Wyndham Hotels & Resorts, Inc.

Valuation Analysis

About the Company

Wyndham Hotels & Resorts, Inc. is the world's largest hotel franchising company by the number of franchised properties, with approximately 8,300 hotels across approximately 100 countries on six continents. Through its network of over 855,000 rooms appealing to the everyday traveler, Wyndham commands a leading presence in the economy and midscale segments of the lodging industry. The Company operates a portfolio of 25 hotel brands, including Super 8, Days Inn, Ramada, Microtel, La Quinta, Baymont, Wingate, AmericInn, ECHO Suites, Registry Collection Hotels, Trademark Collection and Wyndham. Wyndham Hotels & Resorts, Inc. was incorporated in 2017 and is headquartered in Parsippany, New Jersey.

Wyndham Hotels & Resorts, Inc. Stock at a Glance

Wyndham Hotels & Resorts, Inc. (WH) is currently trading at $79.39 with a market capitalization of $5.9B. The trailing P/E ratio stands at 31.5x, with a forward P/E of 14.78x. The 52-week range spans from $69.21 to $92.69; the current price is 14.3% below the yearly high. Year-over-year revenue growth stands at +3.5%. The net profit margin stands at 13.4%.

💰 Dividend

Wyndham Hotels & Resorts, Inc. pays an annual dividend of $1.68 per share, representing a yield of 2.12%. The payout ratio stands at 65.87%.

📊 Analyst Rating

17 analysts rate Wyndham Hotels & Resorts, Inc. (WH) on consensus: Buy. The average price target is $100.18, implying +26.18% from the current price. Analyst price targets range from $89.00 to $115.00.

Wyndham Hotels & Resorts, Inc.: The Investment Case in Detail

Wyndham Hotels & Resorts, Inc. (WH) operates in the Consumer Cyclical — specifically Lodging — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bull Case

With a gross margin near 61.25%, the company sits in the top tier of its industry — these are the kinds of structural margins that protect earnings during downturns. Return on equity of 37.62% places management among the most capital-efficient operators in the public market — every euro of shareholder capital is working hard. Wall Street consensus sits at Buy with an average price target implying roughly 26.18% upside from current levels — analyst sentiment is firmly constructive.

The Bear Case

Revenue growth has slowed to just 3.5%, which is below nominal GDP — the business is no longer outgrowing the broader economy. The debt-to-equity ratio of 592.84% is elevated, meaning the company relies heavily on creditors — refinancing terms will become more important than operational performance in the next economic downturn. Short interest sits at 10.81% of float — a meaningful contingent of professionals is positioned for the share to fall, which deserves attention even if their thesis may turn out to be wrong.

Valuation in Context

With a PEG ratio of 0.65, the price-to-earnings multiple is actually below the company's growth rate — classic value-meets-growth territory that Peter Lynch would have called a 'GARP' opportunity.

What to Watch Next

• The forward P/E of 14.78x is meaningfully below the trailing 31.5x — analysts expect earnings to step up; the next earnings release is the test.
• The analyst consensus price target implies 26.18% upside — if the next two quarters confirm the underlying thesis, target hikes typically follow.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

Price shows short-term weakness (below 50d MA) but is still in a longer-term uptrend (above 200d MA).

Risk Profile

The data points to relatively defensive market behavior, elevated short interest (10.81%), higher leverage relative to equity.

Trading Data

💵 Dividend Info

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