Wyndham Hotels and Resorts Reports Strong Third Quarter Results

Wyndham Hotels & Resorts announced results for the three months ended September 30, 2026.

Revenue Performance
- Global RevPAR increased 2% year-over-year in constant currency, representing a 4% sequential improvement.
- U.S. RevPAR grew 6% year-over-year, with a 4% sequential improvement driven by stronger occupancy and average daily rates (ADR).
- Net revenues increased 7% to $410 million, compared to $382 million in the third quarter of 2025.
- Revenue growth was supported by higher RevPAR, global room growth, increased franchise fees, ancillary revenues, and contributions from owned hotels.

Profitability and Earnings
- Net income totaled $99 million during the quarter.
- Diluted earnings per share (EPS) reached $1.33.
- Adjusted EBITDA was $207 million.
- Adjusted diluted EPS was $1.43.
- Adjusted EBITDA on a comparable basis increased 5% year-over-year, driven primarily by higher revenues.
- Comparable adjusted diluted EPS increased approximately 9% year-over-year, supported by earnings growth and share repurchases.

RevPAR Trends by Region
- U.S. RevPAR growth was broad-based across nearly all regions, reflecting strong travel demand.
- Texas, Florida, and California recorded both year-over-year and sequential growth.
- Canada posted 7% RevPAR growth, supported by strong pricing and demand trends.
- Southeast Asia and the Pacific Rim achieved 5% RevPAR growth, driven by favorable ADR performance.
- Latin America recorded 2% year-over-year growth and 9% sequential growth, led by Mexico.
- EMEA RevPAR increased 2% year-over-year, supported by strong performance in Turkey, India, and Spain.
- China's RevPAR declined 10% year-over-year, impacted by softer travel demand, particularly in Tier 2 cities.

System Growth
- Wyndham's global room system grew 4% year-over-year, excluding rooms associated with insolvent Revo Hospitality Group.
- The U.S. system expanded 2%, primarily within higher RevPAR midscale and above segments.
- International room growth reached 11% year-over-year, excluding Revo.
- Asia Pacific direct-franchised room growth increased 12%.
- EMEA and Latin America recorded 13% growth in higher RevPAR segments.

Development Pipeline Reaches Record Level
- The global development pipeline grew 4% year-over-year to a record 264,000 rooms across more than 2,200 hotels.
- Pipeline growth included 2% expansion in the U.S. and 5% internationally, excluding Revo.
- Approximately 69% of pipeline rooms are in the midscale and above categories.
- Around 17% of the pipeline is dedicated to the extended-stay segment.
- Approximately 42% of the pipeline is located in the United States.
- About 78% of pipeline projects are new construction developments.
- Roughly 35% of new construction projects have already broken ground.
- Rooms under construction increased 4% year-over-year.
- The pipeline carries a FeePAR premium of approximately 30% compared to Wyndham's existing systems.

Cash Flow and Liquidity
- Net cash provided by operating activities totaled $93 million during the quarter.
- Free cash flow reached $100 million.
- The company ended the quarter with $71 million in cash.
- Total liquidity stood at $988 million.
- Net debt leverage was 3.6x, within Wyndham's target range of 3x to 4x.

Shareholder Returns
- Wyndham returned $123 million to shareholders during the quarter.
- The company repurchased approximately 1.2 million shares for $91 million, a 30% increase from the prior year.
- The average repurchase price was $73.39 per share.
- Year-to-date share repurchases totaled approximately 2.5 million shares worth $196 million.
- The Board approved a $400 million increase in the share repurchase authorization program.
- Quarterly cash dividends of $0.43 per share totaled $32 million.

Management Commentary
- President and CEO Geoff Ballotti highlighted strong U.S. RevPAR growth, market share gains, and continued investment in technology, loyalty, and distribution platforms.
- The company reported a 6% increase in royalties and franchise fees, reflecting continued franchise system expansion and operational strength.
- Management emphasized the company's asset-light and highly cash-generative business model as a driver of long-term shareholder value.

Outlook
- Wyndham expects marketing fund revenues and expenses to be approximately balanced for full-year 2026.
- Management noted that seasonal spending patterns may continue to impact quarterly comparisons throughout the remainder of the year.