Hotel leader earns perfect score on Human Rights Campaign’s Corporate Equality Index for second consecutive year
Wyndham Hotels & Resorts team members in Saint John, New Brunswick, Canada, support the local LGBTQ community through participating in a Pride march and painting a crosswalk outside of the Saint John office (August 2019).Click to Download
PARSIPPANY, N.J. (January 21, 2020) – Wyndham Hotels & Resorts (NYSE: WH) announced today that it received a perfect score on the 2020 Corporate Equality Index (CEI), a national benchmarking survey and report on practices related to LGBTQ workplace equality, administrated by the Human Rights Campaign Foundation (HRC). The honor marks Wyndham’s second consecutive year earning a perfect score on the CEI, designating the company as a Best Place to Work for LGBTQ Equality every year since the company’s inception.
“At Wyndham Hotels & Resorts, we are committed to creating an inclusive work culture where all of our team members can thrive,” says Mary Falvey, chief administrative officer, Wyndham Hotels & Resorts. “This recognition highlights our dedication to recruiting and retaining a workforce that reflects the diversity of our guests, owners and communities around the world.”
Recognizing that embracing inclusivity is good business, Wyndham Hotels & Resorts appeals to diverse consumers, cultivating welcoming environments in its hotels, in addition to supporting its team members.
“Our recognition as a Best Place to Work shows that we continue to do the right thing in ensuring the environment we’re cultivating is in the spirit of hospitality,” said Patricia Lee, executive vice president of Global Learning & Development and chief social responsibility officer, Wyndham Hotels & Resorts. “For years, Wyndham has been an employer of choice among the LGBTQ community, and one that encourages team members to bring their whole selves to work.”
Wyndham Hotels & Resorts is among 1,059 businesses rated in this year’s report. HRC uses criteria based on employee benefits, diversity training, employee recruiting, and community engagement to determine CEI scores.
Wyndham’s commitment to supporting the LGBTQ community is reflected both inside and outside of the company:
In 2019, Wyndham Hotels & Resorts joined the HRC Business Coalition for the Equality Act, a group of leading U.S. employers that support the Equality Act.
Wyndham offers a range of diversity and inclusion resources for team members and senior leadership, including an executive Social Responsibility Council and Pride, an affinity business group.
Wyndham Hotels & Resorts also partners with leading organizations including HRC, National Gay & Lesbian Chamber of Commerce and International Gay & Lesbian Travel Association.
For more information on the 2020 Corporate Equality Index, or to download a free copy of the report, visit www.hrc.org/cei.
About Wyndham Hotels & Resorts
Wyndham Hotels & Resorts (NYSE: WH) is the world’s largest hotel franchising company, with over 9,200 hotels across more than 80 countries on six continents. Through its network of approximately 822,000 rooms appealing to the everyday traveler, Wyndham commands a leading presence in both the economy and midscale segments of the lodging industry. The Company operates a portfolio of 20 hotel brands, including Super 8®, Days Inn®, Ramada®, Microtel Inn & Suites®, La Quinta®, Wingate®, AmericInn®, Hawthorn Suites®, The Trademark Collection®, and Wyndham®. Wyndham Hotels & Resorts is also a leading provider of hotel management services, with more than 400 properties under management. The Company’s award-winning Wyndham Rewards® loyalty program offers over 79 million enrolled members the opportunity to redeem points at tens of thousands of hotels, vacation club resorts and vacation rentals globally. For more information, visit www.wyndhamhotels.com.
World’s largest hotel franchising company bolsters brand offering through new openings across the region
MOSCOW – 26th November 2019 – Wyndham Hotels & Resorts, the world’s largest hotel franchising company with over 9,200 hotels and 20 brands across more than 80 countries, continues to grow its international portfolio of hotels, with plans to open 15 new hotels in Russia and neighbouring countries within the next two years. This expansion will significantly boost Wyndham Hotels & Resorts’ footprint in the region, reaching 35 operational hotels and over 5,700 rooms by 2021 across a number of key markets including Russia, Georgia, Kyrgyzstan, Armenia, Kazakhstan and Uzbekistan.
Georgia
Wyndham’s ambitious growth plan in the region will see the addition of seven new hotels and over 1,300 rooms in Georgia alone. The new openings will further grow the Company’s current presence in Tbilisi, and Batumi, with the addition of new destinations in Kutaisi and Goderdzi, including a mountain ski resort in the south of the country. Since entering Georgia in 2016 with just one hotel, Wyndham has gained strong momentum in the market, with the introduction of Wyndham Grand® and Ramada Encore® by Wyndham in Tbilisi. Overall, the Company has plans to reach 10 hotels in the next two years across a range of hotel brands and segments, including Wyndham Garden®, Ramada® and TRYP® by Wyndham, as well as the design-focused economy brand Super 8® by Wyndham.
Russia
Growth plans for Russia will see the continued expansion of the Ramada by Wyndham brand with a new hotel in Kislovodsk next year, adding to a strong portfolio of six Ramada by Wyndham hotels across the country. In addition, Wyndham will launch the Ramada Encore by Wyndham brand in the market, with a new construction hotel in Yekaterinburg in 2020, and an additional opening in St. Petersburg by 2025.
Kazakhstan and Uzbekistan
Furthermore, Wyndham Hotels & Resorts is continuing solid growth in Kazakhstan with the addition of two hotels in the resort village of Burabay and in the city of Shymkent in 2020. Other upcoming additions will include new hotels in Uzbekistan’s capital Tashkent and the historic city Bukhara.
Dimitris Manikis, President and Managing Director, Wyndham Hotels & Resorts, EMEA, said: “From thriving cities to captivating landscapes, this region provides an attractive variety of opportunities for our industry, and we are incredibly proud of our presence in these markets. With a wealth of emerging destinations yet to be discovered, and an increase in international as well as domestic arrivals, we see a lot of potential in the region. Our expansion plan is closely aligned to our vision to make hotel travel possible for all, not only to meet an increasing demand for high-quality accommodation, but also to suit any traveller’s needs, wherever and however they want to travel across the region.”
Some of the latest openings in the region include:
Ramada by Wyndham Bishkek Centre, Kyrgyzstan – Located in Kyrgyzstan’s capital and largest city, Bishkek, the hotel opened in July 2019, marking Wyndham’s first hotel in the country. The hotel provides guest with modern accommodation in downtown Bishkek, close to the State Historical Museum and other attractions, and various facilities including three restaurants and bars.
Wyndham Grand Tbilisi, Georgia– Nestled in the city of Tbilisi with tourist and local attractions all within a short walking distance, the hotel opened in May 2019 and offers 158 stylish guest rooms and suites. It boasts five well-equipped conference spaces as well as a relaxing lounge bar and three restaurants. The hotel’s lobby features a bespoke 22-metre chandelier and ballroom with breath-taking views of city, making it an ideal space for upscale events.
