Wyndham Hotels Q3 earnings: net income falls to $99M
Wyndham raised the low end of its full-year adjusted EBITDA range and both ends of its adjusted diluted EPS range.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Form Type
8-K
Rhea-AI Filing Summary
Wyndham Hotels & Resorts, Inc. reported third-quarter 2026 net revenues of $410 million, versus $382 million a year earlier. Net income was $99 million, down from $105 million; reported adjusted EBITDA was $207 million versus $213 million, while comparable-basis adjusted EBITDA growth was $11 million after marketing fund variability. Adjusted diluted EPS was $1.43, versus $1.46.
Global RevPAR grew 2% in constant currency and U.S. RevPAR 6%; international RevPAR declined 3%, including a 10% decline in China. Rooms excluding Revo grew 4%, and the development pipeline excluding Revo reached a record approximately 264,000 rooms. Operating cash flow was $93 million and free cash flow was $100 million. Wyndham returned $123 million through $91 million of repurchases and $32 million of dividends ($0.43 per share); its board increased repurchase authorization by $400 million.
Updated 2026 outlook is $740–$745 million adjusted EBITDA, $4.84–$4.92 adjusted diluted EPS and 0.5%–1.0% global RevPAR growth in constant currency; net revenue outlook remains $1.48–$1.50 billion.
2 points · 0 major0 major · 1 point
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointQuarterly net revenues were $410 million, up from $382 million.
- Moderate pointOperating cash flow reached $93 million, versus $86 million.
Negative
- Moderate pointQuarterly net income fell to $99 million from $105 million.
Filing Explained
At
8-K Event Classification
3 items: 2.02, 7.01, 9.01
3 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 7.01
Regulation FD Disclosure
Disclosure
Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Key Figures
Net revenues: $410 million
Net income: $99 million
Adjusted EBITDA: $207 million
+5 more
8 metrics
Net revenues
$410 million
Three months ended September 30, 2026; $382 million in 2025
Net income
$99 million
Three months ended September 30, 2026; $105 million in 2025
Adjusted EBITDA
$207 million
Reported third-quarter 2026; $213 million in 2025
Adjusted diluted EPS
$1.43 per share
Third quarter 2026; $1.46 in 2025
Net cash provided by operating activities
$93 million
Three months ended September 30, 2026; $86 million in 2025
U.S. RevPAR growth
6%
Year over year in the third quarter of 2026
Share repurchases
$91 million
Third quarter 2026
Full-year adjusted EBITDA outlook
$740–$745 million
Updated 2026 outlook
Key Terms
RevPAR, FeePAR, Adjusted EBITDA, Free Cash Flow Conversion Rate, +1 more
5 terms
RevPAR financial
"Global RevPAR grew 2% compared to third quarter 2025"
RevPAR, or revenue per available room, is a measure used in the hotel industry to show how much money a hotel earns from each of its rooms over a certain period. It helps investors understand how well a hotel is performing financially, similar to how a store's sales per square foot reveal its profitability. Higher RevPAR indicates better use of resources and stronger financial health.
FeePAR financial
"carrying a FeePAR premium of approximately 30%"
Adjusted EBITDA financial
"Adjusted EBITDA was $207 million"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
Free Cash Flow Conversion Rate financial
"Free cash flow conversion rate"
A free cash flow conversion rate is the percentage that shows how much of a company’s reported profit actually becomes free cash — the cash left after running the business and making necessary investments. It tells investors whether earnings are turning into real, spendable money for dividends, debt repayment or growth; high conversion is like keeping most of your paycheck after bills, while low conversion means reported profits aren’t producing much usable cash.
Marketing Fund Variability financial
"Marketing Fund Variability: Relates to the quarterly timing variances"
Earnings Snapshot
Net revenues: $410 million · Guidance included
Three months ended September 30, 2026
Net revenues
$410 million
Up $28 million year over year
Net income
$99 million
Down $6 million year over year
Adjusted EBITDA
$207 million
Down $6 million reported year over year; comparable-basis growth of $11 million
Adjusted diluted EPS
$1.43
Down $0.03 reported year over year; comparable-basis growth of $0.13
Guidance
Updated 2026 adjusted EBITDA: $740–$745 million (prior: $735–$745 million); adjusted diluted EPS: $4.84–$4.92 (prior: $4.71–$4.83); global RevPAR growth: 0.5%–1.0% (prior: 0.0%–1.0%).
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were WH’s third-quarter 2026 net income and adjusted diluted EPS?
WH reported net income of $99 million and adjusted diluted EPS of $1.43 for the three months ended September 30, 2026. In the prior-year quarter, net income was $105 million and adjusted diluted EPS was $1.46.
What is WH’s updated full-year 2026 outlook?
Wyndham’s updated adjusted EBITDA outlook is $740 million to $745 million, compared with the prior range of $735 million to $745 million. Adjusted diluted EPS is $4.84 to $4.92, versus $4.71 to $4.83; global RevPAR growth is 0.5% to 1.0%, versus 0.0% to 1.0%.
When is WH’s third-quarter 2026 earnings call?
Wyndham scheduled its investor conference call for October 22, 2026, at 8:30 a.m. ET. The company stated that listeners can access the live webcast through its website.
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
____________
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
____________
Date of Report (Date of earliest event reported) October 21, 2026
(Exact name of registrant as specified in charter)
| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||||||||
| (Address of principal executive offices) | (Zip Code) | |||||||||||||
Registrant's telephone number, including area code (973 ) 753-6000
None
| (Former name or former address, if changed since last report.) | ||
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: | |||||
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Item 2.02. Results of Operations and Financial Condition.
Wyndham Hotels & Resorts, Inc. (the “Company”) today issued a press release reporting financial results for the quarter ended September 30, 2026.
A copy of the Company’s press release is furnished as Exhibit 99.1 and is incorporated by reference.
