Howard Johnson Plaza by Wyndham Blue Bay Sihanoukville opens along Independence Beach with views of the glittering gulf as Wyndham continues its growth momentum in the Asia Pacific region
PARSIPPANY, N.J. (FEBRUARY 18, 2021) – Wyndham Hotels & Resorts, the world’s largest hotel franchising company and leading provider of hotel management services with over 8,900 hotels across nearly 95 countries on six continents, has opened its first hotel in Cambodia, the Howard Johnson Plaza by Wyndham Blue Bay Sihanoukville, a brand new landmark on the country’s tropical coast.
Howard Johnson by Wyndham continues its expansion in Southeast Asia with the opening of Blue Bay Sihanoukville following successful openings for the brand in China and South Korea. Howard Johnson by Wyndham is a globally recognized brand with hotels in more than 320 locations across three continents: North America, South America and Asia. The 522-key upscale hotel is the latest addition to Wyndham Hotels & Resorts’ portfolio of over 1,500 hotels across the Asia Pacific region.
“We are delighted to celebrate Wyndham Hotels & Resorts’ entry into Cambodia with the opening of Howard Johnson Plaza by Wyndham Blue Bay Sihanoukville. Across Asia Pacific, we are committed to growing our portfolio in amazing destinations – such as Sihanoukville – and we are confident that the hotel’s prime location by the beach, along with its excellent amenities, will make it one of the most desirable places to stay in the city,” said Joon Aun Ooi, President, Asia Pacific, Wyndham Hotels & Resorts.
“This is an incredible milestone opening for Wyndham and we look forward to continuing our strong growth momentum. Through our robust pipeline of franchise and management contracts across the region, we anticipate more than 100 openings in Southeast Asia in the next 3-5 years. This will further strengthen our value proposition for Wyndham Rewards members as well as that for our owners and partners,” he added.
Seafront Style with Five-Star Facilities
Howard Johnson Plaza by Wyndham Blue Bay Sihanoukville is a stunning 36-story upscale hotel comprising 522 contemporary rooms and suites with city and sea views, perfectly positioned at Independence Beach, close to the centre of Sihanoukville and overlooking the sparkling sea.
Guests can unwind in style in the hotel’s guestrooms, which feature plush bedding, marble bathrooms with rain showers and, in some rooms, sea-facing balconies with spa tubs. For the ultimate indulgence, the hotel’s Presidential Suite offers an extensive 200 sqm of space with loft-like interiors and flexible open space, suitable for families or romantic getaways. Boasting an air of tranquillity, guests can savor glittering views of the Gulf of Thailand from the private bathtub or entertain friends and family in its spacious living and dining area.
Howard Johnson Plaza by Wyndham Blue Bay Sihanoukville also offers plenty of opportunities for guests to relax and unwind at the hotel with leisure and wellness facilities including an outdoor swimming pool with panoramic sea views, a well-equipped fitness centre, a spa, and a duty-free retail outlet. The hotel is also home to three dining outlets, including: Andaman Sea, the all-day dining restaurant serving international favorites alongside Sichuan, Cantonese and Hunan cuisine; the Private Dining Room, serving local, Chinese and Western specialties; and the Infinity Lounge, which serves a refreshing array of beverages and cocktails.
Visitors who want to explore the local area can take advantage of an onsite tour desk or request for professional services at the business centre. Guests staying on club floors can also enjoy bespoke amenities at the dedicated club lounge offering daily breakfast as well as cocktails and canapés every evening. The hotel is also directly connected to the region’s largest shopping mall and a major gaming centre, while the soft sands of Independence Beach are just moments away.
Discover the Wonders the Cambodian Riviera
Sihanoukville is a serene seaside town and fishing port on the Cambodian coast and the capital of Sihanoukville Province. The coastal city is home to a string of sandy beaches, including Independence Beach, Victory Beach, Ochheuteal Beach, Otres Beach and Serendipity Beach, which offer an exotic blend of warm, clear seas, palm-fringed sand, and exhilarating water sports. The city is also the gateway to Cambodia’s idyllic offshore islands, such as Koh Rong, which offer pristine landscapes and spectacular snorkeling activities. The new hotel is located just 26km away from Sihanouk International Airport, while the Cambodian capital city, Phnom Penh, is 225km away.
