Wyndham Hotels & Resorts reported a 3 percent decline in
systemwide revenue per available room for the third quarter, year over year.
Both U.S. and international RevPAR, in constant currency, were each down about
1 percent. Internationally, the company saw strength across Europe and Latin
America, but those gains were offset by weakness in Canada and China, said
president & CEO Geoffrey Ballotti. Domestically, the decline was in line
with "recent industry trends" and continued softness in average daily
rates.
The company saw the strongest RevPAR results in the Wyndham
Grand, Hawthorn Suites by Wyndham, Microtel and AmericInn brands in the
mountain and mid-Atlantic regions, said CFO David Wyshner. La Quinta RevPAR was
down 4 percent, year over year for the quarter. "Texas and its neighboring
states, properties in energy-related markets and brands like La Quinta that are
concentrated in these markets were softer." As a result, Wyndham revised
its 2019 full-year RevPAR guidance down from approximately 1 percent to between
zero and negative 1 percent.
Despite the disappointing RevPAR results, Wyndham's systemwide
rooms count grew 3 percent, year over year, with U.S. growth at 1 percent and
international at 6 percent. "This is the sixth consecutive quarter of net
rooms growth," Ballotti said, with the total number of rooms now at
821,800. Southeast Asia grew the fastest, at 23 percent. There are 190,000
rooms in the development pipeline, a 7 percent increase over Sep. 30, 2018.
During the quarter, the company also opened the first of two Dolce
by Wyndham meetings hotels in Denmark.
Net income was $45 million for the third quarter,
a 22 percent decrease over the prior-year quarter.
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