We are deeply saddened by the crisis developing in California and our hearts go out to all those impacted by the California wildfires. Wyndham is proudly supporting American Red Cross relief efforts for the 2025 California Wildfire. Funds raised will help provide food, shelter, emotional support, and other critical aid to communities impacted by the fires.
The Company is enabling Wyndham Rewards® members to assist by donating their Wyndham Rewards points at WyndhamRewards.com. Wyndham will match up to 15 million Wyndham Rewards points through February 28, 2025.
If you are interested in donating Wyndham Rewards points to this important cause, please visit WyndhamRewards.com.
Company Grows Development Pipeline by 7% and System Size by 4%
PARSIPPANY, N.J (July 24, 2024) – 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.
RevPAR
Second quarter global RevPAR increased 2% in constant currency compared to 2023, reflecting flat growth in the U.S. and 7% growth internationally.
In the U.S., the Company’s midscale and above segments grew RevPAR 2% year-over-year while RevPAR for its economy segment declined 2%. Overall, U.S. RevPAR results were driven by growth of 90 basis points in occupancy, partially offset by a decline of 50 basis points in ADR. Importantly, RevPAR growth in the U.S. accelerated during the second quarter, improving 520 basis points sequentially, including an improvement of 560 basis points for its U.S. economy brands.
Compared to 2019, which neutralizes the impact of COVID recovery timing, the Company grew RevPAR for its economy and midscale brands by 9% and 8%, respectively, while RevPAR for its upscale and above brands continued to lag 2019 by 2%.
Internationally, RevPAR for the Company’s Latin America, EMEA and Canada regions collectively increased 15% due to both continued pricing power, with ADR up 13%, and occupancy growth of 2%. RevPAR for the Company’s APAC region declined 12% primarily due to a difficult year-over-year comparison resulting from that region’s COVID recovery timing in second quarter 2023. APAC occupancy declined 7% and ADR declined 5%.
Compared to 2019, which neutralizes the impact of COVID recovery timing, the Company more than doubled the RevPAR for its Latin America, EMEA and Canada regions, while RevPAR for its APAC region continued to lag 2019 by 11%.
Second Quarter Operating Results
Fee-related and other revenues were $366 million compared to $358 million in second quarter 2023, reflecting global net room growth of 4% and a 6% increase in ancillary revenue streams, partially offset by a $3 million decline in management fees, in part due to the exit of the Company’s S. management business.
The Company generated net income of $86 million compared to $70 million in second quarter The increase was primarily reflective of higher adjusted EBITDA, a benefit in connection with the reversal of a spin-off related matter and a lower effective tax rate, partially offset by higher interest expense and restructuring costs.
Adjusted EBITDA grew 13% to $178 million compared to $158 million in second quarter 2023. This increase included a $10 million favorable impact from marketing fund variability, excluding which adjusted EBITDA grew 6% primarily reflecting higher fee-related and other revenues, disciplined cost management given the recent RevPAR environment as well as a benefit from insurance recoveries.
Diluted earnings per share was $1.07 compared to $0.82 in second quarter 2023. This increase reflects higher net income and the benefit of a lower share count due to share repurchase activity.
Adjusted diluted EPS grew 22% to $1.13 compared to $0.93 in second quarter 2023. This increase included $0.09 per share related to expected marketing fund variability (after estimated taxes). On a comparable basis, adjusted diluted EPS increased 12% year-over-year reflecting comparable adjusted EBITDA growth and the benefit of share repurchase activity partially offset by higher interest expense.
During second quarter 2024, the Company’s marketing fund expenses exceeded revenues by $5 million, in line with expectations; while in second quarter 2023, the Company’s marketing fund expenses exceeded revenues by $15 million, resulting in $10 million of marketing fund The Company continues to expect marketing fund revenues to equal expenses during full-year 2024.
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 $1 million of net cash provided by operating activities (inclusive of $42 million of payments related to the Company’s successful defense of a hostile takeover attempt) and generated adjusted free cash flow of $69 million in second quarter 2024. The Company ended the quarter with a cash balance of
$70 million and approximately $820 million in total liquidity.
The Company’s net debt leverage ratio was 3.5 times at June 30, 2024, the midpoint of the Company’s 3 to 4 times stated target range.
In May 2024, the Company successfully repriced and upsized its outstanding Senior Secured Term Loan B Facility (“Prior Term Loan B”). The new Senior Secured Term Loan B Facility (“New Term Loan B”) has an outstanding principal balance of $1.5 billion, which includes an upsize of $400 million. The facility has an interest rate of SOFR plus 1.75%, representing a 60 basis point reduction to the Prior Term Loan B.
Share Repurchases and Dividends During the second quarter, the Company repurchased approximately 1.8 million shares of its common stock for $131 million. Year-to-date through June 30, the Company repurchased approximately 2.6 million shares of its common stock for $188 million.
The Company paid common stock dividends of $31 million, or $0.38 per share, during the second quarter 2024 and $63 million, or $0.76 per share, year-to-date.
The reduction in RevPAR and fee-related and other revenues reflects a more moderated RevPAR acceleration than previously anticipated. The reduction in adjusted net income represents an increase in interest expense due to the upsizing of the Company’s term loan B. This impact was more than offset in adjusted diluted EPS by second quarter share repurchase activity.
Year-over-year growth rates for adjusted EBITDA, adjusted net income and adjusted diluted EPS are not comparable due to full-year 2023 marketing fund revenues exceeding expenses by $9 million, which substantially completed the recovery of the $49 million support the Company provided to its owners during COVID. The Company continues to expect marketing fund revenues to equal expenses during full-year 2024 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, July 25, 2024 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 800 245-3047 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 July 25, 2024. A telephone replay will be available for approximately ten days beginning at noon ET on July 25, 2024 at 800 757-4764.
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 properties, with approximately 9,200 hotels across over 95 countries on six continents. Through its network of nearly 885,000 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®, Hawthorn Suites®, Trademark Collection® and Wyndham®. The Company’s award-winning Wyndham Rewards loyalty program offers approximately 110 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,” “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; global or regional health crises or pandemics (such as the COVID-19 pandemic) 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; 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 between Israel and Hamas, respectively; 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.
