PARSIPPANY, N.J., February 13, 2019 – Wyndham Hotels & Resorts (NYSE: WH) today announced results for the three months and year ended December 31, 2018. Highlights include:
Revenues increased 69% compared with fourth quarter 2017, to $527 million.
Net income was $43 million for the quarter; adjusted net income was $57 million, a 50% increase over the prior-year quarter.
Diluted earnings per share for the quarter were $0.43 and adjusted diluted EPS were $0.58.
Further adjusted diluted EPS for the quarter (calculated as if our spin-off and our acquisition and integration of La Quinta had occurred on January 1) were $0.62.
Adjusted EBITDA increased 64% compared with the prior-year quarter, to $125 million, and grew 19% in constant currency and excluding our 2018 acquisitions and divestitures.
Further adjusted EBITDA for the quarter was $134 million, consistent with our projection of $127 to $138 million.
Global RevPAR increased 8% compared with fourth quarter 2017 and increased 2% in constant currency and excluding our 2018 acquisitions and divestitures.
System-wide rooms grew 11% year-over-year and 2% excluding our 2018 acquisitions and divestitures.
“We finished 2018 with another strong quarter, capping off a year in which we delivered strong adjusted earnings growth fueled by solid RevPAR and rooms growth while acquiring and integrating La Quinta,” said Geoffrey A. Ballotti, chief executive officer. “We expect to continue to build on this strong foundation and are enthusiastic about our prospects for 2019 as we continue to execute our strategies and deploy capital in order to enhance value for shareholders.”
Fourth Quarter 2018 Operating Results
Revenues were $527 million, compared with $312 million in the fourth quarter of 2017. Results reflect $198 million of incremental revenues from La Quinta. Excluding the impact from 2018 acquisitions and divestitures, revenues increased 6% primarily due to higher license and other fees.
Net income was $43 million, or $0.43 per diluted share, compared to $92 million, or $0.92 per diluted share in the fourth quarter of 2017. Fourth quarter 2018 results include separation-related and transaction-related expenses, and fourth quarter 2017 results include impairment expenses and an $85 million tax benefit recorded as a result of the Tax Cuts and Jobs Act.
Adjusted net income was $57 million, or $0.58 per diluted share, compared with $38 million, or $0.38 per diluted share, in the fourth quarter of 2017. Fourth quarter earnings benefited from our revenue growth and a lower effective tax rate, partially offset by higher interest expense. Full reconciliations of GAAP results to our non-GAAP adjusted measures for all reported periods appear in the tables to this press release.
Fourth quarter adjusted EBITDA was $125 million, compared with $76 million in the fourth quarter of 2017. Results reflect approximately $37 million of adjusted EBITDA from La Quinta and are consistent with the Company’s projection of adjusted EBITDA of $117 million to $127 million in the fourth quarter. Excluding the impact from 2018 acquisitions and divestitures, adjusted EBITDA increased 19% in constant currency, primarily reflecting the growth in revenues and the unfavorable effects in 2017 from hurricanes that affected our owned hotel in Puerto Rico.
The Company estimates that, if it had acquired and fully integrated La Quinta on January 1, its further adjusted EBITDA in the fourth quarter would have been $134 million, and its further adjusted diluted earnings per share would have been $0.62. See Tables 5 and 6 for additional information.
Full-Year 2018 Operating Results
Revenues were $1,868 million, compared with $1,280 million in 2017. Results reflect $513 million of incremental revenues from La Quinta. Excluding the impact from 2018 acquisitions and divestitures, revenues increased 6%, primarily due to higher license and other fees, as well as 6% higher royalties and franchise fees.
Net income was $162 million, or $1.62 per diluted share, compared to $230 million, or $2.31 per diluted share in 2017. 2018 results include separation-related and transaction-related expenses, and 2017 results include impairment expenses and an $85 million tax benefit recorded as a result of the Tax Cuts and Jobs Act.
Adjusted net income was $270 million, or $2.71 per diluted share, compared with $186 million, or $1.87 per diluted share, in 2017. 2018 earnings benefited from our revenue growth and a lower effective tax rate, partially offset by higher interest and depreciation expense.
2018 adjusted EBITDA was $507 million, compared with $383 million in 2017. Results reflect approximately
$89 million of adjusted EBITDA from La Quinta and are consistent with the Company’s projection of adjusted EBITDA of $500 million to $510 million for the full year. Excluding the impact from 2018 acquisitions and divestitures, adjusted EBITDA increased 11% in constant currency, primarily reflecting the growth in revenues.
The Company estimates that, if it had acquired and fully integrated La Quinta on January 1, its further adjusted EBITDA in 2018 would have been $600 million, and its further adjusted diluted earnings per share would have been $3.02.
As of December 31, 2018, the Company’s hotel system consisted of approximately 9,200 properties and approximately 810,000 rooms, an 11% increase compared with the fourth quarter of 2017. Room count grew 2% year-over-year, excluding our 2018 acquisitions and divestitures. The Company’s development pipeline grew to over 1,400 hotels and approximately 180,000 rooms, a 21% year-over-year room increase, including approximately 25,000 La Quinta pipeline rooms and the removal of 2,000 Knights Inn pipeline rooms. The Company also increased its pipeline sequentially by 2% compared to the third quarter, including 3% domestic growth and 1% international growth. Approximately 54% of the Company’s development pipeline is international and 73% is new construction.
