WYNDHAM HOTELS & RESORTS REPORTS STRONG SECOND QUARTER RESULTS
Company Raises Full-Year 2025 EPS Outlook
Grows Development Pipeline by 5% and System Size by 4%
PARSIPPANY, N.J., July 23, 2025 - 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
YOY Change (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
2
•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.
3
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.
4
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.
5
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.
6
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.
# # #
7
Contacts
Investors:
Matt Capuzzi
Senior Vice President, Investor Relations
973 753-6453
ir@wyndham.com
Media:
Maire Griffin
Senior Vice President, Global Communications
973 753-6590
WyndhamHotelsNews@wyndham.com
8
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)
Total Company
Net revenues
2025
$
316
$
397
n/a
n/a
n/a
2024
305
367
$
396
$
341
$
1,408
Net income
2025
$
61
$
87
n/a
n/a
n/a
2024
16
86
$
102
$
85
$
289
Adjusted EBITDA
2025
$
145
$
195
n/a
n/a
n/a
2024
141
178
$
208
$
168
$
694
NOTE: Amounts may not add across due to rounding. See Table 7 for reconciliations of Total Company non-GAAP measures and Table 9 for definitions.
Table 3
WYNDHAM HOTELS & RESORTS
CONDENSED CASH FLOWS
(In millions)
(Unaudited)
Six Months Ended June 30,
2025
2024
Operating activities
Net income
$
149
$
102
Depreciation and amortization
31
37
Payments related to hostile takeover defense
—
(46)
Payments of development advance notes, net
(51)
(64)
Working capital and other, net
—
48
Net cash provided by operating activities
129
77
Investing activities
Property and equipment additions
(19)
(16)
Loan advances, net
(52)
(15)
Net cash used in investing activities
(71)
(31)
Financing activities
Proceeds from long-term debt
242
1,703
Payments of long-term debt
(129)
(1,477)
Dividends to shareholders
(65)
(63)
Repurchases of common stock
(153)
(186)
Other, net
(17)
(9)
Net cash used in financing activities
(122)
(32)
Effect of changes in exchange rates on cash, cash equivalents and restricted cash
1
(1)
Net (decrease)/increase in cash, cash equivalents and restricted cash
(63)
13
Cash, cash equivalents and restricted cash, beginning of period
113
66
Cash, cash equivalents and restricted cash, end of period
$
50
$
79
Free Cash Flow:
Three Months Ended June 30,
Six Months Ended June 30,
2025
2024
2025
2024
Net cash provided by operating activities
$
70
$
1
$
129
$
77
Less: Property and equipment additions
(12)
(7)
(19)
(16)
Plus: Payments of development advance notes, net
23
33
51
64
Free cash flow
81
27
161
125
Plus: Adjusting items (a)
7
42
7
46
Adjusted free cash flow
$
88
$
69
$
168
$
171
(a) 2025 represents separation-related net tax payments. 2024 represents payments related to the Company's defense of an unsuccessful hostile takeover attempt.
Table 4
WYNDHAM HOTELS & RESORTS
BALANCE SHEET SUMMARY AND DEBT
(In millions)
(Unaudited)
As of June 30, 2025
As of December 31, 2024
Assets
Cash and cash equivalents
$
50
$
103
Trade receivables, net
319
271
Property and equipment, net
98
94
Goodwill and intangible assets, net
3,067
3,073
Other current and non-current assets
764
682
Total assets
$
4,298
$
4,223
Liabilities and stockholders' equity
Total debt
$
2,577
$
2,463
Other current liabilities
415
423
Deferred income tax liabilities
321
332
Other non-current liabilities
415
355
Total liabilities
3,728
3,573
Total stockholders' equity
570
650
Total liabilities and stockholders' equity
$
4,298
$
4,223
Our outstanding debt was as follows:
Weighted Average Interest Rate (a)
As of June 30, 2025
As of December 31, 2024
$750 million revolving credit facility (due April 2027)
6.3%
$
221
$
88
$400 million term loan A (due April 2027)
6.2%
352
364
$1.5 billion term loan B (due May 2030)
5.3%
1,507
1,515
$500 million 4.375% senior unsecured notes (due August 2028)
4.4%
497
496
Total debt
5.3%
2,577
2,463
Cash and cash equivalents
50
103
Net debt
$
2,527
$
2,360
Net debt leverage ratio
3.5x
3.4x
(a) Represents weighted average interest rates for the second quarter 2025, including the effects of hedging.
