PARSIPPANY, N.J., September 14, 2021 – Wyndham Hotels & Resorts has been named among the Best Places to Work in New Jersey by NJ Biz Magazine, for the second year in a row. This prestigious annual list recognizes the top places of employment in New Jersey that benefit the state’s economy, its workforce and its businesses.
“Our core values of integrity, accountability, inclusivity, caring and fun, as well as our Count on Me service culture are at the heart of what drives our growth and inspires the memorable experiences we create for our team members, owners and guests,” said Monica Melancon, chief human resource officer, Wyndham Hotels & Resorts. “As a result of this dedicated commitment to creating a distinctive work environment for our team members, we attract the best people, which enriches our organization and leads to our success.”
With approximately 9,000 hotels across nearly 95 countries on six continents, Wyndham Hotels & Resorts is the world’s largest hotel franchising company by the number of properties. Wyndham is committed to operating its business in a way that is socially, ethically and environmentally responsible. Through its network of over 798,000 rooms appealing to the everyday traveler, Wyndham commands a leading presence in the economy and midscale segments of the lodging industry. Wyndham Hotels & Resorts is represented in the Garden State with its global headquarters in Parsippany as well as a portfolio of company-managed and independently owned and operated franchised hotels.
Team members are provided paid time-off each year to volunteer in their communities. The Company also offers career development opportunities, including continuing education reimbursement, professional development courses and a wide range of affinity business groups. In addition to comprehensive benefits, there are special recognition programs, regular virtual learning hours and celebrations, team member discounts and flexible work arrangements. The Company also provides low and no-cost health and wellness programs, including in its Parsippany offices, access to a full-time nurse practitioner.
In response to the COVID-19 pandemic and the current work-from-home environment, Wyndham Hotels & Resorts introduced year-round “Summer Fridays,” encouraging team members to stop working at 1 p.m. on Fridays and enjoy a long weekend. Additionally, the Company introduced monthly Team Member Appreciation Days, closing the virtual office for a long weekend once a month, beginning at 3 p.m. on a Thursday, through the weekend.
Additional amenities offered at the Parsippany Campus include an on-site fitness center; an expansive, serene courtyard for team members to enjoy lunch; and various outdoor events, a credit union, coffee barista and cafeteria. Additionally, post-pandemic the company expects to return to a sprawling walking trail that surrounds the campus to promote wellness, and features a community garden, created and managed by team member volunteers who harvest fresh vegetables for donation to local food pantries.
Produced by NJBIZ and managed by Best Companies Group (BCG), the survey included evaluating each nominated company’s workplace policies, practices, philosophy, systems and demographics in addition to an associate survey to measure associate experience. The combined scores determined the top companies and the final ranking.
About Wyndham Hotels & Resorts Wyndham Hotels & Resorts (NYSE: WH) is the world’s largest hotel franchising company by the number of properties, with approximately 9,000 hotels across nearly 95 countries on six continents. Through its network of approximately 798,000 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 21 hotel brands, including Super 8®, Days Inn®, Ramada®, Microtel®, La Quinta®, Baymont®, Wingate®, AmericInn®, Hawthorn Suites®, Trademark Collection® and Wyndham®. Wyndham Hotels & Resorts is also a leading provider of hotel management services. The Company’s award-winning Wyndham Rewards® loyalty program offers 89 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.
Program recognized for its top-tier destinations, robust award availability and attainable rewards
PARSIPPANY, N.J. (August 31, 2021) – Wyndham Rewards®, the world’s most generous rewards program spanning more than 50,000 hotels, vacation club resorts and vacation rentals, today announced it has been named the number one hotel loyalty program by U.S. News & World Report’s annual ranking of the Best Travel Rewards Programs.
The ranking marks the sixth consecutive year that U.S News has named Wyndham Rewards to one of its top spots and adds to a growing list of accolades secured by the program. Earlier this year, Wallethub named Wyndham Rewards its Best Hotel Rewards Program for a sixth consecutive year, highlighting the program’s advantage of giving travelers back more in rewards for their spend than other comparable programs. In addition, for the past three years, USA TODAY readers have named Wyndham Rewards their number one hotel rewards program as part of the USA Today 10Best Readers’ Choice Awards.
“Wyndham Rewards is about championing the everyday traveler and fulfilling Wyndham’s mission of making hotel travel possible for all,” said Lisa Checchio, chief marketing officer, Wyndham Hotels & Resorts. “We put our 89 million enrolled members at the heart of all that we do and are proud to have a program that continues to deliver more value, flexibility and redemption options than any other program in the travel industry. We’re thrilled to see Wyndham Rewards recognized in this way and are incredibly grateful to our hotel owners and strategic travel partners, without whom, none of this would be possible.”
U.S. News evaluated 15 of the most prominent hotel loyalty programs offering the most rewarding perks for everyday travelers. The publication selected the top rewards programs for everyday travelers using a methodology weighing five components: network size, property diversity, geographic coverage, added benefits and ease of earning a free night. This year, U.S. News also considered reward program flexibility for members in response to the coronavirus pandemic.
Wyndham Rewards is the only hotel loyalty program to offer members a guaranteed 1,000 points with every qualified stay. Free nights start at just 7,500 points per night, while discounted nights start at 1,500 points plus some cash. The program’s Member Levels (status), which are among the most attainable in travel, allow members to unlock great benefits like a preferred room, late checkout and accelerated earning after as few as three nights this year.
About Wyndham Rewards
Named the number one hotel rewards program by U.S. News & World Report and readers of USA TODAY, Wyndham Rewards® is the world’s most generous rewards program with more than 50,000 hotels, vacation club resorts and vacation rentals worldwide. Designed for the everyday traveler, members earn a guaranteed 1,000 points with every qualified stay and may redeem points for a range of rewards, including free nights at approximately 9,000 hotels or tens of thousands of vacation club resorts and vacation rentals globally through affiliation with Wyndham Destinations and others. Wyndham Rewards has 89 million enrolled members around the globe. 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 by the number of properties, with approximately 9,000 hotels across nearly 95 countries on six continents. Through its network of approximately 798,000 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 21 hotel brands, including Super 8®, Days Inn®, Ramada®, Microtel®, La Quinta®, Baymont®, Wingate®, AmericInn®, Hawthorn Suites®, Trademark Collection® and Wyndham®. Wyndham Hotels & Resorts is also a leading provider of hotel management services. The Company’s award-winning Wyndham Rewards® loyalty program offers 89 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.
GREENSBORO, N.C. (August 10, 2021) – Wyndham Rewards®, the world’s most generous rewards program spanning more than 50,000 hotels, vacation club resorts and vacation rentals, returns to Sedgefield Country Club this week as proud title sponsor of the 82nd annual Wyndham Championship.