Ramada by Wyndham Yerevan, Armenia– Wyndham Hotels & Resorts’ first hotel in Armenia, the hotel opened in April 2019 and is located close to Republic Square, with panoramic views of Mount Ararat and the scenic city centre of Yerevan. The 202-room hotel features four designed meeting rooms, a fitness centre, sauna and hammam.
Some of the upcoming openings in the region include:
Ramada Encore by Wyndham Yekaterinburg, Russia – The first Ramada Encore by Wyndham hotel in Russia, the hotel is expected to open in November 2020 and will be part of a mixed-use complex including a shopping mall and a multi-purpose conference centre. The 214-room hotel will provide a conference hall, a fitness centre, varied F&B outlets, a lounge area, as well as a large parking space, all in a prime location with easy access to the railway station, Yekaterinbur’s business district and its historic centre.
Wyndham Hotels & Resorts (NYSE: WH) is the world’s largest hotel franchising company, with over 9,200 hotels across more than 80 countries on six continents. Through its network of approximately 822,000 rooms appealing to the everyday traveller, Wyndham commands a leading presence in the economy and midscale segments of the lodging industry. The Company operates a portfolio of 20 hotel brands, including Super 8®, Days Inn®, Ramada®, Microtel Inn & Suites®, La Quinta®, Baymont®, Wingate®, AmericInn®, Hawthorn Suites®, The Trademark Collection® and Wyndham®. Wyndham Hotels & Resorts is also a leading provider of hotel management services, with more than 400 properties under management. The Company’s award- winning Wyndham Rewards loyalty programme offers over 79 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. If you are interested in developing a Wyndham hotel, please visit https://whrdevelopmentemea.com/
PARSIPPANY, N.J., October 29, 2019 – Wyndham Hotels & Resorts (NYSE: WH) today announced results for the three months ended September 30, 2019. Highlights include:
Diluted earnings per share declined 19%, to $0.47, and adjusted diluted EPS grew 29%, to $1.10.
Net income was $45 million for the third quarter, a 22% decrease over the prior-year quarter; adjusted net income was $106 million, a 25% increase over the prior-year quarter.
Adjusted EBITDA increased 14% compared with the prior-year quarter, to $190 million.
System-wide rooms grew 3% year-over-year, including U.S. rooms growth of 1% and international rooms growth of 6%.
The Company’s development pipeline grew 7% year-over-year to 190,000 rooms.
U.S. RevPAR declined 1% year-over-year, and international RevPAR declined 1% year-over-year in constant currency.
Returned more than $100 million to shareholders in the quarter, through share repurchases and dividends.
Company updates its full-year 2019 outlook.
“Our team’s sharp execution against our strategic and operating plans allowed us to deliver solid results in the third quarter, despite a softening RevPAR environment, highlighted by continued expansion of our system size and significant growth in adjusted EBITDA,” said Geoffrey A. Ballotti, president and chief executive officer. “In addition, we increased our share repurchase authorization to reflect our strong free cash flow and our sustained focus on returning cash to shareholders. We remain confident that our business is well-positioned for continued success.”
Revenues decreased 7% to $560 million, compared with $604 million in the third quarter of 2018. The decline is primarily due to lower cost-reimbursement revenues in our hotel management business, which have no impact on adjusted EBITDA.
Net income was $45 million, or $0.47 per diluted share, compared to $58 million, or $0.58 per diluted share, in the third quarter of 2018. As previously announced, 2019 results reflect contract-termination expenses and transaction-related items. Prior-year results included separation-related and transaction-related expenses associated with the Company’s spin-off and acquisition of La Quinta.
Adjusted net income was $106 million, or $1.10 per diluted share, compared with $85 million, or $0.85 per diluted share, in the third quarter of 2018. Third quarter earnings benefited from higher royalty and franchise fees and other revenues, as well as increased synergies from the acquisition and integration of La Quinta, partially offset by higher marketing expenses. 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.
Third quarter adjusted EBITDA increased 14% to $190 million, compared with $166 million in the third quarter of 2018. The increase in adjusted EBITDA primarily reflected higher fee revenues and increased synergies from the acquisition and integration of La Quinta.
As of September 30, 2019, the Company’s hotel system consisted of over 9,200 properties and approximately 822,000 rooms, a 3% increase compared with the third quarter of 2018. The Company’s development pipeline consisted of 1,450 hotels and approximately 190,000 rooms, a 7% year-over-year room increase. The Company also increased its pipeline sequentially by 1% compared to second quarter 2019. Approximately 56% of the Company’s development pipeline is international and 74% is new construction.
Business Segment Discussion
The following discussion of third quarter operating results focuses on revenue and adjusted EBITDA for each of the Company’s segments.
Revenues increased 9% compared to third quarter 2018, due to higher fee revenues and the timing of the Company’s global franchisee conference, which was in April last year but in September this year. Adjusted EBITDA grew 10% to $195 million, reflecting the growth in revenues and increased synergies from the acquisition of La Quinta, partially offset by a $7 million impact from higher marketing expenses.
Revenues decreased $72 million compared to the prior-year period, primarily due to lower cost-reimbursement revenues, which have no impact on adjusted EBITDA, and a one-time accrual for customer payments we agreed to make, which is considered transaction-related and therefore does not impact Adjusted EBITDA. Adjusted EBITDA increased $8 million compared to the prior-year quarter, primarily reflecting reduced marketing expenses and $2 million of management contract termination fees.
Other Items
Share Repurchases and Dividends – The Company repurchased approximately 1,410,000 shares of its common stock for $75 million in the third quarter. The Company’s Board of Directors also increased the Company’s share repurchase authorization by $300 million in August. The Company paid common stock dividends of $28 million, or $0.29 per share, in the third quarter.
La Quinta Integration – The Company achieved run-rate synergies related to the La Quinta acquisition of $68 million annually during the third quarter, as anticipated.
Agreement with CorePoint Lodging – In October, the Company entered into an agreement with CorePoint Lodging, for whom the Company manages La Quinta-branded hotels, to collaborate on initiatives in support of CorePoint’s operations and to resolve open issues between the two companies. As part of the agreement, the Company will make payments of approximately $20 million to CorePoint, and CorePoint will commit to maintaining cash operating reserves of approximately $20 million. The two companies also agreed to finalize outstanding tax matters related to the Company’s May 2018 acquisition of La Quinta Holdings Inc. As a result of the agreement, the Company recorded charges of approximately $26 million ($21 million after-tax) in the third quarter.
Hotel Management Contract Termination – As previously announced, the Company recorded a $34 million charge in the third quarter to terminate an unprofitable hotel-management arrangement, which was initiated in 2012 and covers eight hotel properties and 2,500 U.S. rooms, all of which will remain in the Company’s franchise system this year. With the termination of this arrangement, the Company’s future maximum annual hotel-management guaranty obligations will be $5 million.
