Report
Valens Research

WH - Embedded Expectations Analysis - 2020 10 02

Wyndham Hotels & Resorts, Inc. (WH:USA) currently trades above corporate averages relative to UAFRS-based (Uniform) earnings, with a 29.9x Uniform P/E. At these levels, the market has bullish expectations for the firm, and management is confident about cost savings, La Quinta brand, and hotel opening activity

Specifically, management is confident EBITDA declines were mitigated by cost reductions, mobile business bookings have been improving, and that opening activity is picking up internationally. In addition, they are confident in the strength of their La Quinta brand, that consumer confidence is increasing in drive-to getaways, and that they have the largest and most trusted economy and mid-scale properties in drive-to locations. Furthermore, management is confident in their ability to generate $100mn in savings from restructuring actions and that they deliver operating supplies & equipment (OS&E) and food & beverage (F&B) cost savings to hotel owners. Moreover, they are confident Wyndham Rewards improves a hotel's overall cost structure
Underlying
Wyndham Hotels & Resorts Inc.

Wyndham Hotels & Resorts is a hotel franchisor, licensing its hotel brands to hotel owners around the world. The company operates in the following segments: Hotel franchising, which licenses the company's lodging brands and provides related services to third-party hotel owners and others; and Hotel management, which provides hotel management services for full-service and limited-service hotels as well as several hotels that are owned by the company

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Valens Research
Valens Research

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