All of Wyndham’s hotels in Southeast Asia participate in Wyndham Rewards®, the world’s most generous rewards program with more than 30,000 hotels, vacation club resorts and vacation rentals worldwide.
About Wyndham Hotels & Resorts Wyndham Hotels & Resorts (NYSE: WH) is the world’s largest hotel franchising company by the number of properties, with over 8,900 hotels across nearly 95 countries on six continents. Through its network of approximately 796,000 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 86 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.
“Our hearts today at Wyndham are broken with the passing of our dear friend and colleague Arne, who meant so much to all of us. We will keep Arne, Ruth, Astri, Esther, Lars and Isaac in our prayers along with all of the Marriott family. God Bless one of the greatest leaders we’ve ever been gifted to have lead our industry over the years on so many different levels. Arne will be missed in more ways than we will ever know.”
– Geoff Ballotti, President and CEO, Wyndham Hotels & Resorts
PARSIPPANY, N.J. (February 10, 2021) – Wyndham Hotels & Resorts (NYSE: WH) today announced results for the three months and year ended December 31, 2020. Highlights include:
Diluted loss per share for the quarter was $0.08 and adjusted diluted earnings per share was $0.07; diluted loss per share for the full-year was $1.42 and adjusted diluted earnings per share was $1.03.
Net loss for the quarter was $7 million and adjusted net income was $7 million; net loss for the full-year was $132 million and adjusted net income was $96 million.
Adjusted EBITDA was $56 million for the quarter and $327 million for the full-year.
Global comparable RevPAR for the quarter declined 33% year-over-year; global comparable RevPAR for the year declined 35% year-over-year.
System-wide rooms declined 4% year-over-year.
Net cash provided by operating activities for the full-year was $67 million and free cash flow was $34 million.
Paid quarterly cash dividend of $0.08 per share in fourth quarter, and Board of Directors recently authorized a 100% increase in the quarterly cash dividend to $0.16 per share beginning with the dividend expected to be declared in first quarter 2021.
Repaid all remaining revolver credit facility borrowings.
“We generated strong adjusted EBITDA and free cash flow in the worst year our industry has ever experienced. At the same time, we strengthened our portfolio with the completion of our strategic termination plan and drove sequential growth in hotel openings and our development pipeline,” said Geoffrey A. Ballotti, president and chief executive officer. “Our non-urban, drive-to economy and midscale hotels, combined with our ongoing investment in sales and marketing, captured rising pent-up leisure travel demand, which continued to produce sequential RevPAR improvements and domestic market share gains for our franchisees over the course of 2020.”
Fourth Quarter 2020 Operating Results Revenues declined from $492 million in the fourth quarter of 2019 to $296 million in the fourth quarter of 2020. The decline includes lower pass-through cost-reimbursement revenues of $70 million, which have no impact on adjusted EBITDA, in the Company’s hotel management business. Excluding cost-reimbursement revenues, revenues declined $126 million primarily reflecting a 33% decline in comparable RevPAR and the impact from hotels temporarily closed due to COVID-19, as well as a $15 million decline in license and other fees also reflecting the impact of COVID-19 on travel demand globally.
The Company generated a net loss of $7 million, or $0.08 per diluted share, compared to net income of $64 million, or $0.68 per diluted share, in the fourth quarter of 2019. The decrease of $71 million, or $0.76 per diluted share, was primarily due to the RevPAR and license fee declines, as well as excess marketing fund spend, which were partially offset by cost containment initiatives, lower volume-related expenses and the absence of 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.
Fourth Quarter 2020 Business Segment Discussion The following discussion of fourth quarter operating results focuses on revenue and adjusted EBITDA for each of the Company’s segments.