Deal brings over 2,600 rooms into Wyndham’s rapidly growing
all-inclusive portfolio, now spanning more than 50 resorts globally
PARSIPPANY, N.J. (May 14, 2024) – Wyndham Rewards® members can now access more all-inclusive offerings than ever before, including nine new resorts across Mexico, Panama and Jamaica, thanks to a newly formed alliance between Wyndham Hotels & Resorts and Decameron All Inclusive Hotels & Resorts.
The latest in a growing list of notable industry collaborations, the deal expands Wyndham’s all-inclusive offerings to more than 50 resorts globally while connecting Decameron to Wyndham’s best-in-class marketing, technology and distribution platforms, including Wyndham Rewards®, the industry’s number one hotel rewards program as named by USA TODAY and U.S. News & World Report. Decameron—one of Latin America’s premier owners and operators known for its decades of experience and expansive portfolio of resorts throughout the region—will continue to own and operate all nine resorts.
“Whether it’s a honeymoon or a family vacation, all-inclusive resorts take the stress out of getting away, bundling virtually every aspect of the trip into one single price. It’s what makes all-inclusives a beloved travel option for guests and why increasingly, operators like Decameron are turning to Wyndham—helping to significantly expand their reach to travelers around the globe.”
– Gustavo Viescas, President, Latin America and the Caribbean, Wyndham Hotels & Resorts
“Through our alliance with Wyndham, we are joining efforts with one of the world’s leading hotel franchisors, deploying our combined strengths to enhance our distribution capabilities and expand our presence. In doing so, we have an opportunity to provide unforgettable travel experiences to more guests than ever before.”
-Fabio Villegas, President, Decameron All Inclusive Hotels & Resorts
Beachside Escapes for the Everyday Traveler Explore the beautiful Bay of Banderas in Riviera Nayarit. Take in the rich history of the Farallon fishing village outside Panama City. Relax among the picturesque views of Runaway Bay in Jamaica. Each of Decameron’s nine all-inclusive resorts joining Wyndham combine optimal relaxation, immersive culture and endless opportunities to enjoy time away from home.
Five resorts from Decameron, which owns and operates a broader network of properties, will join Wyndham’s rapidly expanding Trademark Collection® by Wyndham brand, while four others join Wyndham’s globally known Ramada® by Wyndham brand. All join Wyndham Rewards, Wyndham’s award-winning rewards program, enabling members to earn 10 points per dollar spent on qualified stays with many offering free nights for as few as 15,000 Wyndham Rewards points per night—making these hotels some of the richest redemption options within the program.
Grand Decameron Complex Bucerías, A Trademark All-Inclusive: Situated near Puerto Vallarta International Airport, Grand Decameron Complex Bucerías sits along the expansive Banderas Bay in Riviera Nayarit. The family-friendly resort has five pools, three tennis courts and a soccer field, along with international cuisine and beachside dining for guests to enjoy. Free nights with Wyndham Rewards are just 15,000 points per night for two guests.
Grand Decameron Panama, A Trademark All-Inclusive Resort: Located 90 minutes outside Panama City, Grand Decameron Panama offers idyllic views of colorful tropical gardens and white sand beaches along the Pacific coast. From delving into local culture, visiting the nearby Panama Canal and taking advantage of the resort’s vibrant discotheque or nightly entertainment, guests enjoy an authentic Panamanian experience throughout their visit. Free nights with Wyndham Rewards are just 30,000 points per night for two guests.
Grand Decameron Los Cabos, A Trademark All-Inclusive Resort: An easy 15-minute drive from Los Cabos International Airport and just 5-minutes from San Jose del Cabo, Grand Decameron Los Cabos allows guests to immerse themselves in culture. Whether exploring peaceful city streets with restaurants and boutiques, taking a short walk to the ocean or a plunging into one of the resort’s many pools, the hotel is perfect for families and friends looking to mix relaxation with exploration. Free nights with Wyndham Rewards are just 30,000 points per night for two guests.
Grand Decameron Montego Beach, A Trademark All-Inclusive: Located in well-known Montego Bay, Grand Decameron Montego Beach offers crystal clear views of the surrounding waters while connecting visitors to host of amenities. Guests can enjoy an array of international cuisines, including specialties like Jamaican fusion; disconnect at the fitness center or spa; or enjoy range of outdoor activities, including windsurfing and sailing. Popular attractions like Rose Hall Plantation and Glistening Waters are also close by. Free nights with Wyndham Rewards are just 15,000 points per night for two guests.
Grand Decameron Cornwall Beach, A Trademark All-Inclusive: Situated in the northwest area of Jamaica, Grand Decameron Cornwall Beach lets guests can enjoy the sounds of reggae amid breathtaking views of the Caribbean Sea. The resort offers a wide variety of outdoor sports including kayaking, canoeing and sailing—one can even raft down the nearby Martha Brae River—along with multiple pools, an array of nightly entertainment and more. Free nights with Wyndham Rewards are just 15,000 points per night for two guests.
Decameron Los Cocos Guayabitos, Ramada All-Inclusive Resort: Located about an hour from Puerto Vallarta International Airport, Decameron Los Cocos Guayabitos offers a spectacular get away to Mexico’s western coast. Guests can explore the local fishing village, take in beautiful views along the resort’s 100 meters of beach or indulge in traditional Mexican and international cuisine at the three on-site restaurants: La Bamba, La Canoa and Tropical. Free nights with Wyndham Rewards are just 15,000 points per night for two guests.
Decameron La Marina Guayabitos, Ramada All-Inclusive Resort: Amidst a quiet town in Riviera Nayarit, Decameron La Marina Guayabitos is a modern resort boasting family-friendly activities and stellar views of Coral Island. With nearby coral reefs and breathtaking sightings of humpback whales, the hotel offers incredible opportunities for travelers to relax while making incredible memories. Free nights with Wyndham Rewards are just 15,000 points per night for two guests.
Decameron Isla Coral Guayabitos, Ramada All-Inclusive Resort: Located in the Rincon de Guayabitos Bay in Riviera Nayarit, Decameron Isla Coral Guayabitos boasts an avante-garde style with tropical wood finishes illustrative of the region. From daily entertainment that immerses guests in Mexican culture to a variety of daytime activities like Zumba and dedicated game activities, the hotel is perfect for families looking to unplug and have fun together. Free nights with Wyndham Rewards are just 15,000 points per night for two guests.
