Heartland Advisors, an investment management company, released its first-quarter 2026 investor letter for the “Heartland Value Plus Fund”. A copy of the letter can be downloaded here. Improving market breadth was noted in the first quarter, with the Russell 2000® Index rising by 0.89%, while the S&P 500 Index declined by 4.33%. However, the onset of military conflict in Iran has negatively impacted both the broad market and small-cap companies since late February. Historical trends suggest that reactions to such short-term geopolitical events should be tempered, emphasizing the importance of focusing on long-term market drivers, offering optimism. Against this backdrop, the strategy appreciated 4.95% in the first quarter, compared with the 4.96% gain for the Russell 2000® Value Index. The first quarter was challenging for artificial intelligence stocks, while it proved to be strong for small-cap tech stocks. In addition, you can check the Fund’s top 5 holdings to determine its best picks for 2026.
In its first-quarter 2026 investor letter, Heartland Value Plus Fund highlighted Wyndham Hotels & Resorts, Inc. (NYSE:WH). Wyndham Hotels & Resorts, Inc. (NYSE:WH) is a hospitality company headquartered in Parsippany, New Jersey. On April 15, 2026, Wyndham Hotels & Resorts, Inc. (NYSE:WH) closed at $87.54 per share. One-month return of Wyndham Hotels & Resorts, Inc. (NYSE:WH) was 10.71%, and its shares gained 7.49% over the past 52 weeks. Wyndham Hotels & Resorts, Inc. (NYSE:WH) has a market capitalization of $6.57 billion.
Heartland Value Plus Fund stated the following regarding Wyndham Hotels & Resorts, Inc. (NYSE:WH) in its Q1 2026 investor letter:
“In this K-shaped recovery, shares of Wyndham Hotels & Resorts, Inc. (NYSE:WH) have been punished as revenues for hotels that operate in the midscale and economy space have lagged behind upscale peers such as Marriott or Hilton. This isn’t so surprising, as inflation has eaten into the consumer budgets while the weak manufacturing economy also impacted Wyndham’s grey and blue collar business travel base.
Yet a broadening economy and improving PMI should benefit Wyndham’s base of business travelers and middle income customers. The global franchisor of hotels such as Wyndham, Days Inn, Laquinta, Ramada, and Super 8 should also see an incremental boost in demand in some of its key markets thanks to key events this year, including the World Cup in North America, the 250th birthday celebration for the U.S., and the 100th anniversary of Route 66.
Wyndham shares are valued at just 11-12x EBITDA, which compares favorably to Marriott and Hilton, which trade at 17-20x EBITDA. Even better, management has been actively buying back the company’s shares while consistently boosting its dividend payout, hitting two of our three capital allocation priorities.”
Wyndham Hotels & Resorts, Inc. (NYSE:WH) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 40 hedge fund portfolios held Wyndham Hotels & Resorts, Inc. (NYSE:WH) at the end of the fourth quarter, up from 37 in the previous quarter. While we acknowledge the risk and potential of Wyndham Hotels & Resorts, Inc. (NYSE:WH) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Wyndham Hotels & Resorts, Inc. (NYSE:WH) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Wyndham Hotels & Resorts, Inc. (NYSE:WH) and shared the list of most undervalued hotel stocks to invest in. In addition, please check out our hedge fund investor letters Q1 2026 page for more investor letters from hedge funds and other leading investors.
READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years.
Disclosure: None. This article is originally published at Insider Monkey.