Regarded as one of the most fan-friendly stops on the PGA TOUR, this year’s tournament welcomes fans back to the Piedmont Triad for the first time since 2019. In celebration, Wyndham Rewards is making this year’s Championship even more rewarding, putting up to 100 million Wyndham Rewards points up for grabs and offering in-person attendees the chance to walk away with up to 15,000 Wyndham Rewards points each, enough for a weekend getaway at thousands of hotels coast to coast.
“Last year was a reminder for all of us of the important role that both travel and live events play in our everyday lives,” said Eliot Hamlisch, EVP of Loyalty and Wyndham Rewards program leader. “With that in mind, we couldn’t be more excited to be back with fans at Sedgefield. With fantastic food, incredible giveaways, live entertainment and of course, great championship golf, this year’s tournament is all about welcoming fans back and letting each attendee know—you’ve earned this.”
Welcome to Points Paradise Broadcasting once again on Golf Channel and CBS, this year’s Wyndham Championship will transport fans to a tropical, vacation-themed oasis. Signature course elements like Club Wyndham Beach and the tournament’s iconic sand sculpture are back and joined by fan favorite spots like Margaritaville at the Wyndham, the Wyndham Rewards Earner® Card Club, the USO Patriots Outpost and more.
New to the on-course fan experience this year is the Wyndham Rewards Points Paradise Pavilion. Thursday through Sunday, fans are invited to participate in a four-day interactive digital scavenger hunt that will have them searching course grounds for Wyndham Rewards branded QR codes. Using their mobile phones, they’ll scan each code they find, unlocking Wyndham Rewards points along the way. The more codes they scan, the more points they’ll unlock—up to a four-day total of 15,000 points. Kids accompanied by a parent or legal guardian are invited to play as well for a chance to win instant prizes.
At-home fans in the U.S. can also get in on the fun by participating in the tournament’s new watch and win experience, with a chance to earn up to a total of 3,000 Wyndham Rewards points over four days, enough for up to two go fast awards. Following each full day of tournament play, a Question of the Day centering on the tournament will be posted online at https://wynpointsparadise.com/trivia at approximately 4 p.m. ET. The first 5,000 at-home fans to log on and answer correctly, subject to verification, will earn 750 Wyndham Rewards points for that day. No purchase is necessary to enter or win.*
Millions of points will be available to claim each day for both of the above activations and fans must be members of Wyndham Rewards, which is free-to-join, to claim any earned rewards. Winners will be notified approximately 7-10 days post tournament and points must be claimed by October 31, 2021.
Two Leading Travel Companies, One Award-Winning Rewards Program The proud title sponsor of the Wyndham Championship since 2018, Wyndham Rewards is the blue thread that ties together the global portfolios of two of the world’s largest travel companies: Wyndham Hotels & Resorts, the world’s largest hotel franchising company and Wyndham Destinations, the world’s largest vacation ownership business, now part of Travel + Leisure Co.
Consistently recognized by readers of USA TODAY as the number one hotel rewards program, no matter where or how you travel, Wyndham Rewards helps make those travels more rewarding. Members earn a guaranteed 1,000 points with every qualified stay and can redeem free nights at tens of thousands of hotels, vacation club resorts and vacation rentals around the world or a host of other rewards like tours, activities, gas discounts, gift cards, shopping and more.
Added Hamlisch, “From weekend road trips to week-long getaways and everything in between, Wyndham Rewards makes it easy to visit the people and places you love. Plus, with tens of thousands of hotels, vacation club resorts and vacation rentals, wherever you want to go, chances are, there’s a Wyndham waiting to welcome you.”
Wyndham Championship Fore! Good Creating positive impact in the community is a hallmark of the Wyndham Championship, and Wyndham Championship Fore! Good—the tournament’s signature philanthropic platform—helps give back to worthy causes in central North Carolina and beyond.
This year, in support of Wyndham Championship Fore! Good, when a PGA TOUR golfer makes birdie or better on holes 15, 16 or 17 during the third and fourth rounds on Saturday and Sunday, Wyndham Rewards will donate $500 to one of the Championship’s signature charities via “Birdies Fore Backpacks.” In addition, Thursday through Sunday, should a PGA TOUR golfer make a hole-in-one on hole 16, Wyndham Rewards will donate an additional one million Wyndham Rewards points to the preferred Championship charity of the player’s choosing.
Through Birdies Fore Backpacks, Wyndham Rewards works with local organizations—Backpack Beginnings, Forsyth Backpacks, Out of the Garden Project and United Way of Greater High Point—to help feed children from low-income families around the Piedmont Triad region of North Carolina. Backpacks are packed with nutritionally-sound meals, which families take home every weekend. Just $5 can feed one child for a weekend while $150 can feed a child for a school year. Since its creation in 2014, the program has provided more than 590,000 meals to thousands of local families.
The Wyndham Championship opens to the public tomorrow, August 11 and runs through Sunday, August 15. Teachers, first responders and members of the military are invited to attend for free along with a guest. To learn more, or to purchase tickets, visit www.wyndhamchampionship.com.
About the Wyndham Championship
Contested annually on the Donald Ross-designed course at Sedgefield Country Club in Greensboro, N.C., the Wyndham Championship was founded in 1938 and is the sixth-oldest event on the PGA TOUR excluding the Majors. The tournament thanks title sponsor Wyndham Rewards and presenting sponsor Truist for their continued support. Additional tournament information is available at www.wyndhamchampionship.com and the tournament’s social media channels, including the Wyndham Championship Facebook page, Twitter and Instagram.
About Wyndham Rewards
Named the number one hotel rewards program by readers of USA TODAY, Wyndham Rewards® is the world’s most generous rewards program with more than 50,000 hotels, vacation club resorts and vacation rentals worldwide. Designed for the everyday traveler, members earn a guaranteed 1,000 points with every qualified stay and may redeem points for a range of rewards, including free nights at approximately 9,000 hotels or tens of thousands of vacation club resorts and vacation rentals globally through affiliation with Wyndham Destinations and others. Wyndham Rewards has 89 million enrolled members around the globe. 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 by the number of properties, with approximately 9,000 hotels across nearly 95 countries on six continents. Through its network of approximately 798,000 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 21 hotel brands, including Super 8®, Days Inn®, Ramada®, Microtel®, La Quinta®, Baymont®, Wingate®, AmericInn®, Hawthorn Suites®, Trademark Collection® and Wyndham®. Wyndham Hotels & Resorts is also a leading provider of hotel management services. The Company’s award-winning Wyndham Rewards® loyalty program offers 89 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.
