Wyndham's Hawaii Update - Analyst Blog

Wyndham Worldwide Corporation (WYN) through its subsidiary Wyndham Hotel Group announced the completion of the first phase of its first property in Hawaii. The project comprises the development of a luxury resort and residential unit at Koloa Landing located at Poipu Beach on the south shore of Kauai, one of the most coveted locations in the Hawaiian Islands.

The project will be developed in phases and will feature multiple facilities.  It took more than two years to complete the first phase of the project. This phase includes the opening of 85 villas, lagoon pools, fitness center, marketplace and upscale sundry shop. The construction of the second phase is expected to begin in May 2011.

The property is owned by a real state company Poipu Beach Villas, LLC and managed by a hospitality management company Azul Hospitality Group. The strategic location as well as the comfort and facilities of the property are expected to attract guests. Additionally, we believe that when the construction work is finally over, the resort will be in high demand.

Wyndham's primary competitors in the hotel industry include Starwood Hotels & Resorts Worldwide Inc. (HOT) and Home Inns & Hotels Management Inc. (HMIN).

Wyndham currently retains a Zacks #3 Rank, which translates into a short-term Hold rating. We are also maintaining our long-term Neutral recommendation on the stock.

Wyndham is a noted hospitality company engaged in offering individual consumers and business customers a diverse array of hospitality products and services across various accommodation alternatives and price ranges across its portfolio of global brands. Wyndham Hotel Group encompasses approximately 7,200 hotels and 607,000 hotel rooms worldwide.

The company operates in the lodging, vacation exchange and rentals, and vacation ownership segments of the hospitality industry. Wyndham has built a significant presence in most of the premier markets in the U.S. and throughout the rest of the world as well.