Wyndham Hotels and Resorts Reports Strong First Quarter Results

Wyndham Hotels & Resorts announced results for the three months ended March 31, 2026.

Financial Highlights
- System growth: Rooms up 4% YoY; development pipeline at a record 259,000 rooms / 2,200 hotels.
- Revenue: Net revenues rose 3% to $327M, driven by 21% growth in ancillary revenues.
- Profitability:
- Net income flat at $61M.
- Adjusted net income up 9% to $73M.
- Adjusted EBITDA up 8% to $156M (slightly lower on a comparable basis).
- EPS: Diluted EPS grew 3% to $0.80; adjusted diluted EPS up 12% to $0.96.
- Shareholder returns: $85M returned via $51M share repurchases + $34M dividends ($0.43/share).

Regional Performance
- U.S. RevPAR: Flat YoY but ahead of expectations; Midwest and Texas strong, Florida & California weaker.
- International RevPAR:
- Canada +8% (pricing power, demand growth).
- Southeast Asia/Pacific Rim +5%.
- EMEA +1%.
- China -5% YoY (though sequential improvement).
- Latin America -4% (lower U.S. cross-border demand).

Development Pipeline
- 70% midscale & above; 17% extended stay.
- 77% new construction, with 35% already broken ground.
- U.S. pipeline ~43% of total.

Balance Sheet & Liquidity
- Net cash from operations: $42M; free cash flow: $64M.
- Issued $650M senior unsecured notes (5.625%, due 2033) to refinance debt.
- Net debt leverage ratio: 3.5x (within target).

Outlook
CEO Geoff Ballotti emphasized optimism heading into the peak leisure season, citing record openings and pipeline strength. Wyndham is focused on: - Adding FeePAR-accretive hotels.
- Growing ancillary revenues.
- Scaling AI to enhance its technology platform.

This quarter shows Wyndham balancing steady financials with aggressive pipeline expansion, positioning itself strongly in the economy and midscale segments.