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.
Elevated, cost-effective design caters to drive-to travelers, looks to optimize operational efficiencies while rivaling midscale aesthetic and performance
PARSIPPANY, N.J. (July 14, 2020) – Wyndham Hotels & Resorts, the world’s largest hotel franchising company with 9,300 hotels across approximately 90 countries, today announced the opening of the 63-room Microtel® by Wyndham in George, Wash.—the first hotel in the world to feature the brand’s innovative and highly efficient Moda prototype.
Centered on smart, minimalist design, Moda elevates the award-winning Microtel by Wyndham brand while streamlining the development process with thoughtful choices that not only help deliver a better guest experience but can afford developers the opportunity for large, incremental savings. The ultimate goal: midscale aesthetic and performance but at economy costs.
Originally designed with the understanding that cleanliness and efficiency are of increasing importance to travelers—now even more so in today’s environment—Microtel’s purposeful approach is creating strong interest from developers looking to add Moda to their portfolios.
“More than ever, development costs and return on investment are what matter most, which is why any developer looking to grow or diversify their portfolio needs to have Moda on their list,” said Microtel by Wyndham Brand Leader and Vice President of Operations, Keri Putera. “Inexpensive to build, designed for drive-to business and easy to clean and maintain, it’s a game changer in the new-construction space. We believe there’s nothing else like it.”
The Moda prototype was developed in collaboration with seasoned Microtel owners and award-winning architect firm, Hoefer Wysocki. Moda reduces Microtel’s total footprint by nearly 30 percent versus the prior prototype and delivers more than 70 percent of rentable space—one of the strongest rentable footprints in both the economy and midscale segments. The prototype includes a three-story and a four-story option, helping it meet the needs of most any location.
“As a seasoned commercial real estate developer who wanted to branch out into hospitality, I was incredibly impressed by the team at Wyndham and the Microtel Moda prototype,” said Microtel by Wyndham George Owner Caleb McNamara. “It’s a thoughtful design, punches above its weight-class when it comes to looks, is cost-effective and easy to build. It’s exactly what we were looking for.”
The Microtel by Wyndham George, the brand’s first hotel in the state of Washington, helps Microtel continue its expansion across the United States. Another Microtel by Wyndham featuring the Moda prototype is slated to open later this year in Hot Springs, Ark. Other markets under development include Destin and Fort Walton Beach, Fla.; Saint Rose and Chalmette, La.; Asheville, N.C. and Midland, Texas.
The Microtel by Wyndham Moda prototype builds on key learnings from the industry-leading design and construction practices of La Quinta® by Wyndham and is an important step in Wyndham Hotels & Resorts’ new-construction growth strategy, focused on delivering long-term value and quality for owners. Interested developers can visit www.buildmicrotel.com, or contact the Microtel Franchise Development team by email at [email protected] and by phone at (800) 889-9710, for more information.
About Microtel by Wyndham Microtel by Wyndham is an award-winning chain of more than 340 economy hotels located throughout North America, the Philippines and China. Consistently over-delivering on both guest and owner expectations, Microtel is the only all new-construction hotel in the economy segment. Ranked best-in-class by organizations like The Harris Poll®,” Microtel’s rich award-recognized heritage is backed by 16 J.D. Power honors – the most of any hotel brand in the economy segment. Microtel prides itself on being an innovator, offering a midscale experience at an economy price with an array of complimentary amenities including free Wi-Fi and continental breakfast. Other amenities available at most hotels include meeting and fitness centers, swimming pools and the opportunity to earn and redeem points through Wyndham Rewards®, the brand’s guest loyalty program. Travelers can join the program for free at www.wyndhamrewards.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®, 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 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.
Members can now unlock new levels (status) after as few as three nights, plus earn up to 10,000 Wyndham Rewards bonus points over five stays
PARSIPPANY, N.J. (June 30, 2020) – Wyndham Rewards®, the world’s most generous rewards program, today announced it is relaxing requirements for earning Member Levels (status) in 2020, reducing the number of nights members need to stay by 40 percent.
