Wyndham Worldwide CorporationWYN announced the opening of The Summit, expanding its Dolce Hotels and Resorts brand. Notably, this marks Wyndham's first hotel in Cincinnati, OH. Dolce Hotels and Resorts by Wyndham, being an upper-upscale hotel brand, offers 239 rooms and is located on the former site of the NuTone door chime factory and later Medpace's iconic rainbow parking garage.
Like most other Dolce hotels, The Summit provides guests with high class amenities and caters to the needs of a varied range of travelers. Incorporating the local Cincinnati culture and cuisine, and spacious meeting spaces, the hotel stands in true testimony to Wyndham's relentless efforts for enhancing customer experience.
Strategic Brand Expansion
The move underscores Wyndham's focus on expanding its brand presence in the United States. The company's already established brand name allowed it to gain four of the top five economy hotel spots in the 2017 JD Power Guest Satisfaction Index. Currently the company, with its 38,000 associates, has a collective inventory of nearly 130,000 places to stay across more than 110 countries.
With expansion in Cincinnati, Wyndham is probably trying to capture the enormous market there that features dozens of craft breweries, renowned restaurants, sporting venues, parks and boutiques.
Also, Wyndham's strategic expansion and strong brand portfolio have helped its shares to gain 27.8% in the past year, outperforming the S&P 500's 's growth of 16.1%. However, the company underperformed the industry 's rally of 33.7% in the same time period.
We believe that the addition of The Summit by Dolce Hotel will boost revenues in Wyndham's Hotel Group segment. The segment primarily franchises hotels in the upscale, upper midscale, midscale, economy and extended-stay segments. It also provides hotel management services for full-service and select limited-service hotels.
In 2017, the segment's revenues grew 2.6% year over year and is also expected to perform well in 2018 on the back of higher franchise and royalty fees, increased pass-through marketing, reservation as well as growth in Wyndham Rewards revenues.
Zacks Rank & Stocks to Consider
Wyndham carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Consumer Discretionary sector include Hilton Grand Vacations HGV , Marriott Vacations Worldwide VAC and The Madison Square MSG , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Hilton Grand Vacations, Marriott Vacations Worldwide and Madison Square's earnings for 2018 are expected to grow 43.7%, 20.1% and 160.4%, respectively.
Can Hackers Put Money INTO Your Portfolio?
Earlier this year, credit bureau Equifax announced a massive data breach affecting 2 out of every 3 Americans. The cybersecurity industry is expanding quickly in response to this and similar events. But some stocks are better investments than others.
Zacks has just released Cybersecurity! An Investor's Guide to help Zacks.com readers make the most of the $170 billion per year investment opportunity created by hackers and other threats. It reveals 4 stocks worth looking into right away.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report