Fourth Quarter 2018 Business Segment Information
The following discussion of fourth quarter operating results focuses on revenue and adjusted EBITDA for each of our segments.
Hotel Franchising
Revenues increased 37% compared to fourth quarter 2017, including $64 million of incremental revenues from La Quinta. Excluding the impact from 2018 acquisitions and divestitures, revenues increased 8%, primarily due to $13 million of higher license and other fees. Adjusted EBITDA grew 51% to $122 million, including approximately $30 million of incremental adjusted EBITDA from the acquisition of La Quinta. In constant currency and excluding the impact from 2018 acquisitions and divestitures, adjusted EBITDA grew 16%, reflecting the growth in revenues.
Hotel Management
Revenues increased $132 million compared to the prior-year period, reflecting $134 million of incremental revenues from La Quinta (including $124 million of cost-reimbursement revenues). Excluding the impact from the acquisition of La Quinta, revenues declined $2 million. Adjusted EBITDA increased $12 million compared to the prior-year quarter, reflecting $7 million of adjusted EBITDA from La Quinta and a decline in the unfavorable impact from the 2017 hurricanes on our owned hotels.
Other Items
Share Repurchases – The Company repurchased approximately 1.25 million shares of its common stock for $60 million in the fourth quarter. In the seven months after the Company’s May 2018 spin-off, the Company repurchased 2.3 million shares of stock, or 2% of shares outstanding, at a cost of $119 million. At year-end, the Company had 98.1 million shares outstanding.
Dividend Increase – The Company’s Board of Directors authorized a 16% increase in the quarterly cash dividend to 29 cents from 25 cents per share, beginning with the dividend that is expected to be declared in the first quarter of 2019.
Reacquisition of Master License Rights for Days Inn in China – The Company recently announced that it has reacquired the exclusive direct franchising rights for its Days Inn brand in China. The Days Inn system in China consists of more than 70 hotels encompassing more than 12,500 rooms. The near-term earnings contribution from this transaction is not expected to be material, but the Company now owns the exclusive rights to directly franchise and grow the Days Inn brand in China.
Outlook
The Company provided the following outlook for full-year 2019:
Revenues of $2.11 billion to $2.16 billion, an increase of 13% to 16%.
Adjusted net income of $301 million to $313 million.
Adjusted EBITDA of $605 million to $620 million, a year-over-year increase of 19% to 22%, as discussed below.
Adjusted diluted EPS of $3.05 to $3.17, based on an adjusted diluted share count of 98.7 million, which excludes future share repurchases.
Rooms growth of 2% to 4%.
Organic RevPAR growth of 1% to 3% in constant currency.
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 an outlook for net income, EBITDA 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 Wednesday, February 13, 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 February 13, 2019. A telephone replay will be available for approximately ten days beginning at noon ET on February 13, 2019 at 800 283-8486.
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 810,000 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 approximately 61 million enrolled members the opportunity to redeem points at thousands of hotels, vacation club resorts and vacation rental properties 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” 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 the Company’s revenues, earnings, cash flow, dividends and other financial and operating measures.
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 our spin-off as a newly independent company and risks related to our ability to obtain financing as well as the risks described in the section titled “Risk Factors” in Wyndham Hotels’ Registration Statement on Form 10 and in Wyndham Hotels’ other filings with the Securities and Exchange Commission. Except as required by law, Wyndham Hotels undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, subsequent events or otherwise.
PARSIPPANY, N.J., Jan. 14, 2019 – Wyndham Hotels & Resorts (NYSE: WH) announced today that it will report fourth quarter and full-year 2018 results on Wednesday, February 13, 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 February 13, 2019. A telephone replay will be available for approximately ten days beginning at noon ET on February 13, 2019 at 800 283-8486.
ABOUT WYNDHAM HOTELS & RESORTS
Wyndham Hotels & Resorts (NYSE: WH) is the world’s largest hotel franchising company, with more than 9,000 hotels across more than 80 countries on six continents. Through its network of over 798,000 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 59 million enrolled members the opportunity to redeem points at thousands of hotels, condominiums and holiday homes globally. For more information, visit www.wyndhamhotels.com.
“Confidence is on the rise at Wyndham Hotels & Resorts – not just among the executive team, but with franchisees who feel pretty good about its direction.” Read Full Story
Additions expand fast-growing soft brand to five countries and more than 100 locations;
Canadian roster includes five open hotels and resorts and seven recently signed deals across six provinces
Georgian Bay Hotel, Trademark Collection by Wyndham, is one of the newest additions to Trademark's growing Canadian footprint.Click to Download
PARSIPPANY, N.J., November 27, 2018 – Since launching less than 18 months ago as Wyndham Hotels & Resorts’ (NYSE:WH) first soft-brand, Trademark Collection® by Wyndham is continuing its rapid growth around the world and raising its flag in Canada with a dozen recently signed hotels and resorts spanning the country. These additions – five of which have opened doors in British Columbia and Ontario, and another seven set to open within the next year in Nova Scotia, New Brunswick, Alberta, and Saskatchewan – bolster the brand’s footprint on both sides of the Atlantic with the Trademark name now adorning more than 100 hotels in North America and Europe.
