30 Apr 2019
Posted in Consumer
Wyndham Hotels & Resorts Q1 results show the company is firmly on track, says GlobalData
Wyndham Hotels & Resorts today (30 April 2019) announced its Q1 2019 results, Nick Wyatt, Head of Tourism at GlobalData, a leading data and analytics company, offers his view on the company’s performance:
“Revenues have increased markedly compared to last year, but when you factor in $169 million of incremental revenues from La Quinta, they are relatively flat, if not down slightly.
“On the surface, this may not look great, especially as adjusted net income was also down slightly, from $55 million in Q1 last year, to $51 million. However, costs associated with the La Quinta acquisition and the decision to front load marketing expenses this year are very much mitigating factors.
“An almost $2 billion acquisition like La Quinta will always take some time to bear fruit and integration costs at the start are typically high, but La Quinta’s hotels are now operating on the same platforms as Wyndham’s other hotel brands.
“This means large costs have already been incurred without significant damage to the company’s finances and this bodes well.
“Wyndham says it remains enthusiastic about its growth prospects. With the integration of La Quinta seemingly progressing well and synergy targets well in sight, this does not appear misplaced.”