Outlook
The Company is updating its previous outlook for full-year 2019 as follows:
Conference Call Information
Wyndham Hotels will hold a conference call with investors to discuss the Company’s results and outlook on Tuesday, October 29, 2019 at 8:30 a.m. ET. Listeners can access the webcast live through the Company’s website at www.investor.wyndhamhotels.com. The conference call may also be accessed by dialing 877 876-9174 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 for approximately 90 days beginning at noon ET on October 29, 2019. A telephone replay will be available for approximately ten days beginning at noon ET on October 29, 2019 at 800 283-4799.
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.
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, with over 9,200 hotels across more than 80 countries on six continents. Through its network of approximately 822,000 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 20 hotel brands, including Super 8®, Days Inn®, Ramada®, Microtel Inn & Suites®, La Quinta®, Baymont®, Wingate®, AmericInn®, Hawthorn Suites®, The Trademark Collection® and Wyndham®. Wyndham Hotels & Resorts is also a leading provider of hotel management services, with more than 400 properties under management. The Company’s award- winning Wyndham Rewards loyalty program offers over 79 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 Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include those that convey management’s expectations as to the future based on plans, estimates and projections at the time Wyndham Hotels makes the statements and may be identified by words such as “will,” “expect,” “believe,” “plan,” “anticipate,” “intend,” “goal,” “future,” “outlook,” “guidance,” “target,” “estimate,” “projection” and similar words or expressions, including the negative version of such words and expressions. Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of Wyndham Hotels to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. The forward-looking statements contained in this press release include statements related to Wyndham Hotels’ 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.
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, the performance of financial and credit markets, the economic environment for the hospitality industry, operating risks associated with the hotel franchising and management businesses, the impact of war, terrorist activity or political strife, risks related to the acquisition and integration of La Quinta and our relationship with CorePoint Lodging, risks related to our ability to obtain financing and the terms of such financing and the timing and amount of future share repurchases and dividends, as well as the risks described in Wyndham Hotels’ 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. Except as required by law, Wyndham Hotels undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, subsequent events or otherwise.
PARSIPPANY, N.J., Oct. 22, 2019 – Wyndham Hotels & Resorts (NYSE: WH)—the world’s largest hotel franchising company with approximately 9,200 hotels across more than 80 countries—today announced a host of new initiatives honoring active and retired military members and their families, including a one-to-one match of all Wyndham Rewards® point donations to its military non-profit partners—up to 1 million points—along with increased savings of 15 to 20 percent off the Best Available Rate at participating hotels, plus 500 Wyndham Rewards bonus points on upcoming stays through Dec. 6, 2019.
Available at participating hotels in the United States and Canada across the Company’s broad portfolio of brands, including household names like Super 8® by Wyndham and La Quinta® by Wyndham—both of which always offer preferred parking for active and retired military members—the promotional offer and point match come on the heels of Wyndham Hotels & Resorts adding its newest charitable military partner: Hope For The Warriors, a four-star rated, 501(c)(3) organization that provides comprehensive support programs for service members, veterans and military families.
Other military non-profit partners, all of whom will have point donations matched during the promotional period up to 170,000 points each, include Fisher House Foundation, Armed Services YMCA, Operation Homefront, Team Red White & Blue and Team Rubicon.
“We believe in honoring and saying ‘thank you’ to the brave members of the armed forces and their families every day of the year, but this Veterans Day, we’re doing even more,” said Sheila Schottland, vice president of Brand Marketing at Wyndham Hotels & Resorts. “From matching points donated by members to our military non-profit partners, to increasing already available discounts plus bonus points added on top, it’s one more way for us to give back and show our gratitude.”
Wyndham Hotels & Resorts and its brands have a strong history of celebrating and supporting those who serve, from everyday discounts available at its more than 9,200 hotels, to sponsorship of veteran-centric events—like Super 8’s upcoming support of the 12th annual Long Island Run for the Warriors race—and hiring initiatives, including La Quinta’s collaboration with Hiring Our Heroes, a program of the U.S. Chamber of Commerce Foundation, to help drive veteran employment opportunities. Military members, veterans and their spouses also receive special benefits when they join Wyndham Rewards, the company’s award-winning loyalty program, including a complimentary upgrade to Wyndham Rewards’ Gold membership along with 1,000 bonus Wyndham Rewards points upon completion of the member’s first qualified stay.
Wyndham Hotels & Resorts (NYSE: WH) is the world’s largest hotel franchising company, with approximately 9,200 hotels across more than 80 countries on six continents. Through its network of approximately 817,000 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 20 hotel brands, including Super 8®, Days Inn®, Ramada®, Microtel Inn & Suites®, La Quinta®, Wingate®, AmericInn®, Hawthorn Suites®, Trademark Collection®, and Wyndham®. Wyndham Hotels & Resorts is also a leading provider of hotel management services, with more than 400 properties under management. The Company’s award-winning Wyndham Rewards® loyalty program offers over 77 million enrolled members the opportunity to redeem points at tens of thousands of hotels, vacation club resorts and vacation rentals globally. For more information, visit www.wyndhamhotels.com.
Will Host Conference Call and Webcast at 8:30 a.m. ET
PARSIPPANY, N.J., Oct. 7, 2019 — Wyndham Hotels & Resorts (NYSE: WH) announced today that it will report third quarter 2019 results on Tuesday, October 29, 2019. Geoff Ballotti, president and chief executive officer, and David Wyshner, chief financial officer, will host a call with investors at 8:30 a.m. ET that morning to discuss the Company’s results and business outlook.
Listeners can access the webcast live through the Company’s website at www.investor.wyndhamhotels.com. The conference call may also be accessed by calling 877 876-9174 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 for approximately 90 days beginning at noon ET on October 29, 2019. A telephone replay will be available for approximately ten days beginning at noon ET on October 29, 2019 at 800 283-4799.
About Wyndham Hotels & Resorts Wyndham Hotels & Resorts (NYSE: WH) is the world’s largest hotel franchising company, with approximately 9,200 hotels across more than 80 countries on six continents. Through its network of approximately 817,000 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 20 hotel brands, including Super 8®, Days Inn®, Ramada®, Microtel Inn & Suites®, La Quinta®, Baymont®, Wingate®, AmericInn®, Hawthorn Suites®, The Trademark Collection®, and Wyndham®. Wyndham Hotels & Resorts is also a leading provider of hotel management services, with more than 400 properties under management. The Company’s award-winning Wyndham Rewards loyalty program offers over 77 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.
