Wyndham Hotels & Resorts, Inc. (NYSE:WH) Q2 2020 Earnings Conference Call - Final Transcript

Jul 29, 2020 • 08:30 am ET


Wyndham Hotels & Resorts, Inc. (NYSE:WH) Q2 2020 Earnings Conference Call - Final Transcript


Loading Event

Loading Transcript


Welcome to the Wyndham Hotels & Resorts Second Quarter 2020 Earnings Conference Call. [Operator Instructions] I would now like to turn the call over to Matt Capuzzi, Senior Vice President of Investor Relations.

Matt Capuzzi

Thank you, Keith. Good morning, and thank you for joining us. With me today are Geoff Ballotti, our CEO; and Michele Allen, our CFO. Before we get started, I want to remind you that our remarks today will contain forward-looking statements. These statements are subject to risk factors that may cause our actual results to differ materially from those expressed or implied. These risk factors are discussed in detail in our most recent annual report on Form 10-K filed with the Securities and Exchange Commission and any subsequent reports filed with the SEC. We will also be referring to a number of non-GAAP measures. Corresponding GAAP measures and a reconciliation of non-GAAP measures to GAAP metrics are provided in our earnings release, which is available on our Investor Relations website at investor.wyndhamhotels.com. To the extent there are non-GAAP measures discussing future impact, we are unable to provide the comparable GAAP metric.

In addition, last evening, we posted an investor presentation containing supplemental information on our Investor Relations website. We may continue to provide supplemental information on our website in the future. Accordingly, we encourage investors to monitor our website, in addition to our press releases, filings submitted with the SEC and any public conference calls or webcast.

With that, I will turn the call over to Geoff.

Geoffrey Ballotti

Thanks, Matt. Good morning, and thanks, everyone, for joining us. Our comments today will be focused on the impact that COVID-19 is having on our business. And how we believe our actions are best positioning us to emerge from this pandemic as a stronger company. But first, I'd like to remind you why we believe we're uniquely positioned to outperform, not just during the crisis and the recovery, but also for the longer term.

Our business is fueled by leisure travelers, representing 70% of our bookings, yet the other 30% coming from guests for whom travel is essential to their job is predictable and dependable.

Our portfolio of hotels is not reliant on air travel. Rather, it's predominantly drive-to with about 90% of our U.S. hotels located in suburban, interstate or small metro markets. With these destinations primarily appealing to domestic travelers, the vast majority of our portfolio is also not reliant on international travel. We lead the select service space. 99% of our U.S. hotels are select service, and these hotels fare much better in turbulent times than in higher-end chain scales.

We have a proven track record of growing our unit base even during times of economic difficulty. We do this by focusing our efforts on conversion opportunities, and by leveraging the significant breadth and depth of benefit we could provide to potential owners and being associated with the world's largest hotel franchise system, driven by a strong brand and strong value proposition.

Finally, our business model is low