Profit from the current travel rebound

Article Excerpt

On June 4, 2018, Wyndham Worldwide (old New York symbol WYN) split into two new companies. For every WYN share investors held, they received one share each of the new companies—Wyndham Hotels and Resorts, and Wyndham Destinations (now called Travel + Leisure). Both stocks suffered during the COVID-19 shutdowns, but have rebounded strongly from their 2020 lows. In fact, Wyndham Hotels is now up 35% since the split, while Travel + Leisure has gained just 1%. While it’s possible the Omicron variant could lead to more restrictions, new vaccines and drugs should continue to spur more travel volumes, and their stock prices. WYNDHAM HOTELS & RESORTS INC. $79 is a buy. The company (New York symbol WH; Consumer Sector; Shares outstanding: 93.2 million; Market cap: $7.4 billion; Dividend yield: 1.6%; Takeover Target Rating: Medium; www.wyndhamhotels.com) is the world’s largest hotel franchiser, with 802,600 rooms spread across 9,000 hotels in 95 countries. Its portfolio of 20 brands includes Super 8, Days Inn, Ramada, La Quinta and Wyndham. Revenue…