World’s largest hotel franchising company recognizes exceptional franchisees with new Wyndham Humanitarian and Wyndham Developer awards
LAS VEGAS, Sept. 27, 2019 – Wyndham Hotels & Resorts (NYSE: WH) – the world’s largest hotel franchising company with approximately 9,200 hotels across more than 80 countries – introduced two inaugural awards honoring franchisees who embody its mission to make hotel travel possible for all at its first global conference as an independent hotel company.
The two new awards, The Wyndham Humanitarian Award and The Wyndham Developer Award, recognize franchisees who show leadership in each area by making a difference in their local community through hospitality. They complement Wyndham’s existing collection of brand awards honoring its owners for strong performance and outstanding hospitality.
“Our nearly 6,000 franchisees do extraordinary work to help us welcome the world every single day,” said Geoff Ballotti, president and CEO of Wyndham Hotels & Resorts. “Today, we’re taking a moment to honor those hoteliers who go above and beyond with two new awards that recognize their contribution to our industry and our communities.”
Ballotti added: “We are humbled to work with dedicated hoteliers like Nalini and Rupesh Patel, who built a hotel that allows so many families to create happy memories, and Danny Aderholt who, through his company’s development efforts, makes his communities stronger as a result of his passion for hospitality. We celebrate and thank them for all they do.”
The Wyndham Humanitarian Award: Nalini and Rupesh Patel
Nalini and Rupesh Patel, owners of the La Quinta by Wyndham San Antonio Alamo City, offer extra support for guests with mobility needs staying in the area to visit nearby Morgan’s Wonderland, an accessible theme park for people with special needs. Their new-construction La Quinta by Wyndham hotel was designed with expanded rooms, oversized entryways, barn-style doorways and lower consoles and surface areas to support guests who use wheelchairs. It also features a special, Texas-shaped pool with a unique wheelchair ramp that allows guests to enter and exit the water without drawing the same attention as a pool lift.
The Patels, avid fans of Manchester United, are passionate hoteliers who empower families to make memories through travel. They installed an engaging “selfie wall” where guests can share special moments and, in honor of Manchester United, they constructed a mini soccer field at the hotel.
“When we set out to build this hotel so close to Morgan’s Wonderland, we thought to ourselves: what can we do to make vacations enjoyable, affordable and memorable – whether it’s a staycation for locals to Texas or visitors from out of town,” said Nalini Patel, Man UTD Investments Inc. “We’re doing what we can to make it just a little bit easier on everyone so they can relax and enjoy traveling.”
Wyndham Developer Award: Century Equities Founder Danny Aderholt
Danny Aderholt is the founder of Century Equities, a real estate development company based in Wheeling, West Virginia. With 10 hotels across West Virginia and Ohio, many of them under Wyndham brands including Wingate® by Wyndham, Hawthorn Suites® by Wyndham, Microtel® by Wyndham, and Super 8® by Wyndham, Century focuses on contributing to communities through development.
In May, Aderholt and his company opened their latest hotel: a TRYP by Wyndham® in the Lawrenceville district of Pittsburgh, a community recently listed as “America’s Coolest Neighborhood.” Housed in a historic trade school building, the property was originally built in 1901 and features local art and interior design inspired by the trades formerly taught within its walls. When Aderholt, who grew up in Pittsburgh, learned of plans to tear the structure down, he viewed the challenge of transforming the historic building as a unique opportunity for Century and for the Lawrenceville neighborhood.
“I was raised in Pittsburgh and have watched this neighborhood evolve over the past fifty-plus years. My son Josh, who was instrumental in this project, has lived in Lawrenceville for over a decade with his family, so we are rooted there in many ways. Lawrenceville has become a true destination for Pittsburghers and out-of-town guests alike. As part of this community, we’ve always known how special it is, and wanted to celebrate the fabric of the neighborhood by doing something that adds to its appeal – not alters it,” Aderholt says.
The Wyndham Hotel of the Year Awards
Wyndham also recognizes hotel owners across its brands for their hard work in areas like quality, performance and guest satisfaction with more than 100 individual awards. These awards culminate in the Company’s top honor, Hotel of the Year, which recognizes the top hotel in each segment of the hospitality industry. This year’s Hotel of the Year award winners include:
Economy Hotel of the Year:Days Inn & Suites by Wyndham Lubbock Medical Center
Owned by Subodh and Mahesh Patel, longtime Days Inn® by Wyndham franchisees, the Days Inn & Suites by Wyndham Lubbock Medical Center in Lubbock, Texas, is a top economy hotel in its market. Subodh Patel opened his first Days Inn in 1992 and he has served on the brand’s Franchise Advisory Council for nearly 30 years, serving as chairman three times.
Midscale Hotel of the Year and Overall Hotel of the Year:La Quinta Inn & Suites by Wyndham Cleveland
Owned by Himanshu Patel, the La Quinta Inn & Suites by Wyndham Cleveland in Cleveland, Tenn., is the Midscale Hotel of the Year and is listed as a top hotel in its local market. The hotel also received Wyndham’s overall Hotel of the Year honor based on its outstanding performance. The award was presented at the closing session of Wyndham’s global conference.
Upscale Hotel of the Year:Wyndham Deerfield Beach Resort
Owned by Cheryl Chase, this former Howard Johnson® by Wyndham hotel in Deerfield Beach, Fla., overcame a hurricane evacuation in the midst of a renovation and remains the top hotel in its market.The hotel has fully renovated all of its guest rooms and two restaurants and is in the process of renovating its pool and ballroom before the end of this year. It is a three-time recipient of the upscale Hotel of the Year award from Wyndham.
About Wyndham Hotels & Resorts
Wyndham Hotels & Resorts (NYSE: WH) is the world’s largest hotel franchising company, with approximately 9,200 hotels across more than 80 countries on six continents. Through its network of approximately 817,000 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 20 hotel brands, including Super 8®, Days Inn®, Ramada®, Microtel Inn & Suites®, La Quinta®, Wingate®, AmericInn®, Hawthorn Suites®, The Trademark Collection®, and Wyndham®. Wyndham Hotels & Resorts is also a leading provider of hotel management services, with more than 400 properties under management. The Company’s award-winning Wyndham Rewards loyalty program offers over 77 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.
World’s largest hotel franchising company highlights efforts to elevate brands, serve owners, drive global growth and innovate for guests as part of its mission to make hotel travel possible for all
LAS VEGAS, Sept. 25, 2019 – Wyndham Hotels & Resorts (NYSE: WH) – the world’s largest hotel franchising company with approximately 9,200 hotels across more than 80 countries – outlined plans to advance its position as the world’s leading provider of select-service hotel brands before thousands of its franchisees at its first global conference as an independent hotel company.
With a focus on enhancing returns for its nearly 6,000 franchisees, the Company unveiled several initiatives designed to elevate its brands, deliver incremental resources to its owners, grow its presence and meet the needs of today’s travelers.
