WH Stock Forecast & Price Target

Wyndham Hotels & Resorts has demonstrated a robust operational performance, achieving an 11% growth in earnings per share (EPS) despite a challenging environment that included a 3% decline in revenue per available room (RevPAR). The company has also successfully expanded its room count by 350 basis points year-over-year, notably enhancing its presence in both the domestic and international markets, with strong growth of 6% in EMEA and 25% in Latin America for RevPAR. Furthermore, Wyndham's strategic focus on the extended stay segment, coupled with disciplined capital allocation and a strong growth pipeline, positions it favorably to meet its net room growth outlook of 3.6%-4.6% for FY25, underpinning a positive long-term outlook for the company's stock.

Wyndham Hotels & Resorts is projected to experience Adjusted EBITDA growth of only 5%-7%, which falls short of the previously anticipated 8.5% CAGR from 2024-2026, indicating potential operational inefficiencies. The company faces negative dynamics in RevPAR, with a 2.9% decline observed in March and an 8% decrease in China's market due to pricing pressures, reflecting weakening demand in key markets. Additionally, the ongoing macroeconomic challenges, including a slowdown in development opportunities and adverse impacts from natural disasters, further complicate the company’s growth prospects, leading to an overall negative outlook.