Wyndham Worldwide Corp unveiled a fall in profits for Q3 as it spent less money on its timeshare business and continued to deal with the wider downturn in travel expenditure.
Earnings fell 27 percent to $104 million, or 57 cents per share, compared with $142 million, or 80 cents per share, a year ago.
Third quarter revenues of $1,016 million declined by 17% from the prior-year period due to an announced initiative to reduce the deployment of capital in the Company’s timeshare business; continued weakness in the global lodging industry; and unfavorable foreign exchange rate movements which negatively impacted the Company’s exchange and rentals business.
“Wyndham Worldwide delivered solid results in the third quarter, once again demonstrating the benefits of a strong, resilient business model and excellent execution” said Stephen P. Holmes, chairman and CEO, Wyndham Worldwide. “We continue to transform the Company by rebalancing our worldwide business portfolio to increase the contribution of fee-for-service businesses and drive strong cash flow.”
As of September 30, 2009, the Company’s hotel system consisted of approximately 7,040 properties and 590,900 rooms, of which 21% were international. The development pipeline included approximately 1,000 hotels and 110,800 rooms, of which 50% were new construction and 41% were international.