On the company’s third-quarter earnings call, Wyndham Worldwide Chairman and CEO Stephen Holmes said Wyndham Rewards serves as a common thread for all of the company’s offerings.
PARRSIPANY, New Jersey—During a conference call to discuss third-quarter 2016 earnings, Wyndham Worldwide executives praised the power behind Wyndham Rewards and announced the company omitted full-year guidance for 2017 from its Q3 earnings report.
When asked by analysts if there were any plans to split up Wyndham’s three platforms—hotels, vacation rentals and timeshares—Chairman and CEO Stephen Holmes said the company is always considering its options, but as of right now, Wyndham sees a lot of advantages to having the three platforms housed under the Wyndham Worldwide name.
“We believe there are a lot of advantages to having these businesses together; the most recent and notable example of that is the Wyndham Rewards program, which is really becoming a blue thread that runs through all of our businesses,” he said. “That is something that we think will drive value to all business units, and that is a powerful, powerful product. It’s only been around in its current form for about a year and a half, and it’s already setting top levels in all types of ratings for loyalty programs.
“We’re very proud of what that group has done. … and it’s being embraced by the timeshare business as well as by the vacation rental business to drive more business between the three initiatives, and that is going to be a major factor going forward that we see will be a positive impact.”
Wyndham announced earlier on Wednesday that the company has added 17,000 vacation rental homes to its loyalty program.
Wyndham’s lack of 2017 guidance
For this quarter’s call and news release, Wyndham officials decided not to include or discuss the company’s guidance for 2017. Holmes said this was a result of the way in which the company does its budget process.
“Every year, we struggle trying to give any sort of guidance on this call because we are just not through our budget process,” Holmes said. “And this year, neither (EVP and CFO Thomas Conforti) nor I sat through any of the budget reviews for any of the business units, so for us to be giving out guidance, in the past, yes, maybe we’ve seen a budget review or two before we’ve given guidance, but this year, we haven’t.
“So we just thought it was imprudent, and we looked at our peers, and nobody else is giving it, so we’re kind of putting our foot out there,” Holmes said. “And in all truth, we don’t think we need to, because we’ve been very consistent with our delivery of results for the last 10 years. So we reinforced our long-term growth targets, and we’ll come out with guidance once we’ve gone through our budget process. I would suggest that is the way we’re going to be doing it going forward as well.”
Q3 2016 results
Wyndham Hotel Group saw domestic revenue per available room increase 1.9% in Q3 2016, according to the news release. Systemwide same store RevPAR increased 1.4% year over year. This reflects pressure in U.S. and Canadian oil markets, as well as the slowing of RevPAR trends that’s been reported throughout the industry, according to the release.
The company’s hotel portfolio had 7,930 properties and 689,800 rooms as of 30 September, which is a 2.7% net room increase year over year.
As of press time, Wyndham Worldwide stocks were down 11.18% year to date.