Launched in 2017, Trademark is the first soft-brand geared to three- and four-star hotel owners passionate about upholding their hotels’ independent spirit and designed for everyday travelers seeking distinctive, attainable accommodations in sought-after destinations. Today, travelers can tap global, award-winning Trademark experiences like The INFINITY Hotel & Conference Center in Munich, Germany, and the HYPERION Hotel Basel in Basel, Switzerland, as well as notable American locations like the Galt House Hotel in Louisville, Ky., Ravel Hotel in Long Island City, N.Y., and the Zermatt Utah Resort & Spa in Midway, Utah.
“This global momentum is a testament to Trademark’s mounting appeal as one of the most compelling soft-branded offerings for independent hoteliers across the globe,” said Greg Giordano, vice president, brand operations, Trademark Collection by Wyndham. “These recent landmark additions, located in some of Canada’s most coveted travel spots, underscore what it means to be a Trademark hotel—unmatched character, charm, and individuality. These hotels are now backed by the global distribution power of a leading hospitality name in Wyndham, and a team passionate about driving more travelers through entrepreneurial hoteliers’ doors every day.”
Planting Roots in the Great White North
Trademark’s Canadian additions widen the brand’s presence in North America, joining nearly 50 hotels across the U.S. The first locations flying the Trademark flag in Canada include:
Georgian Bay Hotel & Conference Centre, Trademark Collection by Wyndham, in Collingwood, Ontario:Located in one of the country’s most spectacular natural landscapes, the 94-room Georgian Bay Hotel & Conference Centre gives guests easy access to year-round outdoor activities, up-and-coming wineries, trendy boutiques and galleries, and award-winning dining in the heart of Collingwood, just 90 minutes north of Toronto Pearson International Airport. Recent renovations have transformed the hotel by infusing modern design, comfort, and enhanced functionality into its lobby, restaurant, on-site spa, indoor pool, standard guest rooms and nearly 9,400 square feet of meeting and event space, which can accommodate up to 400 guests. The hotel also offers customized leisure, event, and corporate packages.
The Plaza Hotel, Trademark Collection by Wyndham, in Kamloops, British Columbia: Built in 1928, the 67-room Plaza Hotel in downtown Kamloops balances modern decor and conveniences with historic British Columbian charm. The renovated hotel is conveniently located just steps from the city’s shops and restaurants, and close to popular attractions like Riverside Park and Exhibition Park. Complimentary hotel amenities and services include daily breakfast, wireless internet access, and access to nearby fitness and wellness centers.
Further propelling the brand’s momentum in Canada are two recently signed franchise agreements bringing seven Trademark hotels to four additional Canadian provinces. Wyndham recently executed a deal with Advanced Lodging, Inc., for three highly rated hotels in Eastern Canada scheduled to open under the Trademark brand by the end of the year: Chateau Bedford in Halifax, Nova Scotia; Chateau Moncton in Moncton, New Brunswick; and Chateau Saint John in Saint John, New Brunswick, located just two kilometers (a little over one mile) from Wyndham’s Canadian-based contact center. In Western Canada, another four Trademark locations will open their doors in 2019 in Alberta and Saskatchewan through a franchise agreement with Royal Hotel Group.
All Trademark hotels participate in Wyndham Rewards®, the simple-to-use, revolutionary loyalty program from Wyndham Hotels & Resorts. Named a best hotel rewards program for the past three consecutive years by U.S. News and World Report, Wyndham Rewards offers members a generous points-earning structure along with a flat, free night redemption rate—the first of its kind for a major rewards program. Learn more at www.wyndhamrewards.com.
ABOUT TRADEMARK COLLECTION BY WYNDHAM Each of Trademark Collection by Wyndham’s upper-midscale-and-above hotels around the world—from Germany and Switzerland to New York and Florida—boast three common attributes: character, charm, and individuality. Launched in 2017, Trademark is the first soft-brand geared to three- and four-star hotel owners passionate about upholding their hotels’ independent spirit and designed for everyday travelers seeking distinctive, attainable accommodations in sought-after destinations. For more information, visit www.wyndhamhotels.com/trademark.
ABOUT WYNDHAM HOTELS & RESORTS
Wyndham Hotels & Resorts (NYSE: WH) is the world’s largest hotel franchising company, with more than 9,000 hotels across more than 80 countries on six continents. Through its network of over 798,000 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 59 million enrolled members the opportunity to redeem points at thousands of hotels, condominiums and holiday homes globally. For more information, visit www.wyndhamhotels.com.
Signature limited service mid-scale brand gets face-lift complete with new design, new brand identity and new logo
The reimagined common area at Ramada Encore by WyndhamClick to Download
LONDON, UNITED KINGDOM, 20 November 2018 – Wyndham Hotels & Resorts, the world’s largest hotel franchisor and leading provider of hotel management services, with more than 9,000 hotels and 20 iconic hotel brands, today unveiled an exciting new direction for the Ramada Encore by Wyndham brand globally. Recognising that today’s traveller has more choice than ever before, at the heart of this new identity is a brand promise to be “Refreshingly Different”, which is underpinned by the brand’s core attributes of being fresh, approachable and vibrant. This new identity includes a redesigned and reimagined logo, created by London-based marketing agency Octopus Group, and prototype designs for guest rooms and common spaces designed by hospitality architecture firm Harrison.
