Wyndham Hotels & Resorts revenues slump 7% in Q3 results

Wyndham Hotels and Resorts has reported a 7% decrease in revenues to $560m (£434m), compared with $604m (£468m) the third quarter of 2018.

The group said the decline is primarily due to lower cost-reimbursement revenues in its hotel management business, which have no impact on adjusted EBITDA.

For the three months ending 30 September, adjusted EBITDA increased 14% to $190m (£147m), compared with $166m (£128m) during the same period last year.

The group said the increase reflected higher fee revenues and increased synergies from the acquisition and integration of the La Quinta brand.

Additionally, system-wide rooms grew 3% year-over-year, including US rooms growth of 1% and international rooms growth of 6%, and the company’s development pipeline increased by 7% year-over-year to 190,000 rooms.

Geoffrey A. Ballotti, president and chief executive officer, said: “Our team’s sharp execution against our strategic and operating plans allowed us to deliver solid results in the third quarter, despite a softening RevPAR environment, highlighted by continued expansion of our system size and significant growth in adjusted EBITDA.”

He added: “In addition, we increased our share repurchase authorization to reflect our strong free cash flow and our sustained focus on returning cash to shareholders. We remain confident that our business is well-positioned for continued success.”