Revenue per available room was down 3% across the globe and 4% in the US for Wyndham Hotels & Resorts, and officials hoped to paint a rosier long-term picture tied to rooms growth during the company's second-quarter earnings call.

The company's outsize position among lower-end segments meant a greater degree of exposure to the economic uncertainty that slowed down hotel performance in the U.S. in the previous quarter. Wyndham's RevPAR managed to increase slightly — up 1% — outside the U.S.

"Higher for longer interest rates, persistent inflation, and uncertainty around immigration and trade have created an environment of ongoing economic volatility for economy and midscale guests, who remain especially sensitive to these dynamics," Wyndham President and CEO Geoff Ballotti said during a call with analysts Thursday.

Wyndham slightly revised up its full-year outlook for new rooms growth to a range of 4% to 4.6%, up from 3.6% to 4.6%.

Breakup in China

During the earnings call, Ballotti said Wyndham has issued a notice of default to the master franchisor of its Super 8 brand in China, which could result in the termination of their deal due to "identified violations of the license agreement."

He said the group — Tian Rui Hotel Corp. — has "struggled to add new units and retain existing ones."

(source)