WYNDHAM HOTELS & RESORTS REPORTS STRONG FIRST QUARTER RESULTS
Wyndham Hotels & Resorts reported strong Q1 2025 results with record-breaking first quarter room openings. The company achieved 15,000 new room openings, up 13% year-over-year, while global system-wide rooms grew 4% to 907,200 rooms.
Key financial highlights include: RevPAR growth of 2% globally, fee-related revenues up 4% to $316 million, and adjusted EBITDA increasing 3% to $145 million. Net income reached $61 million compared to $16 million in Q1 2024, with adjusted diluted EPS growing 10% to $0.86.
The company's development pipeline hit a record 254,000 rooms, up 5% year-over-year, with 70% in midscale and above segments. However, Wyndham revised its 2025 outlook, reducing RevPAR growth expectations to -2% to 1% from the previous 2-3%, citing softer demand. The company returned $109 million to shareholders through $76 million in share repurchases and $0.41 per share quarterly dividends.
Wyndham Hotels & Resorts ha riportato risultati solidi nel primo trimestre del 2025 con un numero record di aperture di camere nel primo trimestre. L'azienda ha raggiunto 15.000 nuove camere aperte, con un aumento del 13% rispetto all'anno precedente, mentre le camere totali a livello globale sono cresciute del 4%, raggiungendo 907.200 camere.
I principali dati finanziari includono: una crescita del RevPAR del 2% a livello globale, ricavi da commissioni in aumento del 4% a 316 milioni di dollari e un EBITDA rettificato in crescita del 3% a 145 milioni di dollari. L'utile netto ha raggiunto 61 milioni di dollari rispetto ai 16 milioni del primo trimestre 2024, con un EPS diluito rettificato in crescita del 10% a 0,86 dollari.
Il portafoglio di sviluppo dell'azienda ha raggiunto un record di 254.000 camere, in aumento del 5% su base annua, con il 70% concentrato nei segmenti midscale e superiori. Tuttavia, Wyndham ha rivisto le previsioni per il 2025, riducendo le aspettative di crescita del RevPAR a un intervallo tra -2% e 1%, rispetto al precedente 2-3%, citando una domanda più debole. L'azienda ha restituito 109 milioni di dollari agli azionisti attraverso riacquisti di azioni per 76 milioni di dollari e dividendi trimestrali di 0,41 dollari per azione.
Wyndham Hotels & Resorts reportó sólidos resultados en el primer trimestre de 2025 con un récord en aperturas de habitaciones en dicho periodo. La compañía logró 15,000 nuevas habitaciones abiertas, un aumento del 13% interanual, mientras que las habitaciones totales a nivel global crecieron un 4%, alcanzando 907,200 habitaciones.
Los aspectos financieros clave incluyen: un crecimiento del RevPAR del 2% a nivel global, ingresos por comisiones aumentaron un 4% hasta 316 millones de dólares, y el EBITDA ajustado creció un 3% hasta 145 millones de dólares. La utilidad neta alcanzó 61 millones de dólares comparado con 16 millones en el primer trimestre de 2024, con un EPS diluido ajustado que creció un 10% hasta 0.86 dólares.
La cartera de desarrollo de la compañía alcanzó un récord de 254,000 habitaciones, un 5% más interanual, con el 70% en segmentos de gama media y superior. Sin embargo, Wyndham revisó sus perspectivas para 2025, reduciendo las expectativas de crecimiento del RevPAR a un rango de -2% a 1%, desde el previo 2-3%, citando una demanda más débil. La empresa devolvió 109 millones de dólares a los accionistas mediante recompras de acciones por 76 millones de dólares y dividendos trimestrales de 0.41 dólares por acción.
윈덤 호텔 앤 리조트(Wyndham Hotels & Resorts)는 2025년 1분기에 강력한 실적을 보고하며 분기별 객실 개장 수에서 신기록을 세웠습니다. 회사는 15,000개의 신규 객실 개장을 달성했으며, 이는 전년 대비 13% 증가한 수치이고, 전 세계 시스템 전체 객실 수는 4% 증가하여 907,200실에 이르렀습니다.