Hotel Franchising
The Company’s franchised system declined 3% primarily reflecting the Company’s previously announced removal of approximately 18,500 non-compliant and brand detracting rooms. In addition, net franchised rooms includes approximately 7,800 rooms that were transferred from the hotel management segment primarily related to the CorePoint Lodging asset sales, which were partially offset by the deletion of approximately 5,300 low-royalty rooms in connection with the sale of certain hotels by a strategic partner.
RevPAR declined 33% globally reflecting a 28% decline in the U.S. and a 43% decline internationally. On a comparable basis, which is in constant currency and excludes hotels temporarily closed due to COVID-19, global RevPAR declined 31% reflecting a 28% decline in the U.S. and a 40% decline internationally.
Revenues decreased $98 million compared to fourth quarter 2019 reflecting the impact of COVID-19 on travel demand globally, while a decline in adjusted EBITDA of $76 million further reflected excess marketing fund spend, partially mitigated by cost containment initiatives and lower volume-related expenses.
Hotel Management
The Company’s managed system declined 19% primarily reflecting approximately 7,800 rooms that were transferred to the hotel franchising segment primarily as a result of CorePoint Lodging asset sales. Excluding the transfer of these rooms, the Company’s managed system decreased 7% primarily reflecting the Company’s previously announced removal of approximately 2,900 unprofitable management guarantee hotel rooms.
RevPAR declined 44% globally, domestically and internationally. On a comparable basis, which excludes hotels temporarily closed due to COVID-19, global RevPAR declined 43%, including a 44% decline in the U.S. and a 42% decline internationally.
Revenues decreased $96 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 decreased $26 million due to the unfavorable impact of COVID-19 on travel demand globally. Adjusted EBITDA declined $22 million as the RevPAR impacts were partially mitigated by lower volume-related expenses.
Full-Year 2020 Operating Results Revenues declined from $2,053 million in 2019 to $1,300 million in 2020. The decline includes lower pass-through cost-reimbursement revenues of $273 million, which have no impact on adjusted EBITDA, in the Company’s hotel management business. Excluding cost-reimbursement revenues, revenues declined $480 million primarily reflecting a 35% decline in comparable RevPAR and the impact from hotels temporarily closed due to COVID-19, as well as a $47 million decline in license and other fees also reflecting the impact of COVID-19 on travel demand globally.
The Company generated a net loss of $132 million, or $1.42 per diluted share, in 2020 compared to net income of $157 million, or $1.62 per diluted share, in 2019. The decline of $289 million, or $3.04 per diluted share, was primarily due to the revenue decline, impact of the non-cash impairment charges and excess marketing fund spend, which were partially offset by cost containment initiatives, lower volume-related, separation-related and transaction-related expenses and the absence of contract termination 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.
Development As of December 31, 2020, the Company’s hotel system of over 8,900 properties and approximately 796,000 rooms declined 4% year-over-year primarily reflecting unusual termination events resulting in the deletion of approximately 26,700 rooms, comprised of 18,500 non-compliant, brand detracting rooms, 5,300 rooms in connection with the strategic partner hotel sales and 2,900 unprofitable management guarantee rooms. As a result, the Company’s global retention rate declined 330 basis points year-over-year to 91.5%.
The Company awarded over 580 new contracts this year and its development pipeline at year-end consisted of approximately 1,400 hotels and approximately 185,000 rooms, growing sequentially by 120 basis points domestically and 20 basis points globally. Approximately 64% of the Company’s development pipeline is international and 75% is new construction, of which 34% have broken ground.
Cash and Liquidity During the fourth quarter of 2020, the Company repaid all remaining borrowings under its revolving credit facility. Accordingly, the Company’s cash balance decreased $242 million since September 30, 2020 to $493 million as of December 31, 2020. The Company had over $1.2 billion in total liquidity available as of December 31, 2020.