The information included in this Item 2.02, Item 7.01 below and Exhibit 99.1 included with this Current Report on Form 8-K shall not be deemed “filed” for the purposes of or otherwise subject to the liabilities under Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Unless expressly incorporated into a filing of the Company under the Securities Act of 1933, as amended, or the Exchange Act made after the date hereof, the information contained in this Item 2.02, Item 7.01 below and Exhibit 99.1 hereto shall not be incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing.
Item 7.01. Regulation FD Disclosure.
On October 21, 2026, the Company posted a new investor presentation on its investor relations website at www.investor.wyndhamhotels.com.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
Exhibit No. | Description | |||||||
Exhibit 99.1 | Press Release of Wyndham Hotels & Resorts, Inc., dated October 21, 2026, reporting financial results for the quarter ended September 30, 2026. | |||||||
| Exhibit 104 | Cover Page Interactive Data File - the cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | |||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
WYNDHAM HOTELS & RESORTS, INC. | ||||||||
Date: October 21, 2026 | By: | /s/ Christopher M. Androski | ||||||
| Christopher M. Androski Chief Accounting Officer | ||||||||
Exhibit 99.1
WYNDHAM HOTELS & RESORTS REPORTS STRONG THIRD QUARTER RESULTS
Company Raises Full-Year 2026 RevPAR, Adjusted EBITDA and EPS Outlook
Grows System Size by 4% and U.S. RevPAR by 6%
PARSIPPANY, N.J., October 21, 2026 - Wyndham Hotels & Resorts (NYSE: WH) today announced results for the three months ended September 30, 2026. Highlights include:
•Global RevPAR grew 2% compared to third quarter 2025 in constant currency, a 4% improvement sequentially.
•U.S. RevPAR grew 6% year-over-year, a 4% improvement sequentially.
•System-wide rooms grew 4% year-over-year, excluding insolvent Revo Hospitality Group ("Revo") rooms.
•Development pipeline grew 4% year-over-year, excluding Revo, to a record of approximately 264,000 rooms, carrying a FeePAR premium of approximately 30% to existing domestic and international systems.
•Net income was $99 million and diluted EPS was $1.33.
•Adjusted EBITDA was $207 million and adjusted diluted EPS was $1.43.
•Net cash provided by operating activities was $93 million and free cash flow was $100 million.
•Returned $123 million to shareholders through $91 million of share repurchases, a 30% increase year-over-year, and quarterly cash dividends of $0.43 per share.
"Our third quarter results demonstrate our team's continued execution and the strength of Wyndham’s asset-light, highly cash-generative business model," said Geoff Ballotti, President and Chief Executive Officer. "We delivered broad-based U.S. RevPAR growth outperforming our initial expectations, as well as market share gains. Additionally, we grew our system and development pipeline each by 4% and increased royalties and franchise fees by 6%, as we continued to invest in industry-leading technology, loyalty and distribution initiatives that support franchisee profitability and customer satisfaction. Our strong balance sheet and cash flow generation capabilities provide significant opportunities to continue enhancing returns to our shareholders over both the short and long-term, as evidenced by our Board of Directors' approval of a $400 million increase in our share repurchase authorization.”
Operating Results Highlights
The comparability of the Company’s third quarter results is impacted by marketing fund variability. In the third quarter of 2026, marketing fund revenues exceeded expenses by $1 million, while revenues exceeded expenses by $18 million in the third quarter of last year.
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.
| Net revenues | Net income(a) | Adjusted net income(a) | Adjusted EBITDA | Reported diluted EPS(a) | Adjusted diluted EPS(a) | ||||||||||||||||||||||||||||||
| 2025 reported | $ | 382 | $ | 105 | $ | 112 | $ | 213 | $ | 1.36 | $ | 1.46 | |||||||||||||||||||||||
| 2026 reported | 410 | 99 | 107 | 207 | 1.33 | 1.43 | |||||||||||||||||||||||||||||
| Change | 28 | (6) | (5) | (6) | (0.03) | (0.03) | |||||||||||||||||||||||||||||
| Less: Marketing fund variability | n/a | (13) | (13) | (17) | (0.16) | (0.16) | |||||||||||||||||||||||||||||
| Comparable basis growth | $ | 28 | $ | 7 | $ | 8 | $ | 11 | $ | 0.13 | $ | 0.13 | |||||||||||||||||||||||
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.
•Net revenues increased 7% to $410 million compared to $382 million in the third quarter of 2025, reflecting RevPAR and global net rooms growth, higher franchise fees, increased ancillary revenues and revenues from the Company's two owned hotels.
•Net income decreased 6% to $99 million compared to $105 million in the third quarter of 2025, primarily reflecting lower adjusted EBITDA. On a comparable basis, adjusted net income increased approximately 7% year-over-year primarily reflecting comparable basis adjusted EBITDA growth.
•Adjusted EBITDA decreased 3% to $207 million compared to $213 million in the third quarter of 2025. On a comparable basis, adjusted EBITDA increased 5% primarily reflecting higher revenues, partially offset by the timing of variable costs and the lapping of one-time variable cost reductions made during the third quarter of 2025.
•Diluted EPS decreased 2% to $1.33 compared to $1.36 in the third quarter of 2025, which reflects lower net income, partially offset with share repurchase activity.
•Adjusted diluted EPS decreased 2% to $1.43 compared to $1.46 in the third quarter of 2025. On a comparable basis, adjusted diluted EPS increased approximately 9% year-over-year primarily reflecting a comparable basis increase in adjusted EBITDA and the benefit of share repurchase activity.
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.
2
RevPAR
| Third Quarter 2026 | YOY Constant Currency % Change | |||||||||||||
| United States | $ | 58.35 | 6 | % | ||||||||||
| International | 41.79 | (3 | %) | |||||||||||
| Global | $ | 51.13 | 2 | % | ||||||||||
In the U.S., RevPAR improved 6% year-over-year and 4% sequentially, reflecting improved occupancy and ADR levels. Performance was broad-based across nearly all regions, highlighting the sustained strength across the Midwest and continued year-over-year and sequential growth in Texas, Florida and California.