주요 재무 하이라이트로는 전 세계 RevPAR가 2% 성장했고, 수수료 관련 수익이 4% 증가한 3억 1,600만 달러, 조정 EBITDA는 3% 증가한 1억 4,500만 달러를 기록했습니다. 순이익은 2024년 1분기의 1,600만 달러에서 6,100만 달러로 증가했으며, 희석 조정 주당순이익(EPS)은 10% 성장한 0.86달러였습니다.
회사의 개발 파이프라인은 25만 4,000실로 사상 최고치를 기록하며 전년 대비 5% 증가했으며, 이 중 70%는 중급 및 그 이상의 세그먼트에 속합니다. 그러나 윈덤은 2025년 전망을 수정하여 RevPAR 성장 예상치를 기존 2~3%에서 -2%에서 1% 사이로 낮췄으며, 수요 약세를 이유로 들었습니다. 회사는 주식 재매입 7,600만 달러와 분기별 주당 0.41달러 배당금을 통해 주주들에게 1억 900만 달러를 환원했습니다.
Wyndham Hotels & Resorts a annoncé de solides résultats pour le premier trimestre 2025 avec un nombre record d'ouvertures de chambres au cours de ce trimestre. La société a réalisé 15 000 nouvelles ouvertures de chambres, soit une hausse de 13 % par rapport à l'année précédente, tandis que le nombre total de chambres dans le système mondial a augmenté de 4 % pour atteindre 907 200 chambres.
Les principaux faits financiers incluent : une croissance du RevPAR de 2 % à l'échelle mondiale, des revenus liés aux frais en hausse de 4 % à 316 millions de dollars, et un EBITDA ajusté en hausse de 3 % à 145 millions de dollars. Le bénéfice net a atteint 61 millions de dollars contre 16 millions au premier trimestre 2024, avec un BPA dilué ajusté en hausse de 10 % à 0,86 dollar.
Le pipeline de développement de la société a atteint un record de 254 000 chambres, en hausse de 5 % sur un an, avec 70 % dans les segments milieu de gamme et supérieurs. Cependant, Wyndham a révisé ses prévisions pour 2025, réduisant ses attentes de croissance du RevPAR à une fourchette de -2 % à 1 % contre 2-3 % auparavant, invoquant une demande plus faible. La société a reversé 109 millions de dollars aux actionnaires via des rachats d'actions de 76 millions de dollars et des dividendes trimestriels de 0,41 dollar par action.
Wyndham Hotels & Resorts meldete starke Ergebnisse für das erste Quartal 2025 mit rekordverdächtigen Neueröffnungen von Zimmern im ersten Quartal. Das Unternehmen erreichte 15.000 neue Zimmeröffnungen, ein Anstieg von 13 % im Jahresvergleich, während die globalen systemweiten Zimmer um 4 % auf 907.200 Zimmer wuchsen.
Wichtige finanzielle Highlights umfassen: ein weltweites RevPAR-Wachstum von 2 %, gebührenbezogene Einnahmen stiegen um 4 % auf 316 Millionen US-Dollar, und das bereinigte EBITDA erhöhte sich um 3 % auf 145 Millionen US-Dollar. Der Nettogewinn erreichte 61 Millionen US-Dollar im Vergleich zu 16 Millionen im ersten Quartal 2024, mit einem bereinigten verwässerten Ergebnis je Aktie (EPS), das um 10 % auf 0,86 US-Dollar stieg.