“As the world’s largest hotel franchisor, our commitment to making hotel travel possible for all starts with our franchisees,” said Geoff Ballotti, president and CEO of Wyndham Hotels & Resorts. “Together, we are elevating our family of iconic brands through innovation in quality and design, operational efficiency, strategic growth and guest experience to shape not only the future of Wyndham but the legacy of our owners around the world.”
Elevating Economy
Wyndham continues to democratize travel by elevating the economy segment with distinct, meaningful experiences for guests – at an affordable price point – for some of its most iconic brands. On the heels of recent brand-wide redesign efforts for Super 8® by Wyndham and Howard Johnson® by Wyndham, the company unveiled a new look for Days Inn® by Wyndham.
Dawn of a New Days Inn: With its 50th anniversary approaching in 2020, Days Inn – one of the largest brands in the economy segment – unveiled a new interior design package for its 1,400 hotels in the U.S. The new design, aptly named Dawn, takes inspiration from the sun with bright and airy rooms and sun-centric art celebrating the brand’s roots with a modern flair. The brand expects to implement the design standard across its U.S. portfolio in several phases.
Revolutionizing Design and Construction
The Company is prioritizing new-construction growth with the launch of both new and refreshed prototypes designed to lower development costs and capture greater efficiencies, taking a page from the best practices of La Quinta® by Wyndham and the success of the recent Moda prototype launch from Microtel by Wyndham®.
Growing Garden: The Company announced plans to reposition its Wyndham Garden® brand for growth with a new interior and exterior prototype called Arbor, which offers a streamlined, modern aesthetic inspired by nature that is designed to reduce cost-per-key to build.
Dual-Branding La Quinta and Hawthorn Suites® by Wyndham: Wyndham is introducing a new prototype combining its extended-stay Hawthorn Suites brand with La Quinta, designed to streamline development and operational costs while appealing to multiple types of travelers. The dual-brand prototype leverages the newly refreshed room of La Quinta’s Del Sol prototype, which continues to draw developers, with seven new-construction agreements signed in the second quarter.
Reimagining AmericInn® by Wyndham: The Company also debuted a refreshed interior design for AmericInn inspired by the modern lodge look, updating the brand’s contemporary exterior prototype while celebrating its heritage. Together, the interior and exterior designs represent the brand’s fourth-generation prototype.
Driving Global Growth
As international tourism continues to grow, Wyndham is positioning its well-known brands to capitalize on the rising demand for trusted lodging options for all travelers, particularly everyday travelers and the growing global middle class.
New Brands in New Markets: Five Wyndham brands have opened in new markets this year, including Days Inn in New Zealand; Microtel in China; Ramada® by Wyndham in Armenia; Wyndham® in Malaysia; and Wyndham Garden in Argentina, Australia and the Philippines. The Company also signed agreements to introduce Dolce Hotels and Resorts® by Wyndham in Denmark and Vietnam this year, and La Quinta in the Dominican Republic in 2021.
Making its Mark: Since launching just over two years ago as the first soft brand geared toward midscale and upper-midscale hotels, Trademark Collection® by Wyndham continues its rapid growth around the world, adding six new hotels in Canada and its first hotel in Latin America, in Belize, to its more than 100 hotels in North America and Europe.
Growth in Asia: Wyndham is the largest international franchisor in Greater China and recently announced plans to open approximately 500 hotels in China over the next three years, bringing its total to more than 2,000 hotels there by the end of 2022. The Company is also growing rapidly in Southeast Asia and the Pacific Rim, its fastest-growing region, and plans to open three new hotels in Thailand later this year. Additionally, Wyndham added three Ramada hotels in South Korea this year, surpassing 40 hotels in the country.
Digital Technology Evolution
Following its strategic initiative to endorse all of its brands with the “by Wyndham” moniker – one of the largest name changes in the industry’s history – and the evolution of Wyndham Rewards, which brought about innovative, first-to-market partnerships such as DoorDash, Wyndham is leveraging new technology to expand its digital efforts to drive brand recognition and contribution and enhance the guest experience across its portfolio.
Wyndham Wi-Fi: Addressing the ongoing challenge of providing great guest Wi-Fi, Wyndham franchisees now have access to a new bundle of wireless and network services featuring high-quality hardware and equipment at lower costs called Wyndham Wi-Fi. Hoteliers will have access to best-in-class wireless and network equipment, a professional home page, superior Wi-Fi services with consistent signals capable of handling guests’ multi-screen needs, and one-stop shopping for support.
Mobile First: To meet guests where they are – literally, in the palm of their hands – the Company will launch a new mobile app in the spring of 2020 offering streamlined bookings, account management, gamification, and exciting on-property features enabling guests to make the most of their stays. This intuitive, anticipatory app also will provide Wyndham Rewards members with personalized moments woven throughout their journey.
About Wyndham Hotels & Resorts
Wyndham Hotels & Resorts (NYSE: WH) is the world’s largest hotel franchising company, with approximately 9,200 hotels across more than 80 countries on six continents. Through its network of approximately 817,000 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 20 hotel brands, including Super 8®, Days Inn®, Ramada®, Microtel Inn & Suites®, La Quinta®, Wingate®, AmericInn®, Hawthorn Suites®, Baymont®, The Trademark Collection®, and Wyndham®. Wyndham Hotels & Resorts is also a leading provider of hotel management services, with more than 400 properties under management. The Company’s award-winning Wyndham Rewards loyalty program offers over 77 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. If you are interested in development opportunities, please visit development.wyndhamhotels.com.
PARSIPPANY, N.J., July 30, 2019 – Wyndham Hotels & Resorts, the world’s largest hotel franchising company with approximately 9,200 hotels globally, has continued to expand its hotel network across the Asia Pacific Region with a series of important openings, brand launches and new market entries.
With an Asia Pacific system of more than 173,000 rooms and 86 openings this year, Wyndham is bringing world-class hospitality and innovative new brands to the area while driving net rooms growth in a key region of the world. All of the brands in the Company’s portfolio, from Ramada to Days Inn to Super 8, are now endorsed by the powerful “by Wyndham” suffix – a significant step forward in Wyndham Hotels’ global branding strategy.
Greater China
In Greater China, Wyndham Hotels is the largest international franchisor, with more than 1,500 properties and 149,000 rooms in its franchised system. Based on current trends, Wyndham expects to open about 500 hotels in China over the next three years.
Leo Liu, president of Wyndham Hotels & Resorts, Greater China, said: “We have sustained our strong growth momentum and delivered robust hotel opening and net rooms growth figures in China. Working closely with owners and developers in the region, we are striving to further expand our presence across Greater China, especially in Hong Kong and in the northern and southwestern parts of China, where there is rapid growth and strong potential for further expansion of our footprint.”
