Global hotel company’s culture of integrity, ethical business practices and focus on social responsibility and sustainability are the foundation of its commanding presence in the lodging industry
PARSIPPANY, N.J. (February 25, 2020) – With a commitment to acting with integrity and a mission to making hotel travel possible for all, Wyndham Hotels & Resorts (NYSE: WH) has been recognized as one of the 2020 World’s Most Ethical Companies by the Ethisphere Institute. This distinction marks the second time the Company has been by named to the list by Ethisphere, a leader in defining and advancing the standards of ethical business practices. Wyndham Hotels & Resorts is one of only two companies recognized in the lodging and hospitality segment for 2020.
“Our ethics and values-driven culture guide how we serve our guests, partners, communities and each other every day,” said Paul Cash, general counsel and chief compliance officer, Wyndham Hotels & Resorts. “Wyndham’s core values of integrity, accountability, inclusivity, caring and fun are reflected in our compliance, social responsibility and sustainability programs, helping us to make smart and ethical decisions, which contribute to the bottom line.”
The World’s Most Ethical Companies designation recognizes those companies which align principle with action, work tirelessly to make trust part of their corporate DNA, and in doing so, shape future industry standards by introducing tomorrow’s best practices today.
“Our ethical business practices foster great experiences and brand loyalty for our guests and for Wyndham Rewards members, as well as our Wyndham Hotels & Resorts team members,” added Samantha Vaughan, group vice president, corporate compliance and chief privacy officer.
Maintaining a strong focus on ethical practices is part of Wyndham Hotels & Resorts’ robust social responsibility commitment. Some of the Company’s activities and accomplishments include:
Creating a diverse and inclusive place to work and do business through its values-driven culture of ethics and integrity;
Working to protect human rights by providing team members, hotel owners and franchisees training and awareness tools to identify human trafficking in partnership with Businesses Ending Slavery and Trafficking (BEST), Polaris Project and ECPAT-USA; and
Implementing the Wyndham Green Certification Program, a progressive five-level property certification program focusing on sets of actions addressing energy, water and operational efficiencies as well as other industry best practices.
The World’s Most Ethical Company assessment is based upon the Ethisphere Institute’s Ethics Quotient® (EQ) framework which offers a quantitative way to assess a company’s performance in an objective, consistent and standardized way. The information collected provides a comprehensive sampling of definitive criteria of core competencies, rather than all aspects of corporate governance, risk, sustainability, compliance and ethics. Scores are generated in five key categories: ethics and compliance program (35%), corporate citizenship and responsibility (20%), culture of ethics (20%), governance (15%) and leadership and reputation (10%).
About the Ethisphere Institute
The Ethisphere® Institute is the global leader in defining and advancing the standards of ethical business practices that fuel corporate character, marketplace trust and business success. Ethisphere has deep expertise in measuring and defining core ethics standards using data-driven insights that help companies enhance corporate character and measure and improve culture. Ethisphere honors superior achievement through its World’s Most Ethical Companies recognition program and provides a community of industry experts with the Business Ethics Leadership Alliance (BELA). More information about Ethisphere can be found at: https://ethisphere.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 9,300 hotels across approximately 90 countries on six continents. Through its network of over 831,000 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 approximately 400 properties under management. The Company’s award-winning Wyndham Rewards loyalty program offers approximately 81 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.
Company Increases Dividend 10% and Provides Full-Year 2020 Projections
PARSIPPANY, N.J., February 13, 2020 – Wyndham Hotels & Resorts (NYSE: WH) today announced results for the three months and year ended December 31, 2019. Highlights include:
Diluted earnings per share for the quarter increased 58% to $0.68 and was unchanged for the full-year at $1.62; adjusted diluted EPS grew 40% to $0.81 for the quarter and 21% to $3.28 for the full-year.
Net income increased 49% to $64 million for the quarter, and decreased 3% to $157 million for the full-year; adjusted net income increased 35% to $77 million for the quarter, and 17% to $317 million for the full-year.
Adjusted EBITDA increased 22% to $153 million for the quarter, and 21% to $613 million for the full-year.
System-wide rooms grew 3% year-over-year, including S. rooms growth of 1% and international rooms growth of 6%.
The Company’s development pipeline grew 7% year-over-year to 193,000
S. RevPAR declined 3% compared to the prior-year quarter, and international RevPAR remained unchanged compared to the prior-year quarter in constant currency.
