Is Wyndham Hotels Stock a Buy?
The COVID-19 pandemic has dealt a heavy blow to the hospitality industry. Throughout the world, many hotels and inns have suffered precipitous drops in occupancy and room rates. Wyndham Hotels & Resorts (NYSE: WH) is no exception, as revenue per available room (RevPAR) declined 23% globally due to travel restrictions. Occupancy rates, at their lowest point in the week of April 11, averaged around 22% across the company's hotel portfolio.
As the U.S. suffers record numbers of job losses, more people are also putting off discretionary travel as they tighten their belts. It may take a while before consumer spending habits revert to prepandemic levels, and consumers' propensity to spend may remain suppressed unless employment levels improve. Many hotel chains may, therefore, suffer extended bouts of low occupancy, putting further pressure on their financial performance.
With such a bleak outlook, does Wyndham's stock still qualify as a buy?
Source Fool.com
