Wyndham’s revenue forecasts have been lowered for the year due to a weaker than expected travel demand in March. Executives say the recent softening may only be temporary and are optimistic about growth opportunities linked to infrastructure projects.
The hotel franchiser now expects the global revenue per available rooms (RevPAR), this year, to be between a 2 percent decline and 1 percent growth. This is down from their previous expectation of 2-3% growth. The adjustment was made following a first-quarter RevPAR increase of only 0.6%.
Geoff BALLOTTI, Wyndham’s President and Chief Executive Officer, admitted that March’s performance was disappointing, but he pointed to an improvement during the final week in April, where RevPAR rose 400 basis points. This is equivalent to about a point more than the previous year.
“We are optimistic and I believe our franchisees as well that the uncertainty out there could relatively be short-lived,” said Ballotti on a earnings call held Thursday.
Trump Infrastructure spending could boost hotel demand
Wyndham’s infrastructure-related hotel demand dipped about 150 basis points in the first quarter compared to the end of last year as the Trump administration held up some disbursements.
Ballotti said that a meeting held with the CEOs of hotels and airlines, as well as Transportation Secretary Sean Duffy, provided assurances that the Trump Administration plans to restart and accelerate spending.
“More Important, as Secretary Duffy pointed out, is the fact that t