The Company generated $67 million of net cash provided by operating activities in 2020 and $34 million of free cash flow in 2020. Excluding $66 million of special-item cash outlays, primarily relating to the Company’s restructuring initiatives, as well as transaction-related and separation-related cash payments, adjusted free cash flow in 2020 was $100 million.
Dividends The Company paid common stock dividends of $7 million, or $0.08 per share, in the fourth quarter of 2020. For the full-year, the Company paid $53 million, or $0.56 per share, in common stock dividends.
The Company’s Board of Directors authorized a 100% increase in the quarterly cash dividend to $0.16 per share from $0.08 per share, beginning with the dividend that is expected to be declared in the first quarter of 2021.
2021 Projections The Company is not providing a complete outlook for full-year 2021 given the RevPAR uncertainties ahead; however, provided below is the Company’s best view of certain operating statistics and financial metrics for full-year 2021:
Net rooms growth of 1% to 2%.
Every point of RevPAR change versus 2020 is expected to generate approximately $2.5 million of adjusted EBITDA change versus 2020. This estimate does not include impacts from license fees or the marketing funds.
License fees are expected to be $70 million reflecting the minimum levels outlined in the underlying agreements.
Marketing, reservation and loyalty expenses are not expected to exceed marketing, reservation and loyalty revenues. As such, the Company expects no meaningful impact to full-year 2021 adjusted EBITDA from the marketing, reservation and loyalty funds.
The Company does not expect any meaningful special-item cash outlays in 2021.
More detailed projections are available in Table 8 of this press release. The Company is providing certain financial metrics only on a non-GAAP basis because, without unreasonable efforts, it is unable to predict with reasonable certainty the occurrence or amount of all of the adjustments or other potential adjustments that may arise in the future during the forward-looking period, which can be dependent on future events that may not be reliably predicted. Based on past reported results, where one or more of these items have been applicable, such excluded items could be material, individually or in the aggregate, to the reported results.
Conference Call Information Wyndham Hotels will hold a conference call with investors to discuss the Company’s results and outlook on Thursday, February 11, 2021 at 8:30 a.m. ET. Listeners can access the webcast live through the Company’s website at www.investor.wyndhamhotels.com. The conference call may also be accessed by dialing 877 876-9173 and providing the passcode “Wyndham”. Listeners are urged to call at least five minutes prior to the scheduled start time. An archive of this webcast will be available on the website beginning at noon ET on February 11, 2021. A telephone replay will be available for approximately ten days beginning at noon ET on February 11, 2021 at 800 723-7372.
Presentation of Financial Information Financial information discussed in this press release includes non-GAAP measures, which include or exclude certain items. These non-GAAP measures differ from reported GAAP results and are intended to illustrate what management believes are relevant period-over-period comparisons and are helpful to investors as an additional tool for further understanding and assessing the Company’s ongoing operating performance. The Company uses these measures internally to assess its operating performance, both absolutely and in comparison to other companies, and to make day to day operating decisions, including in the evaluation of selected compensation decisions. Exclusion of items in the Company’s non-GAAP presentation should not be considered an inference that these items are unusual, infrequent or non-recurring. Full reconciliations of GAAP results to the comparable non-GAAP measures for the reported periods appear in the financial tables section of this press release.
About Wyndham Hotels & Resorts Wyndham Hotels & Resorts (NYSE: WH) is the world’s largest hotel franchising company by the number of properties, with over 8,900 hotels across nearly 95 countries on six continents. Through its network of approximately 796,000 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 86 million enrolled members the opportunity to redeem points at thousands of hotels, vacation club resorts and vacation rentals globally. For more information, visit www.wyndhamhotels.com. The Company may use its website as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD. Disclosures of this nature will be included on the Company’s website in the Investors section, which can currently be accessed at www.investor.wyndhamhotels.com. Accordingly, investors should monitor this section of the Company’s website in addition to following the Company’s press releases, filings submitted with the Securities and Exchange Commission and any public conference calls or webcasts.
