WYNDHAM HOTELS & RESORTS REPORTS STRONG SECOND QUARTER RESULTS
Company Raises Full-Year 2025 EPS OutlookGrows Development Pipeline by 5% and System Size by 4%
PARSIPPANY, N.J., July 23, 2025 /PRNewswire/ -- Wyndham Hotels & Resorts (NYSE:WH) today announced results for the three months ended June 30, 2025. Highlights include:
System-wide rooms grew 4% year-over-year.
Awarded 229 development contracts globally, an increase of 40% year-over-year.
Development pipeline grew 1% sequentially and 5% year-over-year to a record 255,000 rooms.
Ancillary revenues increased 19% compared to second quarter 2024 and 13% on a year-to date basis.
Diluted earnings per share increased 6% year-over-year to $1.13; adjusted diluted EPS grew 18% to $1.33, or 11% on a comparable basis.
Net income increased 1% year-over-year to $87 million; adjusted net income increased 13% to $103 million, or 7% on a comparable basis.
Adjusted EBITDA increased 10% year-over-year to $195 million, or 5% on a comparable basis.
Returned $109 million to shareholders through $77 million of share repurchases and quarterly cash dividends of $0.41 per share.
"We delivered another solid quarter growing our global system by 4%, expanding our development pipeline by 5%, increasing our ancillary revenues by 19%, and continuing to execute our strategy focused on higher FeePAR segments and markets, which is driving growth in both domestic and international royalty rates," said Geoff Ballotti, president and chief executive officer. "Record first-half openings and a 40% second quarter increase in new contracts awarded reflect strong developer confidence in Wyndham's powerful, owner-first value proposition. Amid a softer domestic RevPAR environment, we grew comparable adjusted EBITDA by 5% and comparable adjusted EPS by 11%. We also returned nearly $110 million to shareholders this quarter, continuing to demonstrate the value-creating power of our highly cash-generative, resilient asset-light business model. With consistent development, royalty rate, and ancillary fee growth, we remain very confident in our ability to create long-term value for our shareholders, franchisees, and team members through the enduring appeal of our iconic brands."
Revised International Reporting Basis
As part of a recent operational review, the Company identified violations of its Super 8 master license agreement in China and issued a notice of default to the master licensee. Given the operational challenges of obtaining accurate information from this master licensee and the uncertain outcome of the compliance process, beginning this quarter, the Company has revised its reporting methodology to exclude the impact of all rooms (approximately 67,300 rooms as of March 31, 2025) under this master license agreement from its reported system size, RevPAR and royalty rate, and corresponding growth metrics. The Company's financial results will continue to reflect fees due from the Super 8 master licensee in China, which contributed less than $3 million to the Company's full-year 2024 consolidated adjusted EBITDA.
To provide further context, the following table reflects the impact on the Company's global growth metrics as a result of the exclusion of its Super 8 master license agreement in China:
Revised Reporting Basis (Global)
As Previously Reported (Global)
Change
vs. Previous Reporting
First Quarter 2025
Net rooms growth
3.9 %
3.5 %
+40 bps
RevPAR growth (a)
2 %
2 %
+30 bps
Royalty rate
4.0 %
4.0 %
+5 bps
Full-Year 2024
Net rooms growth
4.0 %
3.6 %
+40 bps
RevPAR growth (a)
2 %
2 %
—
Royalty rate
4.0 %
3.9 %
+5 bps
NOTE:
Historical metrics for comparability purposes are included in Table 6.
(a)
Constant currency.
System Size and Development
Rooms
June 30,2025
June 30,2024
YOYChange (bps)
United States
503,300
499,400
80
International
343,400
316,900
840
Global
846,700
816,300
370
The Company's global system grew 4% including 3% growth in the higher RevPAR midscale and above segments in the U.S. and 5% growth in the higher RevPAR EMEA and Latin America regions.
On June 30, 2025, the Company's pipeline consisted of approximately 2,150 hotels and 255,000 rooms, representing another record-high level and a 5% year-over-year increase. Key highlights include:
Awarded 229 new contracts, an increase of 40% year-over-year.
6% pipeline growth in the U.S. and 4% growth internationally
Approximately 70% of the pipeline is in the midscale and above segments, which grew 5% year-over-year
Approximately 17% of the pipeline is in the extended stay segment
Approximately 58% of the pipeline is international
Approximately 76% of the pipeline is new construction and approximately 35% of these projects have broken ground
RevPAR
Second
Quarter 2025
YOY Constant Currency% Change
United States
$ 53.32
(4 %)
International
39.45
1
Global
47.55
(3)
Second quarter global RevPAR decreased 3% in constant currency compared to 2024, reflecting a 4% decline in the U.S. and 1% growth internationally.
