Wyndham’s quarterly profits rise

Wyndham’s quarterly profits rise

Wyndham Worldwide posted net profits of US$90m in Q1 2012
Wyndham Worldwide posted net profits of US$90m in Q1 2012

Wyndham Worldwide has reported a 14% rise in profits for the first quarter of 2012.

The US-based hospitality company posted adjusted net profits of US$90 million for the three-month period, compared to US$79 million in Q1 2011. Revenues climbed 8% to US$1.04 billion, of which the majority US$507 million was generated by the company’s Vacation Ownership unit. A further US$361 million was earned through the Exchange & Rentals business, while the group’s Hotel business generated revenues of US$185 million.

“First quarter results were strong, reflecting the power of our fee-for-service business model across economic cycles, continuing innovation throughout the company, robust free cash flow and disciplined capital allocation,” said Stephen P. Holmes, Chairman & CEO of Wyndham Worldwide. “Furthermore, consumers are travelling. Our Vacation Ownership and Hotel businesses are showing great momentum and our Exchange and Rentals business proved resilient despite the difficult economic climate in Europe. As always, we will continue to focus on driving operational improvements in 2012 and beyond.”

In the hotel sector, Wyndham’s company-wide revenue per available room (revPAR) increased 6% to US$29. This was led by the company’s Dream and Night boutique hotel brands, which achieved revPAR of US$146 and US$185 respectively. The Wyndham Hotels & Resorts brand averaged US$62, up 9% compared to Q1 2011, while Ramada (+9% to US$36), Days Inn (+7% to US$25) and Super 8 (+6% to US$24) all saw year-on-year revPAR growth.

Wyndham Worldwide’s global hotel portfolio dipped slightly in Q1 2012, to 7,317 hotels comprising 630,023 rooms, compared to 7,356 hotels with 630,322 rooms in the same period last year.

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