Forward-Looking Statements This press release contains “forward-looking statements” within the meaning of the federal securities laws, including statements related to Wyndham Hotels’ current views and expectations with respect to its future performance and operations, including revenues, earnings, cash flow and other financial and operating measures and dividends, restructuring charges and statements related to the 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,” “objective,” “estimate,” “projection” and similar words or expressions, including the negative version of such words and expressions. Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of Wyndham Hotels to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release.
Factors that could cause actual results to differ materially from those in the forward-looking statements include, without limitation, general economic conditions; the continuation or worsening of the effects from 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 the financial and credit markets; the economic environment for the hospitality industry; operating risks associated with the hotel franchising and management businesses; the Company’s relationships with franchisees and property owners; the impact of war, terrorist activity, political instability or political strife; concerns with or threats of pandemics, contagious diseases or health epidemics, including the effects of the COVID-19 pandemic and any resurgence or mutations of the virus and actions governments, businesses and individuals take in response to the pandemic, including stay-in-place directives and other travel restrictions; risks related to restructuring or strategic initiatives; risks related to the Company’s relationship with CorePoint Lodging; the Company’s ability to satisfy obligations and agreements under its outstanding indebtedness, including the payment of principal and interest and compliance with the covenants thereunder; risks related to the Company’s ability to obtain financing and the terms of such financing, including access to liquidity and capital as a result of COVID-19; and the Company’s 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. (January 28, 2021) – Wyndham Hotels & Resorts (NYSE: WH) announced today that it received a perfect score of 100 on the 2021 Corporate Equality Index (CEI), a national benchmarking survey and report on practices related to LGBTQ workplace equality, administrated by the Human Rights Campaign. The honor marks Wyndham’s third consecutive year earning a perfect score on the CEI, designating the company as a Best Place to Work for LGBTQ Equality.
“This recognition highlights our dedication to recruiting and retaining a workforce that reflects the diversity of our guests, owners and communities around the world. We are committed to creating an inclusive work culture where all of our team members can thrive,” says Geoffrey A. Ballotti, chief executive officer, Wyndham Hotels & Resorts. “Recognizing that embracing inclusivity is good business, Wyndham Hotels & Resorts appeals to diverse consumers, cultivating welcoming environments in its hotels, in addition to supporting its team members.”
Wyndham Hotels & Resorts is among 1,142 businesses rated in this year’s report. Human Rights Campaign uses criteria based on equitable benefits for LGBTQ workers and their families; non-discrimination policies across business entities; supporting an inclusive culture; and corporate social responsibility. The CEI rates employers providing crucial protections to over 18 million U.S. workers and an additional 17 million abroad. Companies rated in the CEI include Fortune magazine’s 500 largest publicly traded businesses, American Lawyer magazine’s top 200 revenue-grossing law firms (AmLaw 200), and hundreds of publicly and privately held mid- to large-sized businesses.
Wyndham’s commitment to supporting the LGBTQ community is reflected both inside and outside of the company:
In support of fostering an inclusive environment where our team members feel comfortable to be their authentic selves, we launched a campaign on October 21, 2020-International Pronouns Day to promote awareness about pronouns and how our team members can self-identify should they choose to do so.
In 2019, Wyndham Hotels & Resorts joined the HRC Business Coalition for the Equality Act, a group of leading U.S. employers that support the Equality Act.
Wyndham offers a range of diversity and inclusion resources for team members and senior leadership, including an executive Social Responsibility Council and Pride, an affinity business group.
Wyndham Hotels & Resorts also partners with leading organizations including HRC, National Gay & Lesbian Chamber of Commerce and International Gay & Lesbian Travel Association.
For more information on the 2021 Corporate Equality Index, or to download a free copy of the report, visit www.hrc.org/cei.
About Wyndham Hotels & Resorts Wyndham Hotels & Resorts (NYSE: WH) is the world’s largest hotel franchising company 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.
Wyndham Hotels & Resorts today announced the promotion of its human resource leader for managed hotel operations in North America, Monica Melancon, to Chief Human Resource Officer, effective March 1.