Internationally, constant currency RevPAR declined 3% year-over-year, yet improved 4% sequentially, including year-over-year growth of 7% in Canada reflecting continued pricing and demand strength, while 5% growth in Southeast Asia and the Pacific Rim was driven by favorable ADR trends. Latin America increased 2% year-over-year and 9% sequentially primarily driven by Mexico, with favorable ADR trends and a resilient urban portfolio. EMEA increased 2% year-over-year driven by strong performance in Turkey, India and Spain and 8% sequentially reflecting recovery in Germany and stabilization across the Middle East. Growth in these regions was offset by China, where RevPAR declined 10% year-over-year as softer travel demand, particularly in Tier 2 cities, continued to pressure performance.
System Size and Development
| Rooms | ||||||||||||||||||||
| September 30, 2026 | September 30, 2025 | % Change | ||||||||||||||||||
| United States | 500,000 | 503,400 | (1 | %) | ||||||||||||||||
| International | 377,400 | 352,000 | 7 | % | ||||||||||||||||
| Global | 877,400 | 855,400 | 3 | % | ||||||||||||||||
| Global ex. Revo | 864,400 | 833,200 | 4 | % | ||||||||||||||||
The Company's global system, excluding Revo, grew 4%. The Company's U.S. system grew 2% in the higher RevPAR midscale and above segments. International growth of 11% year-over-year, excluding Revo, included 12% direct-franchised growth in the Company's Asia Pacific region and 13% growth in the Company's higher RevPAR EMEA and Latin America regions.
3
As of September 30, 2026, the Company's global development pipeline, excluding Revo, increased 4% vs. prior-year to a record-high of approximately 264,000 rooms and over 2,200 hotels. Key highlights of the Company's pipeline include:
•2% growth in the U.S. and 5% growth internationally, excluding Revo
•Approximately 69% is in the midscale and above segments
•Approximately 17% is in the extended stay segment
•Approximately 42% is in the U.S.
•Approximately 78% is new construction and approximately 35% of these projects have broken ground; rooms under construction grew 4% year-over-year
•Approximately 30% FeePAR premium compared to existing domestic and international systems
Balance Sheet and Liquidity
The Company generated $93 million of net cash provided by operating activities and $100 million of free cash flow in the third quarter 2026. The Company ended the quarter with a cash balance of $71 million and $988 million in total liquidity.
The Company’s net debt leverage ratio at September 30, 2026 was 3.6 times, near the midpoint of the Company’s 3-to-4 times stated target range and in-line with expectations.
Share Repurchases and Dividends
During the third quarter, the Company repurchased approximately 1.2 million shares of its common stock for $91 million, a 30% increase year-over-year, at an average price of $73.39 per share, which represented a 5% discount to our 52-week average price. Year-to-date through September 30, the Company repurchased approximately 2.5 million shares of its common stock for $196 million. The Company's Board of Directors recently increased the Company's share repurchase authorization by $400 million.
The Company paid common stock dividends of $32 million, or $0.43 per share, during the third quarter 2026.
4
Outlook
The Company is updating its full-year outlook as follows:
| Updated Outlook | Prior Outlook | |||||||||||||
Year-over-year rooms growth (a) | ~4% | 4.0% - 4.5% | ||||||||||||
Year-over-year global RevPAR growth (b) | 0.5% - 1.0% | 0.0% - 1.0% | ||||||||||||
| Net revenues | $1.48 - $1.50 billion | $1.48 - $1.50 billion | ||||||||||||
Adjusted EBITDA (c) | $740 - $745 million | $735 - $745 million | ||||||||||||
| Adjusted net income | $363 - $369 million | $355 - $365 million | ||||||||||||
| Adjusted diluted EPS | $4.84 - $4.92 | $4.71 - $4.83 | ||||||||||||
| Free cash flow conversion rate | 55% - 60% | 55% - 60% | ||||||||||||
(a) Excludes any room termination impact associated with Revo's ongoing insolvency.
(b) Represents constant currency basis; on a reported basis, which includes foreign currency impacts, would be 0.5% - 1.0%. The Company's updated outlook assumes fourth quarter domestic RevPAR is roughly consistent with third quarter performance.
(c) Includes the effects of the deferral of royalties and franchise fees from Revo and the inclusion of previously disclosed one-time variable cost reductions made in 2025; excluding which comparable basis growth rate would be approximately 6% - 7%.
The Company expects marketing fund revenues to roughly equal expenses during full-year 2026 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, October 22, 2026 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 October 22, 2026. A telephone replay will be available for approximately ten days beginning at noon ET on October 22, 2026 at 800 839-4014.
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
5
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 one of the world’s largest hotel franchising companies with approximately 8,500 hotels across approximately 100 countries on six continents. Through its network of over 877,000 franchised and affiliated 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 129 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
6
markets; the economic environment for the hospitality industry; operating risks associated with the hotel franchising business; Wyndham's relationships with franchisees; the ability of franchisees to pay back loans owed to Wyndham; the impact of prior or any future impairment charges related to the credit Wyndham extends to its franchisees; the impact of war, terrorist activity, political instability or political strife; 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.