Decameron Club Caribbean Runaway Bay, Ramada All-Inclusive: Situated in picturesque Runaway Bay, Decameron Club Caribbean Runaway Bay immerses guests in a tropical oasis with walking trails surrounded by gardens and cottage-style rooms embraced in flora and fauna. The hotel includes two pools, prime areas for sunbathing and restaurants offering cuisine ranging from Jamaican to Asian flavors. Free nights with Wyndham Rewards are just 15,000 points per night for two guests.
To learn more about Wyndham’s alliance with Decameron All Inclusive Hotels & Resorts, or to book your next stay, visit WyndhamHotels.com/Decameron.
Images associated with the above release can be downloaded here.
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About Decameron All Inclusive Hotels & Resorts Decameron All Inclusive Hotels & Resorts, a 36-year leader in Latin America’s all-inclusive segment, carves out a distinctive niche grounded in service, quality, and destination immersion. With nearly 30 properties in eight countries and serving more than 4.5 million guest nights per year, Decameron today operates more than 7,000 guest rooms across Colombia, Ecuador, El Salvador, Haiti, Jamaica, Mexico, Panama, and Peru, with a rich portfolio that entices guests to fall in love with its destinations. For more information, visit www.decameron.com.
About Wyndham Hotels & Resorts Wyndham Hotels & Resorts (NYSE: WH) is the world’s largest hotel franchising company by the number of properties, with approximately 9,200 hotels across over 95 countries on six continents. Through its network of over 876,000 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®, Hawthorn®, Trademark Collection® and Wyndham®. The Company’s award-winning Wyndham Rewards loyalty program offers approximately 108 million enrolled members the opportunity to redeem points at thousands of hotels, vacation club resorts and vacation rentals globally. For more information, visit www.wyndhamhotels.com.
Grows Development Pipeline by 8% and System Size by 4%
Board Increases Share Repurchase Authorization by $400 Million
PARSIPPANY, N.J. (April 24, 2024) – Wyndham Hotels & Resorts (NYSE: WH) today announced results for the three months ended March 31, 2024. Highlights include:
• Global RevPAR grew 1% in constant currency and ancillary revenues grew 8% compared to first quarter 2023.
• System-wide rooms grew 4% year-over-year.
• Opened over 13,000 rooms, representing a year-over-year increase of 27%.
• Awarded 171 development contracts, an increase of 8% year-over-year.
• Development pipeline grew 1% sequentially and 8% year-over-year to a record 243,000 rooms.
• Entered upscale extended stay segment through a strategic relationship with WaterWalk Extended Stay by Wyndham.
• Net cash provided by operating activities of $76 million and adjusted free cash flow of $102 million.
• Returned $89 million to shareholders through $57 million of share repurchases and quarterly cash dividends of $0.38 per share.
“We’re thrilled to announce another strong quarter of progress in our executions, openings, franchisee retention and net room growth around the world,” said Geoff Ballotti, president and chief executive officer. “Increased interest from hotel owners in our brands has propelled our development pipeline to a record 243,000 rooms, marking an impressive 8% increase. Our strong balance sheet and cash flow generation capabilities provide significant opportunity to continue to enhance returns to our shareholders over both the short and long-term, as evidenced by our Board of Directors’ approval of a $400 million increase in our share repurchase authorization.”
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 strong growth in both the higher RevPAR midscale and above segments in the U.S. and the direct franchising business in China, which grew 3% and 13%, respectively. The Company remains solidly on track to achieve its net room growth outlook of 3 to 4% for the full year 2024, including an increase in its retention rate compared to 2023.
On March 31, 2024, the Company’s global development pipeline consisted of nearly 2,000 hotels and approximately 243,000 rooms, representing another record-high level and an 8% year-over-year increase. Key highlights include:
• 15th consecutive quarter of sequential pipeline growth
• 5% growth in the U.S. and 9% internationally
• Approximately 69% of the pipeline is in the midscale and above segments, which grew 4% year-over-year
• Approximately 58% of the pipeline is international
• Approximately 79% of the pipeline is new construction, of which approximately 35% has broken ground
RevPAR
First quarter global RevPAR increased 1% in constant currency compared to 2023, reflecting a 5% decline in the U.S. and growth of 14% internationally.
In the U.S., the Company lapped the most difficult year-over-year comparisons during the first quarter, resulting in a decline of 440 basis points in occupancy and 50 basis points in ADR. Notably, the Company saw improving trends in March with RevPAR improving 240 basis points compared to February. This improvement marks a significant pivot toward growth, preceding the peak leisure travel season.
Internationally, the Company generated year-over-year RevPAR growth for the first quarter in all regions primarily driven by continued pricing power, with ADR up 12% and occupancy up 2%. The largest contributors to first quarter growth were our Latin America and EMEA regions.
First Quarter Operating Results
• Fee-related and other revenues were $304 million compared to $308 million in first quarter 2023, reflecting a decline of $5 million in royalty and franchise fees, partially offset by an 8% increase in ancillary revenue streams. The decline in royalties and franchise fees was primarily driven by the decline in U.S. RevPAR and the lapping of our highest quarter of other franchise fees, partially offset by global net room growth and higher international RevPAR.
• The Company generated net income of $16 million compared to $67 million in first quarter 2023. The decrease primarily reflects transaction-related expenses resulting from the unsuccessful hostile takeover attempt by Choice Hotels, an impairment charge primarily related to development advance notes and higher interest expense.
• Adjusted EBITDA was $141 million compared to $147 million in first quarter 2023. This decrease included a $10 million unfavorable impact from marketing fund variability, excluding which adjusted EBITDA grew 3% primarily reflecting favorable timing of expenses to better match revenue seasonality.
• Diluted earnings per share was $0.19 compared to $0.77 in first quarter 2023. This decrease reflects lower net income, partially offset by the benefit of a lower share count due to share repurchase activity.