PARSIPPANY, N.J. (December 15, 2020) – Wyndham Hotels & Resorts (NYSE: WH) today announced that Mary R. Falvey, its Chief Administrative Officer, will leave the Company on March 1, 2021.
“During her 22 years at Wyndham Worldwide and its predecessor companies, Mary was absolutely instrumental in building the best culture in this industry and helping us transition that culture to Wyndham Hotels & Resorts. We are tremendously grateful for all that Mary has achieved during her distinguished career at Wyndham along with her leadership in setting up our teams around the world for success in our new company. I know I speak on behalf of our over 10,000 team members when I say we will miss Mary immensely,” said Geoffrey A. Ballotti, Chief Executive Officer.
“I thank my friends and colleagues at Wyndham. It has been an honor and a privilege to work with our team members around the globe and with the best leadership team in the industry,” said Ms. Falvey. “I have enjoyed our teamwork and I am proud of what we accomplished together over the past two decades, particularly building a strong values-based culture that embraces our power to make change in the world and celebrates the diversity of our people.”
The Company also today announced the promotion of its human resource leader for managed hotel operations in North America, Monica Melancon, to Chief Human Resource Officer, effective March 1. Ms. Melancon spent 15 years in increasing roles of responsibility at Target, rising from HR executive at the unit level to a senior regional HR executive overseeing a region with $3 billion of annual sales and over 15,000 team members. In 2015, she joined La Quinta Management LLC and has been consistently promoted since Wyndham’s acquisition of La Quinta to lead human resources operations for all Wyndham managed hotels in North America and over 8,000 Wyndham team members. Ms. Melancon holds a Bachelor of Business Administration, Management & Marketing degree from East Texas Baptist University in Marshall, Texas. She is currently based in Wyndham’s Irving, Texas office and will be relocating to Wyndham Hotels & Resorts’ world headquarters in Parsippany, N.J.
Mr. Ballotti commented, “Monica is an exceptional leader whom I’ve had the pleasure to work with since our acquisition of La Quinta more than two years ago. She personally knows our ownership groups and leadership teams on the ground who deliver our Count on Me service daily. She understands our business, our company and our people, and I’m confident she is the right leader to drive our culture and business forward.”
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.
Wyndham Hotels & Resorts’ multi-brand expansion in Australia continues with development of a landmark 34-story tower in the heart of Adelaide’s Central Business District
PARSIPPANY, N.J. (November 25, 2020) – Wyndham Hotels & Resorts, the world’s largest hotel franchising company with approximately 9,000 properties across 90 countries, is ramping up its plans for expansion in Australia with the announcement of Wyndham Grand® Adelaide, a major new landmark that will become one of the tallest hotels in South Australia and the first Wyndham Grand hotel for the country when it opens in 2024.
Wyndham Grand Adelaide will rise 120 meters from King William Street in Adelaide’s Central Business District, becoming a new icon for the city. The estimated AUD150 million skyscraper is being developed by Equinox Property and will comprise some 347 contemporary rooms and suites and an extensive array of facilities, elevating the concept of approachable luxury.
“The South Australian capital has been experiencing a surge of investment, with new infrastructure projects such as the expansion of Adelaide Airport, the revamp of the Adelaide Oval, and now, the creation of one of the city’s tallest hotels,” said Joon Aun Ooi, president, Asia Pacific, Wyndham Hotels & Resorts. “We are excited to be part of this prestigious project. Wyndham Grand is known for its iconic locations, so I can think of no better way to introduce the brand to Australia.”
Wyndham Grand Adelaide will offer a selection of refined rooms and suites featuring a modern interior concept with green walls, marble fixtures and plush furnishings all accented with bold splashes of color, as well as floor-to-ceiling windows that frame breathtaking views of Adelaide’s skyline and the surrounding area.