# # #
Contacts Investors: Matt Capuzzi Senior Vice President, Head of FP&A and Investor Relations 973 753-6453 ir@wyndham.com | Media: Maire Griffin Senior Vice President, Global Communications 973 753-6590 WyndhamHotelsNews@wyndham.com | ||||
7
| Table 1 | |||||||||||||||||||||||
| WYNDHAM HOTELS & RESORTS | |||||||||||||||||||||||
| INCOME STATEMENT | |||||||||||||||||||||||
| (In millions, except per share data) | |||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Net revenues | |||||||||||||||||||||||
| Royalties and franchise fees | $ | 156 | $ | 147 | $ | 409 | $ | 420 | |||||||||||||||
| Marketing, reservation and loyalty | 158 | 149 | 426 | 431 | |||||||||||||||||||
| Management and other fees | 8 | 2 | 16 | 7 | |||||||||||||||||||
| License and other fees | 36 | 35 | 97 | 95 | |||||||||||||||||||
| Other | 52 | 49 | 164 | 142 | |||||||||||||||||||
| Net revenues | 410 | 382 | 1,112 | 1,095 | |||||||||||||||||||
| Expenses | |||||||||||||||||||||||
| Marketing, reservation and loyalty | 157 | 131 | 419 | 432 | |||||||||||||||||||
| Operating | 29 | 29 | 79 | 73 | |||||||||||||||||||
| General and administrative | 36 | 26 | 95 | 87 | |||||||||||||||||||
| Depreciation and amortization | 14 | 15 | 45 | 46 | |||||||||||||||||||
| Restructuring and other-related | 2 | 2 | 12 | 16 | |||||||||||||||||||
| Transaction-related | — | 1 | 3 | 2 | |||||||||||||||||||
| Separation-related | — | — | (1) | 1 | |||||||||||||||||||
| Total expenses | 238 | 204 | 652 | 657 | |||||||||||||||||||
| Operating income | 172 | 178 | 460 | 438 | |||||||||||||||||||
| Interest expense, net | 37 | 36 | 108 | 103 | |||||||||||||||||||
| Income before income taxes | 135 | 142 | 352 | 335 | |||||||||||||||||||
| Provision for income taxes | 36 | 37 | 90 | 82 | |||||||||||||||||||
| Net income | $ | 99 | $ | 105 | $ | 262 | $ | 253 | |||||||||||||||
| Earnings per share | |||||||||||||||||||||||
| Basic | $ | 1.34 | $ | 1.37 | $ | 3.50 | $ | 3.28 | |||||||||||||||
| Diluted | 1.33 | 1.36 | 3.49 | 3.26 | |||||||||||||||||||
| Weighted average shares outstanding | |||||||||||||||||||||||
| Basic | 74.1 | 76.4 | 74.8 | 77.1 | |||||||||||||||||||
| Diluted | 74.3 | 76.9 | 75.1 | 77.6 | |||||||||||||||||||
NOTE: As a result of the Company's exit of its U.S. management business, it has not recorded cost reimbursement revenues and expenses to account for U.S. managed employees' payroll costs since full-year 2024. Therefore, the Company is no longer separately disclosing fee-related and other revenues within net revenues for comparative year-over-year purposes in its reported and outlook results.
| 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 | ||||||||||||||||||||||||||||||||
| 2026 | $ | 327 | $ | 375 | $ | 410 | n/a | n/a | ||||||||||||||||||||||||
| 2025 | $ | 316 | $ | 397 | $ | 382 | $ | 334 | $ | 1,429 | ||||||||||||||||||||||
| Adjusted EBITDA | ||||||||||||||||||||||||||||||||
| 2026 | $ | 174 | $ | 225 | $ | 229 | n/a | n/a | ||||||||||||||||||||||||
| 2025 | $ | 161 | $ | 214 | $ | 228 | $ | 178 | $ | 781 | ||||||||||||||||||||||
| Corporate | ||||||||||||||||||||||||||||||||
| Net revenues | ||||||||||||||||||||||||||||||||
| 2026 | $ | — | $ | — | $ | — | n/a | n/a | ||||||||||||||||||||||||
| 2025 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||||
| Adjusted EBITDA | ||||||||||||||||||||||||||||||||
| 2026 | $ | (18) | $ | (13) | $ | (22) | n/a | n/a | ||||||||||||||||||||||||
| 2025 | $ | (16) | $ | (19) | $ | (15) | $ | (13) | $ | (63) | ||||||||||||||||||||||
| Total Company | ||||||||||||||||||||||||||||||||
| Net revenues | ||||||||||||||||||||||||||||||||
| 2026 | $ | 327 | $ | 375 | $ | 410 | n/a | n/a | ||||||||||||||||||||||||
| 2025 | $ | 316 | $ | 397 | $ | 382 | $ | 334 | $ | 1,429 | ||||||||||||||||||||||
| Net income/(loss) | ||||||||||||||||||||||||||||||||
| 2026 | $ | 61 | $ | 102 | $ | 99 | n/a | n/a | ||||||||||||||||||||||||
| 2025 | $ | 61 | $ | 87 | $ | 105 | $ | (60) | $ | 193 | ||||||||||||||||||||||
| Adjusted EBITDA | ||||||||||||||||||||||||||||||||
| 2026 | $ | 156 | $ | 212 | $ | 207 | n/a | n/a | ||||||||||||||||||||||||
| 2025 | $ | 145 | $ | 195 | $ | 213 | $ | 165 | $ | 718 | ||||||||||||||||||||||
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) | |||||||||||
| Nine Months Ended September 30, | |||||||||||
| 2026 | 2025 | ||||||||||
| Operating activities | |||||||||||
| Net income | $ | 262 | $ | 253 | |||||||
| Depreciation and amortization | 45 | 46 | |||||||||
| Payments of development advance notes, net | (75) | (73) | |||||||||
| Working capital and other, net | (6) | (11) | |||||||||
| Net cash provided by operating activities | 226 | 215 | |||||||||
| Investing activities | |||||||||||
| Property and equipment additions | (32) | (30) | |||||||||
| Loan advances, net | (14) | (56) | |||||||||
| Net cash used in investing activities | (46) | (86) | |||||||||
| Financing activities | |||||||||||
| Proceeds from long-term debt | 822 | 350 | |||||||||
| Payments of long-term debt | (662) | (189) | |||||||||
| Dividends to shareholders | (98) | (96) | |||||||||
| Repurchases of common stock | (196) | (223) | |||||||||
| Other, net | (19) | (14) | |||||||||
| Net cash used in financing activities | (153) | (172) | |||||||||
| Effect of changes in exchange rates on cash, cash equivalents and restricted cash | (1) | — | |||||||||
| Net increase/(decrease) in cash, cash equivalents and restricted cash | 26 | (43) | |||||||||
| Cash, cash equivalents and restricted cash, beginning of period | 64 | 113 | |||||||||
| Cash, cash equivalents and restricted cash, end of period | $ | 90 | $ | 70 | |||||||
| Free Cash Flow: | |||||||||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Net cash provided by operating activities | $ | 93 | $ | 86 | $ | 226 | $ | 215 | |||||||||||||||
| Less: Property and equipment additions | (11) | (11) | (32) | (30) | |||||||||||||||||||
| Plus: Payments of development advance notes, net | 18 | 22 | 75 | 73 | |||||||||||||||||||
| Free cash flow | 100 | 97 | 269 | 258 | |||||||||||||||||||
Plus: Adjusting items (a) | — | — | — | 7 | |||||||||||||||||||
| Adjusted free cash flow | $ | 100 | $ | 97 | $ | 269 | $ | 265 | |||||||||||||||
(a) Represents separation-related net tax payments.