• Adjusted diluted EPS was $0.78 compared to $0.86 in first quarter 2023. This decrease included $0.09 per share related to expected marketing fund variability (after estimated taxes). On a comparable basis, adjusted diluted EPS increased 1% year-over-year as comparable adjusted EBITDA growth and the benefit of share repurchase activity were largely offset by higher interest expense.
• During first quarter 2024, the Company’s marketing fund expenses exceeded revenues by $14 million, in line with expectations; while in first quarter 2023, the Company’s marketing fund expenses exceeded revenues by $4 million, resulting in $10 million of marketing fund variability. The Company continues to expect marketing fund revenues to equal expenses during full-year 2024.
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 $76 million of net cash provided by operating activities and adjusted free cash flow of $102 million in first quarter 2024. The Company ended the quarter with a cash balance of $50 million and over $580 million in total liquidity.
The Company’s net debt leverage ratio was 3.4 times at March 31, 2024, within the lower half of the Company’s 3 to 4 times stated target range.
During the first quarter of 2024, the Company executed $275 million of new forward starting interest rate swaps on its Term Loan B Facility, which will begin in fourth quarter 2024 and expire in 2027. The fixed rate of the new swaps is 3.4%. As a result, nearly all the Company’s Term Loan B Facility now has a fixed rate through the end of 2027.
Share Repurchases and Dividends During the first quarter, the Company repurchased approximately 719,000 shares of its common stock for $57 million. The Company’s Board of Directors recently increased the Company’s share repurchase authorization by $400 million.
The Company paid common stock dividends of $32 million, or $0.38 per share, during first quarter 2024.
Full-Year 2024 Outlook The Company is updating its outlook as follows to reflect the impact of first quarter share repurchase activity:
Year-over-year growth rates for adjusted EBITDA, adjusted net income and adjusted diluted EPS are not comparable due to full-year 2023 marketing fund revenues exceeding expenses by $9 million, which substantially completed the recovery of the $49 million support the Company provided to its owners during COVID. The Company continues to expect marketing fund revenues to equal expenses during full-year 2024 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, April 25, 2024 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 800 225-9448 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 April 25, 2024. A telephone replay will be available for approximately ten days beginning at noon ET on April 25, 2024 at 800 839-8531.
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 properties, with approximately 9,200 hotels across over 95 countries on six continents. Through its network of over 876,000 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®, Hawthorn Suites®, Trademark Collection® and Wyndham®. The Company’s award-winning Wyndham Rewards loyalty program offers approximately 108 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. All statements other than historical facts are forward-looking statements. Forward-looking statements include 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,” “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; global or regional health crises or pandemics (such as the COVID19 pandemic) 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; 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 between Israel and Hamas, respectively; 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.
Industry veteran to lead Wyndham’s newly unified, technology-driven commercial organization
PARSIPPANY, N.J. (April 9, 2024) – Wyndham Hotels & Resorts (NYSE: WH) appointed Scott Strickland Chief Commercial Officer reporting to the Company’s President and Chief Executive Officer, Geoff Ballotti. In this newly created leadership role, Strickland and his team will continue delivering the best value and experiences to Wyndham’s owners and guests across its 25 brands through a united commercial organization.
“Over 7 years ago we recruited Scott from the private equity world where he led the information systems, eCommerce and business transformation teams at many great companies including D+M Holdings, Nissan, and Black & Decker. Under Scott’s thoughtful and strategic guidance – including managing and deploying our $275M investment in best-in-class technology, digital, and franchisee opt-in services over the past five years – Wyndham has taken a leadership position and delivered multiple industry innovations for its owners,” said Ballotti. “In this new role, Scott and his expanded team will continue to build our brands, drive direct revenue, and advance our value proposition through a newly combined, tech-forward commercial organization.”
As Chief Commercial Officer, Strickland continues his responsibilities for enhancing and implementing Wyndham’s technology and distribution strategy and will add oversight of global sales; revenue generation; marketing; communications and the award-winning loyalty program, Wyndham Rewards.
“Combining this group of cross-functional leaders enables us to continue delivering owner-first tools, technology and marketing innovations,” said Strickland. “These tools allow our franchisees to run their hotels more efficiently and profitably today and into the future. Integrating best-in-class technology, marketing, and sales teams into a single organization enhances the Wyndham Advantage.”
With the creation of this new organization, Lisa Checchio, EVP and Chief Marketing Officer, will depart Wyndham Hotels & Resorts. During her tenure Lisa launched the Company’s “by Wyndham” endorsement strategy, played a large role in the introduction of new hotel brands, and grew Wyndham Rewards – the award-winning loyalty program, which doubled in size in five years and has surpassed 100 million members. Lisa also led the creation of the industry’s first-ever program dedicated to women’s advancement in hotel ownership, Women Own the Room, which recently celebrated 15 open hotels, more than 50 signings, and a community of more than 550 members.
“Lisa’s leadership and expertise spanning marketing, consumer engagement, digital commerce, global sales, and more has helped us better fulfill Wyndham’s mission to make hotel travel possible for all,” said Ballotti. “We are grateful for her significant contributions to Wyndham and the broader hotel industry and will miss her many talents.”
Images associated with the above release can be downloaded here.
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About Wyndham Hotels & Resorts Wyndham Hotels & Resorts (NYSE: WH) is the world’s largest hotel franchising company by the number of properties, with approximately 9,200 hotels across over 95 countries on six continents. Through its network of approximately 872,000 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®, Hawthorn®, Trademark Collection® and Wyndham®. The Company’s award-winning Wyndham Rewards loyalty program offers over 106 million enrolled members the opportunity to redeem points at thousands of hotels, vacation club resorts and vacation rentals globally. For more information, visit www.wyndhamhotels.com.
11 hotel portfolio rebrands as WaterWalk Extended Stay by Wyndham
PARSIPPANY, N.J. (April 2, 2024) – Wyndham Hotels & Resorts is expanding into the upscale extended stay segment, launching a strategic relationship with industry innovator WaterWalk. The deal adds 11 hotels and over 1,500 rooms to the Wyndham ecosystem, rebranding them under the newly created WaterWalk Extended Stay by Wyndham brand, the 25th in Wyndham’s portfolio. Located in key markets such as Tucson, Jacksonville and Wichita, the offerings perfectly compliment Wyndham’s existing economy and midscale extended stay brands and cater to guests seeking a local, yet elevated stay with the comforts of home.
