Wyndham Returns to Profits on Swelling Domestic Demand in U.S. and China
Photo Credit: Wyndham reported a $29 million first quarter profit thanks to strong domestic demand in the U.S. and China. Wyndham Hotels & Resorts
Skift Take
Many hotel companies shouldn't expect to replicate Wyndham's early financial success. Global companies like Accor and Hyatt have to grapple with business-oriented hotels in urban markets — areas which are still struggling from pandemic restrictions.
Strong domestic travel demand in two of the world’s largest economies moved Wyndham from the red into the black for the first few months of 2021.
Wyndham reported a $24 million first quarter profit this week, and the profitability centered around the U.S. and China. Occupancy rates surpassed 70 percent in U.S. states like Florida, Arizona, and Utah. Travel spending in China is near pre-pandemic levels, the company reported on an investor call Thursday.
Like most travel companies, Wyndham leaders are encouraged that the momentum will accelerate even further heading into warmer months.
“Consumer confidence is back, hotels are selling out again, and our busy summer season is upon us,” Wyndham CEO Geoff Ballotti said Thursday.
The first quarter gains improve upon last quarter, when Wyndham reported a $7 million loss and $132 million annual loss for 2020 due to the pandemic.
China was already leading the world in terms of recovery due to its tough lockdown meas
