Wyndham Expects Pressures Hitting Budget Travelers to Lift

Price-conscious travelers made fewer trips this spring in the U.S., but hotel developers have shown confidence by signing up for franchise contracts in record numbers.

Wyndham Hotels & Resorts reported a 3% decline in revenue per available room in the second quarter, as economic headwinds dampened demand from the budget-conscious travelers who make up roughly half of its customer base.

"Higher for longer interest rates, persistent inflation, and uncertainty around immigration and trade have created an environment of ongoing economic volatility for economy- and mid-scale guests who remain especially sensitive to these dynamics," said Wyndham president and CEO Geoff Ballotti during an earnings call Thursday.

Ballotti said the RevPAR decline of 2.3% in the quarter was an improvement from the 2.9% drop in March. The company maintained its full-year RevPAR guidance of down 2% to up 1%.

The RevPAR decline reflected softness in leisure-focused markets, particularly in Sunbelt states like Texas, Florida and California, which represent about a quarter of Wyndham's system. However, the company saw