Wyndham Hotels & Resorts, Inc. (NYSE:WH) Q1 2024 Earnings Call Transcript

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We’ve increased our sales team by 25% and we’ll continue to roll out more new technology like this that allows them to book without having to RFP and that’s something that the team is really excited about as they’ve identified. I think we talked about this on the last call, over 3,600 projects within 10 miles of markets of our hotels with multiple hotels in those markets that are looking to contract, because, again, it is really early days. While 40% has been allocated of that spend, it’s not yet been spent and we want to make sure it’s spent with us.

Meredith Jensen: Super. Thanks. One last quick and apologies if I missed that before. If you could discuss kind of the engagement and the loyalty program between brands, if there’s kind of a differential in kind of the occupancy there or the take up and maybe internationally also what you’re seeing.

Geoff Ballotti: Sure. Our share of occupancy, and you didn’t miss it, I don’t think, Meredith, we talked about it, but I touched high level that our share of occupancy was up over 700 basis points, which is really important for our franchisees. It’s one of our biggest value proposition go-to-market offers that our franchise sales team has. And it is harder domestically than it is internationally. Roughly one out of every two check-ins tonight across the United States of America here in this country will be asking for their loyalty points. Overseas, that share of occupancy is lower, but overseas it’s growing higher, it’s growing faster and it has an opportunity to continue to grow. I think our overall share of occupancy domestically is roughly one out of two.

I think on a global basis, we’re somewhere approaching 40% share of occupancy. And with the work that our marketing teams are doing in countries like China, our China team is very bullish. The awareness of Wyndham continues to grow. We think about ancillary fee opportunities over there. I mean, we’ve become a lot more targeted and from a digital marketing, platform marketing standpoint and are doing a lot of really creative things over there, we could continue to push that higher.

Meredith Jensen: Great. Thanks so much.

Operator: Thank you. And our final question today will come from Patrick Scholes of Truist with a follow-up question.

Patrick Scholes: Great. Thank you. Just a follow-up question here regarding the quarterly results, specifically international. Certainly in Latin America, your numbers were phenomenal. Can you give us a little bit more color on how you did 41% RevPAR there? Certainly, that’s caught us off guard.

Geoff Ballotti: Yeah. Most of it — it’s a good question, Patrick. Most of it is Argentina and you know all about the hyperinflation down there. If you back out Argentina, our Latin America, RevPAR came in at roughly 3% and that was driven by, obviously, Argentina had a great quarter. We have — it’s an important market for us. But that was the bulk of it. We had good results in Brazil. We had good results in Peru.

Patrick Scholes: Okay. And then, lastly, on China here, you did significantly better than the overall market. What drove that? Thank you.

Geoff Ballotti: Sure. Yeah. China — again, our China team, as I just said to Meredith, is very, very bullish. We’re seeing more domestic travel. Flight capacity is part of it. Obviously, the — some of our peers have talked about not being able to fly in terms of the load factor the way you could before. But cost consciousness, our team believes, is also part of it. If you look at the Chinese travel patterns this year, they’re opting to stay closer to home, especially over the Chinese New Year period. I believe that was February 10, I think it was, for eight days. We saw a really strong pickup of more domestic travel and we think that’ll continue throughout the rest of the year. In terms of where it’s happening, our Tier 1 cities, our big Wyndham’s — big Wyndham grants, are doing very, very well and are probably outpacing the Tier 2 and 3 cities we’re in.

Patrick Scholes: Great. Thank you.

Geoff Ballotti: Thanks, Patrick.

Operator: Thank you. At this time, Mr. Ballotti, I’d like to hand things back to you, sir, for any closing comments.

Geoff Ballotti: All right. Thank you and thanks everybody for your questions and your interest in Wyndham Hotels & Resorts. Michele, Matt and I look forward to talking to and hopefully seeing many of you in the weeks and months ahead at many of the upcoming investor conferences we’ll be attending. Have a great day.

Operator: Thank you, Mr. Ballotti. This does conclude today’s Wyndham Hotels & Resorts first quarter 2024 earnings conference call. Please disconnect your line at this time and have a wonderful day.

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