| Table 4 | |||||||||||||||||
| WYNDHAM HOTELS & RESORTS | |||||||||||||||||
| BALANCE SHEET SUMMARY AND DEBT | |||||||||||||||||
| (In millions) | |||||||||||||||||
| (Unaudited) | |||||||||||||||||
| As of September 30, 2026 | As of December 31, 2025 | ||||||||||||||||
| Assets | |||||||||||||||||
| Cash and cash equivalents | $ | 71 | $ | 64 | |||||||||||||
| Trade receivables, net | 336 | 291 | |||||||||||||||
| Property and equipment, net | 150 | 104 | |||||||||||||||
| Goodwill and intangible assets, net | 2,996 | 3,015 | |||||||||||||||
| Other current and non-current assets | 807 | 708 | |||||||||||||||
| Total assets | $ | 4,360 | $ | 4,182 | |||||||||||||
| Liabilities and stockholders' equity | |||||||||||||||||
| Total debt | $ | 2,727 | $ | 2,560 | |||||||||||||
| Other current liabilities | 475 | 462 | |||||||||||||||
| Deferred income tax liabilities | 270 | 271 | |||||||||||||||
| Other non-current liabilities | 413 | 421 | |||||||||||||||
| Total liabilities | 3,885 | 3,714 | |||||||||||||||
| Total stockholders' equity | 475 | 468 | |||||||||||||||
| Total liabilities and stockholders' equity | $ | 4,360 | $ | 4,182 | |||||||||||||
| The Company's outstanding debt was as follows: | |||||||||||||||||
Weighted Average Interest Rate (a) | As of September 30, 2026 | As of December 31, 2025 | |||||||||||||||
| $1.0 billion revolving credit facility (due October 2030) | 4.9% | $ | 83 | $ | 224 | ||||||||||||
| $1.5 billion term loan B (due May 2030) | 5.3% | 1,491 | 1,502 | ||||||||||||||
| $650 million 5.625% senior unsecured notes (due March 2033) | 5.6% | 641 | — | ||||||||||||||
| $500 million 4.375% senior unsecured notes (due August 2028) | 4.4% | 498 | 497 | ||||||||||||||
| $400 million term loan A (due April 2027) | — | 337 | |||||||||||||||
Other debt (b) | 2.2% | 14 | — | ||||||||||||||
| Total debt | 5.2% | 2,727 | 2,560 | ||||||||||||||
| Cash and cash equivalents | 71 | 64 | |||||||||||||||
| Net debt | $ | 2,656 | $ | 2,496 | |||||||||||||
| Net debt leverage ratio | 3.6x | 3.5x | |||||||||||||||
(a) Represents weighted average interest rates for the third quarter 2026, including the effects of hedging.
(b) Represents mortgages associated with the Company's two owned hotels.
| The Company's outstanding debt as of September 30, 2026 matures as follows: | |||||
| Amount | |||||
| Within 1 year | $ | 23 | |||
| Between 1 and 2 years | 519 | ||||
| Between 2 and 3 years | 15 | ||||
| Between 3 and 4 years | 1,446 | ||||
| Between 4 and 5 years | 83 | ||||
| Thereafter | 641 | ||||
| Total | $ | 2,727 | |||
| Table 5 | |||||||||||||||||||||||||||||
| WYNDHAM HOTELS & RESORTS | |||||||||||||||||||||||||||||
| REVENUE DRIVERS | |||||||||||||||||||||||||||||
| Nine Months Ended September 30, | |||||||||||||||||||||||||||||
| 2026 | 2025 | Change | % Change | ||||||||||||||||||||||||||
| Beginning Room Count (January 1) | |||||||||||||||||||||||||||||
| United States | 505,100 | 501,800 | 3,300 | 1% | |||||||||||||||||||||||||
| International | 363,800 | 333,900 | 29,900 | 9 | |||||||||||||||||||||||||
| Global | 868,900 | 835,700 | 33,200 | 4 | |||||||||||||||||||||||||
| Additions | |||||||||||||||||||||||||||||
| United States | 19,400 | 20,500 | (1,100) | (5) | |||||||||||||||||||||||||
| International | 30,700 | 28,000 | 2,700 | 10 | |||||||||||||||||||||||||
| Global | 50,100 | 48,500 | 1,600 | 3 | |||||||||||||||||||||||||
| Deletions | |||||||||||||||||||||||||||||
| United States | (24,500) | (18,900) | (5,600) | (30) | |||||||||||||||||||||||||
International (a) | (17,100) | (9,900) | (7,200) | (73) | |||||||||||||||||||||||||
Global (a) | (41,600) | (28,800) | (12,800) | (44) | |||||||||||||||||||||||||
| Ending Room Count (September 30) | |||||||||||||||||||||||||||||
| United States | 500,000 | 503,400 | (3,400) | (1) | |||||||||||||||||||||||||
| International | 377,400 | 352,000 | 25,400 | 7 | |||||||||||||||||||||||||
| Global | 877,400 | 855,400 | 22,000 | 3 | |||||||||||||||||||||||||
| Global ex. Revo | 864,400 | 833,200 | 31,200 | 4% | |||||||||||||||||||||||||
| As of September 30, | FY 2025 Royalty Contribution | ||||||||||||||||||||||||||||
