Wyndham Cuts Growth Forecast, Hopes for Infrastructure Boom

Wyndham has lowered its revenue projections for the year following weaker-than-expected travel demand in March. But executives say recent softness may be temporary, and they were upbeat about growth opportunities tied to infrastructure projects.

The hotel franchisor now expects this year's global revenue per available room (RevPAR) to range between a 2% decline and 1% growth, down from its previous outlook of 2-3% growth. The adjustment came after first-quarter RevPAR rose only 0.6% year-over-year.

While acknowledging a disappointing March performance, Wyndham President and CEO Geoff Ballotti pointed to a significant improvement in the final week of April, when RevPAR jumped 400 basis points to run about a full point ahead of the prior year.

"We're optimistic, and I think our franchisees are as well, that the uncertainty that's out there could be relatively short-lived," Ballotti said on a Thursday earnings call.

Wyndham's infrastructure-related hotel demand dipped about 150 basis points in the first quarter compared to the end of last year as the Trump administration held up some disbursements.

Ballotti said a recent meeting with hotel and airline CEOs and Transportation Secretary Sean Duffy provided reassurance that the Trump administration plans to resume and accelerate spending.

"More importantly, as Secretary Duffy said, t