(Updates with closing share price in second paragraph.)
Feb. 8 (Bloomberg) -- Wyndham Worldwide Corp., the franchiser of Days Inn hotels and Super 8 motels, climbed after reporting fourth-quarter earnings that were higher than analysts expected and boosting its full-year forecast.
The company, based in Parsippany, New Jersey, rose 6.1 percent to a record $43.42 at the close of New York trading.
Adjusted income, excluding items such as non-cash impairments, climbed to 47 cents a share from 46 cents a year earlier, Wyndham said in a statement today. Analysts expected earnings of 44 cents a share on that basis, according to the average of nine estimates in a Bloomberg survey.
Wyndham also raised its full-year adjusted-earnings forecast to $2.85 to $3 a share, up from its October estimate of $2.72 to $2.82, and boosted its quarterly dividend to 23 cents a share from 15 cents.
The company beat estimates because of a “resilient hospitality businesses and prudent deployment of its sizable free cash flow” into buying back shares, Joseph Greff, a New York-based analyst at JPMorgan Chase & Co., wrote in a note to investors today.
The U.S. hotel industry has been recovering from its lows of 2009 and 2010. Occupancies in the top 25 U.S. markets climbed to 67 percent last year from 64 percent in 2010, according to Smith Travel Research Inc. of Hendersonville, Tennessee.
Starwood Hotels & Resorts Worldwide Inc. was the first major U.S. lodging company to report earnings, on Feb. 2. The owner of the luxury St. Regis and W brands said fourth-quarter profit fell after a payment from a lawsuit settlement boosted year-earlier earnings and demand in Europe weakened.
--Editors: Daniel Taub, Christine Maurus
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