Die Entwicklungspipeline des Unternehmens erreichte mit 254.000 Zimmern einen Rekordwert, ein Anstieg von 5 % im Jahresvergleich, wobei 70 % im Midscale- und darüber liegenden Segmenten lagen. Wyndham hat jedoch seine Prognose für 2025 angepasst und die Erwartungen für das RevPAR-Wachstum von zuvor 2-3 % auf -2 % bis 1 % gesenkt, da die Nachfrage schwächer ausfiel. Das Unternehmen gab 109 Millionen US-Dollar an die Aktionäre zurück, davon 76 Millionen US-Dollar für Aktienrückkäufe und vierteljährliche Dividenden von 0,41 US-Dollar je Aktie.
- Record Q1 room openings with 15,000 rooms, up 13% YoY
- Global system grew 4% YoY to 907,200 rooms
- Development pipeline reached record 254,000 rooms, up 5% YoY
- Adjusted diluted EPS grew 10% YoY to $0.86
- Strong franchise growth with 181 new development contracts, up 6% YoY
- Returned $109M to shareholders via buybacks ($76M) and dividends ($33M)
- Fee-related revenues increased 4% to $316M
- Net income surged to $61M from $16M in prior year
- RevPAR growth softened with pronounced pullback in March
- China RevPAR declined 8% YoY due to pricing pressure
- Lowered full-year 2025 guidance: RevPAR now (-2%) to 1% vs previous 2-3%
- Reduced adjusted EBITDA outlook to $730-745M from $745-755M
- Higher interest expense impacting earnings
- Marketing fund expenses exceeded revenues by $22M in Q1
Insights
Mixed quarterly results with strong Q1 performance but downgraded full-year guidance indicates potential demand weakness despite development strength.
Wyndham's Q1 2025 results present a contrasting story between current performance and future outlook. The fee-related and other revenues increased 4% year-over-year to
However, the company substantially reduced its full-year guidance, projecting RevPAR growth of
The guidance reduction specifically cites "softer-than-expected RevPAR environment" with management contemplating scenarios from temporary softness to "persistent pressure on demand throughout the remainder of the year." This cautious outlook comes despite continued development strength with record Q1 openings (up
Capital allocation remains shareholder-friendly with
Wyndham shows development resilience but demand concerns emerge with significant RevPAR guidance reduction amid divergent regional performance.
Wyndham's Q1 results reveal a distinct divergence between robust development activity and emerging consumer demand concerns. The company delivered record first-quarter openings with 15,000 rooms (up
However, the dramatic reduction in full-year RevPAR guidance from
Regional performance shows striking variance - EMEA and Latin America delivered impressive RevPAR growth of
The company's specific mention that its "asset-light, franchise-only business model has consistently outperformed during economic downturns" appears strategically timed amid growing uncertainty. With
Company Delivers Record First Quarter Openings and Development Pipeline
- Global openings of 15,000 rooms increased
13% year-over-year, a record first quarter. - System-wide rooms grew
4% year-over-year. - Awarded 181 development contracts globally, an increase of
6% year-over-year. - Development pipeline grew
1% sequentially and5% year-over-year to a record 254,000 rooms. - Global RevPAR grew
2% in constant currency. - Fee-related and other revenues increased
4% year-over-year. - Diluted earnings per share of
$0.78 $0.19 10% year-over-year to$0.86 20% on a comparable basis. - Net income of
$61 million $16 million 5% year-over-year to$67 million 14% on a comparable basis. - Adjusted EBITDA increased
3% year-over-year to$145 million 9% on a comparable basis. - Returned
$109 million $76 million $0.41
"We delivered a solid start to the year with strong system growth, record first-quarter openings and continued expansion across every region," said Geoff Ballotti, president and chief executive officer. "While the macro environment remains uncertain, we're staying focused on what we can control — investing in high-quality growth, executing with discipline and supporting our franchisees. Our asset-light, franchise-only business model has consistently outperformed during economic downturns and positions us well to deliver long-term value for our shareholders through all phases of any economic cycle."
