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Fly News Breaks for August 16, 2019
CPLG, WH
Aug 16, 2019 | 07:31 EDT
Stifel analyst Simon Yarmak noted that Wyndham Hotels & Resorts (WH) shares are down 8.8% since the disclosure Tuesday night from CorePoint Lodging (CPLG) that most of its 2019 RevPAR guidance reduction was due to the integration onto the Wyndham Hotels platform from standalone La Quinta. CorePoint claims the new revenue management systems, call center interface technology and administration of corporate and group bookings had a meaningful negative impact on the company's operations in the quarter and gave notice that it believes Wyndham is in breach of contract on the management side of the two companies' existing agreement, which Wyndham denies. Yarmak, who believes there were additional factors that likely contributed to CorePoint's weak performance in the quarter, sees the recent selloff in Wyndham Hotels as overdone and he keeps a Buy rating and $65 price target on the latter's shares.
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