Ramada Encore by Wyndham is a portfolio of 54 hotels in 20 countries around the world. The brand was created in the late 1990s as a limited service midscale hotel brand designed for business and leisure travellers who were looking for great value in a simple and smart hotel. At the time of its launch, the brand introduced revolutionary new concepts, including guest rooms with all wood flooring and an open plan, multi-purpose common area that serves as a reception, lobby, casual dining and networking space.
The newly redesigned Ramada Encore by Wyndham logo.
Core to the new creative identity for the brand is a logo re-design, aimed at modernising the visual representation of the brand and appealing to a new generation of traveller. The multi-coloured “E” mark was designed to reflect continual movement through the rotation of the letter, symbolising “to return” – the definition of the word encore. In addition, the brand has received an all new colour palette, which reflects its vibrancy, energy and approachability.
Beyond the visual identity and logo, new prototype designs for public areas and guestrooms are also being introduced. These evoke a spirit of the modern traveller, with well-designed accommodation, fused with completely reimagined multi-functional common areas where guests can eat, drink, work and connect. On arrival they are welcomed via a deconstructed bar, which breaks down the normal relationship between a lobby, reception and restaurant, and allows for the space to be used in different ways throughout the day. Different seating options such as multi-tiered benches and semi-private booths will offer optimal spaces for socialising or quiet reflection, and technology will streamline the arrivals process and allow guests to get on with their stay.
“Whether it’s a business trip or a weekend break, we know that for travellers every minute counts. That’s why we wanted the brand identity for Ramada Encore to reflect its position as a hotel for guests on the go,” said Lisa Checchio, Chief Marketing Officer for Wyndham Hotels & Resorts. “Ramada Encore is a place where travellers can relax, refresh and connect – both online and offline. Our innovative common spaces and personalised touches demonstrate that we are thinking of what’s next, so they don’t have to.”
Ramada Encore by Wyndham hotels around the world participate in Wyndham Rewards®, the simple-to-use, revolutionary loyalty programme that offers over 59 million members a generous points earning structure along with a flat, free-night redemption rate – the first of its kind for a major hotel rewards programme. For more information, or to join, visit: www.wyndhamrewards.com.
ABOUT WYNDHAM HOTELS & RESORTS
Wyndham Hotels & Resorts (NYSE: WH) is the world’s largest hotel franchising company, with more than 9,000 hotels across more than 80 countries on six continents. Through its network of over 798,000 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 59 million enrolled members the opportunity to redeem points at thousands of hotels, condominiums and holiday homes globally. For more information, visit www.wyndhamhotels.com.
Steady flow of new construction openings in U.S. boosts brand’s footprint in first full quarter under Wyndham Hotels & Resorts
The brand new La Quinta Inn & Suites Suites Opelika-Auburn in Opelika, Ala., was one of seven new La Quinta by Wyndham hotels to open in Q3 2018.Click to Download
PARSIPPANY, N.J.(Nov. 13, 2018) – Wyndham Hotels & Resorts, the world’s largest hotel franchisor with more than 9,000 hotels and 20 iconic brands, bolstered its leading network of midscale offerings in the third quarter of 2018 and strengthened the presence of its La Quinta by Wyndham brand with the opening of seven hotels across the U.S.
The latest La Quinta additions in South Jordan and Kanab, Utah; Opelika and Tuscaloosa, Ala.; Aberdeen, Md.; Duncanville, Texas; and Columbus, Miss., bring the brand’s growing U.S. footprint to nearly 900 hotels. Six of the seven are newly built destinations, signifying Wyndham’s strategic efforts to drive hotel consistency and quality through new-construction growth, as well as indicating continued keen interest among hotel owners to add new La Quinta locations to their portfolios.
La Quinta’s roster of openings in its first full quarter since being acquired by Wyndham earlier this year demonstrates the Company’s steadfast commitment to expanding its newest flag in key markets, largely through new construction. Further propelling the brand’s growth, Wyndham executed 10 La Quinta franchise agreements between July 1 and September 30, 2018, nine of which were new construction deals. As of September 30, 2018, 90 percent of the 260 hotels in the brand’s pipeline were new construction.
“Hotel developers choose La Quinta time and time again because of the brand’s long-standing reputation for delivering quality, dependability, and great guest experiences,” said Rajiv Trivedi, president, La Quinta at Wyndham Hotels & Resorts. “These recent additions represent the best of what La Quinta has to offer, and our robust new-construction pipeline is testament to the brand’s tenacious growth potential. With Wyndham’s scale and distribution we’ll continue partnering with passionate owners to raise more brand flags in high-demand areas.”
Opening Doors in the U.S.
The six newly built hotels that joined La Quinta in the third quarter are:
La Quinta Inn & Suites Opelika-Auburn in Opelika, Ala.;
La Quinta Inn & Suites Tuscaloosa-McFarland in Tuscaloosa, Ala.;
La Quinta Inn & Suites Aberdeen APG in Aberdeen, Md.;
La Quinta Inn & Suites Dallas-Duncanville in Duncanville, Texas;
La Quinta Inn & Suites South Jordan in South Jordan, Utah; and
La Quinta Inn & Suites Kanab in Kanab, Utah.
The seventh addition, La Quinta Inn & Suites Columbus in Columbus, Miss., underwent a complete renovation to transform all guest rooms and public spaces, infusing a fresh, modern look while incorporating the enhanced amenities guests have come to expect from the brand.