About Wyndham Destinations Wyndham Destinations is the world’s largest vacation ownership business operating more than 245 vacation club resorts around the world that offer a contemporary take on the timeshare model. The brand portfolio – featuring Club Wyndham®, WorldMark® by Wyndham, Margaritaville Vacation Club® by Wyndham, and Shell Vacations Club – offers travelers the chance to own their vacation and explore places they’ve never visited before, year after year. More than 850,000 owners enjoy stays in a home away from home, featuring spacious suites with separate bedrooms, fully-equipped kitchens, living and dining areas, as well as resort-style amenities and services. Learn more at WyndhamDestinations.com.
*No purchase necessary to enter or win: Sweepstakes open to legal residents of the 50 United States and the District of Columbia who are at least 18 years of age (19 in Alabama and Nebraska, 21 in Mississippi) at time of entry. Sweepstakes commences at 4:00 PM ET on 8/12/21 and ends at 3:59:59 PM ET on 8/16/21. Subject to Official Rules at https://wynpointsparadise.com/trivia. Odds of winning depend on number of eligible entries received. All points must be claimed by 10/31/21. Sponsor: Wyndham Hotel Group, LLC, 22 Sylvan Way, Parsippany, NJ 07054. This Promotion is not offered or sponsored in any way by the Professional Golf Association, Inc. (“PGA”), PGA TOUR, Inc. or PGA TOUR Licensed Property, Inc. Void outside of the 50 United States and the District of Columbia and where prohibited by law.
PARSIPPANY, N.J. (August 4, 2021) – Wyndham Hotels & Resorts, the world’s largest hotel franchising company with approximately 9,000 hotels across nearly 95 countries, announced a new program, “Women Own the Room” designed to advance and empower female entrepreneurs who are interested in hotel ownership. Wyndham’s Women Own the Room program is intended to be a resource to help overcome common barriers women face in hotel development and to help them effectively open and run their hotels. The program is built on the pillars of:
Delivering comprehensive financial solutions
Offering personalized operational guidance and support
Establishing an inclusive community for networking and education
“As the hotel industry resets and recovers from one of the most difficult periods in its history, we all have a unique opportunity to help advance and champion diversity in hospitality to help our industry prosper. At Wyndham – where diversity, equity, and inclusion are key cornerstones of our culture – we recognize the chance to do our part by helping to open more doors for women in our industry,” said Chip Ohlsson, chief development officer, Wyndham Hotels & Resorts.
Commencing this fall, Wyndham will launch a series of events with topics to include:
Why the time is right for women to get into hotel development
How to select sites and perform feasibility assessments
Guidance and tips on securing financing for your hotel
Personal stories of female hotel developers that successfully broke the mold
“Wyndham is also committed to helping female owners secure financing through our network of debt and equity partners and will continue to explore and implement new and creative ways to support female hoteliers through the use of our balance sheet,” said Michele Allen, chief financial officer, Wyndham Hotels & Resorts.
Together with these educational and networking events and commitment to use its balance sheet to support women hotel owners, Wyndham is also launching a development incentive program that will provide meaningful Wyndham financing, plus complimentary or expanded first-year operating services to support the success of hotels developed by women.
“Introducing more women entrepreneurs to hotel ownership is great for women, and great for our industry. Our industry is stronger with a variety of people that bring varying backgrounds and points of view. Programs like this move the industry forward,” said Rosanna Maietta, President & CEO, American Hotel and Lodging Foundation.
Wyndham strives to maintain a culture of diversity, equity and inclusion across its organization, and the launch of this program to introduce more women to the hotel industry is a natural extension. For the third year in a row, the company received a perfect score on the Human Rights Campaign’s Equality Index, designating Wyndham for leading in equality. The company was also named by DiversityInc as a noteworthy company for two consecutive years for its commitment to diversity and inclusion.
Considering developing a hotel? Get in touch to learn more here. To get involved and stay up-to-date on Women Own the Room’s upcoming events, sign up here.
About Wyndham Hotels & Resorts Wyndham Hotels & Resorts (NYSE: WH) is the world’s largest hotel franchising company by the number of properties, with approximately 9,000 hotels across nearly 95 countries on six continents. Through its network of approximately 798,000 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 21 hotel brands, including Super 8®, Days Inn®, Ramada®, Microtel®, La Quinta®, Baymont®, Wingate®, AmericInn®, Hawthorn Suites®, Trademark Collection® and Wyndham®. Wyndham Hotels & Resorts is also a leading provider of hotel management services. The Company’s award-winning Wyndham Rewards loyalty program offers 89 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 Quarterly Dividend 50% and Provides Full Year 2021 Outlook
PARSIPPANY, N.J. (July 28, 2021) – Wyndham Hotels & Resorts (NYSE: WH) today announced results for the three months ended June 30, 2021. Highlights include:
Second quarter diluted earnings per share was $0.73 compared to diluted loss per share of $1.86 in second quarter 2020; second quarter adjusted diluted EPS was $0.95 compared to adjusted diluted EPS of $0.10 in second quarter 2020.
Second quarter net income was $68 million compared to a net loss of $174 million in second quarter 2020; second quarter adjusted net income was $89 million compared to adjusted net income of $9 million in second quarter 2020.
Second quarter adjusted EBITDA was $168 million compared to adjusted EBITDA of $66 million in second quarter 2020.
Second quarter net cash provided by operating activities was $116 million and free cash flow was $104 million compared to net cash used in operating activities of $57 million and free cash flow of $(68) million in second quarter 2020.
Global RevPAR increased 110% compared to second quarter 2020 and declined 17% compared to second quarter 2019 in constant currency.
Paid quarterly cash dividend of $0.16 per share in second quarter and Board of Directors recently authorized a 50% increase in the quarterly cash dividend to $0.24 per share beginning with the dividend expected to be declared in third quarter 2021.
Company provides full-year 2021 outlook.
“With continued increasing demand from our leisure and everyday business travelers, our select-service franchise business model generated another strong quarter of adjusted EBITDA and cash flow, allowing us to increase our dividend by 50%,” said Geoffrey A. Ballotti, president and chief executive officer. “Our brands continue to capture market share gains above pre-pandemic levels, while our economy brands here in the U.S. actually exceeded 2019 RevPAR for the quarter. We opened over 70% more rooms than we did last year while growing our development pipeline by 6% vs. prior year, and by 2% sequentially – to over 190,000 rooms. We are extremely proud of all that our team members around the world have achieved, as they remain focused on delivering exceptional value for our owners, guests and shareholders.”