In the U.S., second quarter results included approximately 150 basis points of unfavorable impacts from the timing of the Easter holiday and the 2024 solar eclipse. Excluding these impacts, the Company's U.S. RevPAR declined approximately 2.3% year-over-year, driven by softer demand, partially offset by a modest increase in pricing.
Internationally, RevPAR results were driven by continued pricing power, offset by a decline in occupancy. The Company continued to see strong performance in its EMEA and Latin America regions, with year-over-year growth of 7% and 18%, respectively, reflecting robust pricing power in both regions. The Company's Canada region grew RevPAR by 7% reflecting increased room nights from Canadian guests. In China, RevPAR decreased 8% year-over-year reflecting a decline in occupancy and continued pricing pressure.
Second Quarter Operating Results
The comparability of the Company's second quarter results is impacted by marketing fund variability. The Company's reported results and comparable-basis results (adjusted to neutralize these impacts) are presented below to enhance transparency and provide a better understanding of the results of the Company's ongoing operations.
Fee-related and other revenues
Net Income(a)
Adjusted EBITDA
Reported diluted EPS(a)
Adjusted diluted EPS(a)
2024 reported
$ 366
$ 86
$ 178
$ 1.07
$ 1.13
2025 reported
397
87
195
1.13
1.33
Change
31
1
17
0.06
0.20
Less: Marketing fund variability
n/a
6
8
0.08
0.07
Comparable growth
$ 31
$ (5)
$ 9
$ (0.02)
$ 0.13
Comparable growth rate
8 %
(6 %)
5 %
(2 %)
11 %
NOTE:
Growth rates may not recalculate due to rounding; see Table 7 for a reconciliation of non-GAAP metrics and Table 9 for definitions.
(a)
Includes estimated tax impact of marketing fund variability.
Fee-related and other revenues grew 8% to $397 million compared to $366 million in second quarter 2024, which reflects a 19% increase in ancillary revenues, higher royalties and franchise fees, as well as higher pass-through revenues due to the Company's global franchisee conference in May.
The Company generated net income of $87 million, a 1% increase compared to second quarter 2024, as higher adjusted EBITDA and lower transaction-related expenses were partially offset by the absence of a benefit in connection with the reversal of a spin-off related matter, higher restructuring costs, and increased interest expense. Adjusted net income grew 13% to $103 million compared to $91 million in second quarter 2024.
Adjusted EBITDA grew 10% to $195 million compared to $178 million in second quarter 2024. This increase included an $8 million favorable impact from marketing fund variability, excluding which adjusted EBITDA grew 5% on a comparable basis, primarily reflecting increased ancillary revenues, as well as higher royalties and franchise fees, partially offset by higher operating expenses primarily related to growth in the Company's credit card program and the absence of a benefit from insurance recoveries.
Diluted earnings per share increased 6% to $1.13 compared to $1.07 in second quarter 2024. This increase primarily reflects the benefit of a lower share count due to share repurchase activity.
Adjusted diluted EPS grew 18% to $1.33 compared to $1.13 in second quarter 2024. This increase included a favorable impact of $0.07 per share related to marketing fund variability (after estimated taxes). On a comparable basis, adjusted diluted EPS increased approximately 11% year-over-year, reflecting comparable adjusted EBITDA growth, the benefit of share repurchase activity and lower depreciation and amortization, partially offset by higher interest expense.
During second quarter 2025, the Company's marketing fund revenues exceeded expenses by $3 million; while in second quarter 2024, the Company's marketing fund expenses exceeded revenues by $5 million, resulting in $8 million of marketing fund variability.
Full reconciliations of GAAP results to the Company's non-GAAP adjusted measures for all reported periods appear in the tables to this press release.
Balance Sheet and Liquidity
The Company generated $70 million of net cash provided by operating activities and $88 million of adjusted free cash flow in second quarter 2025. The Company ended the quarter with a cash balance of $50 million and approximately $580 million in total liquidity.
The Company's net debt leverage ratio was 3.5 times at June 30, 2025, the midpoint of the Company's 3 to 4 times stated target range and in line with expectations.