System Size and Development
Rooms | ||||||
March 31, | March 31, | YOY | ||||
502,600 | 499,100 | 70 | ||||
International | 404,600 | 377,200 | 730 | |||
Global | 907,200 | 876,300 | 350 | |||
The Company's global system grew
On March 31, 2025, the Company's global development pipeline consisted of approximately 2,140 hotels and 254,000 rooms, representing another record-high level and a
5% growth in theU.S. and4% internationally- 19th consecutive quarter of sequential pipeline growth
- Approximately
70% of the pipeline is in the midscale and above segments, which grew7% year-over-year - Approximately
17% of the pipeline is in the extended stay segment - Approximately
58% of the pipeline is international - Approximately
77% of the pipeline is new construction and approximately35% of these projects have broken ground - During first quarter 2025, the Company awarded 181 new contracts, an increase of
6% year-over-year.
RevPAR
First Quarter 2025 | YOY | |||
$ 42.37 | 2 % | |||
International | 28.73 | 3 | ||
Global | 36.13 | 2 |
First quarter global RevPAR increased
In the
Internationally, RevPAR growth was also driven by pricing power. The Company continued to see strong performance in its EMEA and
First Quarter Operating Results
The comparability of the Company's first 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 | Net | Adjusted | Reported | Adjusted | |||||
2024 reported | $ 304 | $ 16 | $ 141 | $ 0.19 | $ 0.78 | ||||
2025 reported | 316 | 61 | 145 | 0.78 | 0.86 | ||||
Change | 12 | 45 | 4 | 0.59 | 0.08 | ||||
Less: Marketing fund variability | n/a | (6) | (8) | (0.07) | (0.07) | ||||
Comparable growth | $ 12 | $ 51 | $ 12 | $ 0.66 | $ 0.15 | ||||
Comparable growth rate | 4 % | NM | 9 % | NM | 20 % |
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
4% to$316 million $304 million - The Company generated net income of
$61 million $16 million 5% to$67 million $64 million - Adjusted EBITDA grew
3% to$145 million $141 million $8 million 9% on a comparable basis, primarily reflecting higher fee-related revenues and margin expansion. - Diluted earnings per share was
$0.78 $0.19 - Adjusted diluted EPS grew
10% to$0.86 $0.78 $0.07 20% year-over-year, reflecting comparable adjusted EBITDA growth, lower depreciation and amortization and the benefit of share repurchase activity, partially offset by higher interest expense. - During first quarter 2025, the Company's marketing fund expenses exceeded revenues by
$22 million $14 million $8 million
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
The Company's net debt leverage ratio was 3.5 times at March 31, 2025, at the midpoint of the Company's 3 to 4 times stated target range and in line with expectations.
Share Repurchases and Dividends
During the first quarter, the Company repurchased approximately 797,000 shares of its common stock for
The Company paid common stock dividends of
Full-Year 2025 Outlook
The Company is refining its outlook to reflect a softer-than-expected RevPAR environment. The updated range reflects a variety of potential outcomes for the remainder of the year, from a more optimistic scenario in which the softness seen in March and April proves to be temporary, to a more cautious view that contemplates persistent pressure on demand throughout the remainder of the year.
Updated Outlook | Prior Outlook | ||||
Year-over-year rooms growth | |||||
Year-over-year global RevPAR growth (a) | ( | ||||
Fee-related and other revenues | |||||
Adjusted EBITDA | |||||
Adjusted net income | |||||
Adjusted diluted EPS | |||||
Free cash flow conversion rate | ~ |
(a) | Represents constant currency basis; on a reported basis, which includes foreign currency impacts, would be ( | ||||
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, May 1, 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 May 1, 2025. A telephone replay will be available for approximately ten days beginning at noon ET on May 1, 2025 at 800 688-9459.