Fee-related and other revenues increased 67% to $321 million, compared to $192 million in the second quarter of 2020 primarily reflecting the ongoing recovery in travel demand and its impact on global RevPAR, which has now recovered to 83% of 2019 levels, including domestic RevPAR at 95% of 2019 levels.
The Company generated net income of $68 million, or $0.73 per diluted share, compared to a net loss of $174 million, or $1.86 loss per diluted share, in the second quarter of 2020. The increase of $242 million, or $2.59 per diluted share, reflects: the ongoing recovery in travel demand; a $10 million, or $0.11 per diluted share, after-tax benefit from the marketing fund related to timing; and the absence of $176 million, or $1.89 per diluted share, after-tax of special-item charges incurred during second quarter 2020. These results were partially offset by a $14 million, or $0.15 per diluted share, after-tax impact in 2021 related to the early extinguishment of the Company’s 5.375% senior unsecured notes.
The following discussion of second quarter operating results focuses on the Company’s key drivers as well as revenue and adjusted EBITDA for each of the Company’s segments. 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.
System Size
During the first half of 2021, the Company’s global system grew 30 basis points primarily reflecting continued growth in the Company’s direct-franchising business in China. This was partially offset by the anticipated decline in domestic system size as conversion and new construction activities continue to ramp-up following the pandemic and recent supply chain delays. Year-to-date deletions ran 27% below 2019 levels putting the Company solidly on track with its goal of achieving a 95% retention rate for the full year 2021.
RevPAR
Global and international RevPAR began to lap the onset of the COVID-19 pandemic in January 2021, while the U.S. began to lap its onset in March 2021. As such, comparisons to 2019 (on a two-year, constant currency basis) are more meaningful when evaluating trends. On this basis, global RevPAR declined 17% reflecting a 5% decline in the U.S. and a 44% decline internationally. The 5% decline in the U.S. represents continued sequential improvement compared to a decline of 25% in the first quarter of 2021. Importantly, RevPAR for the Company’s economy brands exceeded 2019 levels by 4% in the second quarter. The 44% international decline primarily represents a 68% decline in the Company’s EMEA region and a 7% decline in China.
Business Segment Results
Hotel Franchising revenues increased 55% year-over-year to $283 million, primarily reflecting the global RevPAR increase. Adjusted EBITDA increased 93% to $166 million as the growth in revenues and the timing benefit from the marketing fund was partially offset by higher volume-related expenses.
Hotel Management revenues increased 62% year-over-year to $123 million, reflecting a $19 million increase in cost-reimbursement revenues, which have no impact on adjusted EBITDA. Absent cost-reimbursements, Hotel Management revenues increased 280% to $38 million, primarily due to the global RevPAR increase, as well as improved performance at the Company’s owned hotels and incremental management contract termination fees resulting from the sale of CorePoint Lodging properties. Hotel Management adjusted EBITDA increased $20 million year-over-year reflecting the revenue increases, partially offset by higher volume-related expenses.
During the second quarter 2021, the Company’s marketing fund revenues exceeded expenses by $14 million; while in second quarter 2020, the Company’s marketing fund expenses exceeded revenues by $3 million. While the Company does not expect the marketing fund to have a significant impact on full year 2021 adjusted EBITDA, there may continue to be timing differences in quarterly comparisons.
Development The Company awarded 154 new contracts this quarter compared to 116 in second quarter 2020 and 173 in second quarter 2019. On June 30, 2021, the Company’s global development pipeline consisted of over 1,400 hotels and over 190,000 rooms. The pipeline grew 580 basis points year-over-year and 170 basis points sequentially – including 70 basis points domestically and 230 basis points internationally. Approximately 64% of the Company’s development pipeline is international and 74% is new construction, of which approximately 34% has broken ground.
Cash and Liquidity The Company generated $116 million of net cash provided by operating activities in the second quarter of 2021 compared to net cash used in operating activities of $57 million in second quarter 2020. Free cash flow increased $172 million year-over-year as the Company generated free cash flow of $104 million in the second quarter of 2021 compared to using $68 million in the second quarter 2020 (which included $33 million of special-item cash outlays).
At June 30, 2021, the Company had $103 million of cash on its balance sheet and approximately $840 million in total liquidity.
Dividends The Company paid common stock dividends of $15 million, or $0.16 per share, in the second quarter of 2021.
The Company’s Board of Directors authorized a 50% increase in the quarterly cash dividend to $0.24 per share from $0.16 per share, beginning with the dividend that is expected to be declared in third quarter 2021.
2021 Outlook The Company provided the following outlook for full-year 2021:
Fee-related and other revenues of $1.16 billion to $1.19 billion.
Adjusted net income of $244 million to $254 million.
Adjusted EBITDA of $525 million to $535 million.
Adjusted diluted EPS of $2.60 to $2.70, based on an adjusted diluted share count of 94.0 million that excludes any future share repurchases.
Rooms growth of 1% to 2%.
A RevPAR increase of approximately 40% versus 2020, or a decline of approximately 16% compared to 2019.
Free cash conversion from Adjusted EBITDA of approximately 55%.
More detailed projections are available in Table 8 of this press release. Outlook assumes continued recovery in travel demand in the second half of 2021. The Company is providing certain financial metrics only on a non-GAAP basis because, without unreasonable efforts, it is unable to predict with reasonable certainty the occurrence or amount of all of the adjustments or other potential adjustments that may arise in the future during the forward-looking period, which can be dependent on future events that may not be reliably predicted. Based on past reported results, where one or more of these items have been applicable, such excluded items could be material, individually or in the aggregate, to the reported results.
Conference Call Information Wyndham Hotels will hold a conference call with investors to discuss the Company’s results and outlook on Thursday, July 29, 2021 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 beginning at noon ET on July 29, 2021. A telephone replay will be available for approximately ten days beginning at noon ET on July 29, 2021 at 800 757-4761.
