Wyndham Hotels & Resorts reports second quarter 2020 results
Net loss was $ 174 million for the second quarter and adjusted net income was $ 9 million
Wyndham Hotels & Resorts (NYSE: WH) today announced results for the three months ended June 30, 2020. Highlights include:
The diluted loss per share was $ 1.86, and the diluted adjusted earnings per share were $ 0.10.
Net loss was $ 174 million for the second quarter and adjusted net income was $ 9 million.
- Adjusted EBITDA was $ 63 million.
- Rooms throughout the system remained flat year after year.
- The global comparable RevPAR decreased 54% year-over-year.
- Quarterly cash dividend paid of $ 0.08 per share.
"We generated positive adjusted EBITDA in the second quarter, driven by our franchise business model geared toward leisure and transportation, along with our concerted and immediate cost-saving initiatives," said Geoffrey A. Ballotti, President and CEO. . "We were pleased to see a steady improvement in average daily rate, occupancy, and RevPAR in the past three months. Our select service small business owners are in a unique position to remain open and capture emerging travel demand, in whatever form. of recovery may be. Approximately 85% of our hotels have remained open worldwide during the pandemic, and over 99% of our national hotels are open today. Importantly, our mid-scale and budget brands continue to outperform to your local markets. We remain committed to supporting our owners through this difficult period, as we show our guests and team members that they can "count on us" to put their safety first. "
Revenue decreased to $ 258 million in the second quarter of 2020, compared to $ 533 million in the second quarter of 2019. The decrease includes lower transfer cost reimbursement revenues of $ 94 million, which have no impact on EBITDA adjusted, in the hotel of the company business management. Excluding cost reimbursement revenue, revenue decreased $ 181 million, reflecting a 54% decrease in comparable RevPAR and the impact of hotels temporarily closed due to COVID-19.
The Company generated a net loss of $ 174 million, or $ 1.86 per diluted share, in the second quarter of 2020, reflecting $ 1.71 per diluted share in non-monetary impairment charges related to certain intangible assets and $ 0.18 per diluted share in restructuring and transactions. costs. Net income in the second quarter of 2019 was $ 26 million, or $ 0.27 per diluted share, which included a non-monetary impairment charge of $ 0.34 per diluted share and $ 0.16 per diluted share in expenses related to transactions, separation and termination of contracts. The decrease in net income of $ 200 million, or $ 2.13 per diluted share, was primarily due to the impact of non-cash impairment charges and the decrease in income, which was partially offset by lower related expenses with volume, as well as cost containment initiatives, including restructuring actions.