Zibo China Wyndham Hotel
Wyndham Hotels & Resorts closed its first two hotels in China, Zibo China and Zhiyuan, but those that remain open have seen fewer guests, Chief Financial Officer Michele Allen told investors on a conference call detailing the company's earnings for 2019. The company expects a net loss of $1.5 million for the first quarter of 2019, down from $2.2 million in the same period last year.
During a conference call with investors earlier this week, Hilton CEO Chris Nassetta said the company expects a net loss of $1.5 million for the first quarter of 2019. Allen expects adjusted EBITDA for the full year to be between $2 million and $3 million, down from $4 million in the same period last year. That could translate into earnings per share of $0.2 to $0.3 for Wyndham Hotels & Resorts.
Allen said the market remained soft and the risk to net room growth was about 0.5 points because of the delayed hotel openings this year.
Major airlines have cancelled many flights to and from China and passengers have been quarantined on cruise ships in the region. Wyndham also waived all fees for guests traveling to China on or after February 29 for all guests with valid visas.
Wyndham Hotels and Resorts is the largest international hotel franchisee in China and the latest hotel company to deal with the coronavirus, which has caused more than 1,000 deaths in mainland China.
The company operates over 20 hotel brands, including Wyndham Hotels and Resorts, the largest international hotel franchisee in China. The company currently operates 11 of its 20 brands in the US, most recently its Microtel (r)
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