PARSIPPANY, N.J – Wyndham Hotels & Resorts (NYSE: WH) today announced results for the three months ended June 30, 2024. Highlights include:

  • Global RevPAR grew 2% in constant currency.
  • System-wide rooms grew 4% year-over-year.
  • Opened over 18,000 rooms globally, including over 7,000 in the S., which represented a year- over-year increase of 16%, and the first ECHO Suites Extended Stay by Wyndham.
  • Awarded 180 development contracts globally, including 96 contracts in the S., which represented an increase of 33% year-over-year.
  • Development pipeline grew 1% sequentially and 7% year-over-year to a record 245,000 rooms.
  • Ancillary revenues increased 6% compared to second quarter 2023.
  • Diluted earnings per share increased 30%, to $1.07, and adjusted diluted EPS grew 22%, to $1.13, or 12% on a comparable basis.
  • Net income was $86 million for the second quarter, a 23% increase over the prior-year quarter; adjusted net income was $91 million, a 14% increase over the prior-year quarter.
  • Adjusted EBITDA increased 13% compared with the prior-year quarter, to $178 million, or 6% on a comparable basis.
  • Returned $162 million to shareholders through $131 million of share repurchases and quarterly cash dividends of $0.38 per share.
  • Successfully completed the repricing of its Term Loan B Facility, reducing its interest rate by 60 basis points to SOFR plus 1.75%, and upsizing the facility by $400 million.

The resilience and highly cash generative nature of our business model was once again on full display this quarter, said Geoff Ballotti, president and chief executive officer. Amid a normalizing domestic RevPAR environment, we delivered strong adjusted EBITDA driven by net room and ancillary fee growth. We awarded 33% more hotel contracts domestically which grew our development pipeline to a record 245,000 rooms, and drove significant increases in our U.S, international and global royalty rates. Year-to-date, we’ve returned over $250 million to shareholders, representing 4% of our beginning market capitalization this year.

System Size and Development

The Company’s global system grew 4%, reflecting 1% growth in the U.S. and 8% internationally. As expected, these increases included 3% growth in the higher RevPAR midscale and above segments in the U.S., as well as strong growth in the Company’s two highest international RevPAR regions, EMEA and Latin America, which grew 12% and 11%, respectively. The Company continued to improve its retention rate and remains solidly on track to achieve its net room growth outlook of 3 to 4% for the full year 2024.

On June 30, 2024, the Company’s global development pipeline consisted of approximately 2,000 hotels and 245,000 rooms, representing another record-high level and a 7% year-over-year increase. Key highlights include:

  • 5% growth in the S. and 9% internationally
  • 16th consecutive quarter of sequential pipeline growth
  • Approximately 70% of the pipeline is in the midscale and above segments, which grew 4% year-over- year
  • Approximately 14% of the pipeline represents ECHO Suites Extended Stay by
  • Approximately 58% of the pipeline is international
  • Approximately 79% of the pipeline is new construction, of which approximately 35% has broken ground
  • During the second quarter of 2024, the Company awarded 180 new contracts, including 96 contracts in the U.S., which represented an increase of 33% year-over-year.

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