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 9,000 hotels across nearly 95 countries on six continents. Through its network of approximately 798,000 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 21 hotel brands, including Super 8®, Days Inn®, Ramada®, Microtel®, La Quinta®, Baymont®, Wingate®, AmericInn®, Hawthorn Suites®, Trademark Collection® and Wyndham®. Wyndham Hotels & Resorts is also a leading provider of hotel management services. The Company’s award-winning Wyndham Rewards loyalty program offers 89 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 the 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 and dividends, restructuring charges and statements related to the coronavirus pandemic (“COVID-19”). 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,” “objective,” “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 continuation or worsening of the effects from COVID-19, its scope, duration and impact on the Company’s business operations, financial results, cash flows and liquidity, as well as the impact on the Company’s franchisees and property owners, guests and team members, the hospitality industry and overall demand for travel; the success of the Company’s mitigation efforts in response to COVID-19; the Company’s performance in any recovery from COVID-19; the performance of the financial and credit markets; the economic environment for the hospitality industry; operating risks associated with the hotel franchising and management businesses; the Company’s relationships with franchisees and property owners; the impact of war, terrorist activity, political instability or political strife; concerns with or threats of pandemics, contagious diseases or health epidemics, including the effects of COVID-19 and any resurgence or mutations of the virus and actions governments, businesses and individuals take in response to the pandemic, including stay-in-place directives and other travel restrictions; risks related to restructuring or strategic initiatives; risks related to the Company’s relationship with CorePoint Lodging; the Company’s ability to satisfy obligations and agreements under its outstanding indebtedness, including the payment of principal and interest and compliance with the covenants thereunder; risks related to the Company’s ability to obtain financing and the terms of such financing, including access to liquidity and capital as a result of COVID-19; and the Company’s ability to make or pay, plans for, and the timing and amount of any future share repurchases and/or dividends, as well as the risks described in the Company’s most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission and any subsequent reports filed with the Securities and Exchange Commission. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, subsequent events or otherwise.
Media: Dave DeCecco
Group Vice President, Global Communications
973 753-6590 [email protected]
As travel returns, Wyndham Rewards members can earn a free night with every two-night stay
In celebration of summer, Wyndham Hotels & Resorts is giving Wyndham Rewards members the chance to earn a free night on every two-night stay, up to a total of three free nights.Click to Download
PARSIPPANY, N.J. (June 7, 2021) – Amid a resurgence of travel, Wyndham Hotels & Resorts, the world’s largest hotel franchising company with over 8,900 hotels across nearly 95 countries, is inviting travelers to get away this summer with its “Stay Two Nights, Earn a Free Night” promotion, in which Wyndham Rewards members can earn up to three free nights.
“Enthusiasm for travel is shifting into high gear, with eager travelers mapping out a summer full of bucket-list getaways, weekend road trips and everything in between,” said Eliot Hamlisch, EVP, Loyalty and Revenue Optimization at Wyndham Hotels & Resorts. “As they do, they can count on Wyndham and our hotels to be ready to welcome them back, reuniting them with their family members, colleagues and friends.”
Through Wyndham’s Stay Two Nights, Earn a Free Night promotion, Wyndham Rewards members who book direct and stay two consecutive nights or more can earn 6,500 bonus points upon completion of their stay. Bonus points, combined with the minimum 1,000 base points members earn on their qualified stays, equates to a free night in the form of 7,500 points. Members can take advantage of this promotion up to three times for a total of three free nights. Stays must be booked directly through Wyndham Rewards by September 2, 2021 and must be completed by September 6, 2021. Direct booking options include, among others, the Wyndham Hotels & Resorts mobile app, WyndhamRewards.com or calling any participating Wyndham Rewards hotel. Signing up for Wyndham Rewards is easy and non-members can quickly enroll as part of the booking process.
With thousands of hotels across a range of price points and destinations, Wyndham is ready to welcome travelers back this summer. Hotels continue to offer flexible booking policies, enhanced health and safety protocols through Count on Us®, and mobile check-in and checkout through Wyndham’s award-winning mobile app. In addition, Wyndham Rewards members continue to enjoy an extension of current member benefits and paused points expiration through the end of this year. Learn more at www.wyndhamhotels.com/COVID-19.
About Wyndham Rewards
Named the number one hotel rewards program by readers of USA TODAY, Wyndham Rewards® is the world’s most generous rewards program with more than 50,000 hotels, vacation club resorts and vacation rentals worldwide. Designed for the everyday traveler, members earn a guaranteed 1,000 points with every qualified stay and may redeem points for a wide range of rewards, including free nights at over 8,900 hotels or thousands of vacation club resorts and vacation rentals globally through affiliation with Wyndham Destinations and others. Wyndham Rewards has 87 million enrolled members around the globe. 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 by the number of properties, with over 8,900 hotels across nearly 95 countries on six continents. Through its network of approximately 797,000 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 21 hotel brands, including Super 8®, Days Inn®, Ramada®, Microtel®, La Quinta®, Baymont®, Wingate®, AmericInn®, Hawthorn Suites®, Trademark Collection® and Wyndham®. Wyndham Hotels & Resorts is also a leading provider of hotel management services. The Company’s award-winning Wyndham Rewards loyalty program offers 87 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.
Mobile-enabled platform allows for quicker innovation while helping hotels enhance guest personalization, lower costs and boost operational efficiencies
Wyndham Hotels & Resorts is rolling out Oracle’s OPERA Cloud Property Management to its hotels, making it the first major hotel company to adopt the system globally. The mobile-enabled offering allows operators to run their hotel from anywhere while team members can untether from the front desk to better serve guests throughout the property.Click to Download
PARSIPPANY, N.J. AND AUSTIN, TEXAS (May 18, 2021) – Wyndham Hotels & Resorts, the world’s largest hotel franchising company with over 8,900 hotels across nearly 95 countries, today announced the roll out of the next-gen Oracle Hospitality OPERA Cloud Property Management (PMS) to its full-service hotels, making it the first major hotel company to adopt the system globally. The decision comes following successful pilots at nearly 50 Wyndham hotels over the last nine months.
Full-service hotels coming into the Wyndham portfolio, which includes brands like Wyndham Grand®, Ramada® by Wyndham, and Dolce® by Wyndham, will be placed on the new PMS while existing owners have the option of upgrading now or waiting until their existing PMS agreements expire. The Company anticipates approximately 20 percent of its full-service portfolio will adopt the new PMS in the next 12 months with the majority migrating to the system over the next several years.
Wyndham’s selection of OPERA Cloud for its full-service hotels represents the latest in a growing list of newly launched technology initiatives by the Company, all of which center on giving franchisees tools to help provide a competitive advantage amid the ongoing pandemic. Last September, the Company launched a new best-in-class customer data platform and prior to that, a fully reimagined mobile app, making it the first to bring mobile check-in and checkout to more than 6,000 economy and midscale hotels.
“The rollout of Oracle’s OPERA Cloud represents the next step in Wyndham’s continued digital transformation,” said Scott Strickland, chief information officer at Wyndham Hotels & Resorts. “Not only does the system help our hotel owners deliver a better guest experience through a host of operational enhancements and efficiencies, it’s designed to lower their overall costs by eliminating the need for costly and difficult-to-maintain on-site hardware. Best of all, hotels can migrate to the system remotely in a matter of days, not weeks—allowing hotels, particularly conversions, to open faster.”
