PARSIPPANY, N.J., October 28, 2020 – Wyndham Hotels & Resorts (NYSE: WH) today announced results for the three months ended September 30, 2020. Highlights include:
Diluted earnings per share was $0.29, and adjusted diluted earnings per share was $0.36.
Net income was $27 million for the third quarter and adjusted net income was $34
Adjusted EBITDA was $101 million.
Generated $97 million of net cash provided by operating activities and $92 million of free cash flow.
Global comparable RevPAR declined 35% year-over-year.
System-wide rooms declined 2% year-over-year.
Paid quarterly cash dividend of $0.08 per share.
Issued $500 million aggregate principal amount of 4.375% senior unsecured notes in August 2020, due 2028, the net proceeds of which were used in full to repay then-outstanding revolver borrowings.
“In the face of continued industry uncertainty, our leisure-oriented, drive-to franchise business model generated $101 million of adjusted EBITDA and $92 million of free cash flow,” said Geoffrey A. Ballotti, president and chief executive officer. “Over 99% of our domestic and over 97% of our global portfolio are open today. RevPAR improved sequentially across the globe, and in the U.S., our economy and midscale brands continued to gain market share. Third quarter room openings also improved sequentially both in the U.S. and internationally and we grew our pipeline by 3% to 185,000 rooms globally. Importantly, we executed 152 hotel agreements, including 23% more domestic conversion signings than the third quarter of 2019. As always, we remain dedicated to supporting our owners around the world during these very challenging times.”
Revenues declined from $560 million in the third quarter of 2019 to $337 million in the third quarter of 2020. The decline includes lower pass-through cost-reimbursement revenues of $79 million, which have no impact on adjusted EBITDA, in the Company’s hotel management business. Excluding cost-reimbursement revenues, revenues declined $144 million primarily reflecting a 35% decline in comparable RevPAR and the impact from hotels temporarily closed due to COVID-19.
The Company generated net income of $27 million, or $0.29 per diluted share, compared to $45 million, or $0.47 per diluted share, in the third quarter of 2019. The decline in net income of $18 million, or $0.18 per diluted share, was primarily due to the revenue declines, which were partially offset by cost containment initiatives, lower volume-related expenses and the absence of contract termination and transaction-related expenses. Full reconciliations of GAAP results to the Company’s non-GAAP adjusted measures for all reported periods appear in the tables to this press release.
Business Segment Discussion The following discussion of third quarter operating results focuses on revenue and adjusted EBITDA for each of the Company’s segments.
The Company’s franchised system, which included 8,500 rooms transferred from the hotel management segment related to the CorePoint Lodging asset sales, declined 1% globally. Excluding the transfer, franchised net rooms declined 2% globally, reflecting the Company’s previously announced removal of non-compliant and brand detracting rooms, of which approximately 9,000 were removed during the second quarter and approximately 7,900 were removed during the third quarter.
RevPAR declined 36% globally, reflecting a 31% decline in the U.S. and a 50% decline internationally. On a comparable basis, which is in constant currency and excludes hotels temporarily closed due to COVID-19, global RevPAR declined 33%, reflecting a 30% decline in the U.S. and a 43% decline internationally.
Revenues decreased $143 million compared to third quarter 2019 reflecting the impact of COVID-19 on travel demand globally, while a decline in adjusted EBITDA of $78 million was partially mitigated by cost containment initiatives and lower volume-related expenses.
The Company’s managed system globally decreased 12%, primarily reflecting the transfer of 8,500 rooms to the hotel franchising segment as a result of CorePoint Lodging asset sales. Excluding the transfer of rooms to the hotel franchising segment, the Company’s managed system increased 2% primarily reflecting growth internationally, partially offset by the Company’s previously announced removal of approximately 1,300 unprofitable management guarantee hotel rooms during the third quarter.
RevPAR declined 48% globally, including a 45% decline in the U.S. and a 56% decline internationally. On a comparable basis, which excludes hotels temporarily closed due to COVID-19, global RevPAR declined 46%, including a 43% decline in the U.S. and a 51% decline internationally.
Revenues decreased $79 million compared to the prior-year period primarily due to lower cost-reimbursement revenues, which have no impact on adjusted EBITDA. Absent cost-reimbursements, revenues were unchanged as the unfavorable impact of COVID-19 on travel demand globally was offset by the absence of a $20 million fee credit recorded as a reduction to hotel-management revenues in the third quarter of 2019, which was considered transaction-related and therefore did not impact Adjusted EBITDA. Adjusted EBITDA declined $11 million as the RevPAR impacts were partially mitigated by cost containment initiatives and lower volume-related expenses.
Development As of September 30, 2020, the Company’s hotel system of approximately 9,000 properties and 804,000 rooms declined 2% year-over-year. During the third quarter of 2020, the Company opened 76 hotels totaling 9,600 rooms, a year-over-year decline of 34% due to delays resulting from the pandemic.
As expected, the Company’s global retention rate over the last twelve months declined to 92.6% compared to 94.9% during the same period last year due to the Company’s removal of approximately 9,000 non-compliant master franchise rooms in China during the second quarter; and the Company’s removal of approximately 9,200 additional non-compliant, unprofitable and brand detracting rooms in the third quarter.
The Company’s development pipeline consisted of 1,400 hotels and approximately 185,000 rooms, a 3% decline year-over-year, or a 3% increase sequentially. Approximately 64% of the Company’s development pipeline is international and 76% is new construction, of which 33% have broken ground.
Cash and Liquidity During the third quarter of 2020, the Company’s cash balance increased $71 million to $735 million, including the issuance of $500 million of senior unsecured notes bearing interest at 4.375%, the net proceeds of which were used in full to repay then-outstanding revolver borrowings. In addition, the Company made $10 million of special-item cash outlays, primarily reflecting COVID-19 related restructuring payments, during the third quarter. As of September 30, 2020, the total capacity under the Company’s revolving credit facility was $501 million and the Company had approximately $1.2 billion in total liquidity.
Dividends The Company paid common stock dividends of $7 million, or $0.08 per share, in the third quarter of 2020.
Conference Call Information Wyndham Hotels will hold a conference call with investors to discuss the Company’s results and outlook on Thursday, October 29, 2020 at 8:30 a.m. ET. Listeners can access the webcast live through the Company’s website at www.investor.wyndhamhotels.com. The conference call may also be accessed by dialing 877 876-9173 and providing the passcode “Wyndham”. Listeners are urged to call at least five minutes prior to the scheduled start time. An archive of this webcast will be available on the website for approximately 90 days beginning at noon ET on October 29, 2020. A telephone replay will be available for approximately ten days beginning at noon ET on October 29, 2020 at 800 753-9197.
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 approximately 90 countries on six continents. Through its network of 804,000 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 85 million enrolled members the opportunity to redeem points at thousands of hotels, vacation club resorts and vacation rentals globally. For more information, visit www.wyndhamhotels.com. The Company may use its website as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD. Disclosures of this nature will be included on the Company’s website in the Investors section, which can currently be accessed at www.investor.wyndhamhotels.com. Accordingly, investors should monitor this section of the Company’s website in addition to following the Company’s press releases, filings submitted with the Securities and Exchange Commission and any public conference calls or webcasts.
