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Wyndham Hotels and Resorts has announced that revenues fell from $560m (£433m) in the third quarter of 2019 to $337m (£261m) in the third quarter of 2020, while global comparable RevPAR declined 35% year-on-year.
The reported decline includes lower pass-through cost-reimbursement revenues of $79m (£61m) in the company’s hotel management business, which has no impact on adjusted EBITDA, according to the group.
Excluding cost-reimbursement revenues, revenues declined $144m (£111m), primarily reflecting the 35% decline in comparable RevPAR and the impact from hotels temporarily closed due to the pandemic.
In the same period, the group generated net income of $27m (£21m), compared to $45m (£35m) in the third quarter of 2019. The decline in net income of $18m (£14m) was primarily due to the revenue declines, which were partially offset by cost containment initiatives, lower volume-related expenses and the absence of contract termination and transaction-related expenses.
Geoffrey A. Ballotti, president and CEO of the group, said: “In the face of continued industry uncertainty, our leisure-oriented, drive-to franchise business model generated $101m (£78m) of adjusted EBITDA and $92m (£71m) of free cash flow.
“Over 99% of our domestic and over 97% of our global portfolio are open today. RevPAR improved sequentially across the globe, and in the U.S., our economy and midscale brands continued to gain market share.”
He added: “Third quarter room openings also improved sequentially both in the U.S. and internationally and we grew our pipeline by 3% to 185,000 rooms globally.
“Importantly, we executed 152 hotel agreements, including 23% more domestic conversion signings than the third quarter of 2019. As always, we remain dedicated to supporting our owners around the world during these very challenging times.”
