supported by U.S. gains, as well as a 2 percent year-over-year RevPAR increase in the Europe, Middle East and Africa region and 7 percent growth in Canada. RevPAR declined 10 percent year over year in Greater China, owing to softer travel demand, particularly in Tier 2 cities.
The company raised its full-year RevPAR outlook, now projecting systemwide RevPAR growth of 0.5 percent to 1 percent, up from flat to 1 percent previously.
Wyndham Q3 Metrics
Third-quarter net revenue totaled $410 million, up 7 percent year over year. Net income was $99 million, down 6 percent.
As of Sept. 30, Wyndham had more than 877,000 rooms in its system globally, up 3 percent, with U.S. rooms totaling 500,000.
The company’s development pipeline at the end of the third quarter included more than 2,200 hotels and approximately 264,000 rooms, a record, up 4 percent year over year, excluding rooms from European franchisee Revo Hospitality Group, which declared insolvency earlier this year.
Global enrollments in Wyndham Rewards grew 10 percent year over year to approximately 129 million members.
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