Wyndham Worldwide Reports Q2 Results

Wyndham Worldwide has reported that second quarter figures have beat expectations, which was boosted by a rise in business travel. The company has also been buying other companies and their properties, and they are likely to buy more as they seek to derive more revenue from fee-for-service business.

During the quarter, Wyndham had a US$95 million net income, which is more than last year’s US$71 million. Revenue had a 5% rise to US$963 million, while revenue from the timeshare business saw an 8.1% increase. RevPAR for the group also increased for the month of June, and they were still seeing an improvement during the first 3 weeks of this month.

Due to these figures, the company has boosted its outlook for the year, after which shares rose up to 10.1%. They now predict that full-year earnings will be US$1.78-1.88 per share, which beats out the US$1.68 per share expectation from analysts. The company has also predicted that full-year revenue will decline between US$3.7 billion and US$4 billion, while analysts project a US$3.8 billion fall. It’s also been predicted that RevPAR will increase up to 3% this year, which is completely opposite of the previous prediction it will fall of as much as 3%.

Wyndham Worldwide chief executive Stephen Holmes says that all of their businesses were ahead of expectations, and they feel that the momentum will help them throughout the remainder of the year. They are seeing improvement and some momentum building, he continued, and they have continually said that recovery will come little bits at a time.

Meanwhile, other hotel operators have been reporting their second quarter results and changing forecasts for the year. Marriott International predicts a 4%-6% increase in RevPAR, while Starwood Hotels & Resorts forecasts a 7%-9% rise.