Guests can expect a host of exceptional facilities, including an infinity pool with a sun deck and a bar offering panoramic city views, a day spa with sauna and treatment rooms, and a spacious fitness center. The five-star property will also offer a wide range of dining experiences with an upscale restaurant, a wine bar, a hills-facing sky bar with stylish alfresco seating, as well as a rooftop restaurant, which is expected to become one of the most desirable dining destinations in the city.
Wyndham Grand Adelaide is set to become the first Wyndham Grand in Australia and the wider Australasia region. It will join an exclusive collection of nearly 50 Wyndham Grand hotels and resorts worldwide. In Australia, the hotel will add to Wyndham’s rapidly expanding portfolio of brands consisting of almost 30 hotels and resorts, including locations in key cities such as Sydney, Melbourne, Perth, Brisbane, Gold Coast, Canberra and Darwin.
Wyndham Grand Adelaide will be managed by Resort Management by Wyndham Pty Ltd, a subsidiary of Wyndham Destinations, which manages a portfolio of 54 properties across the Asia Pacific, including in Australia, New Zealand, Fiji, Thailand, Indonesia and Japan.
“Our depth of hotel management experience, knowledge and capability make us the ideal partner for Wyndham Hotels & Resorts as it launches its upper-upscale Wyndham Grand brand in Australia,” said Warren Cullum, senior vice president, Operations at Wyndham Destinations Asia Pacific. “This new hotel will represent the pinnacle of hospitality available in Adelaide and we are proud to have the opportunity to provide an incomparable experience to guests and showcase Adelaide to the world.”
“This is a proud moment for our company, as we announce this landmark development with Wyndham Hotels & Resorts, one of the world’s leading hospitality companies,” commented Tong Guo, on behalf of Equinox Property. “Wyndham Grand is well-known across the world for its impressive hotels and the brand is the perfect fit for our new development. With its prime position and impressive stature, this hotel will become a new symbol of prosperity for the City of Adelaide, which has given us a place to call home the past 20 years. We are delighted that we can give back by showcasing such a significant building for the city and to all of South Australia.”
Development of Wyndham Grand Adelaide is being managed by Guava Lime Property Solutions and a competitive operator selection program for the Wyndham Grand Adelaide hotel was coordinated through Savills Hotels on behalf of Equinox Property, with support from Commercial & Legal. The hotel’s architecture is being designed by Loucas Zahos Architects.
All of Wyndham’s hotels in Australia participate in Wyndham Rewards®, the world’s most generous hotel rewards program with more than 30,000 hotels, vacation club resorts and vacation rentals worldwide.
About Wyndham Grand Travel is the best excuse to enjoy the grand things in life. With locations in some of the world’s most sought after vacation destinations – including Shanghai, Istanbul, Doha, Salzburg and Orlando – Wyndham Grand® hotels transform ordinary moments into unforgettable experiences. Approachable by design, this upper-upscale hotel brand helps travelers make every moment count. If you are interested in developing a Wyndham Grand 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 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.
Wyndham deepens relationship with Safari Group with signing of two new TRYP by Wyndham hotels
PARSIPPANY, N.J. (November 16, 2020) – Wyndham Hotels & Resorts, the world’s largest hotel franchising company with approximately 9,000 properties across 90 countries, today announced plans to introduce its TRYP® by Wyndham brand to New Zealand with the development of two new hotels: the 212-room TRYP by Wyndham Remarkables Park Queenstown and the 76-room TRYP by Wyndham Tory Street Wellington.
Under development by Safari Group, Wyndham’s longstanding franchise partner in New Zealand, the design-centric hotels are the latest in a series of new projects for Wyndham’s growing lifestyle brand. In just the last year, TRYP by Wyndham has announced new hotels planned for key cities across Australasia including Adelaide, Melbourne and Perth, as well as in key international markets like Orlando, Florida and Manaus, Brazil, to name just a few.
