A Look at Wyndham Hotels & Resorts’s Valuation Following New International Expansion Deals and Growth in Key Markets

Wyndham Hotels & Resorts (NYSE:WH) is making headlines with fresh international expansion, including a 25-property deal with Gorgeous Smiling Hotels in Germany and Austria. The company also has plans to launch a branded Days Inn property in Singapore.

See our latest analysis for Wyndham Hotels & Resorts.

Wyndham’s pace of international deals and fresh property launches hasn’t shielded shareholders from a tough year, with a 1-year total return of -4% and a year-to-date share price return near -22%. Still, long-term investors have seen momentum pay off. Five-year total returns top 61%, signaling that despite recent setbacks, Wyndham’s global push could spark renewed optimism if execution stays strong.

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With international expansion accelerating and significant partnerships announced, investors are left to consider whether Wyndham is undervalued after its recent share slide, or if the market is already anticipating a rebound in global growth.

Most Popular Narrative: 26% Undervalued

According to Zwfis, the current share price of $77.92 sits well below a fair value estimate of $105.80. That gap sets the backdrop for a compelling bull case, as the narrative incorporates aggressive growth and profitability projections that could reshape expectations if delivered.

Wyndham is different because they do not actually own any real property at all. Instead they make all of their revenue from fees and royalties coming from their franchisees. This allows them to have good reserves of cash and be available to reward investors whether by share repurchases, dividends or even strategic acquisitions such as what they did with La Quinta a couple of years ago. Because of this they also have a very large amount of debt. However, WH does indeed want to operate with a decent amount of debt as they view it as a tool to help them grow.

Read the complete narrative.

Want to see which key drivers power such a bold valuation jump? The narrative’s secret sauce lies in a unique asset-light strategy and ambitious growth targets. Find out exactly how these unconventional levers and aggressive assumptions could drive substantial upside. Get the full details straight from the source.

Result: Fair Value of $105.80 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, ongoing debt levels and potential changes in global travel demand could quickly shift Wyndham's outlook. This could challenge the bullish case if trends reverse.

Find out about the key risks to this Wyndham Hotels & Resorts narrative.

Build Your Own Wyndham Hotels & Resorts Narrative

If you see the story differently, or want to back up your own research with a personal take, you can create your own narrative in just minutes. Do it your way

A great starting point for your Wyndham Hotels & Resorts research is our analysis highlighting 5 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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