The relaxed requirements build on earlier efforts by Wyndham to help its members amid COVID-19, such as extending the expiration of any previously earned Member Levels through the end of 2021 and pausing points expiration through September 30, 2020. They also complement Wyndham’s recently unveiled summer promotion, which offers members 2,000 Wyndham Rewards bonus points with every qualified stay, up to a maximum of 10,000 points over five stays.
“Throughout the pandemic, we’ve put our members first, providing flexibility while protecting their points and their benefits,” said Eliot Hamlisch, executive vice president, Loyalty and Revenue Optimization, Wyndham Hotels & Resorts. “Now with travel picking up, and hotels adopting our new Count On Us health and safety protocols, we’re taking the additional step of easing requirements for our Member Levels. It’s one more way we’re letting members know, when they’re ready to travel, Wyndham is ready to welcome them.”
Reach New Levels with Fewer Stays Wyndham Rewards’ Member Levels are already among the most attainable in the industry and now, attaining new levels is even easier in 2020. Members will unlock Gold when they stay three qualifying nights, Platinum when they stay nine qualifying nights and Diamond when they stay 24 qualifying nights. Only stays in 2020 will count towards the new requirements, including those from earlier this year, which will be retroactively applied. Member Level benefits vary by level and range from perks like late check-out, preferred rooms and points accelerators to suite upgrades, welcome amenities and more.
Earn 2,000 Bonus Points with Every Stay Through July 27, 2020, Wyndham Rewards members can earn 2,000 bonus points on every qualified stay, up to a total of 10,000 points over five stays, when they register ahead of completion of their first stay at www.wyndhamrewards.com/bonus. Bonus points are in addition to any points normally earned with no minimum night requirements. Stays must be booked directly with Wyndham Rewards, which includes booking via the Wyndham Rewards website, mobile app, member services or onsite at any participating hotel, among other options. Stays must be completed by July 28, 2020.
Count On Ussm to Put Safety First Wyndham and its hotels, the overwhelming majority of which are open and welcoming travelers, are committed to the health and safety of guests and team members. Last month, the Company launched its Count on Us initiative, a new multi-faceted effort designed to further elevate health and safety protocols at all its hotels in the wake of COVID-19. Grounded in guidance from the U.S. Centers for Disease Control and Prevention (CDC), the initiative requires hotels in the U.S. to use hospital-grade, EPA-approved disinfectants in all public spaces and guestrooms. Guests can also expect the use of personal protective equipment (PPE) by hotel staff, updated operational protocols to allow for easier social distancing and readily available, alcohol-based hand sanitizer in lobbies and guestrooms. Learn more at www.wyndhamhotels.com/count-on-us.
For more information on the above promotional offers, including full terms and conditions, visit www.wyndhamrewards.com.
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 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.
Economy and midscale lodging leader lays foundation for long-term growth, welcoming nearly a dozen new-construction hotels in Q1 and continuing to grow its new-build pipeline for the future
PARSIPPANY, N.J. (May 19,2020) – Wyndham Hotels & Resorts (NYSE:WH) – the world’s largest hotel franchising company with approximately 9,300 hotels across 90 countries – continues forging ahead with new-construction growth, opening 11 newly built hotels across the U.S. in the first quarter and breaking ground on a number of hotels in its new-construction pipeline. In the same period, the Company executed agreements for more than 25 future new-construction hotels in the U.S., further expanding its pipeline and planting roots for travel recovery in the long term.
Welcoming New Openings
The Company’s 11 new-construction openings in the U.S. represent nearly 1,000 rooms. The recent openings, including properties across its La Quinta® by Wyndham, Wingate by Wyndham®, Days Inn® by Wyndham, and Hawthorn Suites by Wyndham® brands, are situated in destinations primed for domestic, drive-to leisure travel such as Miramar Beach, Fla.; Houston, Texas; Spokane, Wash.; and Wisconsin Dells, Wis.
