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Wyndham Worldwide Corporation

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Wyndham’s shares have outperformed S&P 500 in the last year. The company’s plan to spin-off its Hotel Group segment is expected to increase the fit, focus and strategic flexibility of both the companies. Going forward, Wyndham’s strong developmental pipeline, large international exposure and prudent acquisitions should boost earnings. Initiatives to increase occupancy like the remodeled loyalty program, technological upgrades and marketing efforts are expected to drive growth too. Focus on returning wealth to shareholders through buybacks and dividend hikes also bode well. It has a positive record of earnings surprises in recent quarters and estimates are stable ahead of its fourth-quarter earnings release. Lingering global uncertainties in some economies and currency fluctuations might limit revenue growth in the near term. Also, soft demand in oil producing regions might hurt RevPAR.

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