Through OPERA Cloud, Wyndham and its franchisees have the ability to easily:
• Scale in the cloud – Built specifically to run hotel operations, the PMS is flexible and can scale to meet the needs of each hotel without requiring installation and maintenance of on-site hardware.
• Enable mobile “anywhere” access – Operators can run their hotel from anywhere while team members can untether from the front desk to serve guests anywhere on property.
• Streamline operations – Easy integration with thousands of key partner interfaces means a smoother, more streamlined guest experience with the opportunity for enhanced personalization.
• Operate globally – Designed to meet fiscal requirements across more than 200 countries, operators can customize the system to operate in 20 languages.
• Enhance security and performance – The PMS is built on Oracle Cloud Infrastructure, which helps hotels elevate the guest experience while helping to deliver higher performance, security and reliability.
“Wyndham’s progressive approach to its digital transformation provides a strategic advantage for its thousands of hotel owners and operators around the world,” said Alex Alt, general manager of Oracle. “Having OPERA Cloud in place allows franchisees to quickly and remotely enhance features for guests as the industry continues to evolve, which is going to be critical in maintaining a competitive edge.”
The rollout of OPERA Cloud builds upon the foundation of a broader, multi-year digital transformation for Wyndham, which in recent months has enabled the Company to quickly stand-up new tools and offerings to help drive more business to its franchisees—particularly from everyday business travelers, such as construction workers, utility workers, truckers and more. Among them are Wyndham Direct, a total booking, billing and payment solution for corporate customers that streamlines travel management with no minimum spend or stay requirements and Wyndham Business, a one-stop-shop for anyone looking to do business with Wyndham and its hotels. Learn more at www.wyndhamhotels.com/business.
Wyndham first began its digital transformation journey in 2016, which has since resulted in a shift to best-in-class, cloud-based property management systems, a single central reservation system for all 20 brands, and a flexible cloud service and sales platform.
About Wyndham Hotels & Resorts
Wyndham Hotels & Resorts (NYSE: WH) is the world’s largest hotel franchising company by the number of properties, with over 8,900 hotels across nearly 95 countries on six continents. Through its network of over 797,000 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®, La Quinta®, Baymont®, Wingate®, AmericInn®, Hawthorn Suites®, Trademark Collection® and Wyndham®. Wyndham Hotels & Resorts is also a leading provider of hotel management services. The Company’s award-winning Wyndham Rewards loyalty program offers 87 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.
About Oracle
Oracle offers integrated suites of applications plus secure, autonomous infrastructure in the Oracle Cloud. For more information about Oracle (NYSE: ORCL), please visit us at oracle.com.
Oracle Hospitality brings more than 40 years of experience in providing technology solutions to independent hoteliers, global and regional chains, gaming, and cruise lines. Our hardware, software, and services enable customers to act on rich data insights that deliver personalized guest experiences, maximize profitability and encourage loyalty. Cloud-based, mobile-enabled, with open APIs, Oracle’s OPERA Cloud property management and distribution, Simphony point-of-sale, reporting and analytics, and Nor1 upsell solutions accelerate innovation, increase revenue, lower IT cost, and maximize operating efficiency. Our Hospitality Resource Center features an array of information to navigate challenges and seize opportunities in an altered marketplace. To learn more, please visit www.oracle.com/Hospitality.
Trademarks
Oracle is a registered trademark of Oracle Corporation.
Company’s global conversion growth continues, generating 70% of global room additions in first quarter as owners recognize company’s loyalty program drives nearly 40% of all hotel stays
PARSIPPANY, N.J. (May 10, 2021) – Wyndham Hotels & Resorts, the world’s largest hotel franchising company with over 8,900 hotels across nearly 95 countries, remains on a steady growth trajectory around the world and is continuing to debut new properties and enter new destinations. In a year of significant challenges for the hospitality industry, Wyndham strengthened its portfolio to generate sequential growth in system size and its development pipeline. The company’s non-urban, drive-to economy and midscale hotels, combined with ongoing investment in sales and marketing, helped capture rising pent-up leisure travel demand, which continued to drive sequential RevPAR improvements and domestic market share gains for franchisees.
In the first quarter of 2021, Wyndham converted 52 independent and branded hotels to one of its 20 brands, accounting for over 70% percent of its global room additions. The brand’s overall development pipeline has continued to expand both domestically and internationally with new conversion opportunities. The company awarded 112 new franchise contracts in the first quarter of 2021, and by March 31 the development pipeline had grown sequentially from Q4 to approximately 1,400 hotels and approximately 187,000 rooms.
“Our portfolio of iconic hotel brands offers a wide range of experiences and price points for guests as well as strong opportunities for franchisees and developers,” said Geoffrey A. Ballotti, president and chief executive officer, Wyndham Hotels & Resorts. “Our global sales, marketing and loyalty teams are looking forward to helping more travelers discover all these new hotels.”
A selection of the company’s recent hotel conversions to date are noted below by region.
Americas
Wyndham signed a nine-hotel franchise agreement in Q1 with The Thrash Group for its namesake, upscale, Wyndham® brand in the U.S. The nine hotels, all managed by Charlestowne Hotels, span across the U.S. and include a mix of lifestyle-focused boutique hotels, historic hotels and new construction hotels scheduled to open later this year and next. “Converting our hotels to Wyndham has allowed us access to new resources and further opportunities, which supports us in running our business proficiently,” said Ike Thrash, founding partner, The Thrash Group. “That paired with the award-winning brand’s recognition will help contribute to my Thrash’s overall success and hopefully further development of additional Wyndham properties.”
In downtown San Francisco, The BEI Hotel in San Francisco, is another recent conversion for the Trademark Collection that is scheduled to open in May. Located by the Financial District and Union Square, guests can stay in the heart of the city and enjoy well-appointed guest rooms, a fitness center and other inviting amenities. Just 14 miles from San Francisco International Airport and 20 miles from Oakland International Airport, this contemporary, hotel is surrounded by world-class restaurants and minutes from Civic Center Plaza, Moscone Center, and Union Square. And on Long Island, N.Y., the award winning and LEED certified Viana Hotel & Spa converted to a Trademark by Wyndham.
New conversion hotels in the Caribbean include the Kunuku Resort All Inclusive in Curacao along with the Turtle Island Beach Resort, in Belize — both of which are converting to Trademark Collection by Wyndham. The most recently awarded Caribbean franchise contract is to The Buccaneer Beach & Golf Resort in St. Croix, an upscale property that will be converting to Wyndham’s Trademark Collection and mark the first Wyndham Hotels & Resorts property in St. Croix. The family owned and operated 340-acre resort is the island’s only four-star resort, offering 130 guest-rooms and suites.
