PARSIPPANY, N.J. - Wyndham Hotels & Resorts, Inc. (NYSE: NYSE:WH) reported adjusted first quarter earnings of $0.78 per share, marginally surpassing the analyst estimate of $0.76. However, the company's revenue for the quarter fell short of expectations, coming in at $305 million compared to the consensus estimate of $312.3 million.
Despite the revenue miss, the company experienced a global RevPAR (Revenue per available room) growth of 1% in constant currency and an 8% increase in ancillary revenues compared to the first quarter of 2023.
The hotel giant also saw a 4% growth in system-wide rooms YoY and opened over 13,000 rooms, marking a significant 27% increase YoY. Wyndham's development pipeline expanded by 1% sequentially and 8% YoY to a record 243,000 rooms.
The company's strategic move into the upscale extended stay segment through a relationship with WaterWalk Extended Stay by Wyndham indicates a diversification of its portfolio.
For the full year 2024, Wyndham Hotels & Resorts forecasts an adjusted EPS range of $4.18 to $4.30, with the midpoint of $4.24 slightly above the analyst consensus of $4.21. This guidance suggests a positive outlook for the company's earnings potential in the coming year.
In the first quarter, Wyndham generated $76 million in net cash from operating activities and reported an adjusted free cash flow of $102 million. The company also demonstrated its commitment to shareholder returns by repurchasing $57 million of shares and declaring quarterly cash dividends of $0.38 per share, totaling $89 million in shareholder distributions.
Geoff Ballotti, President and CEO, attributed the company's robust room growth and development pipeline to the strength of their brands and the value proposition they offer to franchisees. He expressed confidence in the company's continued growth momentum and its strategic initiatives, including the entry into the upscale extended stay market.
As there was no significant stock movement post-earnings release, the market's reaction to Wyndham's financial performance and future guidance remains neutral. The company's solid earnings beat and optimistic guidance for the upcoming fiscal year reflect a steady path forward, despite the slight revenue shortfall in the first quarter.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.