“In the last year, guest demand for the extended stay segment reached record highs, which has been underscored by demand from owners and developers looking for new opportunities to partner with Wyndham. Our vision is to offer the industry’s most robust portfolio of extended stay brands and the addition of WaterWalk marks an important step in that direction—helping ensure we have an offering in every segment, for every owner and for every guest.”
Chip Ohlsson, Chief Development Officer, Wyndham Hotels & Resorts
An Innovative Approach to Extended Stay WaterWalk was founded by the late Jack DeBoer, an extended-stay trailblazer who not only pioneered the segment but created some of its most well-known and successful brands, including among others, Residence Inn and Candlewood Suites. A wildly successful entrepreneur and industry visionary, he created WaterWalk in 2014, leveraging the learnings of his past successes while also reimagining what an extended stay hotel could be. Today, his leadership, vision and entrepreneurial spirit live on through his granddaughter, WaterWalk CEO Mimi Oliver.
Positioned squarely in the upscale segment, WaterWalk brings a fresh take to the traditional extended stay experience with its unique LIVE|STAY model. STAY units are fully furnished and cater to guests looking for a traditional extended-stay, residential-like experience, while LIVE units are unfurnished and allow guests to create a long-term space that truly feels like home. The flexibility of the model is one of the brand’s strategic assets as units can transform and adapt in real-time to market and customer needs—benefitting owners, operators and guests alike.
WaterWalk’s current portfolio consists of 11 hotels throughout the U.S. Newer hotels leverage the brand’s Gen 2.0 prototype, which combines efficient design and low operating costs to help unlock stronger profits and higher returns.
“WaterWalk’s success is the culmination of decades of experience in extended stay combined with a relentless pursuit for driving innovation and delivering exceptional guest experiences. We believe WaterWalk is our best brand yet and our decision to bring it into the Wyndham portfolio is a pivotal moment in its evolution, one we believe will lead to enhanced efficiencies, performance and growth—all thanks to the Wyndham Advantage.”
Mimi Oliver, CEO, WaterWalk
A Portfolio Poised for Growth WaterWalk marks Wyndham’s third extended stay brand, joining ECHO SuitesSM Extended Stay by Wyndham and Hawthorn® Extended Stay by Wyndham. ECHO Suites launched in 2022 and has over 265 economy new construction hotels in its development pipeline, half a dozen of which are nearing completion. Hawthorn in 2023 saw 30% growth in its midscale conversion and new construction development pipeline.
Collectively, the three brands give the Company a robust and growing portfolio of offerings designed for the needs of today’s extended stay guests—be that construction workers hitting the road for weeks at a time or digital nomads looking to mix business and leisure travel. What’s more, with the addition of WaterWalk, the portfolio of brands further reinforces owners’ ability to capitalize on the historical infrastructure spend in the U.S., what’s believed to be about a $3.3 billion opportunity in additional room revenue.
In joining the Wyndham family of brands, WaterWalk hotels unlock access to the Wyndham Advantage – world-class marketing, distribution and resources from the world’s largest hotel franchisor. Over the last five years, Wyndham has invested more than $275 million in innovative technology that drives efficiency and supports owners bottom lines, including next-gen property and revenue management systems, mobile check-in and checkout and OTA reconciliation, to name a few. Owners also benefit from Wyndham Rewards, the world’s number one hotel rewards program, as named by readers of USA Today. With its growing base of more than 106 million enrolled members globally, members make up nearly half of all U.S. check-ins.
For more information about WaterWalk Extended Stay by Wyndham, including franchising opportunities, visit wyndhamdevelopment.com.
Images associated with the above release can be downloaded here.
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About WaterWalk
WaterWalk is the nation’s most innovative extended stay brand. The company was founded in 2014 by the late Jack DeBoer, a hospitality visionary recognized as the pioneer of the extended-stay and all-suite hotel concepts. WaterWalk is unique in that it boasts two accommodation options under one roof, with its signature ‘LIVE | STAY model.’ This diversified product offering creates the utmost in flexibility and value to consumers and investors alike.
About Wyndham Hotels & Resorts
Wyndham Hotels & Resorts (NYSE: WH) is the world’s largest hotel franchising company by the number of properties, with approximately 9,200 hotels across over 95 countries on six continents. Through its network of approximately 872,000 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®, Hawthorn®, Trademark Collection® and Wyndham®. The Company’s award-winning Wyndham Rewards loyalty program offers over 106 million enrolled members the opportunity to redeem points at thousands of hotels, vacation club resorts and vacation rentals globally. For more information, visit www.wyndhamhotels.com.
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 development and rooms growth. Wyndham claims the protection of the Safe Harbor contained in the Private Securities Litigation Reform Act of 1995 for forward-looking statements. Forward-looking statements include 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,” “intend,” “goal,” “future,” “forward,” “remain,” “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, factors relating to the expired unsolicited exchange offer by Choice Hotels International, Inc. to acquire all outstanding shares of Wyndham’s common stock and any ongoing cost, loss of time and disruption associated therewith; general economic conditions, including inflation, higher interest rates and potential recessionary pressures; global or regional health crises or pandemics (such as the COVID-19 pandemic) 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; 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 between Israel and Hamas; 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. Wyndham undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, subsequent events or otherwise, except as required by law.
Celebrates with members by offering some of its richest Wyndham Rewards® redemptions yet
PARSIPPANY, N.J. (March 26, 2024) – Baseball is back, and nothing says fun like catching a hometown game with friends and family. For the second year in a row, Wyndham Hotels & Resorts and its award-winning loyalty program, Wyndham Rewards, are taking up the titles of Official Hotel Partner and Hotel Loyalty Partner of Minor League Baseball (MiLB)—unlocking for fans some of its richest ticket packages and experiences yet.
With an average of nearly 20 by Wyndham branded hotels located within ~25 miles of every Minor League Baseball stadium, no other loyalty program puts fans closer to the MiLB action while allowing them to use their points to see their favorite Minor League teams. Tickets for two can be had for a mere 2,500 Wyndham Rewards points, while once-in-a-lifetime experiences, like throwing out the first pitch, are available for just 5,500 points. Wyndham Rewards members earn a guaranteed 1,000 points with every qualified hotel stay or 10 points per dollar spent, whichever is more, making the tickets and experiences among the program’s most attainable rewards.