In Latin America, TRYP by Wyndham Guayaquil, Ecuador was recently converted to a Wyndham as part of the company’s urban lifestyle brand. The centrally located hotel is steps away from the city’s top dining venues, the Mall del Sol and the Guayaquil Convention Center.
Asia Pacific
In Asia Pacific, the Company’s expansion continues where the number of its executed deals in the pipeline are nearly 50% larger than it was a year ago. Conversion activity was strong, with a 5 star hotel in Xin Yang Henan Province, China converting to the Wyndham Xin Yang. The company also recently welcomed the Ramada Encore by Wyndham Shanghai Pudong Airport. With more than 1,500 hotels in 20 regional markets and territories, the company is in a leading position within the region and is on track to reach 2,000 hotels in Asia Pacific within the next three years.
Europe
In Europe, the recent March opening of Hotel Avenue Louise Brussels, Trademark Collection by Wyndham marked Wyndham’s first Trademark Collection hotel in Belgium. The 78-room stylish hotel underwent a $3.1 million refurbishment and offers guests the perfect balance between comfort and local charm in the heart of Brussels.
Middle East
The debut of the very first La Quinta by Wyndham brand in the Middle East was will be made with the 100-room La Quinta by Wyndham Dubai Bur Dubai, in one of the city’s bustling commercial hubs offering easy access to leisure attractions. The newly refurbished hotel will open in May boasting contemporary guest rooms and elegant interiors.
Interested developers can visit the Wyndham Franchise Development website, or contact the Wyndham Franchise Development team by email at [email protected] for more information.
About Wyndham Hotels & Resorts
Wyndham Hotels & Resorts (NYSE: WH) is the world’s largest hotel franchising company by the number of properties, with over 8,900 hotels across nearly 95 countries on six continents. Through its network of over 797,000 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®, La Quinta®, Baymont®, Wingate®, AmericInn®, Hawthorn Suites®, Trademark Collection® and Wyndham®. Wyndham Hotels & Resorts is also a leading provider of hotel management services. The Company’s award winning Wyndham Rewards loyalty program offers 87 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.
This press release contains “forward-looking statements” within the meaning of U.S. federal securities laws, including the expected addition of hotels within the Asia Pacific Region and similar statements concerning possible future results or performance. You are cautioned not to place undue reliance on these forward-looking statements, which are not guarantees of future results or performance, speak only as of the date of this press release and are subject to numerous risks and uncertainties, including the risks described in Wyndham Hotels’ most recent Annual Report on Form 10-K and subsequent reports filed with the Securities and Exchange Commission, any of which could cause actual results or performance to be materially different from the future results or performance expressed or implied by such forward-looking statements. 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.
We are extremely concerned and saddened about the growing humanitarian crisis in India resulting from the rapid spread of COVID-19 cases. Wyndham Hotels & Resorts is donating $100,000 to the Indian Red Cross Society, which is working alongside authorities to help the people of India by rushing urgently needed supplies and equipment to critical care centers.
We are also working to collaborate with industry associations on broader efforts to raise funds to support India through this crisis and call on others to show their support with matching funds. We have made it possible for Wyndham Rewards members to help by donating points to Save the Children and Christel House, which support families and children in India. Our team members are supporting their colleagues in India through our Wyndham Relief Fund and can also donate directly to a number of qualified 501(c)(3) organizations with a company match. Our team members around the world stand united with our hotel owners, our local colleagues and the broader Indian community.
PARSIPPANY, N.J. (April 28, 2021) – Wyndham Hotels & Resorts (NYSE: WH) today announced results for the three months ended March 31, 2021. Highlights include:
Diluted earnings per share was $0.26, and adjusted diluted earnings per share was $0.36.
Net income was $24 million and adjusted net income was $33 million.
Adjusted EBITDA was $97 million.
Generated $64 million of net cash provided by operating activities and $59 million of free cash flow.
Global RevPAR declined 11% compared to first quarter 2020 and 31% compared to first quarter 2019 in constant currency.
Paid quarterly cash dividend of $0.16 per share.
Redeemed all $500 million aggregate principal amount of its outstanding 5.375% Senior Notes due 2026 on April 15, 2021.
Company updates its previous 2021 projections.
“Wyndham’s select-service franchise business model delivered a strong start to 2021 as leisure customers hit the road at a pace not experienced since the pandemic started and demand from our everyday business travelers continued to accelerate,” said Geoffrey A. Ballotti, president and chief executive officer. “We were very pleased to see our development pipelines grow sequentially, both domestically and internationally, and our room openings and deletions improve year-over-year. We were also encouraged to see conversion room openings increase year-over-year, representing over 70% of total openings this quarter.”
Revenues declined from $410 million in the first quarter of 2020 to $303 million in the first quarter of 2021. The decline includes lower pass-through cost-reimbursement revenues of $55 million in the Company’s hotel management business, which have no impact on adjusted EBITDA. Excluding cost-reimbursement revenues, revenues declined $52 million primarily reflecting an 11% decline in constant-currency global RevPAR.
The Company generated net income of $24 million, or $0.26 per diluted share, compared to $22 million, or $0.23 per diluted share, in the first quarter of 2020. The increase of $2 million, or $0.03 per diluted share, was a result of the Company’s COVID-19 cost mitigation plan implemented in April 2020, lower volume-related expenses and the absence of restructuring and transaction-related expenses, which were partially offset by the global RevPAR decline.
The following discussion of first quarter operating results focuses on the Company’s key drivers as well as revenue and adjusted EBITDA for each of the Company’s segments. 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.
System Size During the first quarter of 2021, the Company’s global system grew 20 basis points reflecting strong growth in the Company’s direct-franchising business in China, primarily offset by the impact from supply chain delays on new construction openings in the United States. As expected, terminations normalized in the first quarter and the Company remains solidly on track with its goal of achieving a 95% retention rate for the full year 2021.
RevPARGlobal and International RevPAR began to lap the onset of the COVID-19 pandemic in January 2021 while the U.S. began to lap its onset in March 2021. As such, comparisons to 2019 (on a two-year basis) are more meaningful when evaluating trends. On this basis, global RevPAR declined 31% reflecting a 25% decline in the U.S. and a 45% decline internationally. The 25% decline in the U.S. represents continued sequential improvement compared to a decline of 31% in the fourth quarter of 2020. The 45% decline internationally is consistent with the fourth quarter 2020 performance.
