Wyndham Hotels & Resorts, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Revenue Recognition (Tables)

Revenue Recognition (Tables)

12 Months Ended

Dec. 31, 2023

Revenue from Contract with Customer [Abstract]

Deferred revenues as of December 31, 2023 and 2022 are as follows:


	December 31, 2023		December 31, 2022
Deferred initial franchise fee revenues	$	145	$	143
Deferred loyalty program revenues	95		85
Deferred co-branded credit card program revenues	3		—
Deferred other revenues	15		19
Total	$	258	$	247

Schedule of Performance Obligations

Performance Obligations

A performance obligation is a promise in a contract to transfer a distinct good or service to a customer. The consideration received from a customer is allocated to each distinct performance obligation and recognized as revenue when, or as, each performance obligation is satisfied. The following table summarizes the Company’s remaining performance obligations for the years set forth below:


	2024		2025		2026		Thereafter		Total
Initial franchise fee revenues	$	17	$	8	$	7	$	113	$	145
Loyalty program revenues	61		23		9		2		95
Co-branded credit card program revenues	3		—		—		—		3
Other revenues	10		1		—		4		15
Total	$	91	$	32	$	16	$	119	$	258

Schedule of Disaggregation of Net Revenues

Disaggregation of Net Revenues

In the first quarter of 2023, the Company changed the composition of its reportable segments to reflect the recent changes in its Hotel Management segment due to the exit from the select-service management business, the sale of its two owned hotels and the exit from substantially all of its U.S. full-service management business in 2022. The remaining hotel management business, which is predominately the full-service international managed business, no longer meets the quantitative thresholds to be considered a reportable segment and as a result, the Company has aggregated, on a prospective basis, such management business within its Hotel Franchising segment.

The table below presents a disaggregation of the Company’s net revenues from contracts with customers by major services and products for each of the Company’s segments:


	Year Ended December 31,
	2023		2022		2021
Hotel Franchising (a)
Royalties and franchise fees	$	532	$	496	$	436
Marketing, reservation and loyalty	578		543		467
Management fees	14		—		—
License and other fees	112		100		79
Cost reimbursements	13		—		—
Other (b)	148		138		117
Total Hotel Franchising	1,397		1,277		1,099

Hotel Management
Royalties and franchise fees	n/a		16		25
Marketing, reservation and loyalty	n/a		1		1
Owned hotel revenues	n/a		42		82
Management fees	n/a		15		35
Cost reimbursements	n/a		144		320
Other	n/a		3		3
Total Hotel Management	n/a		221		466

Net revenues	$	1,397	$	1,498	$	1,565

_____________________

(a) For 2023, the Hotel Franchising segment includes the former Hotel Management segment, which is primarily comprised of the Company's remaining international full-service managed business.

(b) The Company’s other revenues are primarily related to revenues from its co-branded credit card program and property management systems.