| 2026 | 2025 | Change | % Change | ||||||||||||||||||||||||||
| System Size | |||||||||||||||||||||||||||||
| United States | |||||||||||||||||||||||||||||
| Economy | 215,500 | 223,200 | (7,700) | (3%) | |||||||||||||||||||||||||
| Midscale and Above | 284,500 | 280,200 | 4,300 | 2 | |||||||||||||||||||||||||
| Total United States | 500,000 | 503,400 | (3,400) | (1%) | 77% | ||||||||||||||||||||||||
| International | |||||||||||||||||||||||||||||
Greater China | 143,700 | 127,600 | 16,100 | 13% | 4 | ||||||||||||||||||||||||
| Rest of Asia Pacific | 46,300 | 42,100 | 4,200 | 10 | 2 | ||||||||||||||||||||||||
| Europe, the Middle East and Africa | 98,100 | 97,600 | 500 | 1 | 8 | ||||||||||||||||||||||||
| Canada | 38,300 | 39,500 | (1,200) | (3) | 6 | ||||||||||||||||||||||||
| Latin America | 51,000 | 45,200 | 5,800 | 13 | 3 | ||||||||||||||||||||||||
| Total International | 377,400 | 352,000 | 25,400 | 7% | 23 | ||||||||||||||||||||||||
| Global | 877,400 | 855,400 | 22,000 | 3% | 100% | ||||||||||||||||||||||||
| Global ex. Revo | 864,400 | 833,200 | 31,200 | 4% | |||||||||||||||||||||||||
NOTE: Global, International and Greater China rooms exclude all rooms associated with the Company's Super 8 master licensee in China in both periods.
(a) Includes deletions of approximately 9,100 and 1,000 Revo-related rooms during the nine months ended September 30, 2026 and 2025, respectively.
| Table 5 (continued) | |||||||||||||||||
| WYNDHAM HOTELS & RESORTS | |||||||||||||||||
| REVENUE DRIVERS | |||||||||||||||||
| Three Months Ended September 30, 2026 | Constant Currency % Change (b) | ||||||||||||||||
| Regional RevPAR Growth | |||||||||||||||||
| United States | |||||||||||||||||
| Economy | $ | 48.58 | 5% | ||||||||||||||
| Midscale and Upper Midscale | 66.09 | 6 | |||||||||||||||
| Upscale and Above | 81.88 | 5 | |||||||||||||||
| Total United States | $ | 58.35 | 6% | ||||||||||||||
| International | |||||||||||||||||
Greater China (a) | $ | 17.59 | (10%) | ||||||||||||||
| Rest of Asia Pacific | 33.38 | 5 | |||||||||||||||
| Europe, the Middle East and Africa | 63.38 | 2 | |||||||||||||||
| Canada | 84.26 | 7 | |||||||||||||||
| Latin America | 50.02 | 2 | |||||||||||||||
Total International (a) | $ | 41.79 | (3%) | ||||||||||||||
Global (a) | $ | 51.13 | 2% | ||||||||||||||
| Three Months Ended September 30, | |||||||||||||||||
| 2026 | 2025 | % Change (c) | |||||||||||||||
| Average Royalty Rate | |||||||||||||||||
| United States | 4.7% | 4.8% | (6 bps) | ||||||||||||||
International (a) | 2.6% | 2.6% | 2 bps | ||||||||||||||
Global (a) | 4.0% | 4.0% | (3 bps) | ||||||||||||||
| Nine Months Ended September 30, 2026 | Constant Currency % Change (b) | ||||||||||||||||
| Regional RevPAR Growth | |||||||||||||||||
| United States | |||||||||||||||||
| Economy | $ | 41.69 | 2% | ||||||||||||||
| Midscale and Upper Midscale | 58.99 | 4 | |||||||||||||||
| Upscale and Above | 84.66 | (1) | |||||||||||||||
| Total United States | $ | 51.73 | 3% | ||||||||||||||
| International | |||||||||||||||||
Greater China (a) | $ | 16.64 | (7%) | ||||||||||||||
| Rest of Asia Pacific | 32.78 | 5 | |||||||||||||||
| Europe, the Middle East and Africa | 54.87 | (2) | |||||||||||||||
| Canada | 63.47 | 5 | |||||||||||||||
| Latin America | 52.78 | (3) | |||||||||||||||
Total International (a) | $ | 37.62 | (4%) | ||||||||||||||
Global (a) | $ | 45.59 | —% | ||||||||||||||
| Nine Months Ended September 30, | |||||||||||||||||
| 2026 | 2025 | % Change (c) | |||||||||||||||
| Average Royalty Rate | |||||||||||||||||
| United States | 4.8% | 4.8% | (2 bps) | ||||||||||||||
International (a) | 2.5% | 2.6% | (13 bps) | ||||||||||||||
Global (a) | 4.0% | 4.0% | (7 bps) | ||||||||||||||
(a) Excludes the impact from all rooms associated with the Company's Super 8 master licensee in China. Additionally, reflects the impact of the Company's deferral of revenues from Revo, which unfavorably impacted the Company's third quarter international and global average royalty rates by 11 bps and 1 bp, respectively, and year-to-date international and global average royalty rates by 26 bps and 7 bps, respectively.
