Wyndham Hotels Broadens Presence in The Caribbean With Addition of New Hotel
Wyndham Hotels & Resorts, Inc. (WH) has unveiled its latest addition to the Dominican Republic with the launch of Wyndham Alltra Samana in Las Galeras. This move marks a significant milestone for Wyndham as it establishes its first resort in this Caribbean nation.
Located in the picturesque Samana province, Wyndham Alltra Samana boasts stunning ocean vistas, pristine white sands, and an array of entertainment options for guests to enjoy during their stay.
WH's expansion strategy remains robust as it continues to bolster its global presence, catering to the rising demand for accommodations in international markets. In 2023 alone, the company added an impressive 500 new hotels to its portfolio, reflecting an 11% year-over-year increase. Notably, WH introduced 13 brands across 24 new countries, demonstrating its commitment to diversification and growth.
The company's direct franchising approach, coupled with a focus on upscale and higher RevPAR regions, has been instrumental in achieving substantial international growth. With 864 contracts awarded in 2023, representing approximately 104,000 rooms, WH has positioned itself for continued success on the global stage.
Looking ahead, Wyndham Hotels anticipates further expansion with the upcoming launch of Wyndham Alltra Punta Cana, managed by Playa Hotels & Resorts N.V. This addition reinforces WH's growing collection of all-inclusive resorts, which now encompasses around 40 properties worldwide. Moreover, the company projects a 3-4% year-over-year increase in net room growth for 2024.
Despite challenges posed by the pandemic, Wyndham Hotels' shares have demonstrated resilience, with a 5.5% increase over the past year. This performance, while trailing behind the industry's growth, reflects investor confidence in the company's long-term prospects.
Wyndham Hotels currently holds a Zacks Rank #3 (Hold), indicating a neutral stance among analysts. However, within the Consumer Discretionary sector, other stocks present compelling opportunities for investors.
Trip.com Group Limited (TCOM) stands out with a Zacks Rank #1 (Strong Buy), boasting a remarkable earnings surprise history and substantial gains in share value. Similarly, Royal Caribbean Cruises Ltd. (RCL) holds a Zacks Rank #2 (Buy), supported by strong earnings growth projections for 2024.
In parallel with the hospitality sector's growth, the U.S. infrastructure presents lucrative investment prospects. With bipartisan support for extensive infrastructure projects, companies specializing in construction, transportation, and energy stand to benefit significantly.
Investors keen on capitalizing on this trend can explore Zacks' Special Report, featuring five companies poised to thrive amidst the impending infrastructure boom.
In summary, Wyndham Hotels' expansion into the Dominican Republic underscores its commitment to global growth and diversification. With a strong pipeline of projects and strategic investments, the company remains well-positioned to capitalize on emerging opportunities in the hospitality sector and beyond.
Source: Zacks