Forward-Looking Statements This press release contains “forward-looking statements” within the meaning of federal securities laws, including statements related to Wyndham Hotels’ current views and expectations with respect to its future performance and operations, including revenues, earnings, cash flow and other financial and operating measures and dividends, restructuring charges and statements related to the COVID-19 pandemic. Forward- looking statements include those that convey management’s expectations as to the future based on plans, estimates and projections at the time Wyndham Hotels makes the statements and may be identified by words such as “will,” “expect,” “believe,” “plan,” “anticipate,” “intend,” “goal,” “future,” “outlook,” “guidance,” “target,” “estimate,” “projection” and similar words or expressions, including the negative version of such words and expressions. Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of Wyndham Hotels to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release.
Factors that could cause actual results to differ materially from those in the forward-looking statements include, without limitation, general economic conditions; the continuation or worsening of the effects from the COVID-19 pandemic, 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 the COVID-19 pandemic; the Company’s performance in any recovery from the COVID-19 pandemic; 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 Company’s relationships with franchisees and property owners; the impact of war, terrorist activity or political strife; concerns with or threats of pandemics, contagious diseases or health epidemics, including the effects of the COVID-19 pandemic and any resurgence 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 the acquisition of La Quinta and 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 limitations related to share repurchases and ability to pay dividends under its credit facility and the timing and amount of any future 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.
PARSIPPANY, N.J. (October 28, 2020) – Essential workers across the globe are getting something special in their email inbox today. In honor of National First Responders Day, Wyndham Hotels & Resorts, the world’s largest hotel franchising company with over 9,000 hotels across approximately 90 countries, is surprising over 45,000 workers on the frontlines of the pandemic with 7,500 Wyndham Rewards® points, enough for a free one-night stay at thousands of Hotels by Wyndham.
The latest initiative under Wyndham’s ongoing #EverydayHeroes campaign, the points are being sent to any health care worker, police officer, teacher, truck driver, construction worker or other essential worker who opted into the campaign at www.wyndhamrewards.com/heroes prior to 11:59 p.m. ET on October 27, 2020.
“Throughout this pandemic, it’s our essential frontline workers who have helped keep us all safe and our Nation running,” said Geoff Ballotti, president and CEO of Wyndham Hotels & Resorts. “On this National First Responders Day, we want to honor their hard work and continued sacrifice. Whether it’s with a quick overnight getaway or a week-long escape, our hope is that these points, combined with the added perks of Wyndham Rewards Gold membership, help to make their next trip not only more attainable, but more enjoyable too. They’ve earned it.”
Wyndham launched its #EverydayHeroes campaign this past April as a way to recognize and say thank you to those on the frontlines of the pandemic—many of whom continue to travel as a necessary function of their job. Through the campaign, eligible workers are able to receive a complimentary instant upgrade to Wyndham Rewards Gold membership, which comes with added perks like late checkout, a preferred room and accelerated earning.
Points are being distributed today via email and must be claimed by November 18, 2020. Once claimed, recipients have 18 months to redeem. While workers must have opted into the campaign before today to receive the points, those who have yet to do so can still claim their complimentary Gold membership, thanks to an extension of the campaign through December 31, 2020. For more information, including full terms and conditions, visit www.wyndhamrewards.com/heroes.
As the travel landscape continues to evolve in the wake of COVID-19, Wyndham and its brands remain committed to the health and safety of guests and team members. The vast majority of the Company’s hotels remain open and are welcoming guests with flexible booking policies and enhanced health and safety protocols through Wyndham’s Count on UsSM initiative. The Company has also extended current Wyndham Rewards member benefits through the end of 2021 and paused points expiration through the end of this year. Learn more at www.wyndhamhotels.com/COVID-19.
About Wyndham Hotels & Resorts Wyndham Hotels & Resorts (NYSE: WH) is the world’s largest hotel franchising company by the number of properties, with over 9,000 hotels across approximately 90 countries on six continents. Through its network of 813,000 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 84 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 Rewards Recently named the number one hotel rewards program by readers of USA TODAY, Wyndham Rewards® is the world’s most generous rewards program with more than 30,000 hotels, vacation club resorts and vacation rentals worldwide. Designed for the everyday traveler, members earn a guaranteed 1,000 points with every qualified stay and may redeem points for a wide-range of rewards, including free nights at any of over 9,000 hotels or thousands of vacation club resorts and vacation rentals globally through affiliation with Wyndham Destinations (NYSE: WYND) and others. Wyndham Rewards has approximately 84 million enrolled members around the globe. Join for free today at www.wyndhamrewards.com. You’ve earned this.®
PARSIPPANY, N.J., July 28, 2020 – Wyndham Hotels & Resorts (NYSE: WH) today announced results for the three months ended June 30, 2020. Highlights include:
Diluted loss per share was $1.86, and adjusted diluted earnings per share was $0.10.
Net loss was $174 million for the second quarter and adjusted net income was $9 million.
Adjusted EBITDA was $63 million.
System-wide rooms remained flat year-over-year.
Global comparable RevPAR declined 54% year-over-year.
Paid quarterly cash dividend of $0.08 per share.
“We generated positive adjusted EBITDA in the second quarter, driven by our drive-to and leisure-oriented franchise business model, along with our immediate and concerted cost savings initiatives,” said Geoffrey A. Ballotti, president and chief executive officer. “We were pleased to see a steady improvement in Average Daily Rate, Occupancy and RevPAR over the past three months. Our select-service, small business owners are uniquely positioned to both remain open and capture emerging travel demand, whatever the shape of the recovery may be. Approximately 85% of our hotels have remained open globally throughout the pandemic, and over 99% of our domestic hotels are open today. Importantly, our economy and midscale brands continue to outperform versus their local markets. We remain committed to supporting our owners during this difficult period, while showing our guests and team members that they can “Count on Us” to put their safety first.”
Revenues declined to $258 million in the second quarter of 2020, compared with $533 million in the second quarter of 2019. The decline includes lower pass-through cost-reimbursement revenues of $94 million, which have no impact on adjusted EBITDA, in the Company’s hotel management business. Excluding cost- reimbursement revenues, revenues declined $181 million reflecting a 54% decline in comparable RevPAR and the impact from hotels temporarily closed due to COVID-19.
The Company generated a net loss of $174 million, or $1.86 per diluted share, in the second quarter of 2020, reflecting $1.71 per diluted share in non-cash impairment charges related to certain intangible assets and $0.18 per diluted share in restructuring and transaction-related costs. Net income in the second quarter of 2019 was $26 million, or $0.27 per diluted share, which included a non-cash impairment charge of $0.34 per diluted share and $0.16 per diluted share in transaction-related, separation-related and contract termination expenses. The decline in net income of $200 million, or $2.13 per diluted share, was primarily due to the impact of the non-cash impairment charges and the revenue declines, which were partially offset by lower volume-related expenses as well as cost containment initiatives, including restructuring actions. 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.
