Wyndham Hotels & Resorts, Inc. (NYSE:WH) Q4 2023 Earnings Call Transcript February 15, 2024
Wyndham
Hotels & Resorts, Inc. isn’t one of the 30 most popular stocks among hedge
funds at the end of the third quarter.
Operator: Good
day and welcome to the Wyndham Hotels & Resorts Fourth Quarter and Full
Year 2023 Earnings Conference Call. All participants have been
placed on a listen-only mode and the floor will be opened for your questions
following the presentation. [Operator Instructions] I would now like to turn
the call over to Matt Capuzzi, Senior Vice President of Investor Relations.
Please go ahead.
Matt Capuzzi: Thank
you, operator. Good morning and thank you for joining us. With me today are
Geoff Ballotti, our CEO; and Michele Allen, our CFO. Before we start, I
want to remind you that our remarks today 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-GAP measures.
Corresponding GAAP measures and a reconciliation of non-GAAP measures to GAAP
metrics are provided in our earnings release and investor presentation, which
will be available on our Investor Relations website at
investor.wyndhamhotels.com.
We are providing certain measures discussing
future impact on a non-GAAP basis only, because without unreasonable efforts,
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, filing submitted with the SEC,
and any public conference calls or webcasts. We have also created a separate
website at staywyndham.com to provide additional information relating to the
ongoing situation with Choice Hotels. With that, I will turn the call over to
Geoff.
Geoff Ballotti: Thanks
Matt and thanks everyone for joining us this morning. 2023 was an exceptional
year for Wyndham, marked by outstanding operational achievements and a series
of record-breaking performance metrics. But before delving into our results, we
want to take a moment to discuss the ongoing matters with Choice. As we shared
in our public response, Choice has nominated directors with the sole purpose of
advancing its inadequate, hostile, and risk-laden offer, an offer that our
Board has unanimously determined is not in the best interest of our
shareholders. Our Board is well constituted combining decades of experience in
areas critical to overseeing the execution of our strategy including
hospitality and more specifically, global hotel franchising, M&A, governance,
and risk oversight.
As
we've consistently communicated, Choice's offer fails to address three
principal concerns; FIRST, the inadequacy of the value of the offer compared
with our future growth prospects; second, the significant amount of Choice stock
included in the consideration mix, which would expose our shareholders to an
over-levered pro forma company with slower long-term growth prospects; and
third, the asymmetrical risks to Wyndham and our shareholders resulting from a
prolonged and an uncertain regulatory review. On the regulatory topic, our
concerns regarding the unique risks of this transaction have only increased as
the process has unfolded, starting with the Federal Trade Commission's
unsolicited outreach to us in subsequent investigation even before Choice
launched its exchange offer.
https://finance.yahoo.com/news/wyndham-hotels-resorts-inc-nyse-160446328.html
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