WYNDHAM HOTELS & RESORTS REPORTS STRONG FIRST QUARTER RESULTS

Company Delivers Record First Quarter Openings and Development Pipeline

PARSIPPANY, N.J., April 30, 2025 /PRNewswire/ -- Wyndham Hotels & Resorts (NYSE: WH) today announced results for the three months ended March 31, 2025. Highlights include:

  • 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 and 5% 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 compared to $0.19 in the prior-year quarter and adjusted diluted EPS grew 10% year-over-year to $0.86, or 20% on a comparable basis.
  • Net income of $61 million compared to $16 million in the prior-year quarter; adjusted net income increased 5% year-over-year to $67 million, or 14% on a comparable basis.
  • Adjusted EBITDA increased 3% year-over-year to $145 million, or 9% on a comparable basis. 
  • Returned $109 million to shareholders through $76 million of share repurchases and quarterly cash dividends of $0.41 per share.

"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,
2025

March 31,
2024

YOY
Change (bps)

United States

502,600

499,100

70

International

404,600

377,200

730

Global

907,200

876,300

350

The Company's global system grew 4%.  Importantly, these results included 4% growth in the higher RevPAR midscale and above segments in the U.S., as well as strong growth in the Company's higher RevPAR EMEA and Latin America regions, which grew a combined 6%.  The Company remains on track to achieve its net room growth outlook of 3.6% to 4.6% for the full year 2025.

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% year-over-year increase.  Key highlights include:

  • 5% growth in the U.S. and 4% internationally
  • 19th consecutive quarter of sequential pipeline growth 
  • Approximately 70% of the pipeline is in the midscale and above segments, which grew 7% 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 approximately 35% 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
Constant
Currency
% Change

United States

$           42.37

2 %

International

28.73

3

Global

36.13

2

First quarter global RevPAR increased 2% in constant currency compared to 2024, reflecting 2% growth in the U.S. and 3% growth internationally.

In the U.S., RevPAR growth includes 100 basis points of benefit from hurricanes and the timing of the Easter holiday. Excluding those factors, the Company's U.S. RevPAR grew 60 basis points year-over-year as pricing strength was partially offset by softer demand with the pullback more pronounced during March.

Internationally, RevPAR growth was also driven by pricing power.  The Company continued to see strong performance in its EMEA and Latin America regions, with year-over-year growth of 6% and 25%, respectively, reflecting robust pricing power, partially offset by modest occupancy declines.  In China, demand remained steady but RevPAR declined 8% year-over-year reflecting continued pricing pressure.

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
and other
revenues

Net
Income(a)

Adjusted
EBITDA

Reported
diluted
EPS(a)

Adjusted
diluted
EPS(a)

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 compared to $304 million in first quarter 2024, which reflects higher royalties and franchise fees and higher ancillary revenues.
  • The Company generated net income of $61 million compared to $16 million in first quarter 2024. The increase primarily reflects lower transaction-related expenses in connection with defending an unsuccessful hostile takeover attempt.  Other items primarily include the absence of impairment and restructuring costs recorded in first quarter 2024, partially offset by higher interest expense. Adjusted net income grew 5% to $67 million compared to $64 million in first quarter 2024.
  • Adjusted EBITDA grew 3% to $145 million compared to $141 million in first quarter 2024. This increase included an $8 million unfavorable impact from marketing fund variability, excluding which adjusted EBITDA grew 9% on a comparable basis, primarily reflecting higher fee-related revenues and margin expansion.
  • Diluted earnings per share was $0.78 compared to $0.19 in first quarter 2024. This increase reflects higher net income and the benefit of a lower share count due to share repurchase activity.
  • Adjusted diluted EPS grew 10% to $0.86 compared to $0.78 in first quarter 2024.  This increase included an unfavorable impact of $0.07 per share related to marketing fund variability (after estimated taxes).  On a comparable basis, adjusted diluted EPS increased approximately 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; while in first quarter 2024, the Company's marketing fund expenses exceeded revenues by $14 million, resulting in $8 million of marketing fund variability. 

Full reconciliations of GAAP results to the Company's non-GAAP adjusted measures for all reported periods appear in the tables to this press release.

Balance Sheet and Liquidity

The Company generated $59 million of net cash provided by operating activities and $80 million of free cash flow in first quarter 2025.  The Company ended the quarter with a cash balance of $48 million and approximately $637 million in total liquidity. 

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 $76 million.

The Company paid common stock dividends of $33 million, or $0.41 per share, during the first quarter 2025.

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

3.6% - 4.6%

3.6% - 4.6%

Year-over-year global RevPAR growth (a)

(2%) - 1%

2% - 3%

Fee-related and other revenues

$1.45 - $1.49 billion

$1.49 - $1.51 billion

Adjusted EBITDA

$730 - $745 million

$745 - $755 million

Adjusted net income

$358 - $372 million

$369 - $379 million

Adjusted diluted EPS

$4.57 - $4.74

$4.66 - $4.78

Free cash flow conversion rate

~57%

57% - 60%

(a)

Represents constant currency basis; on a reported basis, which includes foreign currency impacts, would be (3%) - 0%.