Business Segment Discussion
The following discussion of second quarter operating results focuses on revenue and adjusted EBITDA for each of the Company’s segments.
The Company’s franchised system, which included 7,500 rooms transferred from the hotel management segment related to the CorePoint Lodging asset sales, remained flat globally. Excluding the transfer, franchised net rooms declined 50 basis points globally, reflecting the Company’s removal of approximately 9,000 non-compliant master franchise rooms in China.
RevPAR declined 59% globally, or 53% on a comparable basis, due to the impact of COVID-19 on travel demand. In the U.S., RevPAR declined 52%, or 49% on a comparable basis, and internationally RevPAR declined 76%, or 66% on a comparable basis.
Revenues decreased $149 million compared to second quarter 2019 reflecting the impact of COVID-19 on travel demand globally, while a decline in adjusted EBITDA of $79 million was partially mitigated by lower volume-related expenses as well as cost containment initiatives.
The Company’s managed system decreased 11% globally primarily reflecting the transfer of 7,500 rooms to the hotel franchising segment as a result of CorePoint Lodging asset sales. Excluding the transfer of rooms to the hotel franchising segment, the Company’s managed system grew 1%, reflecting 13% growth internationally, partially offset by a 3% decline in the U.S. primarily due to the loss of rooms that were previously covered by unprofitable hotel management guarantees.
RevPAR declined 69% globally, or 63% on a comparable basis, primarily reflecting a 68% decline in the U.S., or 63% on a comparable basis, and a 72% decline internationally, or 60% on a comparable basis.
Revenues decreased $125 million compared to the prior-year period primarily due to $94 million of lower cost- reimbursement revenues, which have no impact on adjusted EBITDA. Absent cost-reimbursements, revenues declined $31 million due to the unfavorable impact of COVID-19 on travel demand globally, while adjusted EBITDA declined $20 million as the RevPAR impacts were partially mitigated by lower volume-related expenses as well as cost containment initiatives.
Development
As of June 30, 2020, the Company’s hotel system of over 9,000 properties and 813,000 rooms remained flat year-over-year. During the second quarter of 2020, the Company opened 62 new hotels totaling 5,700 rooms, a year-over-year decline of 65% as new construction openings were delayed and conversion volumes were lower.
As expected, the Company’s global retention rate over the last twelve months declined to 93.7% compared to 95.2% during the same period last year due to the Company’s removal of approximately 9,000 non-compliant master franchise rooms in China, as previously disclosed.
The Company’s development pipeline consisted of over 1,300 hotels and approximately 180,000 rooms, a 4% year-over-year room decline, or a 5% decline sequentially, as a result of softer sales activity in the second quarter due to travel restrictions, increased hurdle rates and a more conservative probability factor applied to projects in the pipeline which have not yet secured financing. Approximately 64% of the Company’s development pipeline is international and 76% is new construction, of which 34% have broken ground.
Impairment Charge
The continued disruption to the travel industry resulting from COVID-19 prompted the Company to perform an evaluation and comparison of the carrying value of its assets to their fair value. As a result of this evaluation, the Company recorded a net impairment charge of $206 million ($159 million, net of tax) during the second quarter of 2020 primarily related to the La Quinta tradename. The future cash flows expected to be generated from the La Quinta tradename have not changed materially; rather, the impairment charge was principally attributable to a higher discount rate primarily resulting from increased share price volatility, consistent with the lodging sector and broader equity markets.
Restructuring Charge
In an effort to mitigate the revenue declines resulting from COVID-19 and to further position itself for growth during the recovery period, the Company undertook various restructuring actions that resulted in a charge of $16 million ($13 million, net of tax) during the second quarter. This charge is comprised of $11 million for severance and related benefit costs resulting from the elimination of approximately 180 positions and $5 million of lease-related costs. In combination with the Company’s first quarter COVID-19 related restructuring charge, the Company has now reduced approximately 440 positions and expects to realize $50 million to $55 million of annual savings as a result of these actions.
Cash
During the second quarter of 2020, the Company’s cash balance decreased $85 million to $664 million. The impact of the Company’s franchisee fee deferral program was approximately $67 million during the second quarter. In addition, the Company made $28 million of special-item cash outlays, including restructuring payments, during the second quarter.
Dividends
The Company paid common stock dividends of $8 million, or $0.08 per share, in the second quarter of 2020.
Outlook
The Company’s ability to assess the impact of COVID-19 on its full-year financial results continues to be limited due to the uncertainty in travel demand during the remainder of 2020.
Conference Call Information
Wyndham Hotels will hold a conference call with investors to discuss the Company’s results and outlook on Wednesday, July 29, 2020 at 8:30 a.m. ET. Listeners can access the webcast live through the Company’s website at www.investor.wyndhamhotels.com. The conference call may also be accessed by dialing 866
342-8591 and providing the passcode “Wyndham”. Listeners are urged to call at least five minutes prior to the scheduled start time. An archive of this webcast will be available on the website for approximately 90 days beginning at noon ET on July 29, 2020. A telephone replay will be available for approximately ten days beginning at noon ET on July 29, 2020 at 800 839-5484.
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 9,000 hotels across approximately 90 countries on six continents. Through its network of 813,000 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 84 million enrolled members the opportunity to redeem points at thousands of hotels, vacation club resorts and vacation rentals globally. For more information, visit www.wyndhamhotels.com. The Company may use its website as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD. Disclosures of this nature will be included on the Company’s website in the Investors section, which can currently be accessed at www.investor.wyndhamhotels.com. Accordingly, investors should monitor this section of the Company’s website in addition to following the Company’s press releases, filings submitted with the Securities and Exchange Commission and any public conference calls or webcasts.
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of federal securities laws, including statements related to Wyndham Hotels’ current views and expectations with respect to its future performance and operations, including revenues, earnings, cash flow and other financial and operating measures and dividends, restructuring charges and statements related to the COVID-19 pandemic. Forward- looking statements include those that convey management’s expectations as to the future based on plans, estimates and projections at the time Wyndham Hotels makes the statements and may be identified by words such as “will,” “expect,” “believe,” “plan,” “anticipate,” “intend,” “goal,” “future,” “outlook,” “guidance,” “target,” “estimate,” “projection” and similar words or expressions, including the negative version of such words and expressions. Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of Wyndham Hotels to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release.
Factors that could cause actual results to differ materially from those in the forward-looking statements include, without limitation, general economic conditions; the continuation or worsening of the effects from the COVID-19 pandemic, 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 the COVID-19 pandemic; the Company’s performance in any recovery from the COVID-19 pandemic; 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 Company’s relationships with franchisees and property owners; the impact of war, terrorist activity or political strife; concerns with or threats of pandemics, contagious diseases or health epidemics, including the effects of the COVID-19 pandemic and any resurgence 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 the acquisition of La Quinta and 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 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 restrictions on share repurchases or the Company’s ability and plans to pay dividends including the timing and amount of any future 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.
