Wyndham Worldwide’s Q1 income up 44%, outlook improves

PARSIPPANY, NEW JERSEY Wyndham Worldwide Corp.’s net income climbed 44% in the first quarter on improved revenue across all segments. The company is also boosting its full-year outlook above analysts’ expectations.

Revenue rose 7% to US$952 million as results improved in its lodging, vacation exchange and rentals and vacation ownership segments. Still, that was short of the US$970 million anticipated by analysts.

Wyndham earned US$72 million, or 41 cents per share, during the first quarter, compared with US$50 million, or 27 cents per share, in the same period last year. Adjusted earnings of 44 cents per share beat the 40 cents per share that Wall Street had expected.

“We are pleased to report that 2011 started as 2010 ended, with strong operating performance and accelerating earnings per share growth,” says CEO Stephen Holmes. “We delivered strong operating performance across all our businesses and are confident in the sustainability of our growth and cash flow. Our confidence in growth and cash flow generation is reflected in our substantial share repurchase activity so far this year, the significant increase in our share repurchase program, as well as the previously announced 25% increase in our dividend for 2011.”

Wyndham has announced plans to buy back an additional US$500 million in stock. Year-to-date, Wyndham has already repurchased approximately 8.2 million shares of its common stock at an average price of US$31.01, for approximately US$255 million.

For Wyndham Hotel Group, revenue was up 3%, reflecting a RevPAR increase of 7.4% and incremental revenues related to the acquisition of the Tryp brand. First quarter adjusted EBITDA was US$40 million, an increase of 21%, primarily resulting from RevPAR improvement and lower costs.

As of March 31, the company’s hotel system consisted of approximately 7,190 properties and 609,600 guestrooms. The development pipeline included approximately 830 hotels and 102,000 guestrooms, of which 57% were new construction and 57% were international.