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Wyndham Hotels & Resorts (WH): Evaluating Valuation After AI Voice Rollout and New Udaipur Flagship Opening

Simply Wall St · 2d ago

Wyndham Hotels & Resorts (WH) just doubled down on two fronts that actually move the needle for investors, rolling out AI Voice across its global network while opening the flagship Wyndham Grand Udaipur Fatehsagar Lake in India.

See our latest analysis for Wyndham Hotels & Resorts.

Those moves come after a tougher stretch for the stock, with a 1 year to date share price return of negative 24.16 percent and a 1 year total shareholder return of negative 25.9 percent. Even so, the 5 year total shareholder return of 45.62 percent shows that longer term holders are still ahead, suggesting recent weakness may reflect shifting sentiment rather than a broken growth story.

If Wyndham's AI push has you thinking about where else innovation could surprise the market, this is a good moment to explore high growth tech and AI stocks as potential next wave beneficiaries.

With earnings still growing, analysts seeing nearly 25 percent upside, and the stock trading at roughly a 30 percent intrinsic discount, is Wyndham quietly undervalued or is the market already pricing in its next stage of growth?

Most Popular Narrative: 28.5% Undervalued

According to Zwfis, Wyndham's fair value sits well above the recent 75.69 dollar close, framing the current share price as a sizable disconnect from fundamentals.

Along with all of this they continue to not only grow within the U.S but also globally. They currently have a pipeline of 2,150 new hotels which includes 255,000 rooms. That is a 5% yoy growth rate, covering 68 countries and even having 12 of those countries with no pre-existing WH presence at all.

Read the complete narrative.

Curious how a fee driven, asset light giant plus ambitious room growth and thick margins can justify such a premium valuation path? The full narrative unpacks the revenue trajectory, profitability assumptions and future earnings multiple that support this higher fair value target.

Result: Fair Value of $105.80 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, elevated leverage and any slowdown in franchisee demand or travel could challenge Wyndham's asset light growth story and put pressure on its valuation thesis.

Find out about the key risks to this Wyndham Hotels & Resorts narrative.

Build Your Own Wyndham Hotels & Resorts Narrative

If you see the story differently or want to dig into the numbers yourself, you can build a custom view in minutes: Do it your way.

A great starting point for your Wyndham Hotels & Resorts research is our analysis highlighting 5 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.