Our outstanding debt as of June 30, 2025 matures as follows:
Amount
Within 1 year
$
45
Between 1 and 2 years
558
Between 2 and 3 years
15
Between 3 and 4 years
512
Between 4 and 5 years
1,447
Thereafter
—
Total
$
2,577
Table 5
WYNDHAM HOTELS & RESORTS
REVENUE DRIVERS
Six Months Ended June 30,
2025
2024
Change
% Change
Beginning Room Count (January 1)
United States
501,800
497,600
4,200
1%
International
333,900
306,100
27,800
9
Global
835,700
803,700
32,000
4
Additions
United States
13,800
14,400
(600)
(4)
International
16,700
15,100
1,600
11
Global
30,500
29,500
1,000
3
Deletions
United States
(12,300)
(12,600)
300
2
International
(7,200)
(4,300)
(2,900)
(67)
Global
(19,500)
(16,900)
(2,600)
(15)
Ending Room Count (June 30)
United States
503,300
499,400
3,900
1
International
343,400
316,900
26,500
8
Global
846,700
816,300
30,400
4%
As of June 30,
FY 2024 Royalty Contribution
2025
2024
Change
% Change
System Size
United States
Economy
224,200
227,800
(3,600)
(2%)
Midscale and Above
279,100
271,600
7,500
3
Total United States
503,300
499,400
3,900
1%
78%
International
Greater China
122,500
107,300
15,200
14%
4
Rest of Asia Pacific
41,200
36,400
4,800
13
2
Europe, the Middle East and Africa
94,900
90,100
4,800
5
8
Canada
39,800
39,800
—
—
5
Latin America
45,000
43,300
1,700
4
3
Total International
343,400
316,900
26,500
8%
22
Global
846,700
816,300
30,400
4%
100%
NOTE: Global, International and Greater China rooms exclude all rooms associated with the Company's Super 8 master licensee in China in both periods. Historical metrics for comparability are included in Table 6.
Table 5 (continued)
WYNDHAM HOTELS & RESORTS
REVENUE DRIVERS
Three Months Ended June 30, 2025
Constant Currency
% Change (b)
Regional RevPAR Growth
United States
Economy
$
42.86
(4%)
Midscale and Upper Midscale
60.38
(4)
Upscale and Above
96.89
(11)
Total United States
$
53.32
(4%)
International
Greater China (a)
$
16.35
(8%)
Rest of Asia Pacific
27.51
(10)
Europe, the Middle East and Africa
61.88
7
Canada
60.44
7
Latin America
52.38
18
Total International (a)
$
39.45
1%
Global (a)
$
47.55
(3%)
Three Months Ended June 30,
2025
2024
% Change (c)
Average Royalty Rate
United States
4.7%
4.7%
6 bps
International (a)
2.6%
2.5%
13 bps
Global (a)
4.0%
4.0%
2 bps
Six Months Ended June 30, 2025
Constant Currency
% Change (b)
Regional RevPAR Growth
United States
Economy
$
38.26
(1%)
Midscale and Upper Midscale
54.32
(1)
Upscale and Above
88.84
(10)
Total United States
$
47.86
(1%)
International
Greater China (a)
$
16.08
(9%)
Rest of Asia Pacific
30.32
(1)
Europe, the Middle East and Africa
52.50
7
Canada
50.13
5
Latin America
55.20
22
Total International (a)
$
36.18
2%
Global(a)
$
43.03
(1%)
Six Months Ended June 30,
2025
2024
% Change (c)
Average Royalty Rate
United States
4.7%
4.6%
12 bps
International (a)
2.6%
2.5%
12 bps
Global (a)
4.0%
4.0%
8 bps
(a) Excludes the impact from all rooms associated with the Company's Super 8 master licensee in China in both periods.
(b) International and global exclude the impact of currency exchange movements.
(c) Amounts may not recalculate due to rounding.