Each of the new hotels reflects La Quinta’s guest-inspired, owner-friendly Del Sol prototype. The design combines clean geometric lines, bold colors, and varying textures with iconic brand elements and guest-centric offerings to enhance the experience while maximizing revenue-generating space for hotel developers. Thirty-five Del Sol hotels are currently under construction in the U.S., with 40 already open and operating.
Like each of its more than 910 upper-midscale and midscale hotels in North and Latin America, La Quinta’s newest additions offer the brand’s signature pillow-top Bright Morning Bed®, free Bright Side Breakfast®, and spacious in-room work areas. Additional features include the Great Room, a comfortable and spacious social gathering space; a state-of-the-art fitness center; free high-speed Wi-Fi; and meeting space.
Driving Development
La Quinta’s third-quarter openings pace continues a year of solid development momentum. So far in 2018, the brand has surpassed the 900-hotel mark and celebrated 19 openings – nearly 70 percent of which were new construction – including global debuts in Santiago, Chile, and León, Mexico. These brand new hotels in Latin America are conveniently located near Santiago’s international airport and in the heart of León, catering to travelers looking for comfortable, dependable lodging, and top-rated service while visiting these bustling cities.
“The growing global middle class, which is expected to grow by 160 million people each year for the next five years, is traveling more and seeking out value-driven experiences, steering the need for quality accommodations at affordable price points around the world,” said Bob Loewen, executive vice president and chief operating officer at Wyndham Hotels & Resorts. “Such demand puts a trusted, fast-growing select-service brand like La Quinta in an opportune position to branch out in sought-after markets like South America and debut in new ones like Europe, where we’re aiming to introduce the brand by the end of the year.”
Wyndham’s May 2018 acquisition of La Quinta strengthened the Company’s position as a midscale lodging leader with approximately 37 percent of branded rooms in the segment in the U.S.
ABOUT LA QUINTA BY WYNDHAM With more than 910 upper-midscale and midscale destinations in North and Latin America, La Quinta is a bright spot in every travelers’ journey. Whether traveling for business or leisure, guests can rest assured, relax, and recharge thanks to the brand’s Bright Morning Bed®, free Bright Side Breakfast®, spacious in-room work areas, and free high-speed internet. For more information, visit www.lq.com. Like and follow La Quinta on Facebook, Twitter, and YouTube.
ABOUT WYNDHAM HOTELS & RESORTS
Wyndham Hotels & Resorts (NYSE: WH) is the world’s largest hotel franchising company, with more than 9,000 hotels across more than 80 countries on six continents. Through its network of over 798,000 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 59 million enrolled members the opportunity to redeem points at thousands of hotels, condominiums and holiday homes globally. For more information, visit www.wyndhamhotels.com.
Wyndham Rewards®, the world’s most generous guest rewards program spanning more than 25,000 hotels, vacation club resorts and vacation rentals globally, has been named this year’s best hotel loyalty program in the USA TODAY 10Best Readers’ Choice Awards. The award marks a total of nearly 70 accolades for the program in a little more than three years.
Wyndham Rewards was nominated by a panel of industry experts, including editors from USA TODAY and 10Best.com, as well as other expert contributors and won the competition after USA TODAY readers had four weeks to vote online daily for their favorite program. Wyndham Rewards has received similar accolades for its co-branded credit card in recent years, the Wyndham Rewards® Visa® Card, which was named Best Co-Brand Credit Card in both 2016 and 2017.
“This latest award is a testament to the work we’ve done creating a simple and generous guest rewards program that truly works for the everyday traveler,” said Eliot Hamlisch, vice president of worldwide loyalty and partnerships at Wyndham Hotels & Resorts. “We’re incredibly grateful to the more than 59 million enrolled Wyndham Rewards members who helped make this happen and remain committed now, more than ever, to our mission of making hotel travel possible for all.”
Centered on the notion that a great rewards program can be generous without being overly complicated, Wyndham Rewards is the only hotel rewards program to offer members a flat-redemption rate of just 15,000 points per room, per night at any of its redemption offerings around the world. Members earn a guaranteed 1,000 points with every qualified stay and, through four different member levels, can unlock additional perks, like late check-out and a preferred room, after as few as five nights.
Wyndham Rewards members can currently save 15% off or more, plus earn 100 Wyndham Rewards bonus points, when they book and pay for their stay at least seven days in advance at any participating Wyndham Rewards hotel. For full terms and conditions, or to book, visit www.wyndhamrewards.com.
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About Wyndham Rewards
Consistently named a best travel rewards program by U.S. News and World Report, Wyndham Rewards® is the world’s most generous loyalty program offering members a simple earning structure of a guaranteed 1,000 points for every qualified stay, along with a flat, free night redemption rate of just 15,000 points per room per night – the first of its kind for a major rewards program. Wyndham Rewards members can enjoy the benefits of the program at more than 8,000 Wyndham Hotels & Resorts (NYSE: WH) properties, as well as tens of thousands of vacation club resorts, affiliated resorts and vacation rentals worldwide in partnership with Wyndham Destinations (NYSE: WYND). Join for free today at www.wyndhamrewards.com. You’ve earned this.®
About Wyndham Hotels & Resorts Wyndham Hotels & Resorts (NYSE: WH) is the world’s largest hotel franchising company, with more than 9,000 hotels across more than 80 countries on six continents. Through its network of over 798,000 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 59 million enrolled members the opportunity to redeem points at thousands of hotels, condominiums and holiday homes globally. For more information, visit www.wyndhamhotels.com.
