Wyndham Falls Victim to Economic Drought October 10, 2008
Posted by Bryan Connelly in : ARDA, General, Marriott Timeshares, News & Events, RCI, Timeshare Rental, Timeshare Resale, Timeshare Resource, Travel, Uncategorized, Westgate Timeshares, Wyndham Timeshares , trackbackAs the economic drought continues, the lodging industry is shedding weight and hording their last morsels of profit. Wyndham Worldwide has stayed fairly strong amid the tightening credit crunch and had optimistic expectations for its third quarter. But after Marriott reported a 28% decline, shares of Wyndham Worldwide Corp. dropped 87 cents, nearly 7%. In response the conglomerate announced staff cuts and a series of ‘restructuring’ charges.
Stephen Holmes, Wyndham chairman and chief executive, said he was confident that the restructuring would enhance profitability during ‘this turbulent environment,’ and position the group for growth. Holmes explained “the majority of our earnings are generated through our fee-for-service business model, which continues to generate reliable revenue and cash flow.â€
Wyndham declined to give details about the number of job losses, but stated they would scale back all timeshare development and seek customers with sufficient credit quality. Marriott also stated that it expects to delay or even cut some current projects as current market conditions continue to hit the availability of credit.
This trend, set by Westgate in late September, has been adopted by numerous brands that had otherwise been performing well. Wyndham stated these charges will take place throughout the second-half of the year and the first quarter of 2009.
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