Wyndham Beats First-Quarter Expectations
Photo Credit: A hotel room at the O Hotel by LuxUrban, part of the Trademark Collection by Wyndham. Wyndham Hotels and Resorts
Skift Take
Wyndham Hotels & Resorts' first quarter results exceeded expectations, with stock buybacks increasing despite a hostile bid from Choice Hotels, maintaining a record growth pipeline for the 15th consecutive quarter.
The DJIA was down 375 points, getting back half of what it was down this morning, while Nasdaq was down 101, the S&P 500 fell 23 points, and the 10-year treasury yield was up another .05 to 4.71%. Lodging stocks were lower. WH was up 5% on their earnings report, but AHT was down -7% to a new all-time low.
Those who described Wyndham Hotels & Resorts’ 1Q results as “better than feared'' probably had the correct label, as there was a lot of concern going into the print that WH, along with Choice Hotels who has yet to report, would show a lot of weakness. Instead, it was a traditional WH earnings report, with WH modestly beating expectations, buying back stock, and increasing the buyback authorization by $400 million. WH probably would have bought back more than $57 million of stock during the quarter if it were not for the Choice Hotels hostile bid. First, the stock was up on the news, and they spent a lot of money fighting off CHH. More im