Table 6
WYNDHAM HOTELS & RESORTS
HISTORICAL REVPAR, ROYALTY RATE AND ROOMS
NEW REPORTING BASIS
First Quarter
Second Quarter
Third Quarter
Fourth Quarter
Full Year
Total System
Global RevPAR
2025
$
38.44
$
47.55
n/a
n/a
n/a
2024
$
38.48
$
49.08
$
52.59
$
42.58
$
45.69
U.S. RevPAR
2025
$
42.37
$
53.32
n/a
n/a
n/a
2024
$
41.68
$
55.44
$
57.98
$
46.41
$
50.37
International RevPAR
2025
$
32.81
$
39.45
n/a
n/a
n/a
2024
$
33.53
$
39.40
$
44.52
$
36.92
$
38.63
Global Royalty Rate
2025
4.0%
4.0%
n/a
n/a
n/a
2024
3.9%
4.0%
4.0%
4.1%
4.0%
U.S. Royalty Rate
2025
4.8%
4.7%
n/a
n/a
n/a
2024
4.6%
4.7%
4.7%
4.8%
4.7%
International Royalty Rate
2025
2.6%
2.6%
n/a
n/a
n/a
2024
2.5%
2.5%
2.6%
2.7%
2.6%
Global Rooms
2025
839,900
846,700
n/a
n/a
n/a
2024
808,000
816,300
823,200
835,700
835,700
U.S. Rooms
2025
502,600
503,300
n/a
n/a
n/a
2024
499,100
499,400
500,600
501,800
501,800
International Rooms
2025
337,300
343,400
n/a
n/a
n/a
2024
308,900
316,900
322,600
333,900
333,900
NOTE: Data excludes the impact from all rooms associated with the Company's Super 8 master licensee in China in all periods.
AS PREVIOUSLY REPORTED
First Quarter
Second Quarter
Third Quarter
Fourth Quarter
Full Year
Total System
Global RevPAR
2025
$
36.13
n/a
n/a
n/a
n/a
2024
$
36.28
$
45.99
$
49.33
$
40.01
$
42.91
International RevPAR
2025
$
28.73
n/a
n/a
n/a
n/a
2024
$
29.38
$
34.11
$
38.60
$
32.17
$
33.59
Global Royalty Rate
2025
4.0%
n/a
n/a
n/a
n/a
2024
3.8%
4.0%
4.0%
4.0%
3.9%
International Royalty Rate
2025
2.6%
n/a
n/a
n/a
n/a
2024
2.4%
2.4%
2.5%
2.6%
2.5%
Global Rooms
2025
907,200
n/a
n/a
n/a
n/a
2024
876,300
884,900
892,600
903,000
903,000
International Rooms
2025
404,600
n/a
n/a
n/a
n/a
2024
377,200
385,500
392,000
401,200
401,200
NOTE: Data includes the impact from all rooms associated with the Company’s Super 8 master licensee in China in all periods.
Table 7
WYNDHAM HOTELS & RESORTS
NON-GAAP RECONCILIATIONS
(In millions)
The tables below reconcile certain non-GAAP financial measures. The presentation of these adjustments is intended to permit the comparison of particular adjustments as they appear in the income statement in order to assist investors’ understanding of the overall impact of such adjustments. We believe that adjusted EBITDA, adjusted net income and adjusted diluted EPS financial measures provide useful information to investors about us and our financial condition and results of operations because these measures are used by our management team to evaluate our operating performance and make day-to-day operating decisions and adjusted EBITDA is frequently used by securities analysts, investors and other interested parties as a common performance measure to compare results or estimate valuations across companies in our industry. These measures also assist our investors in evaluating our ongoing operating performance for the current reporting period and, where provided, over different reporting periods, by adjusting for certain items which may be recurring or non-recurring and which in our view do not necessarily reflect ongoing performance. We also internally use these measures to assess our operating performance, both absolutely and in comparison to other companies, and in evaluating or making selected compensation decisions. These supplemental disclosures are in addition to GAAP reported measures. These non-GAAP reconciliation tables should not be considered in isolation or as a substitute for, nor superior to, financial results and measures determined or calculated in accordance with GAAP and may not be comparable to similarly-titled measures used by other companies.
Reconciliation of Net Income to Adjusted EBITDA:
First Quarter
Second Quarter
Third Quarter
Fourth Quarter
Full Year
2025
Net income
$
61
$
87
Provision for income taxes
18
29
Depreciation and amortization
15
15
Interest expense, net
33
34
Stock-based compensation
9
8
Development advance notes amortization
7
8
Restructuring costs (a)
—
13
Transaction-related (b)
1
1
Separation-related (c)
1
—
Adjusted EBITDA
$
145
$
195
2024
Net income
$
16
$
86
$
102
$
85
$
289
Provision for income taxes
6
26
35
13
79
Depreciation and amortization
20
17
17
17
71
Interest expense, net
28
30
34
32
124
Early extinguishment of debt (d)
—
3
—
—
3
Stock-based compensation
10
10
10
11
41
Development advance notes amortization
5
6
6
6
24
Transaction-related (b)
41
5
1
—
47
Restructuring costs (a)
3
7
2
4
15
Impairment (e)
12
—
—
—
12
Separation-related (c)
—
(12)
1
—
(11)
Adjusted EBITDA
$
141
$
178
$
208
$
168
$
694
NOTE: Amounts may not add due to rounding.