Laying Foundation for the Future
Developers are also starting construction on hotels in the pipeline, reinforcing optimism for the industry’s recovery. Developers for Wyndham-branded hotels broke ground on approximately 10 new hotels in the U.S. year-to-date, including a Microtel hotel in Hot Springs, Ark.; a La Quinta hotel in San Antonio, Texas; an extended-stay Hawthorn Suites hotel in Oklahoma City, Okla.; and a Trademark Collection by Wyndham® hotel in Leavenworth, Kan.
“Despite a rapidly changing landscape for hotel developers around the world, a number of our owners are pressing forward with new-construction projects in the economy and midscale segments, reinforcing our overall confidence in the long-term viability of our industry,” said Krishna Paliwal, head of Architecture, Design and Construction for Wyndham. “New-construction growth, however gradual, represents our optimism for the future of travel. Not only do our highly recognizable brands provide significant value to hotel owners who join the Wyndham family, especially during difficult times, but they also represent the consistent, trusted and affordable experience travelers will be seeking now more than ever before.”
Igniting the Conversion Engine
Though construction has generally slowed across the industry, Wyndham continues to welcome new projects while igniting its powerful conversion engine, which is 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. The Company has a proven track record of growing net rooms during lodging cycle downturns and, 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 growth for the Company through both up and down cycles.
Well-Positioned for Recovery
The impact of COVID-19 continues to rapidly evolve and many factors remain uncertain. As the pandemic begins to abate in the U.S., Wyndham’s existing franchisees are likely to be well-positioned for recovery. The Company operates a nearly 90% drive-to business in the U.S. with a concentration in the select-service chain scale segments – which have outperformed higher end full service hotels during the pandemic – and over 95% of its domestic guests originate within the U.S., making them less reliant on air travel.
Wyndham also recently announced “Count on UsSM,” a new long-term, multi-faceted initiative to build confidence among guests and to support franchisees as it prepares to welcome travelers back to its U.S. hotels. The initiative 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 expanded its relationship with industry leader Ecolab on requiring consistent use of Ecolab’s EPA-approved disinfectants in guestrooms and public spaces nationwide.
Those interested in developing a hotel under one of Wyndham’s brands may visit development.wyndhamhotels.com for additional information.
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.
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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.
Will require consistent use of industry-leading, EPA-approved disinfectants from Ecolab; announces plans to drop-ship hard-to-source face masks, hand sanitizer and disinfectant wipes to over 6,000 U.S. hotels
PARSIPPANY, N.J. (May 4, 2020) – Highlighting its continued commitment to hotel owners, team members and guests, Wyndham Hotels & Resorts, the world’s largest hotel franchising company with approximately 9,300 hotels across 90 countries, today launched “Count on UsSM,” a new long-term, multi-faceted initiative to build confidence among guests and to support franchisees as it begins making preparations to welcome travelers back to its more than 6,000 U.S. hotels.
Launch of the new initiative follows dialogue and collaboration with Wyndham franchisees, members of its Franchise Advisory Councils, leading industry partners, and key trade organizations like the American Hotel & Lodging Association (AHLA). The immediate focus is to further elevate health and safety protocols at Wyndham hotels in the wake of COVID-19, shore up critical supply chains and introduce new standards, training and guidelines grounded in guidance from the U.S. Centers for Disease Control and Prevention (CDC). Wyndham will also partner with industry leader Ecolab on requiring consistent use of Ecolab’s EPA-approved disinfectants in hotel guestrooms and public spaces nationwide.
“We want the everyday traveler to know they can count on us to put their health and safety first,” said Geoff Ballotti, president and CEO, Wyndham Hotels & Resorts. “Over 90% of our hotels in the U.S. today are open and welcoming essential business, government, healthcare and emergency responders every night. We salute these everyday heroes who are keeping our nation running. We know that people will also travel again for leisure and to see family and friends. And when they do, Wyndham will be ready to welcome them back.”