As travelers consider summer stays, Wyndham launches new ad campaign with promotion inspiring future trips, reminding travelers: chances are, you’re only 10 minutes from a hotel by Wyndham
PARSIPPANY, N.J. (July 23, 2020) – Wyndham Hotels & Resorts, the world’s largest hotel franchising company with 9,300 hotels across approximately 90 countries, is inspiring travelers to book their next trip with its ‘Stay Two Nights, Earn a Free Night’ promotion, offering Wyndham Rewards members a free night – in the form of 7,500 bonus Wyndham Rewards points – when they stay two consecutive nights or more, now through September 10, 2020. The promotion is featured in Wyndham’s latest advertising campaign, reminding travelers that no matter what they’re checking out this summer, a hotel they can count on is about ten minutes away.
Guests who are members of the free-to-join Wyndham Rewards program can book a stay of two consecutive nights or more at www.WyndhamRewards.com/freenight to earn a one-time 7,500 points bonus – enough for a free night at thousands of hotels – upon the completion of their stay. Stays must be booked directly with Wyndham Rewards from July 16 through September 8, 2020 and completed by September 10, 2020. The 7,500 bonus points are additional to any points normally earned for the stay.
“With everyday travelers out there traveling, and vacationers gearing up for road trips this summer and fall, Wyndham is reminding every kind of traveler that our hotels are open, ready to welcome them, and within reach,” said Sheila Schottland, vice president of Brand Marketing at Wyndham Hotels & Resorts. “This promotion, along with our latest ad campaign, offers travelers a chance to consider where their next stay will take them – whether it is a quick car trip to reconnect with their family or a longer vacation to get away from it all – and makes it that much more rewarding with enough Wyndham Rewards bonus points for a free night stay towards future trips.”
Summer travel “intenders” – those who are considering a drive-to summer trip in the coming weeks – can also find the offer promoted in a new advertising campaign. Focused on engaging everyday travelers at the moment they’re looking to book a hotel stay, the campaign builds upon the Company’s previous “10 Minutes from a Hotel by Wyndham” spot. It reminds travelers that with over 6,000 hotels in the U.S., whatever it is they’re checking out in their travels, they can confidently check-in to a hotel by Wyndham. It is currently running across digital channels focused on targeting travelers who are looking to get back out on the road, supported through television, digital video, streaming radio, social media, email, direct response channels, and various website channels.
As the travel landscape evolves in the wake of COVID-19, Wyndham Hotels & Resorts and its brands are committed to the health and safety of guests and team members. The vast majority of the Company’s hotels remain open and are welcoming guests with flexible booking policies and enhanced health and safety protocols through Wyndham’s Count on UsSM initiative. Learn more at www.wyndhamhotels.com/count-on-us.
The ‘Stay Two Nights, Earn One Free’ promotion is available at participating Wyndham hotels. Guests must be members of Wyndham Rewards, which is free to join. To register, book a stay or view full terms and conditions, visit www.WyndhamRewards.com/freenight.
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 30,000 hotels, vacation club resorts and vacation rentals worldwide. Designed for the everyday traveler, members earn a guaranteed 1,000 points with every qualified stay and may redeem points for a wide-range of rewards, including free nights at any of approximately 9,300 hotels or tens of thousands of vacation club resorts and vacation rentals globally through affiliation with Wyndham Destinations (NYSE: WYND) and others. Wyndham Rewards has 83 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 number of properties with approximately 9,300 hotels across approximately 90 countries on six continents. Through its network of over 831,000 rooms appealing to the everyday traveler, Wyndham commands a leading presence in the economy and midscale segments of the lodging industry. The Company operates a portfolio of 20 hotel brands, including Super 8®, Days Inn®, Ramada®, Microtel®, La Quinta®, Baymont®, Wingate®, AmericInn®, Hawthorn Suites®, Trademark Collection® and Wyndham®. Wyndham Hotels & Resorts is also a leading provider of hotel management services, with approximately 400 properties under management. The Company’s award-winning Wyndham Rewards loyalty program offers approximately 81 million enrolled members the opportunity to redeem points at thousands of hotels, vacation club resorts and vacation rentals globally. For more information, visit www.wyndhamhotels.com.
World’s largest hotel franchising company drives expansion across the Indian subcontinent
PARSIPPANY, N.J. (July 7, 2020) – Wyndham Hotels & Resorts, the world’s largest hotel franchising company with 9,300 hotels across approximately 90 countries, today unveiled plans to open its first hotels in Nepal and Bhutan, while also announcing the recent opening of the Hawthorn Suites® by Wyndham Dwarka—the first Hawthorn Suites by Wyndham hotel in India.
All three hotels are part of Wyndham’s larger efforts to significantly expand its footprint across the Indian subcontinent and are complemented by additional properties in the region that either recently opened or are slated to open over the next nine months. Wyndham is currently one of the largest international hotel companies in India.
Nikhil Sharma, area director, Eurasia, Wyndham Hotels & Resorts said, “Over the last few years, Bhutan and Nepal have seen a steady increase in tourism, making them ideal destinations for us to expand into. What’s more, they perfectly complement the opportunity and uptick of the midscale market in India, which we’ve strengthened today with the introduction of our Hawthorn Suites by Wyndham brand. As the Indian subcontinent continues making waves in the hospitality industry, Wyndham remains laser focused on tapping into its key markets and fulfilling our mission of making hotel travel possible for all.”
Upcoming hotel openings include:
Ramada by Wyndham Valley Thimpu (Bhutan)
Marking Wyndham’s arrival into Bhutan, the Ramada® by Wyndham Valley Thimpu will offer 41 spacious rooms, including many with panoramic views of the magnificent Himalayas. Tucked in the Thimpu valley by the free-flowing Raidāk River, its location will provide easy access to special events at the Tasichho Dzong, the giant statue of Buddha Dordenma, and the sacred Memorial Chorten site. The hotel is expected to open in March 2021.
Ramada Encore by Wyndham Kathmandu Thamel(Nepal) Wyndham’s first entry in the Himalayan kingdom of Nepal, the Ramada Encore by Wyndham Kathmandu Thamel is situated in the Thamel district in the capital city of Kathmandu, which has been the centre of the tourist industry for over four decades. The hotel will offer 90 tastefully furnished guest rooms with a range of amenities to make for a comfortable stay and a rooftop with a scenic view of the city. The hotel is expected to open in August 2020.
Ramada by Wyndham Mussoorie Mall Road (India) Spread across one acre of land, the Ramada by Wyndham Mussoorie Mall Road will offer 45 rooms all with key necessities for guests to enjoy their time. The hotel will be located at one of the most admired hill station destinations in Northern India, also referred to as the Queen of the Hills, popular amongst leisure as well as business travellers. The hotel is expected to open later this month.
