Since the economic crisis broke out, the timeshare industry suffered from low sales and several owners getting out of their timeshares. But just as the economy is not in its full recovery yet this year, a number of timeshare operators reported a better-than-expected quarterly profit. One of these timeshare operators is the Wyndham Worldwide Corp, franchiser of Days Inn, Ramada and Super 8 hotels which revealed it was fetching a three times more quarterly dividend.The said company witnesses its net income of $73 million, or 40 cents per share compared to a net loss of $1.36 billion, or $7.63 per share, hit by charges linked to its vacation ownership program, a year earlier. However, analysts had projected that the company will fetch a 37 cents earning on average.
After last year's recession spurred vacationers and business travelers to cut back on spending, the hotel owners are facing difficulties to lure customers. For the Wyndham, it reduced construction and other costs at its timeshare unit as demand dropped. Meanwhile, its fourth quarter revenue rose to $913 million from $911 million a year earlier. In its hotel group on the other hand, the revenue per available room fell 11.9%.
The past two years had been tough times for the timeshare industry. It was characterized by low sales and many owners trying to get rid of their timeshares. Some of the owners even hire a timeshare transfer company such as the Transfer Smart just to get rid of such property. But just recently, the Wyndham Worldwide reported fourth-quarter and full-year results that confirm the expectations of a stabilizing travel market. On the other hand, next year’s forecast is generally in line with the firm's initial 2010 outlook and expected to leave a fair value estimate unchanged.
No comments:
Post a Comment