(a) 2025 amounts consist primarily of employee-related costs and real estate costs related to a call center closure in connection with a restructuring plan; 2024 amounts consist primarily of employee-related costs in connection with a restructuring plan.
(b) Represents costs related to corporate transactions, including the Company's defense of an unsuccessful hostile takeover attempt. 2024 also includes costs related to the Company's repricing and upsizing of its term loan B.
(c) Represents costs (income) associated with the Company's spin-off from Wyndham Worldwide.
(d) Amounts relate to non-cash charges associated with the Company's refinancing of its term loan B.
(e) Primarily represents an impairment of development advance notes as a result of the Company’s evaluation of the recoverability of their carrying value.
Table 7 (continued)
WYNDHAM HOTELS & RESORTS
NON-GAAP RECONCILIATIONS
(In millions, except per share data)
Reconciliation of Net Income and Diluted EPS to Adjusted Net Income and Adjusted Diluted EPS:
Three Months Ended June 30,
Six Months Ended June 30,
2025
2024
2025
2024
Diluted earnings per share
$
1.13
$
1.07
$
1.90
$
1.26
Net income
$
87
$
86
$
149
$
102
Adjustments:
Acquisition-related amortization expense (a)
7
6
14
13
Restructuring costs
13
7
13
9
Transaction-related
1
5
1
46
Foreign currency impact of highly inflationary countries
—
—
1
—
Impairment
—
—
—
12
Separation-related
—
(12)
—
(11)
Early extinguishment of debt
—
3
—
3
Total adjustments before tax
21
9
29
72
Income tax provision (b)
5
4
7
19
Total adjustments after tax
16
5
22
53
Adjusted net income
$
103
$
91
$
171
$
155
Adjustments - EPS impact
0.20
0.06
0.29
0.65
Adjusted diluted EPS
$
1.33
$
1.13
$
2.19
$
1.91
Diluted weighted average shares outstanding
77.4
80.7
78.0
81.2
(a) Reflected in depreciation and amortization on the income statement.
(b) Reflects the estimated tax effects of the adjustments.
Table 8
WYNDHAM HOTELS & RESORTS
2025 OUTLOOK
As of July 23, 2025
(In millions, except per share data)
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.
2025 Outlook
Fee-related and other revenues
$
1,445 – 1,485
Adjusted EBITDA
730 – 745
Depreciation and amortization expense (a)
37 – 39
Development advance notes amortization expense
32 – 34
Stock-based compensation expense
42 – 44
Interest expense, net
136 – 138
Adjusted income before income taxes
477 – 496
Income tax expense (b)
119 – 125
Adjusted net income
$
358 – 372
Adjusted diluted EPS
$
4.60 – 4.78
Diluted shares (c)
77.8
Capital expenditures
$40 – 45
Development advance notes
Approx. $110
Adjusted free cash flow conversion rate
~57%
Year-over-Year Growth
Global RevPAR (d)
(2%) – 1%
Number of rooms
4.0% – 4.6%
(a) Excludes amortization of acquisition-related intangible assets of approximately $27 million.
(b) Outlook assumes an effective tax rate of approximately 25%.
(c) Excludes the impact of any share repurchases after June 30, 2025.
(d) Represents constant currency basis; on a reported basis, which includes foreign currency impacts, would be (2%) - 1%.
To assist with modeling, each 1% change in RevPAR equates to an approximate $10 million impact to fee-related and other revenues and $4 million to adjusted EBITDA. If a significant pullback in demand were to materialize beyond the Company's current assumptions, actual results could fall below these estimates.
In determining adjusted EBITDA, interest expense, net, adjusted income before income taxes, adjusted net income, adjusted diluted EPS and adjusted free cash flow conversion rate, we exclude certain items which are otherwise included in determining the comparable GAAP financial measures. We are providing these measures on a non-GAAP basis only because, without unreasonable efforts, we are unable to predict with reasonable certainty the occurrence or amount of all 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.
