Wyndham said it plans to continue supporting its franchisees with competitive financing programs, adding that its open to expanding its portfolio of brands.
The hotel chain noted that while the current financing environment remains challenging, financing for well-established borrowers continues to be available, particularly at the community bank level, where around 70 per cent of its new project starts are financed.
The self-described ‘world’s largest hotel franchising company’ added that despite more than a 50 per cent decline year-over-year in industry-wide buy-sell transaction volumes, it not only opened 23 per cent more rooms in Q2 2023 than the year prior, it also executed 6 per cent more rooms year-over-year and 7% more than 2019.
Separately, Wyndham said it remains open to exploring brand acquisitions if they align with the company's current trading position and offer immediate accretive value. Over the past five years, Wyndham has launched five brands, taking its global portfolio to 24 brands.
For the second quarter of 2023, Wyndham posted adjusted earnings before interest, taxes, depreciation or amortization to $158 million, down from $175 million in second quarter 2022. Net income was $70 million, down from Q2 2022’s $92 million.
What they said
Michele Allen, chief financial officer of Wyndham said: “Our business is highly cash generative and we're always looking for ways to reinvest that cash back into the business. So we're happy to put more money to work when the ROI makes sense for both us and the owner. We have a newly implemented program with a reputable lender to source construction financing and it provides our franchisees with very competitive terms.”
Geoff Ballotti, president & CEO of Wyndham added: “We don't need to acquire, but when a deal comes along that's immediately accretive to where we're trading at today, we'll absolutely look at it."