Yahoo Finance Wyndham Hotels (WH) Expands in Dominican Republic With New Hotel
Wyndham Hotels & Resorts, Inc. WH recently announced the addition of Wyndham Alltra Samana in Las Galeras. Managed by Playa Hotels & Resorts N.V. PLYA, this marks Wyndham Alltra's first resort in the Dominican Republic.
Located in the Samana province of the Dominican Republic, the hotel boasts ocean views, pristine white sands and expanded entertainment offerings.
Wyndham Hotels is optimistic concerning the hotel’s opening. Attributes such as refined accommodations, attentive service and relaxed surroundings are likely to aid WH in the upcoming period.
The Emphasis on Expansion
WH is consistently trying to expand its presence worldwide and capitalize on the demand for hotels in international markets.
In 2023, the company opened an average of two hotels each business day, resulting in a total of 500 new hotels (up 11% year over year). It introduced 13 brands in 24 new countries worldwide, including the first La Quinta in Ecuador, the first Super 8 in the United Kingdom and the first Hawthorn Suites in China. The introductions set the stage for further growth of each brand in their respective countries.
The company's approach of direct franchising without royalty share played a key role in achieving a net room growth of over 10% internationally, alongside a 30-basis point improvement in the international royalty rate. Globally, 864 contracts were awarded in 2023, adding approximately 104,000 rooms to the portfolio, up 30% from 2019 levels.
Internationally, Q4 signings increased by 35% year-over-year and over 30% compared to 2019, with the most significant growth observed in the EMEA region. The development pipeline expanded by 10% year over year to a record 240,000 rooms, with upscale and higher RevPAR brands accounting for nearly 70% of the pipeline.
The company is optimistic and anticipates the pipeline to generate approximately $125 million in royalty fees over the next four years, focusing on upscale and higher RevPAR regions such as Europe and Latin America.
The company anticipates continued expansion momentum with the addition of Wyndham Alltra Punta Cana, managed by Playa. The developments further bolster WH's growing collection of all-inclusive resorts, which includes approximately 40 properties worldwide. For 2024, Wyndham Hotels anticipates its net room growth to rise 3-4% on a year-over-year basis.
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In the past year, Wyndham Hotels’ shares have increased 5.5% compared with the industry’s 29.2% growth.
Zacks Rank & Key Picks
Wyndham Hotels currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Zacks Consumer Discretionary sector include:
Trip.com Group Limited TCOM sports a Zacks Rank #1 (Strong Buy). TCOM has a trailing four-quarter earnings surprise of 53.1%, on average. Shares of TCOM have gained 34.6% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for TCOM’s 2024 sales and earnings per share (EPS) indicates a rise of 18.2% and 8%, respectively, from the year-ago levels.
Royal Caribbean Cruises Ltd. RCL currently carries a Zacks Rank #2 (Buy). RCL has a trailing four-quarter earnings surprise of 26.4%, on average. Shares of RCL have surged 101.3% in the past year.
The Zacks Consensus Estimate for RCL’s 2024 sales and EPS indicates a rise of 14.7% and 47.9%, respectively, from the year-ago levels.
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Royal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis Report
Playa Hotels & Resorts N.V. (PLYA) : Free Stock Analysis Report
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