“Travel is all about new experiences and creating lifelong memories. Through our relationship with Minor League Baseball, we’re giving members a chance to enjoy America’s favorite pastime as only Wyndham can. Best of all, whether you stay with us a few nights a year or a few hundred, it’s easy to share in the fun with family and friends.”
“Baseball goes hand-in-hand with travel. Players are constantly on-the-go for their next game and fans hit the road to catch their favorite matchups. Wyndham’s vast footprint of family-friendly hotels and engaged membership is exactly why they are a great partner. Together, we’re able to share the experience of Minor League Baseball with fans around the country.”
– Uzma Rawn, Senior Vice President of Global Corporate Partnerships, MLB
A Winning Deal in Baseball Throughout the 2024-2025 season, Wyndham Rewards members can use their points to unlock an array of family-friendly experiences while also having the chance to score points during select games.
Highlights include:
Game Tickets – Redeem two tickets to the MiLB game of your choice for just 2,500 points or grab a family four pack, inclusive of a parking pass, for just 5,000 points.
Once-in-a-Lifetime Experiences – Redeem VIP experiences like throwing out the first pitch, taking the field for the national anthem or sitting in on batting practice, among other offerings. Experiences vary by team and are available for just 5,500 points, inclusive of two game tickets, a parking pass and concessions voucher.
Free Night Giveaways – On select Fridays throughout the season, fans will be surprised by team mascots with 7,500 Wyndham Rewards points—enough for a free night at thousands of Wyndham hotels.
Wyndham’s collaboration with MiLB is purposefully curated to drive visibility among fans and to make hotel travel more accessible all throughout the season. The relationship includes a robust collaboration with MiLB for in-stadium branding and amplification across social and digital platforms.
For more information Wyndham’s relationship with Minor League Baseball, including details on how to redeem for game tickets and more, visit WyndhamRewards.com.
About Minor League Baseball Minor League Baseball consists of 120 teams across four classification levels (Single-A, High-A, Double-A, and Triple-A) that are affiliated with Major League Baseball’s 30 teams. Fans flock to MiLB games to see baseball’s future stars and experience the affordable family-friendly entertainment that has been a staple of MiLB since 1901. For more information, visit MiLB.com. Follow MiLB on Facebook, Instagram, and Twitter.
About Wyndham Rewards Part of Wyndham Hotels & Resorts (NYSE: WH), the world’s largest hotel franchising company, Wyndham Rewards is the #1 hotel rewards program as named by both U.S. News & World Report and USA Today. Members—over 106 million enrolled around the world—earn a guaranteed 1,000 points with every qualified stay and can redeem for free nights starting at just 7,500 points. With more than 50,000 hotels, vacation club resorts and vacation rentals globally, no other hotel rewards program is more generous or offers members more places to stay. Join for free at WyndhamRewards.com.
Surpasses 50 hotel signings while growing community base to more than 550
PARSIPPANY, N.J. (March 19, 2024) – Wyndham Hotels & Resorts is celebrating a major milestone for its award-winning Women Own the RoomSM initiative, surpassing 15 hotel openings and more than 50 signings in just over 24 months.
The first-of-its-kind offering—which has seen its network of current and prospective women hotel owners climb to more than 550—leverages Wyndham’s scale and influence to break down the unique barriers women face on the path to hotel ownership. According to data from U.S Bureau of Labor Statistics and the Castell Project, while women make up nearly 60% of the work force in hospitality, they hold only one leadership spot for every 10 men.
“For decades, the hotel industry has been complacent in allowing women to remain on the sidelines of hotel ownership and in turn, has missed out on the opportunity to strengthen itself through greater diversity. Women Own the Room and the subsequent programs it has inspired throughout the industry are finally changing the narrative and Wyndham is proud to lead the way.”
Breaking Down Barriers From offering comprehensive financial solutions, personalized operational support and a community that promotes networking and education, Women Own the Room was specifically curated and continues to evolve to meet the needs of women in the industry—and the strategy is working.
Inspired by her mother, who grew her own business of owning rental properties, film and television producer Christina Lambert (one of the program’s founding members), joined the hotel industry in 2020 after a successful career in the arts. Lambert, along with her mother, decided to purchase two hotels in Loveland, Co., one of which required a sizeable loan to complete the transaction. After being rejected by multiple lenders, one finally said yes.
Shortly thereafter, Lambert joined forces with Wyndham—a decision driven by Wyndham’s ability to offer one-on-one renovation support (including key money), combined with its commitment to championing diverse ownership through Women Own the Room. Today, her hotels—a 50-room Travelodge® by Wyndham and 49-room Baymont® by Wyndham—are flourishing and outperforming their competitive sets. Revenues for the Travelodge are up more than 29% over the last two years, while the Baymont, which she converted from a competitor brand in 2021, is up more than 26% year-over-year.
“Wyndham has played a pivotal role in my success as a first-time hotelier, which I credit not just to the accessibility and responsiveness of leadership, but their willingness to work with me on an individual basis to help my hotels thrive. Through Women Own the Room, Wyndham is actively investing in women and in doing so, they’re changing the face of the hotel industry.”
– Christina Lambert, Wyndham Franchisee and Member of Women Own the Room
The Wyndham Advantage In addition to the unique benefits offered by Women Own the Room, Wyndham franchisees benefit from the Wyndham Advantage—a combination of world-class marketing, distribution and other resources designed to put owners on the path to success. Inclusive of more than $275 million in innovative technology investments over the past five years, owners have access to best-in-class technology from industry-leading providers, including next-gen property and revenue management systems, as well as a growing member base of more than 106 million enrolled Wyndham Rewards members globally.
Wyndham Rewards is the number one hotel rewards program as named by both USA Today and U.S. New and World Report with more than 50,000 hotels, vacation club resorts and vacation rentals. Members make up nearly half of all U.S. check-ins and on average, spend nearly twice as much as non-members.
