Wyndham Hotels & Resorts continues to realize synergies, primarily in cost savings, from its acquisition of the La Quinta brand, freeing up cash flow that the company expects to put into stock buybacks and potentially further bolt-on acquisitions of brands in 2019, executives said during a call to discuss fourth-quarter and full-year 2018 earnings.
The company realized $9 million in synergies during the fourth quarter, which brought annual synergies to $36 million, Wyndham CFO David Wyshner said.
Wyndham raised its estimate for full-run synergies from the La Quinta integration to a range of $60 million to $70 million. Previously the low end of that range was estimated at $55 million. With the merging of the La Quinta and Wyndham Rewards loyalty programs, as well as integration of La Quinta onto Wyndham distribution systems, expected to be completed in the first half of 2019, the company expects to fully realize synergies by the second half of the year, Wyndham President and CEO Geoff Ballotti said.
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