Wyndham Earnings: Infrastructure Demand and High-Quality Pipeline Adds Driving Healthy Financials

While narrow-moat Wyndham’s fourth-quarter results matched our estimates, the key takeaway was a pickup in infrastructure-related room nights and ongoing leisure demand into 2025 as well as a growing pipeline of higher premium rooms. As a result, we expect to increase our $93 per share valuation by a mid-single-digit percentage to reflect a more constructive intermediate-term outlook, with our 2026-28 revenue per available room, or revPAR, estimate moving up toward 4% on average from 3% previously. Even when factoring in this higher fair value estimate, we see shares as slightly overvalued.