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Wyndham Hotels & Resorts Inc WH

Rating as of

Morningstar’s Analysis

Valuation
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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Narrow-Moat Wyndham’s Brand Performing Well As It Continues To Lead the U.S. Travel Recovery

Dan Wasiolek Senior Equity Analyst

Analyst Note

| Dan Wasiolek |

We plan to increase our Wyndham $64 fair value estimate by around $4 per share, due to stronger demand recovery this year, and overall brand strength (source of its narrow moat) driving higher unit growth over the long term, leaving shares slightly overvalued.

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Company Profile

Business Description

As of March 31, 2021, Wyndham Hotels & Resorts operates 797,000 rooms across 20 brands in the economy (around 61% of total properties) and midscale (32%) segments. Super 8 is the largest brand, representing around 30% of all hotels, with Days Inn (18%) and La Quinta (10%) the next two largest brands. During the past several years, the company has expanded its extended stay/lifestyle brands (3% of total properties), which appeal to travelers seeking to experience the local culture of a given location. The United States represents 61% of total rooms. The company closed its La Quinta acquisition in the second quarter of 2018, adding around 90,000 rooms at the time the deal closed.

Contact
22 Sylvan Way
Parsippany, NJ, 07054
T +1 973 753-6000
Sector Consumer Cyclical
Industry Lodging
Most Recent Earnings Mar 31, 2021
Fiscal Year End Dec 31, 2021
Stock Type Distressed
Employees 9,000

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