Since first launching in early 2022, Women Own the Room has led to the signing of more than 50 hotels, representing over 4,000 rooms, across the U.S. and Canada. Today, 16 hotels are open spanning brands like Days Inn, Baymont, Wyndham and Trademark across Texas, New Mexico, Oklahoma, Colorado, Georgia, Virginia and more. Approximately 5 to 10 additional hotels are anticipated to open over the next 12 months. For more information on Women Own the Room, including franchising opportunities, visit www.womenowntheroombywyndham.com.
Additional photos associated with the above release are available here.
About Wyndham Hotels & Resorts Wyndham Hotels & Resorts (NYSE: WH) is the world’s largest hotel franchising company by the number of properties, with approximately 9,200 hotels across over 95 countries on six continents. Through its network of approximately 872,000 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 24 hotel brands, including Super 8®, Days Inn®, Ramada®, Microtel®, La Quinta®, Baymont®, Wingate®, AmericInn®, Hawthorn Suites®, Trademark Collection® and Wyndham®. The Company’s award-winning Wyndham Rewards loyalty program offers over 106 million enrolled members the opportunity to redeem points at thousands of hotels, vacation club resorts and vacation rentals globally. For more information, visit www.wyndhamhotels.com.
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 development and rooms growth. Wyndham claims the protection of the Safe Harbor contained in the Private Securities Litigation Reform Act of 1995 for forward-looking statements. Forward-looking statements include 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,” “intend,” “goal,” “future,” “forward,” “remain,” “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, factors relating to the expired unsolicited exchange offer by Choice Hotels International, Inc. to acquire all outstanding shares of Wyndham’s common stock and any ongoing cost, loss of time and disruption associated therewith; general economic conditions, including inflation, higher interest rates and potential recessionary pressures; global or regional health crises or pandemics (such as the COVID-19 pandemic) 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; 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 between Israel and Hamas; 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. Wyndham undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, subsequent events or otherwise, except as required by law.
PARSIPPANY, N.J. (March 11, 2024) – Wyndham Hotels & Resorts (NYSE: WH) (“Wyndham” or the “Company”) today commented on the expiration of Choice Hotels International, Inc.’s (NYSE: CHH) (“Choice”) exchange offer and its decision to withdraw its slate of nominees for election to Wyndham’s Board of Directors at the 2024 Annual Meeting of Shareholders:
“The Wyndham Board is pleased that Choice has ended its hostile pursuit and proxy contest, following the expiration of its unsolicited exchange offer,” said Stephen P. Holmes, Chairman of the Board. “We are confident in Wyndham’s standalone strategy and growth prospects under the leadership of our proven management team. The Board remains committed to acting in the best interests of our shareholders and driving superior long-term value creation.”
Geoff Ballotti, President and Chief Executive Officer, added, “Wyndham is focused on moving ahead with the execution of our strategic plan, building on our success and generating meaningful value. We look forward to doing so without the unnecessary distraction of this situation and disruption to our business. We would like to thank our shareholders and franchisees for their continued support and our team members for their dedication and focus throughout this process.”
About Wyndham Hotels & Resorts Wyndham Hotels & Resorts (NYSE: WH) is the world’s largest hotel franchising company by the number of properties, with approximately 9,200 hotels across over 95 countries on six continents. Through its network of approximately 872,000 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 24 hotel brands, including Super 8®, Days Inn®, Ramada®, Microtel®, La Quinta®, Baymont®, Wingate®, AmericInn®, Hawthorn Suites®, Trademark Collection® and Wyndham®. The Company’s award-winning Wyndham Rewards loyalty program offers over 106 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 as a 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 www.investor.wyndhamhotels.com. Accordingly, investors should monitor this section of the Company’s website in addition to following the Company’s press releases, filings submitted with the Securities and Exchange Commission and any public conference calls or webcasts.
Cautionary Statement on Forward-Looking Statements Certain statements either contained in or incorporated by reference into this communication, other than purely historical information, and assumptions upon which those statements are based, are “forward-looking statements.” Forward-looking statements include 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,” “intend,” “goal,” “future,” “forward,” “remain,” “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 hereof.
Factors that could cause actual results to differ materially from those in the forward-looking statements include, without limitation, factors relating to the expired unsolicited exchange offer by Choice Hotels International, Inc. to acquire all outstanding shares of our common stock and any ongoing cost, loss of time and disruption associated therewith; general economic conditions, including inflation, higher interest rates and potential recessionary pressures; global or regional health crises or pandemics (such as the COVID-19 pandemic) including the resulting impact on the Company’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; the performance of the financial and credit markets; the economic environment for the hospitality industry; operating risks associated with the hotel franchising business; the Company’s relationships with franchisees; the impact of war, terrorist activity, political instability or political strife, including the ongoing conflicts between Russia and Ukraine and between Israel and Hamas; the Company’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 the Company’s ability to obtain financing and the terms of such financing, including access to liquidity and capital; and the Company’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 the Company’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. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, subsequent events or otherwise, except as required by law.
Urges Shareholders to Protect Their Investment and the Future of Wyndham by Supporting Only Wyndham’s Eight Highly-Qualified Director Nominees
Encourages Shareholders to Visit StayWyndham.com for More Information
PARSIPPANY, N.J. (March 11, 2024) – The Board of Directors of Wyndham Hotels & Resorts (NYSE: WH) (“Wyndham” or the “Company”), the world’s largest hotel franchising company with approximately 9,200 hotels spanning more than 95 countries, sent a letter to shareholders urging them to protect their investment and the future of Wyndham by supporting only Wyndham’s eight highly-qualified Director nominees and not the nominees from Choice Hotels International (NYSE: CHH) (“Choice”).
Wyndham has a clear path to deliver shareholder value substantially in excess of Choice’s inadequate and uncertain offer. Wyndham’s Board has evaluated Choice’s proposal carefully and in its entirety. The Board has been explicitly clear that in order to make a proposal viable for shareholders, Choice must adequately address the three key issues Wyndham has repeatedly raised: insufficient valuation, unattractive consideration mix and asymmetrical regulatory risk. Despite the Company’s efforts to engage with Choice, Choice has demonstrated that it is unable, or simply unwilling, to propose a complete offer package addressing these three issues.
