Wyndham shuts 1,000 hotels in China over coronavirus
Published on Friday, February 14, 2020
The covid-19 outbreak has led to the closure of about 1,000 Wyndham hotels in China, the company said during its full year earnings call.
That represents about 70% of its China portfolio and occupancy at its remaining hotels is down about 75%, said Wyndham Hotels & Resorts CFO Michele Allen.
The company expects it to impact 2020 adjusted earnings by up to $12 million.
The outbreak is also impacting other Asia markets.
“We also know that our hotels in Korea, Singapore and Thailand are seeing varying degrees of occupancy declines. We are assuming the market will remain soft for the vast majority of the year as occupancy recovers over a three- to six-month period,” Allen said.
The company predicts this will lead to a 2% to 4% decline in system-wide revenue per available room (RevPAR).
Allen says the outbreak will likely impact its development pipeline with delays to new hotel openings across China.