Recent 2020 openings include:
Hawthorn Suites by Wyndham Dwarka (India)
Marking the arrival of the Hawthorn Suites by Wyndham brand in the Indian subcontinent, the Hawthorn Suites by Wyndham Dwarka is an eco-spiritual resort offering 202 spacious guest rooms and is in close proximity to Dwarkadhish Temple, Dwarka Beach and Gomti Ghat. The property, which opened in April 2020, offers expansive outdoor access with an opportunity to focus on wellness and exploring nature.
Ramada by Wyndham Aligarh GT Road (India) A new-construction hotel situated in Aligarh, in the western region of Uttar Pradesh state, the Ramada by Wyndham Aligarh GT Road opened in January 2020 and features 60 contemporary guest rooms, expansive lawn space, and a plethora of amenities. Situated in an ideal location with easy access to the Aligarh Junction Railway Station and Aligarh Bus Stand, the hotel makes a great home base for travel throughout the area.
Ramada Plaza by Wyndham Pune Hinejwadi (India) Situated along the Pune Bangalore Highway, only an hour’s drive away from popular weekend getaways like Lonavala, Khandala, and Lavasa, is the Ramada Plaza by Wyndham Pune Hinejwadi. The hotel, which opened in March 2020, hosts 172 spacious guest rooms and offers an opportunity to explore majestic nearby attractions and outdoor adventures such as the Aga Khan Palace.
Wyndham Hotels & Resorts’ properties around the world participate in Wyndham Rewards®, the world’s most generous rewards program with more than 30,000 hotels, vacation club resorts and vacation rentals globally. 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, gift cards, merchandise and more.
About Wyndham Hotels & Resorts Wyndham Hotels & Resorts (NYSE: WH) is the world’s largest hotel franchising company by the number of properties, with 9,300 hotels across approximately 90 countries on six continents. Through its network of over 828,000 rooms appealing to the everyday traveler, Wyndham commands a leading presence in the economy and midscale segments of the lodging industry. The Company operates a portfolio of 20 hotel brands, including Super 8®, Days Inn®, Ramada®, Microtel Inn & Suites®, La Quinta®, Baymont®, Wingate®, AmericInn®, Hawthorn Suites®, The Trademark Collection® and Wyndham®. Wyndham Hotels & Resorts is also a leading provider of hotel management services. The Company’s award-winning Wyndham Rewards loyalty program offers 83 million enrolled members the opportunity to redeem points at thousands of hotels, vacation club resorts and vacation rentals globally. For more information, visit www.wyndhamhotels.com.
World’s largest hotel franchising company details key openings in Turkey, continued global growth
PARSIPPANY, N.J. (July 1, 2020) – Wyndham Hotels & Resorts, the world’s largest hotel franchising company with 9,300 hotels across approximately 90 countries, today announced plans to further expand its La Quinta® by Wyndham brand with the addition of two new hotels in Turkey: the 86-room La Quinta by Wyndham Giresun and the 175-room, La Quinta by Wyndham Bodrum.
The new hotels join the previously announced 404-room La Quinta by Wyndham Istanbul Gunesli—the first La Quinta hotel to open outside of the Americas—and are the latest in a string of international signings and openings since Wyndham acquired the brand in May of 2018.
Earlier this year, Wyndham announced plans to open two new La Quinta hotels in New Zealand, marking the arrival of the brand in Asia Pacific; and just last year, announced plans to open eight new La Quinta hotels in the Dominican Republic, four of which are currently under development. They build on the brand’s existing portfolio of 14 hotels throughout Latin America. Globally, the brand has opened 55 new hotels since its acquisition.
“When La Quinta joined the Wyndham Hotels & Resorts family, we saw strong potential to expand the brand internationally and we are delighted to see its continued growth in Europe and around the world,” said Dimitris Manikis, president, EMEA, Wyndham Hotels & Resorts. “These exciting properties on Turkey’s charming coastline support our growth ambition and perfectly complement our other offerings in the market.”
The new additions in Turkey—where Wyndham is the largest international hotel company with over 80 hotels—include two contemporary properties with central locations in the Black Sea coastal town of Giresun, as well as in Bodrum, one of Turkey’s most popular and trendy seaside gateways. Details on the new hotels include:
La Quinta by Wyndham Giresun The 86-room La Quinta by Wyndham Giresun is a stylish waterfront hotel with stunning views of the Black Sea and a wide range of amenities making it an ideal destination for business and leisure trips. The hotel boasts an outdoor pool, a fitness center with Turkish bath and sauna, four on-site restaurants and even a library. The hotel, which opened last month, is located only 3km from the city center, with convenient access to the Ordu-Giresun Airport.
La Quinta by Wyndham Bodrum With stunning views on the Bodrum Peninsula, the 175-room La Quinta by Wyndham Bodrum is a seaside hotel featuring stylish guest rooms, two on-site restaurants and a rooftop bar. The property, slated to open later this month, will include an outdoor pool, sauna and a fitness center to help guests keep active while traveling. Other facilities will include a business center as well as a versatile event space.
La Quinta by Wyndham hotels participate in Wyndham Rewards®, the world’s most generous rewards program with thousands of 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, gift cards, merchandise and more.
About La Quinta by Wyndham With over 925 destinations globally, the La Quinta by Wyndham brand is a bright spot in every traveler’s journey. The brand offers thoughtful amenities, friendly service and consistently delivers an exceptional guest experience that keeps travelers waking up on the bright side. For more information, visit www.lq.com. Like and follow LQ on Facebook and YouTube. If you are interested in developing a hotel, please visit development.wyndhamhotels.com.
About Wyndham Hotels & Resorts Wyndham Hotels & Resorts (NYSE: WH) is the world’s largest hotel franchising company by the number of properties, with 9,300 hotels across approximately 90 countries on six continents. Through its network of over 828,000 rooms appealing to the everyday traveler, Wyndham commands a leading presence in the economy and midscale segments of the lodging industry. The Company operates a portfolio of 20 hotel brands, including Super 8®, Days Inn®, Ramada®, Microtel Inn & Suites®, La Quinta®, Baymont®, Wingate®, AmericInn®, Hawthorn Suites®, The Trademark Collection® and Wyndham®. Wyndham Hotels & Resorts is also a leading provider of hotel management services. The Company’s award-winning Wyndham Rewards loyalty program offers 83 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.
Builds on recent market debut with new locations in Madrid and Valencia
PARSIPPANY, N.J. (June 25, 2020) – Wyndham Hotels & Resorts, the world’s largest hotel franchising company with 9,300 hotels across 90 countries, today announced the expansion of its Ramada® by Wyndham brand in Spain with the upcoming openings of Ramada by Wyndham Madrid Tres Cantos and Ramada by Wyndham Valencia Almussafes.