Business Segment ResultsHotel Franchising revenues decreased $34 million year-over-year reflecting the global RevPAR decline, while adjusted EBITDA declined $5 million as the impact of the RevPAR decline was almost entirely offset by the Company’s COVID-19 cost mitigation plan implemented in April 2020 and lower volume-related expenses.
Hotel Management revenues decreased $73 million year-over-year reflecting a $55 million reduction in cost-reimbursement revenues, which have no impact on adjusted EBITDA. Absent cost-reimbursements, Hotel Management revenues decreased $18 million due to the global RevPAR decline and lower termination fees. Adjusted EBITDA declined $12 million year-over-year reflecting the revenue decrease, partially offset by lower volume-related expenses.
Development The Company awarded 112 new contracts this quarter compared to 115 in first quarter 2020 and 124 in first quarter 2019. At March 31, 2021, the Company’s development pipeline consisted of approximately 1,400 hotels and approximately 187,000 rooms, growing sequentially by 120 basis points, 70 basis points domestically and 150 basis points internationally. Approximately 64% of the Company’s development pipeline is international and 75% is new construction. Approximately 34% of the new construction pipeline under development has broken ground.
Cash and Liquidity The Company generated $64 million of net cash provided by operating activities in the first quarter of 2021 compared to $17 million in first quarter 2020. Free cash flow was $59 million in the first quarter of 2021 compared to $10 million (which included $15 million of special-item cash outlays) in first quarter 2020.
At March 31, 2021, the Company had $531 million of cash on its balance sheet and $1.3 billion in total liquidity. In April 2021, the Company redeemed all $500 million aggregate principal amount of its outstanding 5.375% senior notes due 2026, which also reduced the Company’s total liquidity to approximately $750 million. The Company expects this redemption to reduce its annual cash interest expense by approximately $27 million. Coupled with the issuance of 4.375% senior notes in August of 2020, this redemption effectively returns the Company to pre-pandemic debt and liquidity levels while extending $500 million of maturity by approximately 2.5 years at a 100 basis point (or 19%) lower interest rate.
Dividends The Company paid common stock dividends of $15 million, or $0.16 per share, in the first quarter of 2021.
2021 Projections The Company is not providing a complete outlook for full-year 2021 given the RevPAR uncertainties ahead; however, the Company is updating the projections provided in February:
Net rooms growth of 1% to 2%, consistent with February’s projection.
Every point of RevPAR change versus 2020 is now expected to generate approximately $2.8 million of adjusted EBITDA change versus 2020 (increased from $2.5 million per point in February).
License fees are expected to be $70 million reflecting the minimum levels outlined in the underlying agreements, consistent with February’s projection.
Marketing, reservation and loyalty expenses are not expected to exceed marketing, reservation and loyalty revenues, consistent with February’s projection. As such, the Company expects no meaningful impact to full-year 2021 adjusted EBITDA from the marketing, reservation and loyalty funds.
The Company does not expect any meaningful special-item cash outlays in 2021, consistent with February’s projection.
More detailed projections are available in Table 8 of this press release. The Company is providing certain financial metrics only on a non-GAAP basis because, without unreasonable efforts, it is unable to predict with reasonable certainty the occurrence or amount of all of the adjustments or other potential adjustments that may arise in the future during the forward-looking period, which can be dependent on future events that may not be reliably predicted. Based on past reported results, where one or more of these items have been applicable, such excluded items could be material, individually or in the aggregate, to the reported results.
Conference Call Information Wyndham Hotels will hold a conference call with investors to discuss the Company’s results and outlook on Thursday, April 29, 2021 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 beginning at noon ET on April 29, 2021. A telephone replay will be available for approximately ten days beginning at noon ET on April 29, 2021 at 800 723-0549.
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 over 8,900 hotels across nearly 95 countries on six continents. Through its network of over 797,000 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®, La Quinta®, Baymont®, Wingate®, AmericInn®, Hawthorn Suites®, Trademark Collection® and Wyndham®. Wyndham Hotels & Resorts is also a leading provider of hotel management services. The Company’s award-winning Wyndham Rewards loyalty program offers 87 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 the 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 and dividends, restructuring charges and statements related to the coronavirus pandemic (“COVID-19”). 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,” “objective,” “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 continuation or worsening of the effects from COVID-19, its scope, duration and impact on the Company’s business operations, financial results, cash flows and liquidity, as well as the impact on the Company’s franchisees and property owners, guests and team members, the hospitality industry and overall demand for travel; the success of the Company’s mitigation efforts in response to COVID-19; the Company’s performance in any recovery from COVID-19; the performance of the financial and credit markets; the economic environment for the hospitality industry; operating risks associated with the hotel franchising and management businesses; the Company’s relationships with franchisees and property owners; the impact of war, terrorist activity, political instability or political strife; concerns with or threats of pandemics, contagious diseases or health epidemics, including the effects of COVID-19 and any resurgence or mutations of the virus and actions governments, businesses and individuals take in response to the pandemic, including stay-in-place directives and other travel restrictions; risks related to restructuring or strategic initiatives; risks related to the Company’s relationship with CorePoint Lodging; the Company’s ability to satisfy obligations and agreements under its outstanding indebtedness, including the payment of principal and interest and compliance with the covenants thereunder; risks related to the Company’s ability to obtain financing and the terms of such financing, including access to liquidity and capital as a result of COVID-19; and the Company’s ability to make or pay, plans for, and the timing and amount of any future share repurchases and/or dividends, as well as the risks described in the Company’s most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission and any subsequent reports filed with the Securities and Exchange Commission. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, subsequent events or otherwise.
During the first quarter of 2021, the Company’s global system grew 20 basis points reflecting strong growth in the Company’s direct-franchising business in China, primarily offset by the impact from supply chain delays on new construction openings in the United States. As expected, terminations normalized in the first quarter and the Company remains solidly on track with its goal of achieving a 95% retention rate for the full year 2021.
Global and International RevPAR began to lap the onset of the COVID-19 pandemic in January 2021 while the U.S. began to lap its onset in March 2021. As such, comparisons to 2019 (on a two-year basis) are more meaningful when evaluating trends. On this basis, global RevPAR declined 31% reflecting a 25% decline in the U.S. and a 45% decline internationally. The 25% decline in the U.S. represents continued sequential improvement compared to a decline of 31% in the fourth quarter of 2020. The 45% decline internationally is consistent with the fourth quarter 2020 performance.
Hotel Franchising revenues decreased $34 million year-over-year reflecting the global RevPAR decline, while adjusted EBITDA declined $5 million as the impact of the RevPAR decline was almost entirely offset by the Company’s COVID-19 cost mitigation plan implemented in April 2020 and lower volume-related expenses.