PARSIPPANY, N.J., October 30, 2018 – Wyndham Hotels & Resorts (NYSE: WH) today announced results for the three months ended September 30, 2018. Highlights include:
Revenues increased 74% compared with third quarter 2017, to $604 million.
Net income was $58 million for the third quarter; adjusted net income was $85 million, a 39% increase over the prior-year quarter.
Diluted earnings per share were $0.58 and adjusted diluted EPS were $0.85.
Further adjusted diluted EPS (calculated as if our spin-off and our acquisition and integration of La Quinta had occurred on January 1) were $0.93.
Adjusted EBITDA increased 34% compared with the prior-year quarter, to $166 million, and grew 7% in constant currency and excluding our 2018 acquisitions and divestitures.
Further adjusted EBITDA was $177 million, compared to our projection of $166 to $176 million.
Global RevPAR increased 9% year-over-year and 4% in constant currency and excluding our 2018 acquisitions and divestitures.
System-wide rooms grew 13% year-over-year, and 3% excluding our 2018 acquisitions and divestitures.
“We delivered strong results in the third quarter, highlighted by organic and acquisition-related growth in both global RevPAR and our system size,” said Geoffrey A. Ballotti, chief executive officer. “In addition, we made significant progress in the integration of the La Quinta brand, continued to strengthen the quality of our hotel network, and began to see the favorable impact of the ‘By Wyndham’ endorsement of our global brands.”
Revenues were $604 million, compared with $347 million in the third quarter of 2017. Results reflect $238 million of incremental revenues from La Quinta. Excluding the impact from the acquisition of La Quinta, revenues increased 5% primarily due to 4% higher royalties and franchise fees, as well as higher license and other fees.
Net income was $58 million, or $0.58 per diluted share, unchanged from the third quarter of 2017. Third quarter 2018 results include separation-related and transaction-related costs.
Adjusted net income was $85 million, or $0.85 per diluted share, compared with $61 million, or $0.61 per diluted share, in the third quarter of 2017. Third quarter earnings benefited from our revenue growth and a lower effective tax rate, partially offset by higher interest and depreciation and amortization expense. Full reconciliations of GAAP results to our non-GAAP adjusted measures for all reported periods appear in the tables to this press release.
Third quarter adjusted EBITDA was $166 million, compared with $124 million in the third quarter of 2017. Results reflect approximately $39 million of adjusted EBITDA from La Quinta and exceeded the Company’s projection of $155 million to $163 million of adjusted EBITDA. Excluding the impact from 2018 acquisitions and divestitures, adjusted EBITDA increased 7% in constant currency, primarily reflecting the growth in revenues, partially offset by $7 million due to the timing of marketing expenses.
The Company estimates that, if it had fully integrated La Quinta prior to July, its further adjusted EBITDA in the third quarter would have been $177 million, and its further adjusted diluted earnings per share would have been $0.93. See Tables 5 and 6 for additional information.
As of September 30, 2018, the Company’s hotel system consisted of more than 9,000 properties and over 798,000 rooms, a 13% increase compared with the third quarter of 2017. Room count is up 3% year-over-year excluding our 2018 acquisitions and divestitures, and is up 2% year-over-year further excluding the October 2017 acquisition of AmericInn. Our development pipeline increased to nearly 1,400 hotels and over 176,000 rooms, a 20% year-over-year room increase, including over 24,000 La Quinta pipeline rooms and the removal of 2,000 Knights Inn pipeline rooms. Approximately 54% of our pipeline is international and 71% is new construction.
Business Segment Discussion
The following discussion of third quarter operating results focuses on revenue and adjusted EBITDA for each of our segments. The Company’s calculation of adjusted EBITDA now excludes the currency effects of highly inflationary countries.
Hotel Franchising
Revenues increased 35% compared to third quarter 2017, including $72 million of incremental revenues from La Quinta. Excluding the impact of the acquisition of La Quinta, revenues increased 7% primarily due to 6% higher royalties and franchise fees and $16 million of higher license and other fees. The increase in license and other fees primarily represented incremental license fees from Wyndham Destinations. Adjusted EBITDA grew 35% to $178 million, including $35 million of incremental adjusted EBITDA from the acquisition of La Quinta. Excluding the impact from La Quinta, adjusted EBITDA grew 8%, reflecting the growth in revenues, partially offset by the timing of marketing expenses.
Hotel Management
Revenues increased $163 million compared to the prior-year period, reflecting $166 million of incremental revenues from La Quinta (including $154 million of cost-reimbursement revenues). Excluding the impact from the acquisition of La Quinta, revenues declined $3 million. Adjusted EBITDA increased $4 million compared to the prior-year quarter, reflecting $4 million of adjusted EBITDA from La Quinta.
Other Items
Share Repurchases – The Company repurchased approximately 778,000 shares of its common stock for $44 million in the third quarter.
La Quinta Integration – As of September 30, 2018, as planned, the Company has completed substantially all of its planned integration actions other than in the areas of information technology and loyalty, and has terminated approximately 60% of the employees ultimately expected to leave the Company in conjunction with the integration.