Wyndham has been delivering significant progress against its growth objectives in China this year. In January, the 432-room Ramada® by Wyndham Hong Kong Harbour View opened, marking Ramada’s official return to the Hong Kong market. This was followed in May by the opening of the Ramada by Wyndham Hong Kong Grand View, with 317 rooms and a signature rooftop swimming pool. And, after reacquiring exclusive direct franchising rights for the Days Inn® brand in China in 2018, Wyndham has opened seven new Days Inn by Wyndham properties this year, from Chongqing to Guangzhou to Changsha.
Southeast Asia and Pacific Rim (SEAPR)
Wyndham is also growing rapidly in the Southeast Asia and Pacific Rim (SEAPR) region, which expanded by 22% year-over-year through the second quarter and includes more than 24,000 rooms.
“This is a hugely exciting region, where dynamic economies, rising affluence and strong intra-regional travel is creating exceptional conditions for growth. These trends give Wyndham plenty of scope for expansion, both in established and emerging markets,” said Joon Aun Ooi, president and managing director of Wyndham Hotels & Resorts, SEAPR. “We look forward to building strong partnerships with owners and developers across the region and introducing even more guests to our collection of innovative brands.”
So far this year, Wyndham Hotels has announced several notable market entries and expansions in the Southeast Asia and Pacific Rim region:
In January, Wyndham introduced the Days Inn brand to New Zealand with the opening of a new landmark hotel, Days Hotel & Suites by Wyndham Hamilton. The addition bolsters Wyndham’s presence in New Zealand and in Hamilton, the region’s fourth-most-populous city and a key growth market.
Also in January, Wyndham introduced the Wyndham Grand® brand in Myanmar with the announcement of the opening of Wyndham Grand Yangon. Rising from the shores of Kandawgyi Lake, Wyndham Grand Yangon is a new landmark in the heart of Myanmar’s commercial capital, offering breathtaking views of the lake and the golden Shwedagon Pagoda, along with an exquisite blend of grand facilities and authentic local touches.
In June, Wyndham opened the 222-room Ramada by Wyndham Daejeon, its 41st hotel in South Korea. This follows the March openings of the 592-room Ramada Encore by Wyndham Gimpo Han River and the 467-room Ramada Encore by Wyndham Jeongseon Sabuk.
All Wyndham Hotels & Resorts’ properties in Asia Pacific participate in Wyndham Rewards, the Company’s award-winning loyalty program, giving more than 77 million members globally a generous points-earning and redemption structure. This year the program became even more rewarding, with a wide array of convenient new features – from free nights at thousands of hotels starting at just 7,500 points (half their original redemption cost), to the addition of more than 900 La Quinta® hotels, to the ability to earn and redeem points with a host of new and expanded partners.
About Wyndham Hotels & Resorts
Wyndham Hotels & Resorts (NYSE: WH) is the world’s largest hotel franchising company, with approximately 9,200 hotels across more than 80 countries on six continents. Through its network of approximately 817,000 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 20 hotel brands, including Super 8®, Days Inn®, Ramada®, Microtel Inn & Suites®, La Quinta®, Wingate®, AmericInn®, Hawthorn Suites®, Trademark Collection®, and Wyndham®. Wyndham Hotels & Resorts is also a leading provider of hotel management services, with more than 400 properties under management. The Company’s award-winning Wyndham Rewards® loyalty program offers over 77 million enrolled members the opportunity to redeem points at tens of thousands of hotels, vacation club resorts and vacation rentals globally. For more information, visit www.wyndhamhotels.com.
GREENSBORO, N.C. (July 30, 2019) – Wyndham Rewards®—the world’s most generous rewards program spanning more than 30,000 hotels, vacation club resorts and vacation rentals—returns to Sedgefield Country Club in Greensboro, N.C. today, welcoming tens of thousands of spectators to a travel-themed week of fun and sun as title sponsor of the 80th annual Wyndham Championship.
Widely recognized as one of the PGA TOUR’s most fan-friendly tournaments, this year’s Wyndham Championship—which kicks-off today and runs through Aug. 4, 2019—invites fans to escape the everyday and join Wyndham Rewards and its portfolio of global brands for a “trip around the world,” all while helping give back to local charities throughout the Piedmont Triad. The final stop of the regular season, this year’s tournament brings an added layer of drama to Sedgefield as many of the world’s best golfers look to earn their spot in the Wyndham Rewards Top 10, a new $10 million bonus to be split among the PGA TOUR’s top 10 regular-season finishers.
“From new ways to earn and redeem points to the addition of more than 900 La Quinta by Wyndham hotels, we’ve spent the last year working to make Wyndham Rewards more rewarding for members than ever before,” said Eliot Hamlisch, leader of Wyndham Rewards. “It’s a fitting parallel to the Wyndham Championship. From a host of new fan-centric experiences to the added excitement surrounding the first-ever Wyndham Rewards Top 10, this year’s tournament promises to be fans’ most rewarding yet.”
Travel the World with Wyndham Rewards Take a bite of the Big Apple. Feel the white sands of Clearwater Beach. Revel in the awe-inspiring views of the Andaman Sea in Phuket. More than just championship golf, the Wyndham Championship is an escape from the everyday, and this year, fans and their families can see the world as they tour the course and experience 10 amazing Wyndham Rewards destinations from around the globe.
The first 100 fans to visit all 10 destinations each day, collecting commemorative pins along the way, will unlock unforgettable rewards, including passes to the Club Wyndham Beach viewing platform, Wyndham Rewards points, ticket upgrades and unlimited pedicab rides. Fans can win even more prizes when they share their photos from each destination on their favorite social platforms tagging @WyndhamRewards and @WyndhamChamp using #WyndhamRewardsTop10.
Other fan-favorite experiences will include, among others, live action sand sculpture, photo ops with the #6 Wyndham Rewards NASCAR Ford Fusion, Margaritaville at the Wyndham and “Key to Wyn,” where one swipe of a key card could unlock the door to any of thousands of prizes, from flat-screen TVs and appliances, to free nights at Wyndham Rewards destinations around the globe.
Wyndham Rewards Top 10
Introduced for the first time this season alongside a simplified, strokes-based scoring system for regular season play, the Wyndham Rewards Top 10 offers $10 million to be split among the top-10 finishers in the final regular season FedExCup point standings. While the first through third positions were decided last week in Memphis with Brooks Koepka taking the $2 Million top prize, nine golfers enter the Wyndham Championship with a chance to either move up or into the Wyndham Rewards Top 10. Paul Casey enters the Wyndham Championship in eighth place in the Wyndham Rewards Top 10 and could move to fourth with a Wyndham Championship win increasing his season-ending bonus from $600,000 to $1.1 Million. The other eight golfers would move into the Wyndham Rewards Top 10 with a Wyndham Championship victory.