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 9,300 hotels across over 95 countries on six continents. Through its network of approximately 907,000 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 over 115 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
Table 1 | |||
WYNDHAM HOTELS & RESORTS | |||
INCOME STATEMENT | |||
(In millions, except per share data) | |||
(Unaudited) | |||
Three Months Ended March 31, | |||
2025 | 2024 | ||
Net revenues | |||
Royalties and franchise fees | $ 126 | $ 116 | |
Marketing, reservation and loyalty | 116 | 117 | |
Management and other fees | 2 | 2 | |
License and other fees | 27 | 26 | |
Other | 45 | 43 | |
Fee-related and other revenues | 316 | 304 | |
Cost reimbursements | — | 1 | |
Net revenues | 316 | 305 | |
Expenses | |||
Marketing, reservation and loyalty | 138 | 131 | |
Operating | 19 | 19 | |
General and administrative | 30 | 28 | |
Cost reimbursements | — | 1 | |
Depreciation and amortization | 15 | 20 | |
Transaction-related | 1 | 41 | |
Separation-related | 1 | — | |
Impairment | — | 12 | |
Restructuring | — | 3 | |
Total expenses | 204 | 255 | |
Operating income | 112 | 50 | |
Interest expense, net | 33 | 28 | |
Income before income taxes | 79 | 22 | |
Provision for income taxes | 18 | 6 | |
Net income | $ 61 | $ 16 | |
Earnings per share | |||
Basic | $ 0.78 | $ 0.20 | |
Diluted | 0.78 | 0.19 | |
Weighted average shares outstanding | |||
Basic | 77.9 | 81.2 | |
Diluted | 78.7 | 81.8 | |
Table 2 | ||||||||||
WYNDHAM HOTELS & RESORTS | ||||||||||
HISTORICAL REVENUE AND ADJUSTED EBITDA BY SEGMENT | ||||||||||
First | Second | Third | Fourth | Full Year | ||||||
Hotel Franchising | ||||||||||
Net revenues | ||||||||||
2025 | $ 316 | n/a | n/a | n/a | n/a | |||||
2024 | 305 | $ 367 | $ 396 | $ 341 | $ 1,408 | |||||
Adjusted EBITDA | ||||||||||
2025 | $ 161 | n/a | n/a | n/a | n/a | |||||
2024 | 158 | $ 195 | $ 224 | $ 189 | $ 767 | |||||
Corporate | ||||||||||
Net revenues | ||||||||||
2025 | $ — | n/a | n/a | n/a | n/a | |||||
2024 | — | $ — | $ — | $ — | $ — | |||||
Adjusted EBITDA | ||||||||||
2025 | $ (16) | n/a | n/a | n/a | n/a | |||||
2024 | (17) | $ (17) | $ (16) | $ (21) | $ (73) | |||||
Total Company | ||||||||||
Net revenues | ||||||||||
2025 | $ 316 | n/a | n/a | n/a | n/a | |||||
2024 | 305 | $ 367 | $ 396 | $ 341 | $ 1,408 | |||||
Net income | ||||||||||
2025 | $ 61 | n/a | n/a | n/a | n/a | |||||
2024 | 16 | $ 86 | $ 102 | $ 85 | $ 289 | |||||
Adjusted EBITDA | ||||||||||
2025 | $ 145 | n/a | 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) | |||
Three Months Ended March 31, | |||
2025 | 2024 | ||
Operating activities | |||
Net income | $ 61 | $ 16 | |
Depreciation and amortization | 15 | 20 | |
Payments of development advance notes, net | (28) | (31) | |
Working capital and other, net | 11 | 71 | |
Net cash provided by operating activities | 59 | 76 | |
Investing activities | |||
Property and equipment additions | (7) | (9) | |
Loan advances | (52) | (15) | |
Net cash used in investing activities | (59) | (24) | |
Financing activities | |||
Proceeds from long-term debt | 140 | 48 | |
Payments of long-term debt | (76) | (8) | |
Dividends to shareholders | (33) | (32) | |
Repurchases of common stock | (74) | (55) | |
Other, net | (22) | (20) | |
Net cash used in financing activities | (65) | (67) | |
Effect of changes in exchange rates on cash, cash equivalents and restricted cash | — | (1) | |