Table 9
WYNDHAM HOTELS & RESORTS
DEFINITIONS
Adjusted Net Income and Adjusted Diluted EPS: Represents net income and diluted earnings per share excluding acquisition-related amortization, impairment charges, significant accelerated depreciation, restructuring and related charges, contract termination costs, separation-related items, transaction-related items (acquisition-, disposition-, or debt-related), (gain)/loss on asset sales, foreign currency impacts of highly inflationary countries and special tax items. The Company calculates the income tax effect of the adjustments using an estimated effective tax rate applicable to each adjustment.
Adjusted EBITDA: Represents net income excluding net interest expense, depreciation and amortization, early extinguishment of debt charges, impairment charges, restructuring and related charges, contract termination costs, separation-related items, transaction-related items (acquisition-, disposition-, or debt-related), (gain)/loss on asset sales, foreign currency impacts of highly inflationary countries, stock-based compensation expense, income taxes and development advance notes amortization. Adjusted EBITDA is a financial measure that is not recognized under U.S. GAAP and should not be considered as an alternative to net income or other measures of financial performance or liquidity derived in accordance with U.S. GAAP. In addition, the Company's definition of adjusted EBITDA may not be comparable to similarly titled measures of other companies.
Adjusted Free Cash Flow: Represents free cash flow excluding payments related to the Company's defense of an unsuccessful hostile takeover attempt and separation-related items.
Ancillary Revenues: Represents the summation of the license and other fees line item and other revenues line item per the income statement.
Average Daily Rate (ADR): Represents the average rate charged for renting a Room for one day.
Average Occupancy Rate: Represents the percentage of available Rooms occupied during the period.
Comparable Basis: Represents a comparison eliminating Marketing Fund Variability.
Constant Currency: Represents a comparison eliminating the effects of foreign exchange rate fluctuations between periods (foreign currency translation) and the impact caused by any foreign exchange related activities (i.e., hedges, balance sheet remeasurements and/or adjustments).
FeePAR: Represents annual royalties per franchised Room and is calculated by dividing total annual royalty revenue of the Company's franchised hotels by the number of franchised Rooms in its system size.
Free Cash Flow: Reflects net cash provided by operating activities excluding development advances, less capital expenditures. The Company believes free cash flow to be a useful operating performance measure to it and investors. This measure helps the Company and investors evaluate its ability to generate cash beyond what is needed to fund capital expenditures, debt service and other obligations. Notwithstanding cash on hand and incremental borrowing capacity, free cash flow reflects the Company’s ability to grow its business through investments and acquisitions, as well as its ability to return cash to shareholders through dividends and share repurchases or even to delever. Free cash flow is not a representation of how the Company will use excess cash. A limitation of using free cash flow versus the GAAP measure of net cash provided by operating activities as a means for evaluating Wyndham Hotels is that free cash flow does not represent the total cash movement for the period as detailed in the condensed consolidated statement of cash flows.
Adjusted Free Cash Flow Conversion Rate: Represents the percentage of adjusted EBITDA that is converted to adjusted free cash flow and provides insights into how efficiently the Company is able to turn profits into cash available for use, such as for investments (including development advance notes), debt reduction, dividends or share repurchases.
Marketing Fund Variability: Relates to the quarterly timing variances from the Company's marketing funds. The Company's franchise agreements require the payment of marketing and reservation fees, and in accordance with these franchise agreements, the Company is generally contractually obligated to expend such fees for the benefit of each of its brands over time. Marketing and reservation fees earned are generally highest during the summer season when the franchised hotels have the highest occupancy and daily rates, while marketing and reservation expenses are generally highest during the first half of the year in an effort to drive higher occupancy in the summer months. Accordingly, the seasonality of the marketing and reservation revenues and expenses results in adjusted EBITDA variability during the quarters throughout the year but are designed such that on a full-year basis, the Company’s marketing funds break even.
Net Debt Leverage Ratio: Calculated by dividing total debt less cash and cash equivalents by trailing twelve months adjusted EBITDA.
RevPAR: Represents revenue per available franchised or managed Room and is calculated by multiplying average occupancy rate by ADR.
Rooms: Represents the number of rooms at the end of the period which are (i) either under franchise and/or management agreements, excluding all rooms associated with the Company's Super 8 master licensee in China, and (ii) properties under affiliation agreements for which the Company receives a fee for reservation and/or other services provided.
Royalty Rate: Represents the average royalty rate earned on the Company's franchised Rooms and is calculated by dividing total royalties, excluding the impact of amortization of development advance notes, by total room revenues.