Outlook
The Company provided the following outlook, which assumes that its spin-off and the acquisition and integration of La Quinta had all been completed on January 1, 2018, for full-year 2018:
Further adjusted revenues of $2.06 billion to $2.11 billion.
Further adjusted net income of $300 million to $315 million.
Further adjusted EBITDA of $594 million to $605 million.
Further adjusted diluted EPS of $2.99 to $3.13, based on a further adjusted diluted share count of 100.3 million, which excludes future share repurchases.
Rooms growth of 11% to 13%, or 2% to 4% excluding our 2018 acquisitions and divestitures.
Constant currency RevPAR growth of 7% to 8%, or approximately 3% excluding our 2018 acquisitions and divestitures.
More detailed projections are available in Table 6 of this press release. In determining further adjusted metrics, the Company excludes certain items which are otherwise included in determining the comparable GAAP financial measures, as described in Tables 5 and 6 of this press release. The Company is providing an outlook for net income, EBITDA and EPS only on a non-GAAP basis because it is unable to predict with reasonable certainty the occurrence or amount of these adjustments or other 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 Tuesday, October 30, 2018 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 30, 2018. A telephone replay will be available for approximately ten days beginning at noon ET on October 30, 2018 at 800-695-1624.
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 more than 9,000 hotels across more than 80 countries on six continents. Through its network of over 798,000 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 59 million enrolled members the opportunity to redeem points at thousands of hotels, condominiums and holiday homes 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” 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 the Company’s revenues, earnings, cash flow and other financial and operating measures.
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 the financial and credit markets, the economic environment for the hospitality industry, the impact of war, terrorist activity or political strife, operating risks associated with the hotel business, risks related to our spin-off as a newly independent company, uncertainties related to our ability to obtain financing or the terms of such financing, unanticipated developments related to the impact of the spin-off on our relationships with our customers, suppliers, employees and others with whom we have relationships, unanticipated developments resulting from possible disruption to our operations resulting from the spinoff, risks related to our acquisition of the La Quinta hotel franchising and hotel management business, including our ability to achieve expected benefits associated with the transaction, as well as those other risks and uncertainties described in the section titled “Risk Factors” and elsewhere in Wyndham Hotels’ Registration Statement on Form 10, in this press release and in Wyndham Hotels’ other filings with the Securities and Exchange Commission. Except as required by law, Wyndham Hotels undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, subsequent events or otherwise.
Global hospitality leader achieves Gold LEED recertification from U.S. Green Building Council, top ENERGYSTAR score, and platinum-level designation as a New Jersey Smart Workplace
PARSIPPANY, N.J. (October 25, 2018) –Wyndham Hotels & Resorts (NYSE: WH), the world’s largest hotel franchising company, has received a Gold recertification from the U.S. Green Building Council’s Leadership in Energy and Environmental Design (LEED) program for the company’s headquarters in Parsippany, N.J. The recertification designates Wyndham Hotels & Resorts corporate campus as one of the highest-performing green buildings in the country, reflecting the Company’s commitment to minimizing its environmental footprint.
LEED is a third-party certification program and premier benchmark for the design, construction and operation of green buildings. It uses a point system to determine the environmental merits of a building, with four levels of certification, depending on how many points the project has earned: certified, silver, gold or platinum. The building received its first Silver Certification for Corporate Interiors in 2010, a second Silver certification for Existing Buildings: Operations and Maintenance (EBOM) in 2013, and this recent Gold EBOM recertification, which was earned through water reduction, green cleaning and indoor air quality management.
“At Wyndham Hotels & Resorts, we’re building on our legacy of developing eco-friendly initiatives across our operations,” said Mary Falvey, chief administrative officer, Wyndham Hotels & Resorts. “We remain committed to implementing innovative environmental practices, not only for our hotel portfolio, but also for our corporate offices, as this effort reduces costs, fosters the efficient use of resources, and supports profitability.”
Wyndham Hotels & Resorts achieved a Gold LEED recertification through site related credits, such as:
Open habitat protection – The building has native vegetation covering a minimum of 25% of the total land area. These natural areas provide a habitat and promote biodiversity.
Storm water management – The Company implemented a storm water management plan to ensure runoff is effectively retained onsite from at least 15% of all precipitation for an average weather year, while also accounting for the potential of above-average rain totals.
Water efficient landscaping – The building eliminated irrigation on mature plant life and utilized natural and adaptive plantings on site to further minimize water usage.
Additionally, over the past five years, the Wyndham Hotels & Resorts’ headquarters building has improved its score for energy efficiency through ENERGY STAR. Supported by the U.S. Environmental Protection Agency, buildings that earn the ENERGY STAR use, on average, 35 percent less energy than their peers.
To help further reduce its carbon footprint at its headquarters in New Jersey, the Company provides sustainable transportation options for employees, earning Wyndham Hotels & Resorts the designation as a 2018 Platinum-level New Jersey Smart Workplace (NJSW) by TransOptions for the seventh year in a row. The NJSW program recognizes employers who have made great strides in providing commuting alternatives, and the company’s perks include premier parking spots for employees who carpool and drive hybrid vehicles, car charging stations for hybrid or electric vehicles, mass transit options, including a free shuttle to/from the local train station.
