Wyndham Hotels & Resorts reported a 3% decline in revenue per available room in the second quarter, as economic headwinds dampened demand from the budget-conscious travelers who make up roughly half of its customer base.
Geoff Ballotti, Wyndham’s president and CEO, said during a Thursday earnings call that “higher interest rates for longer, persistent inflation and uncertainty surrounding immigration and trade has created an ongoing economic environment of continued volatility for economy and mid-scale guest who remain particularly sensitive to these dynamics.”
Ballotti stated that the RevPAR drop of 2.3% for the quarter was a slight improvement over the 2.9% decline in March. The company has maintained its RevPAR guidance for the full year, which is down 2% to 1%.
The RevPAR decline was primarily due to softness in leisure markets, notably in Sunbelt States like Texas and Florida. These states represent about one-quarter of Wyndham’s entire system. However, the company experienced
