Wyndham Worldwide Corp. on Tuesday reported second-quarter net income of $159 million on revenues of $1.4 billion, a result that bested Wall Street expectations.
On a per-share basis, the company said it had profit of $1.33. Earnings, adjusted for non-recurring gains, were $1.32 per share.
Wyndham said it expects full-year earnings in the range of $4.88 to $5.03 per share, with revenue in the range of $5.45 billion to $5.55 billion.
"We delivered strong results in the second quarter," said Stephen P. Holmes, chairman and CEO. "We're seeing good momentum across the company. Our Wyndham Rewards program re-launch is off to a great start, rental bookings are strong in the U.S. and in Europe, and sales are up in Wyndham Vacation Ownership. We're well positioned to benefit from improving economies and emerging trends in leisure travel. We expect this to drive continued growth going forward."
Specific to Wyndham Hotel Group, revenues were $334 million in the second quarter, a full 18-percent increase over the second quarter of 2014. In constant currency and excluding acquisitions, revenues increased 8 percent, reflecting higher domestic RevPAR and worldwide room growth.
Total system-wide RevPAR was flat when compared with the second quarter of 2014. In constant currency, total system-wide RevPAR increased 2.5 percent. Domestic RevPAR increased 4.5 percent. International RevPAR declined 1.2 percent in constant currency, which reflects higher unit growth in lower RevPAR countries such as China, Wyndham said.
Adjusted EBITDA for the second quarter of 2015 was $97 million, an 11-percent increase compared with the second quarter of 2014. The company's hotel system currently consists of approximately 7,700 properties and over 668,500 rooms, a 2.8-percent room increase compared with the second quarter of 2014. The development pipeline included 895 hotels and approximately 116,800 rooms, of which 61% were international and 66 percent were new construction.
Complementing its Q2 report, RCI, Wyndham's vacation exchange business, announced three new affiliated resorts in China. The properties are Shangshanqi Villa Resort and Taoyuan Hot Spring International Hotel in Chengdu, Sichuan Province, and Bo'ao Holliyard Seaview Resort in Hainan Island. The signing of these agreements expands RCI's portfolio of resorts in China to more than 55 properties.
"This is an exciting opportunity for RCI to expand its exchange options in Chengdu and Hainan, both popular tourist destinations in China," said Gavin Cheong, business development director for North Asia, RCI Asia Pacific. "Bo'ao is a popular tourist town in Hainan among the locals, while Chengdu is gaining more attention among overseas tourists for its cute giant pandas and historical landmarks. We are confident these three properties are excellent additions for RCI's high-quality exchange network, and will be well received by our members looking for a unique cultural experience."
Meanwhile, Spain's NH Hotel Group, reported that its second-quarter revenue rose 11.3 percent. The company said momentum accelerated during the second quarter thanks to stronger hotel business volumes and the result of the first initiatives rolled out under the scope of the group's five-year business plan.
Excluding the impact of Colombian chain Hoteles Royal acquired this year, NH's second-quarter revenue increased by 6.8 percent to $371.5 million, while EBITDA jumped by 25 percent to $65.3 million. As a result, the group reported a recurring net profit between April and June of $15.7 million, year-on-year growth of 85.8 percent.
NH's hotel repositioning plan (27 refurbishments completed as of the 2Q15 close, another 16 underway and a further 19 scheduled for works starting in the second half), the development of the new NH Collection brand (43 hotels rebranded and another 14 scheduled for rebranding by the end of 2015), the effort to reinforce the group's positioning in the meeting & events segment by emphasising IT solutions and the communication and marketing campaigns designed to increase the group's visibility and boost guest loyalty are reported to be driving growth in guest satisfaction and, in turn, generating growth quarter after quarter in average daily room rates and RevPAR.
Choice Hotels International is set to post its second-quarter earnings results on July 29th. Analysts expect Choice Hotels International to post earnings of $0.60 per share and revenue of $208.57 million for the quarter.