“The greening efforts at our headquarters building positively affect our people, who are our Company’s best asset,” said Bill Skrzat, chief human resources services officer. “By reducing our carbon footprint and providing commuting alternatives, we are supporting our team members’ best work, which in turn allows them to take the greatest care of our guests and partners.”
About Wyndham Hotels & Resorts
Wyndham Hotels & Resorts (NYSE: WH) is the world’s largest hotel franchising company, with nearly 9,000 hotels across more than 80 countries on six continents. Through its network of more than 792,000 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 approximately 58 million enrolled members the opportunity to redeem points at thousands of hotels, condominiums and holiday homes globally. For more information, visit www.wyndhamhotels.com.
Latest addition in Yunnan Province bolsters Wyndham Hotels & Resorts’ position as largest U.S.-based hotel company in China
Wyndham Hotels & Resorts marks its landmark 100th Ramada® by Wyndham location in the country with the opening of the 194-room Ramada Plaza Fuxian Lake.Click to Download
PARSIPPANY, N.J.(Oct. 18, 2018) – Expanding its established presence of over 1,400 hotels in China, Wyndham Hotels & Resorts, the world’s largest hotel franchisor with nearly 9,000 hotels and 20 iconic brands and the largest U.S.-based hotel company in China, recently marked its landmark 100th Ramada® by Wyndham location in the country with the opening of the 194-room Ramada Plaza Fuxian Lake.
Wyndham, which acquired the international rights to the Ramada flag in 2004 with just 14 hotels in China, has steadily grown the brand’s presence in key business and leisure travel markets there – including Shanghai, Beijing, Xiamen, and Chongqing, among others – offering a globally-recognized and trusted hotel name to the country’s ever-growing base of travelers. Today, the brand’s footprint consists of over 850 locations in more than 60 countries around the world.
“The increasing travel habits and spending among China’s burgeoning middle class – which is expected to grow to more than 500 million people by 2022 – continues to drive the need for a range of quality, value-driven accommodations throughout the country, from urban to rural destinations,” said Bob Loewen, executive vice president and chief operating officer, Wyndham Hotels & Resorts.
“Ramada has delivered sought-after lodging options and high-caliber service around the world for six-plus decades. Reaching this milestone of 100 hotels in China signifies the confidence and trust hotel owners and guests have in the internationally renowned brand, and highlights the vast opportunities to continue expanding Ramada even further in the region,” he continued.
Located in Yunnan Province’s Changjiang County, the newly constructed Ramada Plaza Fuxian Lake is situated within Southwest China’s mountain landscape close to the Lucong Scenic Area, Maotianshan Mountain National Geo-Park, and Kunming International Airport. The tranquility of nearby Fuxian Lake – a popular attraction located just five kilometers away – inspired the hotel’s relaxing design elements, like its wavy exterior and neutral color palettes.
Services and amenities at China’s newest Ramada include two eateries, daily free breakfast offering traditional Sichuan and Yunnan cuisine, a heated indoor pool, a fitness center, and free Wi-Fi. The hotel’s 760 square meters of meeting and event space comprises five meeting rooms accommodating up to 600 guests.
Wyndham Hotels & Resorts currently has seven brands spanning all segments operating in China, including Ramada, Super 8® by Wyndham, Days Inn® by Wyndham, and its flagship Wyndham® chain. The Company debuted two of its brands in the country in the past year – the lifestyle TRYP by Wyndham flag and the award-winning midscale Wingate by Wyndham® name – with the openings of new hotels in Xian and Sanya.
As of September, 30, 2018, Wyndham had more than 90 Ramada hotels in its pipeline in China.
ABOUT RAMADA® BY WYNDHAM
With over 850 hotels in more than 60 countries, global travelers are bound to find Ramada® by Wyndham, one of the world’s most recognized hotel brands, wherever their travels take them. Guests choose Ramada to not only sample the world around them but for the brand’s passionate team members and full-service hospitality as well as functional meeting space, comfortable guest rooms, free Wi-Fi, and casual dining options. For more information visit www.ramada.com. Like and follow Ramada on Facebook and Twitter.
ABOUT WYNDHAM HOTELS & RESORTS
Wyndham Hotels & Resorts (NYSE: WH) is the world’s largest hotel franchising company, with nearly 9,000 hotels across more than 80 countries on six continents. Through its network of more than 792,000 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 approximately 58 million enrolled members the opportunity to redeem points at thousands of hotels, condominiums and holiday homes globally. For more information, visit www.wyndhamhotels.com.
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Revenues increased 35% compared to third quarter 2017, including $72 million of incremental revenues from La Quinta. Excluding the impact of the acquisition of La Quinta, revenues increased 7% primarily due to 6% higher royalties and franchise fees and $16 million of higher license and other fees. The increase in license and other fees primarily represented incremental license fees from Wyndham Destinations. Adjusted EBITDA grew 35% to $178 million, including $35 million of incremental adjusted EBITDA from the acquisition of La Quinta. Excluding the impact from La Quinta, adjusted EBITDA grew 8%, reflecting the growth in revenues, partially offset by the timing of marketing expenses.
Revenues increased $163 million compared to the prior-year period, reflecting $166 million of incremental revenues from La Quinta (including $154 million of cost-reimbursement revenues). Excluding the impact from the acquisition of La Quinta, revenues declined $3 million. Adjusted EBITDA increased $4 million compared to the prior-year quarter, reflecting $4 million of adjusted EBITDA from La Quinta.
