Wyndham Hotels & Resorts (NYSE: ) posted impressive results for the quarter ending March 31, 2024, demonstrating continued momentum across its global operations.
The company’s global system witnessed a 4% growth, driven by a 1% increase in the U.S. and a significant 8% expansion internationally. This growth reflects the company’s strong brand recognition and appeal to hotel owners worldwide.
Wyndham Hotels & Resorts reported a 1% increase in global RevPAR in constant currency, despite a 5% decline in the U.S. market. This decline was primarily due to year-over-year comparisons against a strong prior-year period. Notably, the company saw improving trends in March, with RevPAR improving by 240 basis points compared to February, indicating a positive trajectory ahead of the peak leisure travel season.
Internationally, the company generated robust RevPAR growth in all regions, fueled by continued pricing power and increased demand. The largest contributors to this growth were the company’s regions.
Financially, Wyndham Hotels & Resorts reported strong cash flow generation, with net cash provided by operating activities and adjusted free cash flow in the first quarter of 2024. The company ended the quarter with a solid cash balance and ample liquidity.
The company’s strategic focus on financial flexibility is further evidenced by the execution of $115 million of new forward starting interest rate swaps on its Term Loan B Facility. This move effectively locks in a fixed rate for a significant portion of the facility, providing greater stability and reducing interest rate risk.
Wyndham Hotels & Resorts also received a vote of confidence from its Board of Directors, who increased the company’s share repurchase authorization. This reflects the company’s commitment to returning value to shareholders and its belief in its long-term growth potential.
The company’s positive outlook is further underscored by its updated guidance, taking into account the impact of first-quarter share repurchase activity. Wyndham Hotels & Resorts remains optimistic about its future prospects and is well-positioned to capitalize on the recovery in the global travel industry.
In conclusion, Wyndham Hotels & Resorts’ first-quarter results paint a picture of a company firing on all cylinders. The company’s global growth, financial strength, and shareholder-centric approach position it for continued success in the years to come.
