THE SECOND QUARTER of 2020 brought a net loss of $174 million for Wyndham Hotels & Resorts, according to the company’s earnings call. There was some improvement in occupancy and EBITDA.
Wyndham’s adjusted net income for the quarter was $9 million and its adjusted EBITDA of $63 million. Its global comparable RevPAR declined 54 percent year-over-year, according to results that will be discussed in a webcast Wednesday.
In other results for the quarter, revenues declined to $258 million compared with $533 million in the second quarter of 2019. However, Wyndham provided $79 million of support to its franchisees. More than 95 percent of its hotels are currently open, including 99 percent in the U.S. Its economy and midscale brands gained more than 300 basis points and more than 1,000 basis points respectively of RevPAR Index versus their competitive sets, and approximately 70 percent of its franchisees saw occupancy over 40 percent.
“We generated positive adjusted EBITDA in the second quarter, driven by our drive-to and leisure-oriented franchise business model, along with our immediate and concerted cost savings initiatives," said Geoffrey Ballotti, Wyndham’s president and CEO. “We were pleased to see a steady improvement in ADR, occupancy and RevPAR over the past three months. Our select-service, small business owners are uniquely positioned to both remain open and capture emerging travel demand, whatever the shape of the recovery may be.”
Wyndham’s development pipeline declined 4 percent year-over-year during the quarter to 180,000 rooms as a result of softer sales and other factors. The company recorded a non-cash net impairment charge of $206 million related to certain intangible assets as share prices became more volatile, leading to higher discount rates.
The net rooms growth in the system remained relatively flat. While 7,500 rooms were transferred into the franchise system from the hotel management segment after the company’s related CorePoint Lodging REIT sold several assets, the company removed 9,000 non-compliant master franchise rooms in China.
Several other companies will be announcing their second quarter results next week, including Hersha Hospitality Trust, Hilton Worldwide Holdings, Hyatt Hotels Corp. and Choice Hotels International.
