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Wyndham Worldwide Corporation

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Shares of Wyndham underperformed its industry in the past six months. Global expansion exposes Wyndham to headwinds in the regions where it operates. Despite immense growth potential, a sluggish economy in Brazil, uncertainty in Africa, macroeconomic factors in Venezuela and China are likely to keep revenues under pressure. The company expects soft demand in oil-producing regions to continue to hurt RevPAR too. Meanwhile, although the new owner strategy is expected to benefit its timeshare business in the long run, it is currently weighing on the company’s EBITDA. Nevertheless, Wyndham’s robust developmental pipeline, prudent acquisitions and strong loyalty program should boost growth. Still, currency movements might continue to hurt results as has been the case over the past few quarters.

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