13 Best Vacation Stocks to Buy Now

7) Wyndham Hotels & Resorts, Inc. (NYSE:WH)

Number of Hedge Fund Holders: 26

Wyndham Hotels & Resorts, Inc. (NYSE:WH) owns and operates a hotel and resort chain. It offers rooms and amenities, pools, resorts, meetings, and events space.

Wyndham Hotels & Resorts, Inc. (NYSE:WH)’s stock price is expected to be supported by the expansion of room share in the hotel industry and its ability to maintain brand intangible assets and switching cost advantage. Moreover, further price and occupancy increases, together with higher demand from increased US infrastructure build-out, should stem revenue growth. The company introduced Wyndham Connect, which is a new guest engagement platform that targets improving customer experiences and boosting ancillary revenues for hotel owners.

While Wyndham Hotels & Resorts, Inc. (NYSE:WH)’s extended stay segment should grow by 6% per year, the company’s growth strategy revolves around focusing on economy and mid-scale segments. The company’s competitive advantages include a successful expansion strategy and its ability to adapt to varying market demands. Moreover, the resilient and highly cash-generative nature of its business model should continue to support its revenues and earnings growth.

Wall Street remains optimistic about the company’s strong development pipeline and strategic investments in various hotel segments. The development pipeline of Wyndham Hotels & Resorts, Inc. (NYSE:WH) went up by 7% YoY to a record 245,000 rooms.

In 2Q 2024, Wyndham Hotels & Resorts, Inc. (NYSE:WH) generated a net income of $86 million against $70 million in 2Q 2023. This increase reflects higher adjusted EBITDA, a benefit in connection with the reversal of the spin-off-related matter, and a lower effective tax rate. For FY 2024, Wyndham Hotels & Resorts, Inc. (NYSE:WH) expects adjusted net income in the range of $338 million – $348 million.

Barclays increased its target price from $88.00 to $90.00, giving it an “Overweight” rating on 26^th July. As per Insider Monkey’s 2Q 2024 data, 26 hedge funds held stakes in Wyndham Hotels & Resorts, Inc. (NYSE:WH).