WH – Market expectations are for Uniform ROA to reach all-time highs, but management may be concerned about room openings, their loyalty program, and La Quinta

• Wyndham Hotels & Resorts, Inc. (WH:USA) currently trades above corporate averages relative to UAFRS-based (Uniform) earnings, with a 32.0x Uniform P/E. At these levels, the market has bullish expectations for the firm, but management may be concerned about room opening recovery, the Wyndham rewards loyalty program, and La Quinta performance
  
  

• Specifically, management may lack confidence in their ability to drive higher ROI for hotel owners, maximize the value they provide for franchisees, and sustain room opening recovery. In addition, they may be exaggerating the capabilities and the strength of the Wyndham rewards loyalty program and the ability of the Wyndham Direct tool to drive higher business spending. Furthermore, management may be concerned about ongoing travel restrictions, the pace of leisure market demand recovery, and the pandemic’s impact on their budget. Management may also be overstating the ease at which customers can book a room through the mobile app, and they may be exaggerating the benefits La Quinta is receiving from industry trends and the sustainability of its segment-leading occupancy rates