Wyndham Vacation Rentals, one of the brands of Wyndham Worldwide Corporation (WYN - Free Report) has recently completed the renovation of three buildings of its Lion Square Lodge at the Gondola in Vail, CO. The renovation cost $53.0 million.
Lion Square Lodge is located at the base of Vail Mountain and Gore Creek, near the Eagle Bahn Gondola and features amenities like a pool, spa, a restaurant and a fitness center. Lion Square Lodge accommodations are conveniently located within a ski-in/ski-out lodge in Vail. The renovation work of the three buildings, the Lodge's East Building, South Building and the North Building began in 2008 and included significant interior and exterior upgrades, which would enhance the overall guest experience.
The company completed the $33.0 million renovation of the North Building in 2009 and it was reopened in Dec 2009 with 23 completely renovated units and seven new units.
Renovation of the South and East buildings began in Apr 2012. In Oct 2012, the company completed the $5.0 million renovation of the South Building. As a part of the renovation, the exterior of the building was upgraded along with the common area and other units. The company also added the El Sabor restaurant.
The final phase of the project, the Lodge's East Building in the Lionshead ski yard, re-opened in Dec 2013 for the 2013/2014 ski season after renovation work worth $15.0 million. The final phase of the project begun in Apr 2013.
It is difficult to survive in this competitive industry without renovating properties. Renovation brings in novelty, thereby increasing traffic. Other companies in the hotels and motels industry like Hyatt Hotels Corp. (H - Free Report) , Starwood Hotels & Resorts Worldwide Inc. and Marriott International, Inc. (MAR - Free Report) are also investing in renovating their properties.
Wyndham that currently has Zacks Rank #3 (Hold) posted mixed fourth quarter 2013 results with adjusted earnings of 73 cents per share missing the Zacks Consensus Estimate of 74 cents by a penny which we believe was due to higher expenses. However, quarterly earnings were up 15.9% year over year. Net revenue grew 9.2% year over year and beat the consensus mark by 1.7%.