Travel operator Wyndham Worldwide has reported an increase in revenue for the second quarter of financial 2010 as the recovery in the global hotel sector continues.
The United States-based company – which owns the Ramada, Days Inn and Travelodge brands – generated second quarter revenues of $963 million, an increase of five per cent from the previous year.
Strong trading in three core businesses saw net profit for the quarter increase 35 per cent - up from $71 million to $95 million.
As a result, diluted earnings per share stood at $0.51, compared with company-issued guidance of $0.38 - $0.42 and $0.39 in the second quarter of 2009.
“Continued strong operating performance in each of our businesses in the second quarter, combined with a lower overall tax rate, enables us to increase our full-year earnings guidance,” explained Wyndham Worldwide chairman Stephen Holmes.
“We continue to generate significant levels of sustainable free cash flow that we are deploying to drive shareholder value.”
Net income was largely boosted by year-over-year improvement in the exchange and rentals business, a lower effective tax rate and the favourable net effect of foreign currency.
Wyndham Worldwide purchased the Hoseasons holiday brand earlier this year.
Prices rise following Q2 results
For the third quarter of 2010, the company now expects adjusted diluted earnings per share of $0.60 - $0.64.
The company presently maintains cash reserves of approximately $240 million, compared with $155 million in December 2009.
Wyndham Worldwide offers individual consumers and business-to-business customers a suite of hospitality products and services across various accommodation alternatives and price ranges through its portfolio of world-renowned brands.
At present the company’s hotel system consists of approximately 7,160 properties – with a total of 606,800 rooms.
Wyndham Worldwide’s development pipeline includes approximately 980 hotels and 107,600 rooms, of which 54 per cent are new construction and 49 per cent are international.