Hoteliers Boost Outlook as Recovery Signs Emerge
Deepa Seetharaman of Reuters reports that major lodging companies Wyndham Worldwide Corp and Host Hotels & Resorts Inc lifted their 2010 outlooks on Wednesday on further signs that the industry is able to command higher room rates and boost occupancy.
The U.S. lodging industry was hammered in 2009 as consumers and businesses trimmed their travel budget, forcing both room rates and occupancies lower. The trend hit luxury and upscale hotels hardest, while economy properties were more resistant.
Shares of Wyndham and Host rose in trading before the market opened.
Wyndham, the franchiser of Days Inn and Super 8 economy hotels, posted a better-than-expected quarterly profit and lifted its full-year earnings and revenue forecast.
In an interview, Wyndham Chief Executive Officer Stephen Holmes said the company still projected revenue per available room for the year would be flat or fall as much as 3 percent. But he said Wyndham would probably reach the top end of that outlook.