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Vacation travel bounce might not lift all properties

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Book: Wyndham Worldwide

Wyndham Worldwide NYSE:WYNWyndham Worldwide (WYN) boasts some 7,380 properties worldwide. Key brands include: Wyndham Hotels and Resorts, Ramada, Days Inn, Super 8, Howard Johnson, Microtel Inns & Suites and RCI. The company has a diversified mix that ranges from economy properties like Days Inn and Super 8 to its luxury Wyndham Grand hotels and resorts. WYN’s time-share network RCI is also experiencing strong performance, with RCI citing a recent survey that 78% of time-share professionals expect 2013 sales to be stronger than last year.

The case for WYN is not as strong as it is for MAR and HST because of its exposure to the economy segment, which is under pressure. However, the company did beat the Street with its first-quarter earnings, which rose more than 18% year-over-year.

WYN’s valuation metrics are good, too, at a PEG of 0.8 and a forward P/E of 14. It also offers a little protection (though not much) via its 2% yield.

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