WH - Embedded Expectations Analysis - 2021 01 22
Wyndham Hotels & Resorts, Inc. (WH:USA) currently trades above corporate averages relative to UAFRS-based (Uniform) earnings, with a 32.0x Uniform P/E. At these levels, the market has bullish expectations for the firm, but management may be concerned about room opening recovery, the Wyndham rewards loyalty program, and La Quinta performanceSpecifically, management may lack confidence in their ability to drive higher ROI for hotel owners, maximize the value they provide for franchisees, and sustain room opening recovery. In addition, they may be exaggerating the capabilities and the strength of the Wyndham rewards loyalty program and the ability of the Wyndham Direct tool to drive higher business spending. Furthermore, management may be concerned about ongoing travel restrictions, the pace of leisure market demand recovery, and the pandemic's impact on their budget. Management may also be overstating the ease at which customers can book a room through the mobile app, and they may be exaggerating the benefits La Quinta is receiving from industry trends and the sustainability of its segment-leading occupancy rates
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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