Tap into rebounding travel volumes

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). Wyndham Hotels is up 30% since the split. That’s partly because rival Choice Hotels International Inc. (New York symbol CHH) launched a hostile takeover offer. Choice later dropped its offer as Wyndham felt the bid undervalued its growth potential. Even without a takeover offer, the company’s prospects remain bright as travel volumes continue to rebound in the wake of the COVID-19 pandemic. Travel + Leisure is up just 11%. However, a recent acquisition improves its prospects. What’s more, its timeshare buyers, who have pre paid for their rooms, are less likely to cancel their holidays due to economic conditions. WYNDHAM HOTELS & RESORTS INC. $76 is a buy. The company (New York symbol WH; Consumer Sector; Shares outstanding: 80.6 million; Market cap: $6.1…