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 China; the performance of the financial and credit markets; the economic environment for the hospitality industry; operating risks associated with the hotel franchising business; Wyndham's relationships with franchisees; the impact of war, terrorist activity, political instability or political strife, including the ongoing conflicts between Russia and Ukraine and conflicts in the Middle East, respectively; global or regional health crises or pandemics including the resulting impact on Wyndham's business, operations, financial results, cash flows and liquidity, as well as the impact on its franchisees, guests and team members, the hospitality industry and overall demand for and restrictions on travel; Wyndham's ability to satisfy obligations and agreements under its outstanding indebtedness, including the payment of principal and interest and compliance with the covenants thereunder; risks related to Wyndham's ability to obtain financing and the terms of such financing, including access to liquidity and capital; and Wyndham's ability to make or pay, plans for and the timing and amount of any future share repurchases and/or dividends, as well as the risks described in Wyndham's most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission and any subsequent reports filed with the Securities and Exchange Commission. These risks and uncertainties are not the only ones Wyndham may face and additional risks may arise or become material in the future. Wyndham undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, subsequent events or otherwise, except as required by law.

 

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
Quarter

Second
Quarter

Third
Quarter

Fourth
Quarter

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
Interest Rate (a)

As of

March 31, 2025

As of

December 31, 2024

$750 million revolving credit facility (due April 2027)

6.3 %

$                             161

$                               88

$400 million term loan A (due April 2027)

6.2 %

359

364

$1.5 billion term loan B (due May 2030)

5.3 %

1,512

1,515

$500 million 4.375% senior unsecured notes (due August 2028)

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)

United States

501,800

497,600

4,200

1 %

International

401,200

374,200

27,000

7

Global

903,000

871,800

31,200

4

Additions

United States

6,500

7,000

(500)

(7)

International

8,300

6,100

2,200

36

Global

14,800

13,100

1,700

13

Deletions

United States

(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)

United States

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
Royalty
Contribution

2025

2024

Change

% Change

System Size

United States

Economy

223,500

229,700

(6,200)

(3 %)

Midscale and Above

279,100

269,400

9,700

4

Total United States

502,600

499,100

3,500

1 %

78 %

International

Greater China 

186,700

172,300

14,400

8 %

4

Rest of Asia Pacific

40,200

35,300

4,900

14

2

Europe, the Middle East and Africa

93,200

89,000

4,200

5

8

Canada

39,800

39,800

5

Latin America

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
Ended

March 31, 2025

 Constant Currency

% Change (a)

Regional RevPAR Growth

United States

Economy

$                         33.63

2 %

Midscale and Upper Midscale

48.21

1

Upscale and Above

80.52

(8)

Total United States

$                         42.37

2 %

International

Greater China

$                         13.42

(8 %)

Rest of Asia Pacific

33.28

8

Europe, the Middle East and Africa

42.76

6

Canada

39.70

2

Latin America

58.05

25

Total International

$                         28.73

3 %

Global

$                         36.13

2 %

Three Months Ended March 31,

2025

2024

% Change (b)

Average Royalty Rate

United States

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
Quarter

Second
Quarter

Third
Quarter

Fourth
Quarter

Full
Year

Total System

Global RevPAR

2025

$         36.13

n/a

n/a

n/a

n/a

2024

$         36.28

$         45.99

$         49.33

$         40.01

$         42.91

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

U.S. Rooms

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
Quarter

Second
Quarter

Third
Quarter

Fourth
Quarter

Full
Year

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

$40 – 45

Development advance notes

Approx. $110

Free cash flow conversion rate

~57%

Year-over-Year Growth

Global RevPAR (d)

(2%) – 1%

Number of rooms

3.6% – 4.6%

(a)

Excludes amortization of acquisition-related intangible assets of approximately $27 million.

(b)

Outlook assumes an effective tax rate of approximately 25%.

(c)

Excludes the impact of any share repurchases after March 31, 2025.

(d)

Represents constant currency basis; on a reported basis, which includes foreign currency impacts, would be (3%) - 0%. 

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 1% change in RevPAR equates to an approximate $10 million impact to fee-related and other revenues and $4 million to adjusted EBITDA.

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 U.S. GAAP and should not be considered as an alternative to net income or other measures of financial performance or liquidity derived in accordance with U.S. GAAP. In addition, the Company's definition of adjusted EBITDA may not be comparable to similarly titled measures of other companies.

Adjusted Free Cash Flow: Represents free cash flow excluding payments related to the Company's defense of an unsuccessful hostile takeover attempt.

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