Net decrease in cash, cash equivalents and restricted cash | (65) | (16) | |
Cash, cash equivalents and restricted cash, beginning of period | 113 | 66 | |
Cash, cash equivalents and restricted cash, end of period | $ 48 | $ 50 | |
Free Cash Flow: | |||
Three Months Ended March 31, | |||
2025 | 2024 | ||
Net cash provided by operating activities | $ 59 | $ 76 | |
Less: Property and equipment additions | (7) | (9) | |
Plus: Payments of development advance notes, net | 28 | 31 | |
Free cash flow | 80 | 98 | |
Plus: Adjusting items (a) | — | 4 | |
Adjusted free cash flow | $ 80 | $ 102 | |
(a) | 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 March 31, 2025 | As of December 31, 2024 | ||||
Assets | |||||
Cash and cash equivalents | $ 48 | $ 103 | |||
Trade receivables, net | 278 | 271 | |||
Property and equipment, net | 95 | 94 | |||
Goodwill and intangible assets, net | 3,069 | 3,073 | |||
Other current and non-current assets | 759 | 682 | |||
Total assets | $ 4,249 | $ 4,223 | |||
Liabilities and stockholders' equity | |||||
Total debt | $ 2,528 | $ 2,463 | |||
Other current liabilities | 408 | 423 | |||
Deferred income tax liabilities | 327 | 332 | |||
Other non-current liabilities | 407 | 355 | |||
Total liabilities | 3,670 | 3,573 | |||
Total stockholders' equity | 579 | 650 | |||
Total liabilities and stockholders' equity | $ 4,249 | $ 4,223 | |||
Our outstanding debt was as follows: | |||||
Weighted Average | As of March 31, 2025 | As of December 31, 2024 | |||
6.3 % | $ 161 | $ 88 | |||
6.2 % | 359 | 364 | |||
5.3 % | 1,512 | 1,515 | |||
4.4 % | 496 | 496 | |||
Total debt | 5.3 % | 2,528 | 2,463 | ||
Cash and cash equivalents | 48 | 103 | |||
Net debt | $ 2,480 | $ 2,360 | |||
Net debt leverage ratio | 3.5x | 3.4x | |||
(a) | Represents weighted average interest rates for the first quarter 2025, including the effects of hedging. | ||||
Our outstanding debt as of March 31, 2025 matures as follows: | |
Amount | |
Within 1 year | $ 45 |
Between 1 and 2 years | 45 |
Between 2 and 3 years | 476 |
Between 3 and 4 years | 512 |
Between 4 and 5 years | 16 |
Thereafter | 1,434 |
Total | $ 2,528 |
Table 5 | |||||||||
WYNDHAM HOTELS & RESORTS | |||||||||
REVENUE DRIVERS | |||||||||
Three Months Ended March 31, | |||||||||
2025 | 2024 | Change | % Change | ||||||
Beginning Room Count (January 1) | |||||||||
501,800 | 497,600 | 4,200 | 1 % | ||||||
International | 401,200 | 374,200 | 27,000 | 7 | |||||
Global | 903,000 | 871,800 | 31,200 | 4 | |||||
Additions | |||||||||
6,500 | 7,000 | (500) | (7) | ||||||
International | 8,300 | 6,100 | 2,200 | 36 | |||||
Global | 14,800 | 13,100 | 1,700 | 13 | |||||
Deletions | |||||||||
(5,700) | (5,500) | (200) | (4) | ||||||
International | (4,900) | (3,100) | (1,800) | (58) | |||||
Global | (10,600) | (8,600) | (2,000) | (23) | |||||
Ending Room Count (March 31) | |||||||||
502,600 | 499,100 | 3,500 | 1 | ||||||
International | 404,600 | 377,200 | 27,400 | 7 | |||||
Global | 907,200 | 876,300 | 30,900 | 4 % | |||||
As of March 31, | FY 2024 | ||||||||
2025 | 2024 | Change | % Change | ||||||
System Size | |||||||||
Economy | 223,500 | 229,700 | (6,200) | (3 %) | |||||
Midscale and Above | 279,100 | 269,400 | 9,700 | 4 | |||||
Total | 502,600 | 499,100 | 3,500 | 1 % | 78 % | ||||
International | |||||||||
Greater China | 186,700 | 172,300 | 14,400 | 8 % | 4 | ||||