Added Hamlisch, “The introduction of the Wyndham Rewards Top 10 made for a thrilling regular season, all of which culminates here at Sedgefield at the Wyndham Championship. We congratulate Brooks Koepka, Rory McIlroy and Matt Kuchar for taking the top-three spots last weekend and look forward to watching the rest of the story unfold this week at the Wyndham Championship.”
Wyndham Championship Fore! Good
Creating positive impact in the community has always been a central focus of the Wyndham Championship, and Wyndham Championship Fore! Good—the tournament’s signature philanthropic platform—helps give back to those in the Piedmont Triad.
This year, Wyndham will host a raffle at the pro-am pairings event featuring exciting items and once-in-a-lifetime experiences with net proceeds benefiting a host of local and regional Wyndham Championship Fore! Good charitable partners, including Birdies Fore Backpacks, The First Tee of the Triad, The Paul Tesori Foundation and The American Junior Golf Association, among others. Items include a total of 12 vacation packages to exciting destinations like Wyndham Kona Hawaiian Resort in Hawaii, Wyndham Grand Clearwater Beach in Clearwater, Fla. and Dolce Silverado Resort and Spa in Napa, Calif. as well as exciting experiences with Caesars Entertainment and Roush Fenway Racing.
Other philanthropic efforts associated with the tournament include:
Youth and Education– Through “Birdies Fore Backpacks,” Wyndham Rewards works with local organizations—Backpack Beginnings, Forsyth Backpacks, Out of the Garden Project and United Way of Greater High Point—to help feed children from low income families around the Piedmont Triad. Backpacks are packed with nutritionally sound meals, which families take home every weekend. Since its creation in 2014, the program has provided more than 510,000 meals to thousands of local families.
Community Development– One of the Wyndham Championship’s most-popular fan amenities is “Key to Wyn,” created by Wyndham Rewards to illustrate the Wyndham hospitality experience at its PGA TOUR event. “Key to Wyn” offers tournament fans an opportunity to win fabulous prizes courtesy of title partner Wyndham Rewards. Following the tournament, suitable elements of the structure will be repurposed and donated to Habitat for Humanity of Greater Greensboro to contribute to a new Habitat home. In addition, Wyndham’s Executive Women’s Day returns to the tournament this year as does free admission for those who serve, including those in the armed forces, teachers and first responders.
Environmental Sustainability– Highlighting its commitment to preserving our natural resources, Wyndham Rewards is proud to partner with the Sedgefield Country Club, the home of the Wyndham Championship. Under the management of McConnell Golf, the historic course has taken significant steps in recent years to save energy and improve its sustainability efforts, including upgraded, energy efficient lighting and new, water efficient fixtures. In addition, Sedgefield Country Club is applying for the Audubon education and certification program to protect the valuable, natural areas and wildlife habitats that golf courses provide while improving efficiencies and minimizing the impact of golf course operations. The Wyndham Championship, in partnership with Unifi, Inc., is also proud to commit to aggressive recycling standards.
Wyndham Rewards is an award-winning rewards program linking the global portfolios of two of the world’s leading hospitality companies: Wyndham Hotels & Resorts (NYSE: WH), the world’s largest hotel franchise company, and Wyndham Destinations (NYSE:WYND), the world’s largest vacation ownership and exchange company. To learn more about the Wyndham Championship, or to book tickets, visit www.wyndhamchampionship.com.
About Wyndham Rewards Recently named the number one hotel rewards program by readers of USA TODAY, Wyndham Rewards® is the world’s most generous rewards program with more than 30,000 hotels, vacation club resorts and vacation rentals worldwide. Designed for the everyday traveler, members earn a guaranteed 1,000 points with every qualified stay and may redeem points for a wide-range of rewards, including free nights at any of approximately 9,200 hotels or tens of thousands of vacation club resorts and vacation rentals globally through partnership with Wyndham Destinations and others. Wyndham Rewards has over 77 million enrolled members around the globe. Join for free today at www.wyndhamrewards.com. You’ve earned this.®
About the Wyndham Championship Contested annually on the Donald Ross-designed course at Sedgefield Country Club in Greensboro, N.C., the Wyndham Championship was founded in 1938 and is the sixth-oldest event on the PGA TOUR excluding the Majors. The tournament thanks title sponsor Wyndham Rewards and presenting sponsor BB&T for their continued support. Additional tournament information is available at www.wyndhamchampionship.com and the tournament’s social media channels, including the Wyndham Championship Facebook page, Twitter and Instagram.
PARSIPPANY, N.J., July 25, 2019 – Wyndham Hotels & Resorts (NYSE: WH) today announced results for the three months ended June 30, 2019. Highlights include:
Revenues increased 23% compared with second quarter 2018, to $533 million.
Net income was $26 million for the second quarter, a 24% increase over the prior-year quarter; adjusted net income was $82 million, a 12% increase over the prior-year quarter.
Diluted earnings per share were $0.27 and adjusted diluted EPS were $0.84.
Adjusted EBITDA increased 27% compared with the prior-year quarter, to $159 million.
Global RevPAR increased 5% year-over-year in constant currency, and increased 40 basis points in constant currency and excluding our 2018 acquisitions and divestitures.
U.S. RevPAR increased 5% year-over-year, and increased 30 basis points excluding our 2018 acquisitions and divestitures.
System-wide rooms grew 3% year-over-year.
Company updates its full-year 2019 outlook.
“We continued to deliver solid results in the second quarter, highlighted by continued organic expansion of our system size and significant growth in adjusted EBITDA,” said Geoffrey A. Ballotti, chief executive officer. “We remain enthusiastic about our domestic and international growth prospects, driven by the strength of our brands and our award-winning Wyndham Rewards loyalty program.”
Revenues were $533 million, compared with $435 million in the second quarter of 2018. Results reflect $98 million of incremental revenues from La Quinta, which the Company acquired in May 2018. Excluding the impact from 2018 acquisitions and divestitures, revenues increased 1% in constant currency, primarily due to higher license, royalty and other fee revenues, partially offset by lower cost-reimbursement revenues as well as the timing of the Company’s global franchisee conference, which was in April last year but will be in September this year.
Net income was $26 million, or $0.27 per diluted share, compared to $21 million, or $0.21 per diluted share, in the second quarter of 2018. 2019 results reflect $40 million of primarily non-cash after-tax expense due to the Company’s intention to exit a legacy hotel-management arrangement that has been unprofitable for it. Prior- year results were impacted by the Company’s spin-off and the acquisition of La Quinta and therefore included substantially higher interest, separation-related and transaction-related expenses.
Adjusted net income was $82 million, or $0.84 per diluted share, compared with $73 million, or $0.73 per diluted share, in the second quarter of 2018. Second quarter earnings comparisons were impacted by the acquisition of La Quinta, higher interest expense and the timing of marketing expenses. Full reconciliations of GAAP results to our non-GAAP adjusted measures for all reported periods appear in the tables to this press release.
