Wyndham Worldwide’s fourth-quarter profit fell 28% from a year earlier, as higher administrative costs and a one-time writedown more than offset higher lodging revenue.
Net income fell from $78 million to $56 million largely because of the $44 million writedown stemming from certain franchise agreements, the company said Wednesday.
Revenue rose 6.7% to $1 billion, as lodging revenue from Wyndham Hotel Group jumped 15% from a year earlier. Revenue per available room at Wyndham’s flagship upscale brand rose 7.1% from a year earlier, while RevPAR at Wyndham’s Days Inn, Howard Johnson and Travelodge economy badges increased between 5% and 7%.
Sales through the company’s vacation-ownership division, which accounts for more than half of the parent company’s revenue, increased 6%.
Shares were up about 4% at 1 p.m. Eastern on Wednesday after Wyndham forecast 2012 revenue of about $4.5 billion, higher than the $4.46 billion estimated by analysts in a Thomson Reuters poll.
For all of 2011, Wyndham’s net income rose 10%, to $417 million. Revenue was up 10%, to $4.25 billion.
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