Rest of | 40,200 | 35,300 | 4,900 | 14 | 2 | ||||
93,200 | 89,000 | 4,200 | 5 | 8 | |||||
39,800 | 39,800 | — | — | 5 | |||||
44,700 | 40,800 | 3,900 | 10 | 3 | |||||
Total International | 404,600 | 377,200 | 27,400 | 7 % | 22 | ||||
Global | 907,200 | 876,300 | 30,900 | 4 % | 100 % | ||||
Table 5 (continued) | |||||
WYNDHAM HOTELS & RESORTS | |||||
REVENUE DRIVERS | |||||
Three Months | Constant Currency % Change (a) | ||||
Regional RevPAR Growth | |||||
Economy | $ 33.63 | 2 % | |||
Midscale and Upper Midscale | 48.21 | 1 | |||
Upscale and Above | 80.52 | (8) | |||
Total | $ 42.37 | 2 % | |||
International | |||||
$ 13.42 | (8 %) | ||||
Rest of | 33.28 | 8 | |||
42.76 | 6 | ||||
39.70 | 2 | ||||
58.05 | 25 | ||||
Total International | $ 28.73 | 3 % | |||
Global | $ 36.13 | 2 % | |||
Three Months Ended March 31, | |||||
2025 | 2024 | % Change (b) | |||
Average Royalty Rate | |||||
4.8 % | 4.6 % | 19 bps | |||
International | 2.6 % | 2.4 % | 15 bps | ||
Global | 4.0 % | 3.8 % | 16 bps | ||
(a) | International and global exclude the impact of currency exchange movements. | |||
(b) | Amounts may not recalculate due to rounding. | |||
Table 6 | |||||||||||
WYNDHAM HOTELS & RESORTS | |||||||||||
HISTORICAL REVPAR AND ROOMS | |||||||||||
First | Second | Third | Fourth | Full | |||||||
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 | ||||||
U.S. RevPAR | |||||||||||
2025 | $ 42.37 | n/a | n/a | n/a | n/a | ||||||
2024 | $ 41.68 | $ 55.44 | $ 57.98 | $ 46.41 | $ 50.37 | ||||||
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 Rooms | |||||||||||
2025 | 907,200 | n/a | n/a | n/a | n/a | ||||||
2024 | 876,300 | 884,900 | 892,600 | 903,000 | 903,000 | ||||||
2025 | 502,600 | n/a | n/a | n/a | n/a | ||||||
2024 | 499,100 | 499,400 | 500,600 | 501,800 | 501,800 | ||||||
International Rooms | |||||||||||
2025 | 404,600 | n/a | n/a | n/a | n/a | ||||||
2024 | 377,200 | 385,500 | 392,000 | 401,200 | 401,200 | ||||||
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 | Second | Third | Fourth | Full | |||||
2025 | |||||||||
Net income | $ 61 | ||||||||
Provision for income taxes | 18 | ||||||||
Depreciation and amortization | 15 | ||||||||
Interest expense, net | 33 | ||||||||
Stock-based compensation | 9 | ||||||||
Development advance notes amortization | 7 | ||||||||
Transaction-related (a) | 1 | ||||||||
Separation-related (b) | 1 | ||||||||
Adjusted EBITDA | $ 145 | ||||||||
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 (c) | — | 3 | — | — | 3 | ||||
Stock-based compensation | 10 | 10 | 10 | 11 | 41 | ||||
Development advance notes amortization | 5 | 6 | 6 | 6 | 24 | ||||
Transaction-related (a) | 41 | 5 | 1 | — | 47 | ||||
Restructuring costs (d) | 3 | 7 | 2 | 4 | 15 | ||||
Impairment (e) | 12 | — | — | — | 12 | ||||
Separation-related (b) | — | (12) | 1 | — | (11) | ||||
Adjusted EBITDA | $ 141 | $ 178 | $ 208 | $ 168 | $ 694 | ||||
NOTE: Amounts may not add due to rounding. | |||||||||||
(a) | 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. | ||||||||||
(b) | Represents costs (income) associated with the Company's spin-off from Wyndham Worldwide. | ||||||||||
(c) | Amounts relate to non-cash charges associated with the Company's refinancing of its term loan B. | ||||||||||
(d) | Represents charges associated with the Company's 2024 restructuring plan consisting primarily of employee related costs. | ||||||||||
(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 March 31, | |||