Second quarter adjusted EBITDA was $159 million, compared with $125 million in the second quarter of 2018. Management estimates that second quarter results reflect approximately $30 million of incremental adjusted EBITDA from La Quinta. Excluding the impact from 2018 acquisitions and divestitures, adjusted EBITDA increased 5% in constant currency primarily reflecting the growth in license, royalty and other fee revenues, partially offset by the timing of marketing expenses, which suppressed growth by $14 million, or thirteen percentage points. Consistent with the Company’s expectations, second quarter adjusted EBITDA represented 26% of the Company’s projected full-year adjusted EBITDA.
U.S. RevPAR and constant-currency global RevPAR increased a fraction of a point in second quarter 2019 compared to the prior-year period excluding our 2018 acquisitions and divestitures through their anniversary dates, as second quarter 2018 U.S. and global RevPAR benefited by approximately 150 and 80 basis points, respectively, from incremental post-hurricane demand.
As of June 30, 2019, the Company’s hotel system consisted of approximately 9,200 properties and approximately 817,000 rooms, a 3% increase compared with the second quarter of 2018. The Company’s development pipeline consisted of 1,400 hotels and approximately 188,000 rooms, a 10% year-over-year room increase. The Company also increased its pipeline sequentially by 4% compared to first quarter 2019.
Approximately 55% of the Company’s development pipeline is international and 74% is new construction.
Business Segment Discussion
The following discussion of second quarter operating results focuses on revenue and adjusted EBITDA for each of the Company’s segments.
Hotel Franchising
Revenues increased 15% compared to second quarter 2018, including $36 million of incremental revenues from La Quinta. Excluding the impact from 2018 acquisitions and divestitures, revenues increased 3% in constant currency due to higher license, royalty and other fees, partially offset by the timing of the Company’s global franchisee conference, which was in April last year but will be in September this year. Adjusted EBITDA grew 26% to $162 million, including an estimate of approximately $24 million of incremental adjusted EBITDA from the acquisition of La Quinta. Excluding the impact from 2018 acquisitions and divestitures, adjusted EBITDA grew 9% in constant currency reflecting the growth in revenues and the impact of reorganizing certain functions and related expenses into our Corporate segment as a result of our spin-off, partially offset by the timing of marketing expenses, which reduced adjusted EBITDA by $14 million.
Hotel Management
Revenues increased $55 million compared to the prior-year period, reflecting $62 million of incremental revenues from La Quinta (including $55 million of cost-reimbursement revenues). Excluding the impact from the acquisition of La Quinta, revenues declined $7 million primarily due to lower cost-reimbursement revenues, which have no impact on adjusted EBITDA. Adjusted EBITDA increased $8 million compared to the prior-year quarter, reflecting an estimated $6 million of incremental adjusted EBITDA from La Quinta.
Other Items
Share Repurchases and Dividends – The Company repurchased approximately 909,000 shares of its common stock for $50 million in the second quarter. The Company also paid common stock dividends of $28 million, or $0.29 per share, in the second quarter.
Hotel Management Contract Terminations – The Company expects to exit two unprofitable hotel- management arrangements that were initiated in 2012 and 2013. In conjunction with one arrangement that covers 22 hotels and 3,600 U.S. rooms, the Company’s guaranty obligations have been exhausted. The Company expects that this will result in the arrangement, including the Company’s ability to recapture out-of- pocket payments it had made to the hotels’ owner, being terminated. The Company recorded a non-cash impairment expense of $45 million and a $9 million contract termination charge in the second quarter, which were primarily related to the anticipated loss of the recapture opportunity.
In order to terminate the other arrangement, which covers eight hotel properties and 2,500 U.S. rooms, the Company has signed a non-binding letter of intent to make payments representing a significant discount to its remaining potential guarantee exposure, which is currently approximately $70 million. The Company expects to record a contract termination expense in the third quarter related to these future payments.
With the termination of these two arrangements, the Company’s future maximum annual hotel-management guaranty obligations will be reduced from $26 million to $5 million.
Outlook
The Company is updating its outlook for full-year 2019 as follows:
The reduction in forecasted revenue relative to the Company’s earlier outlook is almost entirely due to lower cost-reimbursement revenues, which have no impact on adjusted EBITDA. The forecast for Adjusted EBITDA reflects the substantial progress the Company has made in integrating La Quinta and favorable results at the Company’s owned hotel in Puerto Rico, as well as a modestly softer RevPAR environment than the Company had anticipated. The forecast for adjusted diluted EPS assumes an effective tax rate of 26%, one percentage point lower than previously estimated. The Company is providing an outlook for EBITDA, net income and EPS only on a non-GAAP, adjusted basis because it is unable to predict with reasonable certainty the occurrence or amount of potential adjustments that may arise in the future.
Conference Call Information
Wyndham Hotels will hold a conference call with investors to discuss the Company’s results and outlook on Thursday, July 25, 2019 at 8:30 a.m. ET. Listeners can access the webcast live through the Company’s website at www.investor.wyndhamhotels.com. The conference call may also be accessed by dialing 877
876-9174 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 for approximately 90 days beginning at noon ET on July 25, 2019. A telephone replay will be available for approximately ten days beginning at noon ET on July 25, 2019 at 800 283-5758.
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.
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, with approximately 9,200 hotels across more than 80 countries on six continents. Through its network of approximately 817,000 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 20 hotel brands, including Super 8®, Days Inn®, Ramada®, Microtel Inn & Suites®, La Quinta®, Wingate®, AmericInn®, Hawthorn Suites®, The Trademark Collection®, and Wyndham®. Wyndham Hotels & Resorts is also a leading provider of hotel management services, with more than 400 properties under management. The Company’s award- winning Wyndham Rewards loyalty program offers over 77 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 Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include those that convey management’s expectations as to the future based on plans, estimates and projections at the time Wyndham Hotels makes the statements and may be identified by words such as “will,” “expect,” “believe,” “plan,” “anticipate,” “intend,” “goal,” “future,” “outlook,” “guidance,” “target,” “estimate,” “projection” and similar words or expressions, including the negative version of such words and expressions. Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of Wyndham Hotels to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. The forward-looking statements contained in this press release include statements related to Wyndham Hotels’ 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.
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, the performance of financial and credit markets, the economic environment for the hospitality industry, operating risks associated with the hotel franchising and management businesses, the impact of war, terrorist activity or political strife, risks related to the acquisition and integration of La Quinta, risks related to our ability to obtain financing and the terms of such financing, risks related to the planned termination of certain hotel-management agreements (which may not be completed on the terms currently anticipated or at all), and the timing and amount of future share repurchases and dividends, as well as the risks described in Wyndham Hotels’ 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. Except as required by law, Wyndham Hotels undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, subsequent events or otherwise.
