Choice Hotels International and Wyndham Hotels & Resorts both became the latest to announce the withdrawal of previously-issued full-year guidance.
Both companies reassured on the resiliency of their businesses.
Patrick Pacious, president & CEO, Choice Hotels, said: “The safety and well-being of guests, franchisees and associates is our top priority during these challenging and unprecedented times. We are working closely with our hotel owners and operators in managing difficulties posed by COVID-19 and helping mitigate the impact on their business by providing best-in-class franchisee resources and implementing timely changes to policies and procedures aimed at extending relief and minimising disruptions. Concurrently, we remain committed to serving guests and the communities across the world where our hotels operate.
“We are not able to precisely quantify the impact on our projected results at this time, given the uncertainty surrounding the impact of COVID-19 on the global hospitality industry as well as the rapidly changing circumstances impacting our hospitality franchising business, directly and indirectly. Consequently, we are withdrawing the guidance we previously issued on February 18, 2020. We will continue to closely monitor the situation and expect to provide an update during our first quarter earnings call based on the best information then available.
“We are confident in the continued resiliency of our asset-light franchise business model, the strength of our proven brands, and our ability to navigate through these trying times. We are deeply proud of Choice Hotels' contributions to the hotel industry and the foundation that we've built over the course of our more than 80-year history, all of which position the company for continued, long-term success.”
Wyndham Hotels & Resorts also announced the withdrawal of its full-year 2020 outlook due to the evolving impact of the novel coronavirus pandemic on the global economy.
Geoffrey Ballotti, CEO, said: “During this extraordinary time, our highest priority is the health and safety of our guests, owners and team members, especially those most affected by the outbreak. We are focused on providing support to all members of our Wyndham family. We are also grateful to all of the heroic doctors, nurses, researchers, public servants and others who are fighting to meet this overwhelming challenge. And for those traveling, we encourage everyone to do so safely."
"With the sudden and dramatic trajectory of COVID-19 here in North America and around the world, combined with increasing governmental restrictions limiting travel, we believe that the potential negative impact from the outbreak related to declining consumer demand for lodging will be more significant than we estimated on February 13th when we provided outlook excluding Coronavirus.
“We remain confident in the strength and resiliency of our business model, balance sheet, cash flow and liquidity along with our brands' market-leading position in the economy and midscale select-service segments that are positioned for continued growth moving forward.”