Wyndham Earnings Rise 50%

According to an article by the WSJ, "Wyndham Worldwide Corp.'s third-quarter earnings rose 50%" This can be accredited to two main factors: a tax benefit and higher demand from the previous year. In July, the "boost forecast" for the company was from $1.78 to $1.88. However, Wyndham raised its "earnings guidance" from $1.94 to $1.98 - well above what was expected in July. Furthermore, according to Thomson Reuters, "[Wyndham Worldwide Corp.] also sees 40 cents to 44 cents this quarter, while analysts' average projection was 40 cents." Wyndham Worldwide Corp. as well as other hotels are seeing this change because tourism demands are on the rise. It should also be noted that "prior cost cutting" of hotel rates is also causing this reaction.

A year earlier, Wyndham Corp reported a profit of $104 million, whereas this year the company reported a profit of $156 million. The revenue of the company increased to $1.07 billion - by a 4.8% increase. The article also states that "revenue per available room" is an important indicator of industry performance. Wyndham's revenue per available room rose 6.7% after a 17% slump last year.

Lately, I have been reading articles about the hotel industry starting to climb back up the ladder since the recession. I believe this article is a great indicator or this climb. The article also notes the Marriot International Corp, saying its timeshare business continued to rebound during the third quarter. Hopefully this trend will continue amongst the competitors in the hotel industry. Looking through this article and previous articles and the given statistics, the industry has really suffered because of the recession. It will be interesting to see what happens over the next few weeks with the hotel industry, especially because of the upcoming holiday season.