Introduction
On May 18th, Wyndham Worldwide (WYN) split its business into two separately traded public companies. Wyndham Destinations (WYND) comprises the timeshare business, and Wyndham Hotels & Resorts (WH) comprises the owned and franchised hotel business. Upon its split, WH was trading at a discount to its closest peer, Choice Hotels International (CHH). That discount has widened further since the split, even as WH is growing meaningfully faster than CHH.
WH currently trades at 11.7x consensus 2019 EBITDA and 16.6x consensus 2019 EPS. This compares