(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 | |||||||||||
| First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Full Year | |||||||||||||||||||||||||||||||
| Total System | |||||||||||||||||||||||||||||||||||
| Global RevPAR | |||||||||||||||||||||||||||||||||||
| 2026 | $ | 38.53 | $ | 47.01 | $ | 51.13 | n/a | n/a | |||||||||||||||||||||||||||
| 2025 | $ | 38.44 | $ | 47.55 | $ | 50.05 | $ | 40.36 | $ | 44.12 | |||||||||||||||||||||||||
| U.S. RevPAR | |||||||||||||||||||||||||||||||||||
| 2026 | $ | 42.25 | $ | 54.50 | $ | 58.35 | n/a | n/a | |||||||||||||||||||||||||||
| 2025 | $ | 42.37 | $ | 53.32 | $ | 55.07 | $ | 42.91 | $ | 48.44 | |||||||||||||||||||||||||
| International RevPAR | |||||||||||||||||||||||||||||||||||
| 2026 | $ | 33.69 | $ | 37.31 | $ | 41.79 | n/a | n/a | |||||||||||||||||||||||||||
| 2025 | $ | 32.81 | $ | 39.45 | $ | 43.11 | $ | 36.96 | $ | 38.13 | |||||||||||||||||||||||||
| Global Royalty Rate | |||||||||||||||||||||||||||||||||||
| 2026 | 3.9% | 4.0% | 4.0% | n/a | n/a | ||||||||||||||||||||||||||||||
| 2025 | 4.0% | 4.0% | 4.0% | 3.8% | 4.0% | ||||||||||||||||||||||||||||||
| U.S. Royalty Rate | |||||||||||||||||||||||||||||||||||
| 2026 | 4.8% | 4.8% | 4.7% | n/a | n/a | ||||||||||||||||||||||||||||||
| 2025 | 4.8% | 4.7% | 4.8% | 4.7% | 4.8% | ||||||||||||||||||||||||||||||
| International Royalty Rate | |||||||||||||||||||||||||||||||||||
| 2026 | 2.4% | 2.4% | 2.6% | n/a | n/a | ||||||||||||||||||||||||||||||
| 2025 | 2.6% | 2.6% | 2.6% | 2.3% | 2.5% | ||||||||||||||||||||||||||||||
Global Rooms (a) | |||||||||||||||||||||||||||||||||||
| 2026 | 869,300 | 873,400 | 877,400 | n/a | n/a | ||||||||||||||||||||||||||||||
| 2025 | 839,900 | 846,700 | 855,400 | 868,900 | 868,900 | ||||||||||||||||||||||||||||||
| U.S. Rooms | |||||||||||||||||||||||||||||||||||
| 2026 | 500,700 | 501,100 | 500,000 | n/a | n/a | ||||||||||||||||||||||||||||||
| 2025 | 502,600 | 503,300 | 503,400 | 505,100 | 505,100 | ||||||||||||||||||||||||||||||
| International Rooms | |||||||||||||||||||||||||||||||||||
| 2026 | 368,600 | 372,300 | 377,400 | n/a | n/a | ||||||||||||||||||||||||||||||
| 2025 | 337,300 | 343,400 | 352,000 | 363,800 | 363,800 | ||||||||||||||||||||||||||||||
NOTE: Data excludes the impact from all rooms associated with the Company's Super 8 master licensee in China in all periods.
(a) The following table represents global rooms excluding Revo:
| First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Full Year | ||||||||||||||||||||||||||||
| Global Rooms ex. Revo | ||||||||||||||||||||||||||||||||
| 2026 | 848,000 | 853,600 | 864,400 | n/a | n/a | |||||||||||||||||||||||||||
| 2025 | 817,400 | 824,200 | 833,200 | 846,800 | 846,800 | |||||||||||||||||||||||||||
| 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. The Company believes that adjusted EBITDA, adjusted net income and adjusted diluted EPS financial measures provide useful information to investors about the Company and its financial condition and results of operations because these measures are used by its management team to evaluate its 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 its industry. These measures also assist the Company's investors in evaluating its 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 the Company's view do not necessarily reflect ongoing performance. The Company also internally uses these measures to assess its 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/(Loss) to Adjusted EBITDA: | |||||||||||||||||||||||||||||
| First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Full Year | |||||||||||||||||||||||||
| 2026 | |||||||||||||||||||||||||||||
| Net income | $ | 61 | $ | 102 | $ | 99 | |||||||||||||||||||||||
| Provision for income taxes | 19 | 36 | 36 | ||||||||||||||||||||||||||
| Depreciation and amortization | 16 | 15 | 14 | ||||||||||||||||||||||||||
| Interest expense, net | 34 | 36 | 37 | ||||||||||||||||||||||||||
| Stock-based compensation | 9 | 8 | 9 | ||||||||||||||||||||||||||
| Development advance notes amortization | 8 | 9 | 9 | ||||||||||||||||||||||||||
Restructuring and other-related (a) | 5 | 5 | 2 | ||||||||||||||||||||||||||
Revo-related (b) | 2 | 1 | 1 | ||||||||||||||||||||||||||
Transaction-related (c) | 3 | — | — | ||||||||||||||||||||||||||
Separation-related (d) | (1) | — | — | ||||||||||||||||||||||||||
| Adjusted EBITDA | $ | 156 | $ | 212 | $ | 207 | |||||||||||||||||||||||
| 2025 | |||||||||||||||||||||||||||||
| Net income/(loss) | $ | 61 | $ | 87 | $ | 105 | $ | (60) | $ | 193 | |||||||||||||||||||
| Provision/(benefit) for income taxes | 18 | 29 | 37 | (12) | 70 | ||||||||||||||||||||||||
| Depreciation and amortization | 15 | 15 | 15 | 16 | 62 | ||||||||||||||||||||||||
| Interest expense, net | 33 | 34 | 36 | 36 | 139 | ||||||||||||||||||||||||
| Stock-based compensation | 9 | 8 | 8 | 14 | 41 | ||||||||||||||||||||||||
| Development advance notes amortization | 7 | 8 | 8 | 9 | 32 | ||||||||||||||||||||||||
Impairment (e) | — | — | — | 86 | 86 | ||||||||||||||||||||||||
Revo-related (b) | — | — | — | 74 | 74 | ||||||||||||||||||||||||
Restructuring and other-related (a) | — | 13 | 2 | 2 | 18 | ||||||||||||||||||||||||
Transaction-related (c) | 1 | 1 | 1 | — | 2 | ||||||||||||||||||||||||
Separation-related (d) | 1 | — | — | — | 1 | ||||||||||||||||||||||||
Foreign currency impact of highly inflationary countries (f) | — | — | 1 | — | — | ||||||||||||||||||||||||
| Adjusted EBITDA | $ | 145 | $ | 195 | $ | 213 | $ | 165 | $ | 718 | |||||||||||||||||||
NOTE: Amounts may not add due to rounding.
