Here's What Led Wyndham Hotels & Resorts' (WH) 11% Decline

TimesSquare Capital Management, an equity investment management company, released its “U.S. Small Cap Growth Strategy” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. During the quarter, the fund returned 11.28% (gross) and 11.02% (net), compared to the Russell 2000 Growth Index by 11.97%. Equities posted double-digit returns in the second quarter as global economic activity measures lifted. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, TimesSquare Capital Small Cap Growth Strategy highlighted stocks such as Wyndham Hotels & Resorts, Inc. (NYSE:WH). Wyndham Hotels & Resorts, Inc. (NYSE:WH) is a hotel franchisor under the Wyndham brand. The one-month return of Wyndham Hotels & Resorts, Inc. (NYSE:WH) was -5.13%, and its shares gained 8.32% of their value over the last 52 weeks. On September 10, 2025, Wyndham Hotels & Resorts, Inc. (NYSE:WH) stock closed at $84.22 per share, with a market capitalization of $6.431 billion.

TimesSquare Capital U.S. Focus Growth Strategy stated the following regarding Wyndham Hotels & Resorts, Inc. (NYSE:WH) in its second quarter 2025 investor letter:

"Our preferences in the Consumer-oriented sectors lean toward value-oriented or specialty retailers, franchise models, or premium brands. Wyndham Hotels & Resorts, Inc. (NYSE:WH) franchises and operates hotels. As we have seen with other hotel operators, Wyndham lowered its forward guidance to reflect softening trends in consumer travel. That triggered a -10% slide and we added to the position on that weakness."

Wyndham Hotels & Resorts, Inc. (NYSE:WH) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 46 hedge fund portfolios held Wyndham Hotels & Resorts, Inc. (NYSE:WH) at the end of the second quarter, which was 49 in the previous quarter. While we acknowledge the potential of Wyndham Hotels & Resorts, Inc. (NYSE:WH) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Wyndham Hotels & Resorts, Inc. (NYSE:WH) and shared the list of cheap travel stocks to buy according to analysts. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.