Following the brand’s successful entry into Spain in late 2019 with Ramada by Wyndham Madrid Getafe, the two new properties are owned by Covivio, a leading European real estate operator, through its subsidiary Covivio Hotels, and managed by hotel management company Hotel Collection International. The hotels build upon Ramada by Wyndham’s broader European portfolio, which includes locations in destinations like Portugal, Italy, Turkey, Greece, Germany, Belgium, the UK and the Netherlands, amongst others.
Christian Michel, vice president, Development, Europe, Wyndham Hotels & Resorts said, “We are extremely pleased with Ramada by Wyndham’s steady growth in Spain and with our continued relationship with Hotel Collection International and Covivio. These latest additions in Madrid and Valencia will enable us to further drive our overall mission of making hotel travel possible for all, as well as offer all travelers more options in two sought after travel destinations.”
Sebastian Lodder, CEO of Hotel Collection International added, “Ramada by Wyndham is an internationally recognized and ever-evolving brand and we are thrilled to be making its presence known across Spain. With the expansion of our two new properties, we look forward to bringing guests from around the world more opportunity to experience our unparalleled hospitality, as well as welcome them to explore the unique destinations in which our hotels are located. We look forward to continuing our growth in this region under the Wyndham brand portfolio.”
Ramada by Wyndham Valencia Almussafes will open its doors on July 1, 2020, completely renovated with all the Ministry of Health of Spain’s required protocols implemented, as well as Wyndham Hotels & Resorts’ Count on Us health and safety measures. The hotel is located minutes from the Rey Juan Carlos Business Park and offers accessibility to the City of Arts & Sciences opera house, science museum, aquarium and much more. Ideal for business and leisure guests, the 133-room hotel features a 24-hour, fully-equipped private gym, a seasonal outdoor swimming pool with a beautiful garden and landscaped sundeck, as well as an on-site restaurant and bar. Three meeting rooms complete with audio-visual capabilities are also available on-site and can accommodate up to 120 conference guests.
Ramada by Wyndham Madrid Tres Cantos is still under development and is scheduled to open in September, 2020. The hotel is located in a corporate location North of Madrid with convenient access to the Euronova Business Park, as well as a nearby train connection to the city centre, making it suitable for those travelling either for business or pleasure. Surrounded by restaurants and conveniently close to the Santiago Bernabeu Stadium, this 61-room contemporary hotel offers guests a fitness centre, an all-day snack bar and three versatile meeting rooms that can accommodate up to 70 guests or 60 banquet guests.
Ramada by Wyndham hotels in Spain participate in Wyndham Rewards®, the world’s most generous rewards program with thousands of 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, gift cards, merchandise and more.
About Ramada by Wyndham With more than 850 hotels in over 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 Instagram. If you are interested in developing a Ramada by Wyndham hotel, please visit development.wyndhamhotels.com.
About Wyndham Hotels & Resorts Wyndham Hotels & Resorts (NYSE: WH) is the world’s largest hotel franchising company by the number of properties, with 9,300 hotels across approximately 90 countries on six continents. Through its network of over 828,000 rooms appealing to the everyday traveler, Wyndham commands a leading presence in the economy and midscale segments of the lodging industry. The Company operates a portfolio of 20 hotel brands, including Super 8®, Days Inn®, Ramada®, Microtel Inn & Suites®, La Quinta®, Baymont®, Wingate®, AmericInn®, Hawthorn Suites®, The Trademark Collection® and Wyndham®. Wyndham Hotels & Resorts is also a leading provider of hotel management services. The Company’s award-winning Wyndham Rewards loyalty program offers 83 million enrolled members the opportunity to redeem points at thousands of hotels, vacation club resorts and vacation rentals globally. For more information, visit www.wyndhamhotels.com.
World’s largest hotel franchisor taps into powerful conversion engine, welcomes independent hoteliers to benefit from support and power of scale behind the brand
PARSIPPANY, N.J. (June 8, 2020) – Wyndham Hotels & Resorts – the world’s largest hotel franchising company with approximately 9,300 hotels across 90 countries – is expanding its soft-branded Trademark Collection by Wyndham®, the fastest-growing brand in the Company’s portfolio, with new hotels across the U.S., Canada and Germany.
The brand’s latest openings include Cantilever Hotel, a Trademark Collection by Wyndham hotel in Ranier, Minn.; The Eureka Inn, a Trademark Collection by Wyndham hotel in Eureka, Calif.; Lakeview Signature, a Trademark Collection by Wyndham hotel in Winnipeg, Manitoba, Canada; and H+ and H4 Trademark Collection hotels in Leipzig, Germany. The Bridgewater Hotel, a Trademark Collection by Wyndham hotel in Fairbanks, Alaska is scheduled to open next month.
“Trademark Collection continues to grow rapidly with independently minded owners around the world,” said Geoff Ballotti, president and CEO, Wyndham Hotels & Resorts. “That growth is not only a testament to Trademark’s value as one of the most compelling soft branded options out there for independent hoteliers, but also the value of Wyndham, which brings recognition, distribution and loyalty in a time when travelers are looking to names and brands they trust for their future vacations.”
Trademark Collection’s global pipeline comprises more than 8,400 rooms. The brand recently celebrated the start of construction on a new Trademark Collection by Wyndham hotel in Leavenworth, Kan., which will be a creative re-adaptation of a former parochial school and is expected to open in the third quarter of 2020.
Backed by Wyndham Trademark Collection by Wyndham is the Company’s fastest-growing brand, and experienced a 19% growth in rooms year-over-year as of December 31, 2019. The growth comes at a time when soft brands have strong appeal for independent owners seeking the support of a branded partner as the travel industry prepares for recovery of domestic, leisure travel. With Trademark Collection, hoteliers gain access to Wyndham’s 83 million Wyndham Rewards loyalty members and the company’s global distribution network without having to sacrifice their properties’ own unique branding and identities. As a leader in economy and midscale lodging, Wyndham is uniquely positioned to champion hoteliers in these segments, helping them compete in an ever-changing distribution environment with brand-backed support.
With over 15,000 independent economy and midscale hotels in the U.S., converting independent hotels to Wyndham brands remains an important source of consistent rooms. Wyndham has a proven track record of growing net rooms during lodging cycle downturns, fueled by the strong value proposition across its portfolio of well-known brands. In the first quarter, Wyndham’s conversion pipeline increased 8% globally year-over-year.
Owner-First Approach The success of its owner base is critical to Wyndham’s business, and the Company is taking an owner-first approach to endurance and recovery in the wake of COVID-19 crisis. Wyndham is assisting owners by suspending certain fees, providing payment relief and deferring property improvement plans for nonessential brand standards in an effort to reduce operating costs in the near term while the industry recovers. The Company also took efforts to secure government assistance for franchisees, partnering with industry organizations to advocate on their behalf while guiding them through available relief, like the CARES act.