Returned over $100 million to shareholders in the quarter, through share repurchases and dividends, and over $350 million for the full-year 2019.
“We finished 2019 with another solid quarter, capping off a year in which we delivered rooms growth, earnings growth and free cash flow that were in line with our expectations despite headwinds from a soft RevPAR environment. We achieved these results through consistent execution, careful expense management and disciplined capital allocation,” said Geoffrey A. Ballotti, chief executive officer. “As we enter 2020, we are confident in the strength and resilience of our business and remain focused on executing every day to deliver exceptional value for our hotel owners, hotel guests and shareholders.”
Fourth Quarter 2019 Operating Results
Revenues decreased 7% to $492 million, compared to $527 million in the fourth quarter of 2018. The decline reflects lower pass-through cost-reimbursement revenues, which are inconsequential to adjusted EBITDA, in the Company’s hotel management business. Excluding cost-reimbursements, revenue grew 2% reflecting growth in royalties and franchise fees, higher license fees, and an increase in marketing, reservation and loyalty fees, partially offset by lower other revenues.
Net income increased 49% to $64 million, or $0.68 per diluted share, compared to $43 million, or $0.43 per diluted share, in the fourth quarter of 2018. Fourth quarter 2019 results include costs primarily related to a restructuring charge focused on enhancing the Company’s organizational efficiency and rationalizing its operations, transaction-related expenses associated with the integration of La Quinta and separation-related expenses associated with the Company’s spin-off. Fourth quarter 2018 results include costs primarily related to separation-related expenses associated with the Company’s spin-off.
Adjusted net income increased 35% to $77 million, or $0.81 per diluted share, compared to $57 million, or $0.58 per diluted share, in the fourth quarter of 2018. Fourth quarter adjusted net income benefited from the growth in revenues (excluding cost-reimbursement revenues), as well as lower marketing expenses due to timing and increased synergies from the integration of La Quinta. 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.
Fourth quarter adjusted EBITDA was $153 million, compared to $125 million in the fourth quarter of 2018, an increase of 22%. The increase in adjusted EBITDA primarily reflects the growth in revenues (excluding cost-reimbursement revenues), as well as, lower marketing expenses due to timing and increased synergies from the integration of La Quinta.
Full-Year 2019 Operating Results
Revenues increased 10% to $2,053 million, compared to $1,868 million in 2018. Results reflect $267 million of incremental revenues from La Quinta and $115 million of lower cost-reimbursement revenues in the Company’s hotel management business, which have no impact on adjusted EBITDA. Excluding the impact of these items, revenues increased 3% primarily due to higher license fees, an increase in marketing, reservation and loyalty fees and higher other revenues, partially offset by a $20 million reduction to revenues related to the Company’s agreement with CorePoint Lodging.
Net income was $157 million, or $1.62 per diluted share, compared to $162 million, or $1.62 per diluted share, in 2018. Full-year 2019 results reflect separation-related, transaction-related, impairment, contract-termination and restructuring expenses. 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 $317 million, or $3.28 per diluted share, compared to $270 million, or $2.71 per diluted share, in 2018. Full-year adjusted net income benefited from revenue growth, as well as incremental adjusted net income and increased synergies from the acquisition and integration of La Quinta, partially offset by higher interest expense. 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.
Adjusted EBITDA increased 21% to $613 million, compared to $507 million in 2018. Results are consistent with the Company’s recent projection of adjusted EBITDA of $610 million to $615 million for the full year. Excluding $63 million of incremental EBITDA from La Quinta and $17 million of incremental synergies, adjusted EBITDA increased 6%, primarily reflecting the growth in revenues.
As of December 31, 2019, the Company’s hotel system consisted of approximately 9,300 properties and over 831,000 rooms, a 3% year-over-year increase. The Company’s development pipeline consisted of 1,500 hotels and approximately 193,000 rooms, a 7% year-over-year room increase or 2% sequentially. Approximately 57% of the Company’s development pipeline is international and 70% is new construction.
Fourth Quarter 2019 Business Segment Information
The following discussion of fourth quarter operating results focuses on revenue and adjusted EBITDA for each of the Company’s segments.
Revenues increased 2% compared to fourth quarter 2018, due to growth in royalties and franchise fees, higher license fees, and an increase in marketing, reservation and loyalty fees, partially offset by lower other revenues. Adjusted EBITDA grew 24% to $151 million, reflecting the growth in revenues, lower marketing expenses and increased synergies from the integration of La Quinta.
