Wyndham Worldwide Corporation (WYN)
Wyndham Worldwide Corporation is a hospitality company offering a wide range of hospitality services and products through a portfolio of brands, including Wyndham Hotels and Resorts, Ramada, Days Inn, Super 8, Howard Johnson, Wingate by Wyndham, Microtel Inns & Suites, Tryp by Wyndham, RCI, Landal GreenParks, and others. The Company operational segments are: Lodging (franchises hotels in the upscale, upper midscale, midscale, economy and extended stay segments) and hotel management services for service hotels; Vacation exchange and rentals, which provides vacation exchange services and products to owners of intervals of vacation ownership interests (VOIs) and markets vacation rental properties, and Vacation ownership, which develops, markets and sells VOIs to individual consumers, provides consumer financing in connection with the sale of VOIs, and provides property management services at resorts. During 2010-2015 WYN’s ADR (average daily rate) and RevPAR (revenue per available room) has been consistently increasing in each year. For 2010-2015 WYN stock has been consistently outperforming S&P 500. For the fiscal year ended 31 December 2015, Wyndham Worldwide Corporation revenues increased 5% to $5,540,000,000. Net income increased 16% to $612,000,000. Revenues reflect Hotel Group segment increase of 18% to $1,300,000,000, Vacation Ownership segment increase of 5% to $2,770,000,000, United States segment increase of 9% to $4,250,000,000.
Market Capitalization as at 04/04/2016 was $8,530,000,000.
In 2015 Dolce Hotels and Resorts were purchased by WYN for $57,000,000 ($52,000,000 in cash, $5,000,000 debt repayment).
Five more acquisitions (details are not disclosed) for the sum of $38,000,000 (in cash) were completed in 2015.
In 2014 four acquisitions for the sum of $32,000,000 (cash) were completed.
In 2013 WYN purchased Midtown 45 property for $115,000,000 through SPE (special purpose entity). In the same year two more acquisitions for $14,000,000 (in cash) were completed.
In 2013 WYN has acquired Oceana Resorts, Kaiser Realty, Inc., Cumbrian Cottages Limited – the deal value is not disclosed.
In 2010 WYN has acquired James Villa Holidays Limited (UK based tour operator) for $60,455,200, ResortQuest International Inc. (US based vacation rental and real estate agency) for $56,000,000, and Hoseasons Holdings Limited (UK based self-catering holiday agency) for $123,516,500
It seems that WYN do not have public subsidiaries, and the only listed structure is Wyndham Worldwide Corporation – the parent company itself.
In 2015 long-term debt has increased from 2,841,000,000 to 3,034,000,000.
WYN does not seem to have problems with debt service.
WYN profits has been steadily increasing during 2014-2015. EPS (earnings per share) in 2015 was $5.14, which is 23% growth from $4.18 in 2014. Also the dividends per share in 2015 grew 20% to $1.68 compared to $1.4 in 2014. Also WYN has been repurchasing its common stock during 2013-2015, allocating from $593,000,000 to $658,000,000 each year.
Hotel group segment of WYN has grew the most in 2015, by 17.8%, to $1,297,000,000. Total revenue in 2015 was $5,607,000,000. It should be noted that in 2015 there was a sharp increase in revenue ($777,000,000) from all other countries geographical segment, except for U.S., UK, Netherland. During 2011-2014 this segment showed zero profit. Overall WYN seems a solid investment option due to stable, upward –trending performance, and expanding profits from international operations.