Annual report [Section 13 and 15(d), not S-K Item 405]

Segment Information

v3.25.4
Segment Information
 12 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
Segment Information
15. SEGMENT INFORMATION
Wyndham Hotels’ primary segment is Hotel Franchising which principally consists of licensing the Company’s lodging brands and providing related services to third-party hotel owners and others. This reportable segment represents the Company’s operating segment for which separate financial information is available and is utilized on a regular basis by its chief operating decision maker to assess performance and allocate resources. The Company’s chief operating decision maker (“CODM”) is the chief executive officer. In identifying its reportable segment, the Company also considers the nature of services provided by its operating segment. The Company’s primary measure of segment profit or loss is net income. The CODM evaluates the operating results of the Company on a consolidated basis based upon net revenues and net income, which is the measure of profit or loss that is most consistent with GAAP measurement principles and is used by the CODM internally to assess operating performance. The CODM also uses adjusted EBITDA to evaluate the operating results of its Hotel Franchising reportable segment.
Provided below is the Company’s segment profitability measure and significant segment expenses.
Year Ended December 31,
2025 2024 2023
Net revenues
 $ 1,429  $ 1,408  $ 1,397 
Less expenses (a)
Compensation
 (242) (255) (241)
Selling and advertising
 (88) (119) (136)
Outsourced services and information technology (b)
(129) (127) (120)
Professional fees
 (98) (90) (85)
Other segment items (c)
(382) (189) (209)
Corporate expenses (d)
(297) (339) (317)
Consolidated net income
 $ 193  $ 289  $ 289 
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(a)    The significant expense categories and amounts align with the segment-level information that is regularly provided to the Company’s CODM.
(b)    Information technology costs primarily include maintenance costs and software as a service cost.
(c)    Other segment items include depreciation and amortization, stock-based compensation, restructuring costs, impairment charge, cost reimbursements, travel and entertainment, insurance and other operating expenses. 2025 period also includes impairment and other charges associated with the insolvency filing of Revo as well as pass-through expenses associated with the Company's global franchisee conference.
(d)    Corporate expenses include interest expense, net, transaction and separation-related expenses, provision for income taxes, early extinguishment of debt, compensation costs, and other overhead costs.
The geographic segment information provided below is classified based on the geographic location of the Company’s subsidiaries.
United States
All Other Countries (a)
Total
Year Ended or As of December 31, 2025
Net revenues $ 1,134  $ 295  $ 1,429 
Net long-lived assets 2,925  194  3,119 
Year Ended or As of December 31, 2024
Net revenues $ 1,125  $ 283  $ 1,408 
Net long-lived assets 2,979  188  3,167 
Year Ended or As of December 31, 2023
Net revenues $ 1,142  $ 255  $ 1,397 
Net long-lived assets 3,002  190  3,192 
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(a)    Includes U.S. territories.