(a) 2026 amounts primarily consist of employee-related costs in connection with a restructuring plan. 2025 amounts primarily consist of employee-related costs and real estate costs related to a call center closure in connection with a restructuring plan.
(b) 2026 amounts consist of professional fees associated with Revo's ongoing insolvency, which is reflected in general and administrative expenses on the Condensed Consolidated Statements of Income. 2025 amount represents a provision for accounts and loans receivable from Revo, which is reflected in operating expenses on the Condensed Consolidated Statements of Income.
(c) Represents costs related to corporate transactions, including the Company's defense of an unsuccessful hostile takeover attempt and the Company's issuance of 5.625% senior unsecured notes.
(d) Represents (income)/costs associated with the Company's spin-off from Wyndham Worldwide.
(e) Represents an impairment of development advance notes and intangible assets related to Revo.
(f) Relates to the foreign currency impact from hyper-inflation, primarily in Argentina, which is reflected in operating expenses on the Condensed Consolidated Statements of Income.
| 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 September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Diluted EPS | $ | 1.33 | $ | 1.36 | $ | 3.49 | $ | 3.26 | |||||||||||||||
| Net income | $ | 99 | $ | 105 | $ | 262 | $ | 253 | |||||||||||||||
| Adjustments: | |||||||||||||||||||||||
Acquisition-related amortization (a) | 6 | 6 | 19 | 20 | |||||||||||||||||||
| Restructuring and other-related | 2 | 2 | 12 | 16 | |||||||||||||||||||
| Transaction-related | — | 1 | 3 | 2 | |||||||||||||||||||
| Revo-related | 1 | — | 4 | — | |||||||||||||||||||
| Separation-related | — | — | (1) | 1 | |||||||||||||||||||
| Foreign currency impact of highly inflationary countries | — | 1 | — | — | |||||||||||||||||||
| Total adjustments before tax | 9 | 10 | 37 | 39 | |||||||||||||||||||
Income tax provision (b) | 1 | 3 | 8 | 9 | |||||||||||||||||||
| Total adjustments after tax | 8 | 7 | 29 | 30 | |||||||||||||||||||
| Adjusted net income | $ | 107 | $ | 112 | $ | 291 | $ | 283 | |||||||||||||||
| Adjustments - EPS impact | 0.10 | 0.10 | 0.38 | 0.38 | |||||||||||||||||||
| Adjusted diluted EPS | $ | 1.43 | $ | 1.46 | $ | 3.87 | $ | 3.64 | |||||||||||||||
| Diluted weighted average shares outstanding | 74.3 | 76.9 | 75.1 | 77.6 | |||||||||||||||||||
(a) Reflected in depreciation and amortization on the Condensed Consolidated Statements of Income.
(b) Reflects the estimated tax effects of the adjustments.
| Table 8 | ||||||||
| WYNDHAM HOTELS & RESORTS | ||||||||
| 2026 OUTLOOK | ||||||||
As of October 21, 2026 | ||||||||
| (In millions, except per share data) | ||||||||
| 2026 | ||||||||
| Net revenues | $ | 1,480 – 1,495 | ||||||
Adjusted EBITDA (a) | 740 – 745 | |||||||
Depreciation and amortization expense (b) | 34 – 36 | |||||||
| Development advance notes amortization expense | 34 – 36 | |||||||
| Stock-based compensation expense | 39 – 41 | |||||||
| Interest expense, net | 144 – 146 | |||||||
| Adjusted income before income taxes | 483 – 492 | |||||||
Income tax expense (c) | 120 – 123 | |||||||
| Adjusted net income | $ | 363 – 369 | ||||||
| Adjusted diluted EPS | $ | 4.84 – 4.92 | ||||||
Diluted shares (d) | 74.9 | |||||||
| Capital expenditures | $40 – 45 | |||||||
| Development advance notes | Approx. $110 | |||||||
| Free cash flow conversion rate | ~55 - 60% | |||||||
| Year-over-Year Growth | ||||||||
Global RevPAR (e) | 0.5% – 1.0% | |||||||
Number of rooms (f) | ~4% | |||||||
(a) Includes the effects of the deferral of royalties and franchise fees from Revo and the inclusion of previously disclosed one-time variable cost reductions made in 2025; excluding which comparable basis growth rates would be approximately 6% - 7%.
(b) Excludes amortization of acquisition-related intangible assets of approximately $25 million.
(c) Outlook assumes an effective tax rate of approximately 25%.
(d) Excludes the impact of any share repurchases after September 30, 2026.
(e) Represents constant currency basis; on a reported basis, which includes foreign currency impacts, would be 0.5% - 1.0%. The Company's updated outlook assumes fourth quarter domestic RevPAR is roughly consistent with third quarter performance.
(f) Excludes any room termination impact associated with Revo's ongoing insolvency.
To assist with modeling, each 1% change in RevPAR equates to an approximate $10 million impact to net 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 free cash flow conversion rate, the Company excludes certain items which are otherwise included in determining the comparable GAAP financial measures. The Company is providing these measures on a non-GAAP basis only because, without unreasonable efforts, it is 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 ("EPS") excluding acquisition-related amortization, impairment and other-related charges (including Revo-related charges), significant accelerated depreciation, restructuring and other-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 and other-related charges (including Revo-related charges), restructuring and other-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 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.
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, in the long-term, the Company’s marketing funds are expected to 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/owned 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, (ii) Company-owned, and (iii) 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.