Wyndham Hotels & Resorts' systemwide third-quarter
revenue per available room declined slightly but executives during a Thursday
earnings call claimed increasing demand from its blue-collar base of business
travelers, particularly in states with high infrastructure spending.
Systemwide third-quarter RevPAR decreased by about 1 percent
year over year, though it increased about 1 percent in constant currency,
according to Wyndham, and U.S. RevPAR declined about 1 percent. However,
Wyndham said weekday U.S. RevPAR increased by about 1 percent, an increase
Wyndham CEO Geoff Ballotti attributed to "positive momentum in
infrastructure-related business."
Specifically, Wyndham noted a RevPAR improvement of 250
basis points—2.5 percent—across its oil and gas markets, and in five U.S.
states that have received significant funding from the 2021 U.S. infrastructure
bill—Texas, California, New York, Illinois, and New Mexico—RevPAR increased
about 80 basis points, or 0.8 percent year over year, Ballotti said.
Blue-collar travel comprises the vast majority of Wyndham's
business travel volume. Infrastructure-related travel bookings made up 22
percent of Wyndham's 2023 gross room revenues, according to a presentation for
investors, with "logistics and other" adding another 5 percent and
corporate transient accounting for 2 percent.
Meanwhile, Wyndham Rewards Business, the loyalty program for
businesses the company introduced
in April that allows corporate clients to accrue points for Wyndham hotel
stays booked through direct channels or global distribution systems, "has gained significant traction, driving a double-digit year-to-date
increase in our corporate contracted business from infrastructure-related
accounts," Ballotti said Thursday.
Wyndham Q3 Metrics
Wyndham's third-quarter systemwide RevPAR declined 1 percent
year over year to $49.33. U.S. RevPAR also declined 1 percent year over year to
$57.98. U.S. occupancy "remained consistent," according to the
company. Wyndham projected full-year 2024 RevPAR to be roughly flat year over
year.
Third-quarter net revenue declined 1 percent year over year
to $396 million, while net income was $102 million, down from $103 million one
year prior.
Wyndham's total rooms at the end of the third quarter
increased about 4 percent to 892,600, and its development pipeline increased
about 5 percent to 2,100 hotels and 248,000 rooms. Echo, Wyndham's new
economy extended-stay brand, makes up about 14 percent of the pipeline,
according to the company.
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Q2 performance