Key early components of the new initiative—designed to be cost neutral when combined with other recent operational changes—are slated to begin rolling out in the coming weeks and include:
Enhanced Cleaning and Disinfection of Guestrooms and Public Spaces Through expansion of a decades-long relationship with industry leader Ecolab, Wyndham will require consistent use of Ecolab’s EPA-approved disinfectants in all U.S. hotel guestrooms and public spaces. Building on the already high operational standards at its hotels, the move is anticipated to help deliver an elevated and more consistent cleaning experience nationwide while providing hotel owners and their team members with access to Ecolab’s best-in-class training and resources, including a field team of more than 2,000 on-the-ground experts ready to assist hotels.
A global leader in water, hygiene and infection prevention technologies and services with nearly 100 years of experience, Ecolab develops its products with a rigorous, science-based approach to infection prevention that helps enable hotels to consistently achieve the highest cleaning standards. In recent years, Wyndham’s brand operations teams have spent significant time in Ecolab’s research and development facilities, increasing their education on best practices and offering perspective on real-world use and how to create a better, cleaner stay for guests.
Easy Access to COVID-19 Health Essentials In response to the growing challenges that many small businesses and individuals face as they try to secure essential health supplies that meet CDC guidelines, Wyndham will leverage its scale and relationships with world class distributors to begin drop-shipping critical products to its more than 6,000 hotels across the U.S. within the next 30 days. Items will include face masks for hotel team members, hand sanitizer for distribution in public areas and guestrooms, and disinfectant wipes for guests. Leveraging volume discounts pre-negotiated by Wyndham, these items will be made available at cost to hotel owners with the Company financing all initial shipments and deferring payments from hotels until September 1, 2020.
Delivering on the Promise of a “Safe Stay” As a member of The AHLA Safe Stay Advisory Council, Wyndham has joined with other industry leaders as well as public health experts, scientists and medical leaders to develop a series of industry best practices and guidelines that focus on enhanced hotel cleaning practices, social interactions, and workplace protocols to meet the new health and safety challenges presented by COVID-19. In coordination with the rollout of these guidelines, Wyndham will be implementing a series of mandatory virtual trainings for all hotels while providing additional resources like housekeeping checklists, which hotels can use with team members to ensure consistency and accountability in execution.
A Visible Commitment to Guests Recognizing the importance of building trust and instilling confidence, Wyndham is also taking steps to ensure guests and hotel team members can physically see the above efforts and trust in their impact. On property, guests will be offered sanitizing wipes along with their keycards at check in, notice social distancing enhancing measures in public spaces, observe increased frequent cleaning and disinfecting of high-touch areas, and can utilize complimentary travel-size hand sanitizer in each room. To further amplify these efforts, Wyndham will make available to hotels a suite of branded collateral emphasizing key safety measures. Similar messaging will also make its way onto the Company’s brand websites, emails and social channels.
“At a time when our industry is facing unprecedented challenges, Wyndham has once again proven itself to be an unwavering partner and advocate for me and for my business,” said Ajit Patel, chairman of the Days Inn® by Wyndham Franchise Advisory Council and a 21-year Wyndham franchisee. “By consistently putting first the needs of its franchisees, Wyndham enables us to always do what is best for our hotel and in turn, what is best for our team members and our guests.”
Count on Us is an extension of Wyndham’s signature Count on Me® service culture and is the latest in a growing list of efforts by the Company to help hotels, team members and guests affected by the global impact of COVID-19. In the last month alone, Wyndham has taken unprecedented steps to provide substantial financial assistance to its thousands of hotel owners; united with leading companies to offer alternative employment opportunities to displaced Wyndham team members; updated its policies to provide travelers and Wyndham Rewards members with increased travel flexibility; and launched #EverydayHeroes, a new initiative honoring essential workers on the frontlines of COVID-19. In the months to come, the Company will look for new ways to bring Count on Us to life, including exploring opportunities to expand the initiative to its hotels around the world.
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 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.
Will Host Conference Call and Webcast on May 5, 2020 at 8:30 a.m. ET
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.