To support its franchisees as travel picks up again, Wyndham previously announced a long-term, multi-faceted initiative in the U.S. to build confidence among guests. The initiative, dubbed “Count on UsSM” will immediately focus on further elevating health and safety protocols at Wyndham hotels in the wake of COVID-19, shoring up critical supply chains and introducing new standards, training and guidelines grounded in guidance from the U.S. Centers for Disease Control and Prevention. Wyndham has also expanded its relationship with industry leader Ecolab on requiring consistent use of Ecolab’s EPA-approved disinfectants in guestrooms and public spaces nationwide.
About Trademark Collection by Wyndham Each of Trademark Collection by Wyndham’s upper-midscale-and-above hotels around the world – from landmark hotels in Germany and Switzerland to its flagship hotel, The Galt House Hotel in Louisville, Ky. – boast three common attributes: character, charm, and individuality. Launched in 2017, Trademark Collection 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 by the number of properties, with 9,300 hotels across approximately 90 countries on six continents. Through its network of over 828,000 rooms appealing to the everyday traveler, Wyndham commands a leading presence in the economy and midscale segments of the lodging industry. The Company operates a portfolio of 20 hotel brands, including Super 8®, Days Inn®, Ramada®, Microtel Inn & Suites®, La Quinta®, Baymont®, Wingate®, AmericInn®, Hawthorn Suites®, The Trademark Collection® and Wyndham®. Wyndham Hotels & Resorts is also a leading provider of hotel management services. The Company’s award-winning Wyndham Rewards loyalty program offers 83 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 Completes Amendment to Credit Facility
Waiving Covenant Testing until Second Quarter of 2021
PARSIPPANY, N.J., May 4, 2020 -Wyndham Hotels & Resorts (NYSE: WH) today announced results for the three months ended March 31, 2020. Highlights include:
Diluted earnings per share increased 5% to $0.23, and adjusted diluted EPS decreased 4% to $0.50.
Net income was $22 million for the first quarter, a 5% increase over the prior-year quarter; adjusted net income was $47 million, an 8% decrease over the prior-year quarter.
Adjusted EBITDA decreased 4% compared with the prior-year quarter, to $107 million.
System-wide rooms grew 2% year-over-year.
The Company’s development pipeline grew 4% year-over-year to 189,000 rooms.
Global RevPAR declined 23% year-over-year in constant currency.
“During the most challenging crisis the hotel industry has ever endured, our highest priority has remained the well-being and safety of our guests, owners and team members. We have taken the difficult but prudent measures to reduce our costs and bolster our liquidity while providing support and relief for our franchisees to help them weather this downturn,” said Geoffrey A. Ballotti, chief executive officer. “Nearly 5,900 of our 6,300 hotels in the U.S. remain open, and with nearly 90% of those properties located outside of major cities in drive-to destinations that cater to a leisure customer base, we believe that our asset-light business is well positioned for a quick recovery when travel demand returns.”
Revenues decreased 12% to $410 million, compared with $468 million in the first quarter of 2019. The decline includes lower pass-through cost-reimbursement revenues, which have little to no impact on adjusted EBITDA, in the Company’s hotel management business. Excluding cost-reimbursement revenues, revenues declined $29 million or 9%, reflecting a 23% decline in constant-currency RevPAR, as well as lower license fees which were adversely impacted by declining travel demand.
Net income increased 5% to $22 million, or $0.23 per diluted share, compared to $21 million, or $0.22 per diluted share, in the first quarter of 2019 due to lower separation-related expenses associated with the Company’s spin-off and a decline in overall expenses due to cost reduction initiatives, partially offset by the decline in revenue (excluding cost-reimbursement revenues). 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.
Business Segment Discussion
The following discussion of first quarter operating results focuses on revenue and adjusted EBITDA for each of the Company’s segments.
The Company’s franchised system increased 3% globally, which included the transfer of 7,100 rooms from the hotel management segment related to the CorePoint Lodging asset sales. Excluding the transfer, franchised net rooms grew 2% globally, including 40 basis point growth in the U.S. and 5% growth internationally.
RevPAR declined 23% globally due to travel restrictions related to COVID-19. In the U.S., RevPAR declined 17%, and internationally RevPAR declined 37% primarily due to a 70% decline in China.
Revenues decreased $26 million, or 10%, compared to first quarter 2019 reflecting the impact of COVID-19 on travel demand globally, while a decline in Adjusted EBITDA of $5 million, or 4%, was partially mitigated by cost savings initiatives.
The Company’s managed system decreased 11% globally primarily reflecting the transfer of 7,100 rooms to the hotel franchising segment as a result of CorePoint Lodging asset sales. Excluding the transfer of rooms to the hotel franchising segment, the Company’s managed system decreased 1% primarily due to the loss of rooms in the U.S. that were previously covered by unprofitable hotel management guarantees.
RevPAR declined 21% globally, primarily reflecting a 17% decline in the U.S. and a 31% decline internationally.
Revenues decreased $30 million compared to the prior-year period due to lower cost-reimbursement revenues, which have little to no impact on adjusted EBITDA. The decline in cost-reimbursement revenues is due to the loss of management properties resulting from the CorePoint Lodging asset sales and the termination of unprofitable hotel-management guarantees. Absent cost-reimbursements, revenues and adjusted EBITDA were unchanged as the unfavorable impact of COVID-19 on our owned and managed properties was offset by $5 million of management contract termination fees received from CorePoint Lodging asset sales.
Development
During the first quarter of 2020, the Company opened 58 new hotels totaling 6,200 rooms, a year-over-year decline of 47% as new construction openings were delayed in China and conversion volumes were materially lower in the U.S. during March. The Company retained 94.8% of its hotel system over the last twelve months compared to 94.7% during the same period last year. As of March 31, 2020, the Company’s hotel system consisted of approximately 9,300 properties and over 828,000 rooms, a 2% year-over-year increase.
The Company’s development pipeline consisted of 1,500 hotels and approximately 189,000 rooms, a 4% year- over-year room increase, or 2% decline sequentially. Approximately 58% of the Company’s development pipeline is international and 72% is new construction, of which nearly 40% have broken ground.
Balance Sheet and Liquidity
As of March 31, 2020, the Company had $749 million of cash on hand and $2.9 billion of debt outstanding, of which $2.4 billion was first lien debt. The Company’s first lien leverage ratio was 2.6x as of March 31, 2020, within the 5.0x limitation of its quarterly tested leverage covenant under its credit agreement. In April, the Company amended its credit agreement and obtained a waiver of the quarterly tested leverage covenant through and including the first quarter of 2021 (unless earlier terminated by the Company, subject to certain conditions). The Company is not required to test this covenant until June 30, 2021. The covenant calculation was also modified for the second, third and fourth quarters of 2021 to use annualized EBITDA rather than the last-twelve-months EBITDA, as previously required. In return for the amendment, among other modifications, the Company agreed to maintain minimum liquidity of $200 million, pay 25 basis points of higher interest on outstanding borrowings and restrict share repurchases. The Company has the ability to make future quarterly dividend payments up to the amount of $0.16 per share, so long as liquidity is greater than $300 million. In addition, the Company has the right to elect out of the waiver period at its discretion, at which time the restrictions on dividends and share repurchases would be lifted.