Share Repurchases and Dividends
During the second quarter, the Company repurchased approximately 923,000 shares of its common stock for $77 million.
The Company paid common stock dividends of $32 million, or $0.41 per share, during the second quarter 2025.
Full-Year 2025 Outlook
The Company is increasing its adjusted diluted EPS outlook to reflect the impact of second quarter share repurchase activity and increasing the low-end of its year-over-year rooms growth outlook by 40 basis points to reflect the removal of the dilutive impact from its Super 8 master licensee in China.
Updated Outlook
Prior Outlook
Year-over-year rooms growth
4.0% - 4.6%
3.6% - 4.6%
Year-over-year global RevPAR growth (a)
(2%) - 1%
(2%) - 1%
Fee-related and other revenues
$1.45 - $1.49 billion
$1.45 - $1.49 billion
Adjusted EBITDA
$730 - $745 million
$730 - $745 million
Adjusted net income
$358 - $372 million
$358 - $372 million
Adjusted diluted EPS
$4.60 - $4.78
$4.57 - $4.74
Adjusted free cash flow conversion rate
~57%
~57%
(a)
Represents constant currency basis; on a reported basis, which includes foreign currency impacts, would be (2%) - 1%.
The Company continues to expect marketing fund revenues to approximate expenses during full-year 2025 though seasonality of spend will affect the quarterly comparisons throughout the year.
More detailed projections are available in Table 8 of this press release. The Company is providing certain financial metrics only on a non-GAAP basis because, without unreasonable efforts, it is unable to predict with reasonable certainty the occurrence or amount of all of the adjustments or other potential adjustments that may arise in the future during the forward-looking period, which can be dependent on future events that may not be reliably predicted. Based on past reported results, where one or more of these items have been applicable, such excluded items could be material, individually or in the aggregate, to the reported results.
Conference Call Information
Wyndham Hotels will hold a conference call with investors to discuss the Company's results and outlook on Thursday, July 24, 2025 at 8:30 a.m. ET. Listeners can access the webcast live through the Company's website at https://investor.wyndhamhotels.com. The conference call may also be accessed by dialing 800 343-4136 and providing the passcode "Wyndham". Listeners are urged to call at least five minutes prior to the scheduled start time. An archive of this webcast will be available on the website beginning at noon ET on July 24, 2025. A telephone replay will be available for approximately ten days beginning at noon ET on July 24, 2025 at 800 723-8184.
Presentation of Financial Information
Financial information discussed in this press release includes non-GAAP measures, which include or exclude certain items. These non-GAAP measures differ from reported GAAP results and are intended to illustrate what management believes are relevant period-over-period comparisons and are helpful to investors as an additional tool for further understanding and assessing the Company's ongoing operating performance. The Company uses these measures internally to assess its operating performance, both absolutely and in comparison to other companies, and to make day to day operating decisions, including in the evaluation of selected compensation decisions. Exclusion of items in the Company's non-GAAP presentation should not be considered an inference that these items are unusual, infrequent or non-recurring. Full reconciliations of GAAP results to the comparable non-GAAP measures for the reported periods appear in the financial tables section of this press release.
About Wyndham Hotels & Resorts
Wyndham Hotels & Resorts (NYSE:WH) is the world's largest hotel franchising company by the number of franchised properties, with approximately 8,300 hotels across approximately 100 countries on six continents. Through its network of approximately 847,000 rooms appealing to the everyday traveler, Wyndham commands a leading presence in the economy and midscale segments of the lodging industry. The Company operates a portfolio of 25 hotel brands, including Super 8®, Days Inn®, Ramada®, Microtel®, La Quinta®, Baymont®, Wingate®, AmericInn®, ECHO Suites®, Registry Collection Hotels®, Trademark Collection® and Wyndham®. The Company's award-winning Wyndham Rewards loyalty program offers approximately 120 million enrolled members the opportunity to redeem points at thousands of hotels, vacation club resorts and vacation rentals globally. For more information, visit https://investor.wyndhamhotels.com. The Company may use its website and social media channels as means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD. Disclosures of this nature will be included on the Company's website in the Investors section, which can currently be accessed at https://investor.wyndhamhotels.com or on the Company's social media channels, including the Company's LinkedIn account which can currently be accessed at https://www.linkedin.com/company/wyndhamhotels. Accordingly, investors should monitor this section of the Company's website and the Company's social media channels in addition to following the Company's press releases, filings submitted with the Securities and Exchange Commission and any public conference calls or webcasts.
Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of the federal securities laws, including statements related to Wyndham's current views and expectations with respect to its future performance and operations, including revenues, earnings, cash flow and other financial and operating measures, share repurchases and dividends and restructuring charges. Forward-looking statements are any statements other than statements of historical fact, including those that convey management's expectations as to the future based on plans, estimates and projections at the time Wyndham makes the statements and may be identified by words such as "will," "expect," "believe," "plan," "anticipate," "predict," "intend," "goal," "future," "forward," "remain," "confident," "outlook," "guidance," "target," "objective," "estimate," "projection" and similar words or expressions, including the negative version of such words and expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of Wyndham to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release.
Factors that could cause actual results to differ materially from those in the forward-looking statements include, without limitation, general economic conditions, including inflation, higher interest rates and potential recessionary pressures, which may impact decisions by consumers and businesses to use travel accommodations; global trade disputes, including with China; the performance of the financial and credit markets; the economic environment for the hospitality industry; operating risks associated with the hotel franchising business; Wyndham's relationships with franchisees; the impact of war, terrorist activity, political instability or political strife, including the ongoing conflicts between Russia and Ukraine and conflicts in the Middle East, respectively; global or regional health crises or pandemics including the resulting impact on Wyndham's business, operations, financial results, cash flows and liquidity, as well as the impact on its franchisees, guests and team members, the hospitality industry and overall demand for and restrictions on travel; Wyndham's ability to satisfy obligations and agreements under its outstanding indebtedness, including the payment of principal and interest and compliance with the covenants thereunder; risks related to Wyndham's ability to obtain financing and the terms of such financing, including access to liquidity and capital; and Wyndham's ability to make or pay, plans for and the timing and amount of any future share repurchases and/or dividends, as well as the risks described in Wyndham's most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission and any subsequent reports filed with the Securities and Exchange Commission. These risks and uncertainties are not the only ones Wyndham may face and additional risks may arise or become material in the future. Wyndham undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, subsequent events or otherwise, except as required by law.
Table 1
WYNDHAM HOTELS & RESORTS
INCOME STATEMENT
(In millions, except per share data)
(Unaudited)
Three Months Ended June 30,
Six Months Ended June 30,
2025
2024
2025
2024
Net revenues
Royalties and franchise fees
$ 147
$ 144
$ 272
$ 260
Marketing, reservation and loyalty
165
150
281
267
Management and other fees
2
2
5
5
License and other fees
33
31
60
57
Other
50
39
95
80
Fee-related and other revenues
397
366
713
669
Cost reimbursements
—
1
—
2
Net revenues
397
367
713
671
Expenses
Marketing, reservation and loyalty
162
155
300
285
Operating
25
17
45
36
General and administrative
31
32
61
60
Cost reimbursements
—
1
—
2
Depreciation and amortization
15
17
31
37
Restructuring
13
7
13
9
Transaction-related
1
5
1
46
Impairment
—
—
—
12
Separation-related
—
(12)
—
(11)
Total expenses
247
222
451
476
Operating income
150
145
262
195
Interest expense, net
34
30
68
59
Early extinguishment of debt
—
3
—
3
Income before income taxes
116
112
194
133
Provision for income taxes
29
26
45
31
Net income
$ 87
$ 86
$ 149
$ 102
Earnings per share
Basic
$ 1.13
$ 1.07
$ 1.92
$ 1.27
Diluted
1.13
1.07
1.90
1.26
Weighted average shares outstanding
Basic
77.0
80.4
77.5
80.7
Diluted
77.4
80.7
78.0
81.2
Table 2
WYNDHAM HOTELS & RESORTS
HISTORICAL REVENUE AND ADJUSTED EBITDA BY SEGMENT
First Quarter
Second Quarter
Third Quarter
Fourth Quarter
Full Year
Hotel Franchising
Net revenues
2025
$ 316
$ 397
n/a
n/a
n/a
2024
305
367
$ 396
$ 341
$ 1,408
Adjusted EBITDA
2025
$ 161
$ 214
n/a
n/a
n/a
2024
158
195
$ 224
$ 189
$ 767
Corporate
Net revenues
2025
$ ,
$ ,
n/a
n/a
n/a
2024
—
—
$ ,
$ ,
$ ,
Adjusted EBITDA
2025
$ (16)
$ (19)
n/a
n/a
n/a
2024
(17)
(17)
$ (16)
$ (21)
$ (73)