Wyndham’s Board believes all eight of its nominees are more qualified with the right mix of skills and highly relevant expertise – including decades of hotel franchising, international business and public company operating experience – to oversee the successful execution of Wyndham’s global strategy and deliver the most value to shareholders. The Board’s Corporate Governance Committee, comprised solely of Independent Directors, conducted interviews with each of Choice’s eight nominees and determined that they lack the skills, expertise and background in key areas critical to Wyndham’s business and have been hand-picked by Choice with the sole objective of selling Wyndham for far less than the Company is worth.
The Company’s definitive proxy materials will be filed and mailed soon, including the WHITE proxy card with instructions for how to vote. Your vote FOR ONLY Wyndham’s eight highly-qualified Director nominees on the WHITE proxy card will be critical for our upcoming 2024 Annual Meeting of Shareholders. Wyndham’s Board also urges shareholders to discard any materials or blue proxy card they may receive from Choice. The letter to shareholders and other important information related to Wyndham’s Annual Meeting can be found at https://www.staywyndham.com.
Deutsche Bank Securities Inc. and PJT Partners are serving as financial advisors and Kirkland & Ellis LLP and Arnold & Porter Kaye Scholer LLP are legal advisors to Wyndham.
About Wyndham Hotels & Resorts Wyndham Hotels & Resorts (NYSE: WH) is the world’s largest hotel franchising company by the number of properties, with approximately 9,200 hotels across over 95 countries on six continents. Through its network of approximately 872,000 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 24 hotel brands, including Super 8®, Days Inn®, Ramada®, Microtel®, La Quinta®, Baymont®, Wingate®, AmericInn®, Hawthorn Suites®, Trademark Collection® and Wyndham®. The Company’s award-winning Wyndham Rewards loyalty program offers over 106 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 as a 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 www.investor.wyndhamhotels.com. Accordingly, investors should monitor this section of the Company’s website in addition to following the Company’s press releases, filings submitted with the Securities and Exchange Commission and any public conference calls or webcasts.
Important Additional Information This press release is not an offer to purchase or a solicitation of an offer to sell any securities or the solicitation of any vote or approval. Wyndham Hotels & Resorts, Inc. (“Wyndham” or the “Company”) has filed with the U.S. Securities and Exchange Commission (the “SEC”) a solicitation/recommendation statement on Schedule 14D-9. The Company has mailed the solicitation/recommendation statement filed by the Company to Company stockholders. COMPANY STOCKHOLDERS ARE ADVISED TO READ THE COMPANY’S SOLICITATION/RECOMMENDATION STATEMENT ON SCHEDULE 14D-9 AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC WHEN THEY BECOME AVAILABLE BEFORE MAKING ANY DECISION WITH RESPECT TO ANY EXCHANGE OFFER BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. Company stockholders may obtain a copy of the Solicitation/Recommendation Statement on Schedule 14D-9, as well as any other documents filed by the Company in connection with any exchange offer by Choice Hotels International, Inc. or one of its affiliates, free of charge at the SEC’s website at www.sec.gov. In addition, investors and security holders will be able to obtain free copies of these documents from the Company by directing a request to Matt Capuzzi, Senior Vice President, Investor Relations at [email protected] or by calling 973.753.6453.
The Company filed a preliminary proxy statement and accompanying form of WHITE proxy card with the SEC on February 26, 2024 (as amended on March 11, 2024, the “Preliminary Proxy Statement”), with respect to the Company’s 2024 Annual Meeting of Stockholders (the “2024 Annual Meeting”). The Company will file and mail a definitive proxy statement (the “Proxy Statement”) and accompanying WHITE proxy card to stockholders of the Company. The Company’s stockholders are strongly encouraged to read the Proxy Statement (including any amendments or supplements thereto) and the accompanying WHITE proxy card as well as other documents the Company files with the SEC carefully in their entirety because they will contain important information. The Company’s stockholders may obtain copies of the Proxy Statement, any amendments or supplements to the Proxy Statement and other documents filed by the Company with the SEC free of charge at the SEC’s website at www.sec.gov. Copies will also be available free of charge at the Company’s website at https://investor.wyndhamhotels.com.
Certain Information Concerning Participants Wyndham and certain of its directors and executive officers will be participants in the solicitation of proxies from Wyndham stockholders by and on behalf of its Board in connection with the matters to be considered at the 2024 Annual Meeting. Information regarding the Company’s directors and executive officers and their respective interests in the Company by security holdings or otherwise is available in its most recent Annual Report on Form 10-K filed with the SEC on February 15, 2024, and the Preliminary Proxy Statement filed with the SEC on February 26, 2024 (and amended on March 11, 2024). To the extent holdings of the Company’s securities reported in the Preliminary Proxy Statement have changed, such changes have been or will be reflected in the Proxy Statement and on Statements of Change in Ownership on Form 4 filed with the SEC. These documents can be obtained free of charge from the sources indicated above.
Cautionary Statement on Forward-Looking Statements Certain statements either contained in or incorporated by reference into this communication, other than purely historical information, and assumptions upon which those statements are based, are “forward-looking statements.” Forward-looking statements include 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,” “intend,” “goal,” “future,” “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 hereof.
Factors that could cause actual results to differ materially from those in the forward-looking statements include, without limitation, factors relating to the unsolicited exchange offer by Choice Hotels International, Inc. (“Choice”) to acquire all outstanding shares of our common stock (the “Exchange Offer”), including actions taken by Choice in connection with such offer, actions taken by Wyndham or its stockholders in respect of the Exchange Offer or other actions or developments involving Choice, such as a potential proxy contest, the completion or failure to complete the Exchange Offer, the effects of such offer on our business, such as the cost, loss of time and disruption; general economic conditions, including inflation, higher interest rates and potential recessionary pressures; global or regional health crises or pandemics (such as the COVID-19 pandemic) including the resulting impact on the Company’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; the performance of the financial and credit markets; the economic environment for the hospitality industry; operating risks associated with the hotel franchising business; the Company’s relationships with franchisees; the impact of war, terrorist activity, political instability or political strife, including the ongoing conflicts between Russia and Ukraine and between Israel and Hamas; the Company’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 the Company’s ability to obtain financing and the terms of such financing, including access to liquidity and capital; and the Company’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 the Company’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. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, subsequent events or otherwise, except as required by law.
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