For the three months ended March 31, 2020, net cash provided by operating activities was $17 million, compared to $7 million in the prior year period. The increase was driven by lower separation and transaction cash outlays.
Share Repurchases and Dividends
During the first quarter of 2020, the Company repurchased approximately 878,000 shares of its common stock for $45 million at an average price of $51.57 per share. The Company suspended its share repurchase activities in March.
The Company paid common stock dividends of $30 million, or $0.32 per share, in the first quarter of 2020.
Due to the material adverse impact on the global economy and travel demand resulting from COVID-19, the Company’s Board of Directors approved a reduction in the quarterly cash dividend policy from $0.32 per share to $0.08 per share, beginning with the dividend that is expected to be declared, at the Board’s discretion, in the second quarter of 2020.
Other Items
In response to the effects on travel demand as a result of COVID-19, the Company identified approximately $255 million of cash savings. In connection with these initiatives, the Company has eliminated approximately 440 positions, reduced capital spend to focus only on the highest priority projects, eliminated all non-essential spend, consolidated certain facilities and indefinitely suspended Mr. Ballotti’s salary and the Company’s Board of Directors’ cash compensation. As a result, the Company recorded a restructuring charge of $13 million during the first quarter of 2020 and expects to incur an additional charge of $18 million during the second quarter of 2020.
The first quarter charge primarily represents future cash expenditures for the payment of severance and related benefits costs resulting from the elimination of approximately 260 positions. The Company expects this initiative to be substantially complete in the second quarter of 2020 and that annual savings realized will be approximately $30 million.
The second quarter charge will represent future cash expenditures of approximately $13 million for the payment of severance and related benefit costs resulting from the elimination of approximately 180 positions and approximately $5 million of lease-related costs. The Company expects this initiative to be substantially complete in the second quarter of 2020 and that annual savings realized will be approximately $21 million to $25 million.
Outlook
The Company’s ability to assess the impact of COVID-19 on its full-year financial results continues to be limited due to the rapidly evolving circumstances and uncertainty in travel demand. As a result, the Company remains unable, at this time, to accurately predict and provide 2020 outlook.
Conference Call Information
Wyndham Hotels will hold a conference call with investors to discuss the Company’s results and outlook on Tuesday, May 5, 2020 at 8:30 a.m. ET. Listeners can access the webcast live through the Company’s website at www.investor.wyndhamhotels.com. The conference call may also be accessed by dialing 877 876-9173 and providing the passcode “Wyndham”. Listeners are urged to call at least five minutes prior to the scheduled start time. An archive of this webcast will be available on the website for approximately 90 days beginning at noon ET on May 5, 2020. A telephone replay will be available for approximately ten days beginning at noon ET on May 5, 2020 at 800 839-1162.
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 9,300 hotels across approximately 90 countries on six continents. Through its network of over 828,000 rooms appealing to the everyday traveler, Wyndham commands a leading presence in the economy and midscale segments of the lodging industry. The Company operates a portfolio of 20 hotel brands, including Super 8®, Days Inn®, Ramada®, Microtel Inn & Suites®, La Quinta®, Baymont®, Wingate®, AmericInn®, Hawthorn Suites®, The Trademark Collection® and Wyndham®. Wyndham Hotels & Resorts is also a leading provider of hotel management services. The Company’s award-winning Wyndham Rewards loyalty program offers 83 million enrolled members the opportunity to redeem points at thousands of hotels, vacation club resorts and vacation rentals globally. For more information, visit www.wyndhamhotels.com. The Company may use its website as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD. Disclosures of this nature will be included on the Company’s website in the Investors section, which can currently be accessed at www.investor.wyndhamhotels.com.
Accordingly, investors should monitor this section of the Company’s website in addition to following the Company’s press releases, filings submitted with the Securities and Exchange Commission and any public conference calls or webcasts.
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of federal securities laws, including statements related to Wyndham Hotels’ current views and expectations with respect to its future performance and operations, including revenues, earnings, cash flow and other financial and operating measures, share repurchases and dividends, restructuring charges and statements related to the COVID-19 pandemic. Forward-looking statements include those that convey management’s expectations as to the future based on plans, estimates and projections at the time Wyndham Hotels makes the statements and may be identified by words such as “will,” “expect,” “believe,” “plan,” “anticipate,” “intend,” “goal,” “future,” “outlook,” “guidance,” “target,” “estimate,” “projection” and similar words or expressions, including the negative version of such words and expressions. Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of Wyndham Hotels to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release.
Factors that could cause actual results to differ materially from those in the forward-looking statements include, without limitation, general economic conditions; the continuation or worsening of the effects from the
COVID-19 pandemic, 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 the COVID-19 pandemic; the Company’s performance in any recovery from the
COVID-19 pandemic; 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 Company’s relationships with franchisees and property owners; the impact of war, terrorist activity or political strife; concerns with or threats of pandemics, contagious diseases or health epidemics, including the effects of the COVID-19 pandemic and actions governments, businesses and individuals take in response to the pandemic, including stay-in-place directives and other travel restrictions; risks related to the acquisition of La Quinta and 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 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 and plans to pay dividends and to repurchase shares including the timing and amount of any future share repurchases and 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.
Wyndham Hotels & Resorts (NYSE: WH) announced today that it will report first quarter 2020 results on Monday, May 4, 2020 at approximately 5:00 p.m. ET. Geoffrey A. Ballotti, president and chief executive officer, and Michele Allen, chief financial officer, will host a call with investors on May 5, 2020 at 8:30 a.m. ET to discuss the Company’s results and business outlook.
Listeners can access the webcast live through the Company’s website at www.investor.wyndhamhotels.com. The conference call may also be accessed by calling 877 876-9173 and providing the passcode “Wyndham.” Listeners are urged to call at least five minutes prior to the scheduled start time. An archive of this webcast will be available on the website for approximately 90 days beginning at noon ET on May 5, 2020. A telephone replay will be available for approximately ten days beginning at noon ET on May 5, 2020 at 800 839-1162.
About Wyndham Hotels & Resorts Wyndham Hotels & Resorts (NYSE: WH) is the world’s largest hotel franchising company, with approximately 9,300 hotels across approximately 90 countries on six continents. Through its network of over 831,000 rooms appealing to the everyday traveler, Wyndham commands a leading presence in the economy and midscale segments of the lodging industry. The Company operates a portfolio of 20 hotel brands, including Super 8®, Days Inn®, Ramada®, Microtel Inn & Suites®, La Quinta®, Baymont®, Wingate®, AmericInn®, Hawthorn Suites®, The Trademark Collection®, and Wyndham®. Wyndham Hotels & Resorts is also a leading provider of hotel management services, with approximately 400 properties under management. The Company’s award-winning Wyndham Rewards loyalty program offers approximately 81 million enrolled members the opportunity to redeem points at thousands of hotels, vacation club resorts and vacation rentals globally. For more information, visit www.wyndhamhotels.com.