Revenues decreased $39 million compared to the prior-year period, due to lower cost-reimbursement revenues, which have no impact on adjusted EBITDA. The decline in cost-reimbursement revenues is primarily due to a change in the way the Company is required to account for certain costs at a portion of its managed hotels. Absent cost-reimbursements, revenues increased $3 million primarily related to management contract termination fees. Adjusted EBITDA increased $3 million compared to the prior-year quarter primarily reflecting the management contract termination fees.
Other Items
Share Repurchases and Dividend Payments – The Company repurchased approximately 1.3 million shares of its common stock for $75 million in the fourth quarter. The Company paid common stock dividends of $27 million, or $0.29 per share, in the fourth quarter. For the full-year, the Company repurchased approximately 4.5 million shares of stock, or 5% of shares outstanding, for $244 million and paid $112 million, or $1.16 per share in dividends.
Dividend Increase – The Company’s Board of Directors authorized a 10% increase in the quarterly cash dividend to 32 cents from 29 cents per share, beginning with the dividend that is expected to be declared in the first quarter of 2020.
Restructuring Charge – The Company recorded a restructuring charge of $8 million during the fourth quarter for actions focused on enhancing organizational efficiency and rationalizing its operations.
Outlook
The Company provided the following outlook for full-year 2020, excluding any potential impact from the Coronavirus:
Revenues of $1.89 billion to $1.93 billion driven by lower cost-reimbursement revenues, which have no impact on adjusted EBITDA. Excluding cost-reimbursement revenues, the Company expects revenues of $1.46 billion to $1.49 billion.
Adjusted net income of $329 million to $339 million.
Adjusted EBITDA of $635 million to $645 million, as illustrated below.
Adjusted diluted EPS of $3.48 to $3.58, based on an adjusted diluted share count of 94.6 million that excludes future share repurchases.
Rooms growth of 2% to 4%, including an expected (0.7%) adverse impact from the loss of rooms that were previously covered by unprofitable hotel-management guarantees.
RevPAR of flat to down (2%) in constant currency, including an expected (0.7%) adverse impact from the loss of rooms that were previously covered by unprofitable hotel-management guarantees.
The Company views its year-over-year growth in adjusted EBITDA as follows (in millions):
More detailed projections are available in Table 6 of this press release. The Company is providing outlook for net income and EPS only on a non-GAAP basis because it is unable to predict with reasonable certainty the occurrence or amount of potential adjustments that may arise in the future. Details regarding potential impacts from the Coronavirus will be provided on the Company’s conference call.
Conference Call Information
Wyndham Hotels will hold a conference call with investors to discuss the Company’s results and outlook on Thursday, February 13, 2020 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 877 876-9173 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 February 13, 2020. A telephone replay will be available for approximately ten days beginning at noon ET on February 13, 2020 at 800 839-4012.
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 9,300 hotels across approximately 90 countries on six continents. Through its network of over 831,000 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 approximately 400 properties under management. The Company’s award-winning Wyndham Rewards loyalty program offers approximately 81 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. 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.
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of federal securities laws, including 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. 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. 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, concerns with or threats of pandemics, contagious diseases or health epidemics, risks related to the acquisition 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.
Will Host Conference Call and Webcast at 8:30 a.m. ET
PARSIPPANY, N.J., Jan. 13, 2020 /PRNewswire/ — Wyndham Hotels & Resorts (NYSE: WH) announced today that it will report fourth quarter and full-year 2019 results on Thursday, February 13, 2020. Geoff Ballotti, president and chief executive officer, and Michele Allen, 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 877 876-9173 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 February 13, 2020. A telephone replay will be available for approximately ten days beginning at noon ET on February 13, 2020 at 800 839-4012.
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.
The safety of our guests, owners, team members and partners around the world is a top priority. We are currently recommending that our hotels in China follow the guidelines established by the World Health Organization (WHO), the U.S. Centers for Disease Control and Prevention (CDC), and their local health departments – and to report any suspected cases to the proper authorities as soon as possible. We are sending supplies to our hotels in China for distribution to workers, guests, and members of the community. Additionally, guests traveling to or from China with direct bookings for stays in any of our hotels from January 22nd through February 29th will have their cancellation or change penalties waived. We continue to monitor the situation closely.
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.
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