“We are delighted to collaborate with the Safari Group on the launch of our TRYP by Wyndham brand in New Zealand,” said Joon Aun Ooi, president, Asia Pacific, Wyndham Hotels & Resorts. “New Zealand is a beautiful destination that enchants travelers with its stunning scenery and outdoor adventures. Prior to the pandemic, arrivals to the country were on the rise for six consecutive years. As the world reopens, Wyndham will be ready to welcome travelers back with industry-leading brands in the world’s most sought-after destinations.”
“TRYP by Wyndham, is a perfect fit for Queenstown and Wellington, both lively destinations filled with distinct experiences,” said Andy Flaig, vice president, business development, South East Asia and Pacific Rim, Wyndham Hotels & Resorts. “With its vibrant design, distinct personality, and connection with local culture, TRYP by Wyndham is ideal for travelers seeking authentic, local experiences. Not only will these hotels stand out from the crowd and appeal to a new generation of travelers, they’ll make the perfect complement to our established Ramada® by Wyndham and Wyndham Garden® hotels in the country.”
Expected to start construction in late 2021 with plans to open in 2023, TRYP by Wyndham Remarkables Park Queenstown is a stylish new hotel that will put guests in the heart of one of the world’s most exciting destinations. The hotel will feature a collection of 212 contemporary guestrooms and serviced apartments boasting panoramic views of the mountains and ski slopes. Guests can also expect a range of food and beverage amenities as well as social spaces to mingle after an exhilarating day exploring the scenic region.
The hotel will form part of the mixed-use development precinct Remarkables Park, which will also offer upscale residences, retail outlets, restaurants and office space. Perfectly positioned just two minutes’ drive from Queenstown Airport and seven minutes from Queenstown’s Central Business District, the hotel is the ideal base for guests to discover the best local experiences the area has to offer.
The TRYP by Wyndham Tory Street Wellington will commence construction early next year and is expected to open in March 2022. The 76-room hotel will reflect a 1920’s art deco theme reminiscent of “old Chicago,” and offer conference space, a fitness room and a rooftop deck and spa. The hotel is ideally positioned close to the waterfront and is a five-minute walk from Cuba Street’s famous entertainment strip of restaurants, bars and vibrant nightlife, for which Wellington was dubbed ‘the coolest little capital in the world’ by Lonely Planet.
“The launch of TRYP by Wyndham in New Zealand marks another major milestone in the long-term relationship between Safari Group and Wyndham Hotels & Resorts,” said Robert Neil, director, Safari Group. “We are incredibly proud to work with Wyndham, one of the world’s leading hospitality companies, as we work to advance New Zealand’s tourism industry. We look forward to celebrating many more achievements in future.”
The above signings mark the latest projects announced in cooperation between Wyndham and Safari Group. Earlier this year, the two companies announced plans to open the LQ Hotel by Wyndham Remarkables Park Queenstown, which will mark the debut of the La Quinta® by Wyndham brand in New Zealand. In 2019, they announced the opening of three Ramada by Wyndham hotels in New Zealand, including the Ramada Hotel & Suites by Wyndham Queenstown Central.
TRYP by Wyndham is now present in many of the world’s most dynamic urban areas, including New York City, Dubai, Frankfurt, Istanbul and Sao Paulo.
All of Wyndham’s hotels in Australasia participate in Wyndham Rewards®, the world’s most generous hotel rewards program with more than 30,000 hotels, vacation club resorts and vacation rentals worldwide.
About TRYP by Wyndham
Part experience and part destination, TRYP® by Wyndham hotels set the stage for the inside traveler – because there’s no better way to get to know a city than experiencing it like a local. With close to 100 hotels tucked in the heart of the world’s most exciting cities, from bucket-list staples like Abu Dhabi, Brisbane, Istanbul, Barcelona and New York to must-see travel hotspots and up-and-coming destinations, each TRYP by Wyndham hotel is steeped in the local culture of its city. Hotels offer unique local flavors and amenities, all united by the brand’s Mediterranean roots and chic, urban style. For more information about developing a TRYP by Wyndham hotel, visit development.wyndhamhotels.com. You can also follow TRYP by Wyndham on Facebook, Instagram and Twitter.
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.
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.