2025 | 2024 | ||
Diluted earnings per share | $ 0.78 | $ 0.19 | |
Net income | $ 61 | $ 16 | |
Adjustments: | |||
Acquisition-related amortization expense (a) | 6 | 7 | |
Transaction-related | 1 | 41 | |
Separation-related | 1 | — | |
Impairment | — | 12 | |
Restructuring costs | — | 3 | |
Total adjustments before tax | 8 | 63 | |
Income tax provision (b) | 2 | 15 | |
Total adjustments after tax | 6 | 48 | |
Adjusted net income | $ 67 | $ 64 | |
Adjustments - EPS impact | 0.08 | 0.59 | |
Adjusted diluted EPS | $ 0.86 | $ 0.78 | |
Diluted weighted average shares outstanding | 78.7 | 81.8 | |
(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 April 30, 2025 | ||
(In millions, except per share data) | ||
The Company is refining its outlook to reflect a softer-than-expected RevPAR environment. The updated range reflects a variety of potential outcomes for the remainder of the year, from a more optimistic scenario in which the softness seen in March and April proves to be temporary, to a more cautious view that contemplates persistent pressure on demand throughout the remainder of the year. | ||
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 | $ | 4.57 – 4.74 |
Diluted shares (c) | 78.4 | |
Capital expenditures | ||
Development advance notes | Approx. | |
Free cash flow conversion rate | ~ | |
Year-over-Year Growth | ||
Global RevPAR (d) | ( | |
Number of rooms | ||
(a) | Excludes amortization of acquisition-related intangible assets of approximately | |||||
(b) | Outlook assumes an effective tax rate of approximately | |||||
(c) | Excludes the impact of any share repurchases after March 31, 2025. | |||||
(d) | Represents constant currency basis; on a reported basis, which includes foreign currency impacts, would be ( | |||||
If a more significant pullback in demand were to materialize beyond the Company's current assumptions, actual results could fall below this range. To assist with modeling, each
In determining adjusted EBITDA, interest expense, net, adjusted income before income taxes, adjusted net income, adjusted diluted EPS and 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
Adjusted Free Cash Flow: Represents free cash flow excluding payments related to the Company's defense of an unsuccessful hostile takeover attempt.
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 lodging 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 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.
Free Cash Flow Conversion Rate: Represents the percentage of adjusted EBITDA that is converted to 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.
Number of Rooms: Represents the number of rooms at the end of the period which are (i) either under franchise and/or management agreements or Company-owned and (ii) properties under affiliation agreements for which the Company receives a fee for reservation and/or other services provided.
RevPAR: Represents revenue per available room and is calculated by multiplying average occupancy rate by ADR.
Royalty Rate: Represents the average royalty rate earned on the Company's franchised properties and is calculated by dividing total royalties, excluding the impact of amortization of development advance notes, by total room revenues.
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SOURCE Wyndham Hotels & Resorts
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