PARSIPPANY, N.J. (October 9, 2020) – Wyndham Rewards®, the world’s most generous rewards program spanning more than 30,000 hotels, vacation club resorts and vacation rentals globally, today announced it has once again been named the best hotel loyalty program in the USA Today 10Best Readers’ Choice Awards and that its Wyndham Rewards® Visa® Card has been named the best travel and hotel co-branded credit card.
This marks the third consecutive year that Wyndham Rewards has received the highest honor in the hotel loyalty program category and the second consecutive year that its co-branded credit card has taken the top spot. Nominations are sourced by a panel of travel industry experts, including editors from USA Today and 10best.com, and winners are chosen based on daily voting from USA Today readers over a four-week period.
“In a year unlike any other, we’re incredibly thankful for the continued support of our millions of members, who today make up nearly half of all guests at our U.S. hotels and more than a third of our guests globally,” said Eliot Hamlisch, executive vice president, loyalty and revenue optimization, Wyndham Hotels & Resorts. “Our members are at the core of everything we do and are immensely valuable not just to Wyndham but to our thousands of franchisees. On average, members stay more, stay longer, and spend more than non-members. To earn this honor three years in a row speaks volumes about their dedication to Wyndham’s brands and to Wyndham Rewards.”
This year’s rankings come on the heels of Wyndham’s newly announced and updated credit card suite featuring the Wyndham Rewards EarnerSM Card, the Wyndham Rewards Earner Plus Card and the Wyndham Rewards Earner Business Card, the first Wyndham credit card created specifically for small businesses. All three cards amplify rewards earned on the road, as well as everyday purchases, with up to 8x earn on gas purchases and Wyndham hotel stays; up to 5x earn on marketing, advertising and utility purchases (Wyndham Rewards Earner Business Card only); and up to 4x earn on restaurant and grocery purchases. Interested members can learn more, including how to earn up to 45,000 bonus points, at www.wyndhamrewardscreditcard.com.
Added Hamlisch, “The Wyndham Rewards program offers our members an incredible array of ways to earn points, from hotel stays, to our new credit cards, to a diverse set of program partners across gas, shopping, tours, meal kit delivery and more. Combine that with a simple redemption structure and generous rewards and you’ve got a loyalty program that was built from the ground up for the everyday traveler.”
Wyndham Rewards is the only hotel loyalty program to offer members a guaranteed 1,000 points with every qualified stay. Free nights start at just 7,500 points per night, while discounted nights start at 1,500 points plus some cash. The program’s Member Levels (status), which are among the most attainable in travel, have been relaxed further in light of the pandemic and allow members to unlock great benefits like a preferred room, late checkout and accelerated earning after as few as three nights.
As the travel landscape evolves 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 are open and 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 member benefits through the end of 2021 and paused points expiration through the end of the year. Learn more at www.wyndhamhotels.com/COVID-19.
About Wyndham Rewards Recently named the No. 1 hotel rewards program by readers of USA TODAY for the third year in a row, 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 tens of thousands of vacation club resorts and vacation rentals globally through affiliation with Wyndham Destinations and others. Wyndham Rewards has 84 million enrolled members around the globe. Join for free today at www.wyndhamrewards.com. You’ve earned this.®
About Wyndham Hotels & Resorts Wyndham Hotels & Resorts (NYSE: WH) is the world’s largest hotel franchising company by the number of properties, with over 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.
Updated card suite offers up to 8x earn on gas purchases and hotel stays, plus Wyndham Rewards membership upgrades, anniversary bonuses, booking discounts and more
Wilmington, Del. (Sept. 29, 2020) – Wyndham Hotels & Resorts and Barclays today announced an updated credit card suite designed with road trippers and road warriors in mind: the Wyndham Rewards® EarnerSM Card, the Wyndham Rewards Earner Plus Card and the Wyndham Rewards Earner Business Card, the first Wyndham credit card created specifically for small business travelers.
Built to help maximize points earned on the road as well through everyday purchases, the new cards offer up to 8x earn on gas purchases and Wyndham hotel stays, up to 5x earn on marketing, advertising and utility purchases (Wyndham Rewards Earner Business Card only), and up to 4x earn on restaurant and grocery purchases. Other benefits include Wyndham Rewards membership upgrades, anniversary bonuses and more. Cardmembers also receive a 10 percent points discount on free night redemptions and exclusive savings when booking stays with the Wyndham Rewards Earner Cardmember Rate. All three cards arrive at a pivotal time as the pandemic continues to make driving the go-to method for travel.
“Whether it’s jumping in the SUV with the kids and driving two hours to visit a favorite national park or packing the truck with gear and heading to a construction site two states away, an increasing number of travelers are gassing up and taking to the road,” said Eliot Hamlisch, executive vice president, loyalty and revenue optimization, Wyndham Hotels & Resorts. “These cards are for them, offering big rewards on travel and other everyday spend for a faster way to a free night. Best of all, with thousands of hotels coast-to-coast, wherever travelers are headed, chances are there’s a Hotel by Wyndham about 10 minutes away.”
Wyndham Rewards Earner Card The Wyndham Rewards Earner Card has no annual fee and includes the following benefits:
Earn 30,000 bonus points, enough for up to four free nights at participating Hotels By Wyndham, after spending $1,000 on purchases in the first 90 days1, 2
Earn 5 points per $1 spent on Hotels By Wyndham and gas purchases3
Earn 2 points per $1 spent on restaurants and grocery purchases (excluding Target® and Walmart®)4
Earn 2 points per $1 spent on eligible purchases made at Wyndham Timeshare properties (including maintenance fee and loan payments)5
Earn 1 point per $1 spent on all other purchases5
Receive Wyndham Rewards GOLD membership, which includes free WiFi, preferred room selection, late checkout and more1
Earn 7,500 bonus points each anniversary year after spending $15,000 on purchases5
Wyndham Rewards Earner Plus Card The Wyndham Rewards Earner Plus Card has a $75 annual fee and includes the following benefits:
Earn 45,000 bonus points, enough for up to six free nights at participating Hotels By Wyndham, after spending $1,000 on purchases in the first 90 days2, 6
Earn 6 points per $1 spent on Hotels By Wyndham and gas purchases3
Earn 4 points per $1 spent on restaurants and grocery purchases (excluding Target® and Walmart®)4
Earn 4 points per $1 spent on eligible purchases made at Wyndham Timeshare properties (including maintenance fee and loan payments)5
Earn 1 point per $1 spent on all other purchases5
Receive Wyndham Rewards PLATINUM membership, which includes early check-in, car rental upgrades and more6
Receive 7,500 bonus points each anniversary year7
Wyndham Rewards Earner Business Card The Wyndham Rewards Earner Business Card has a $95 annual fee and includes the following benefits:
Earn 45,000 bonus points, enough for up to six free nights at participating Hotels By Wyndham, after spending $1,000 on purchases in the first 90 days2, 8
Earn 8 points per $1 spent on Hotels By Wyndham and gas purchases3
Earn 5 points per $1 spent on marketing, advertising and utilities9
Earn 1 point per $1 spent on all other purchases5
Receive Wyndham Rewards DIAMOND membership, which includes suite upgrades, welcome amenity at check-in at select hotels and more8
Receive 15,000 bonus points each anniversary year8
Receive cell phone protection for the next calendar month when you pay your wireless bill with your card
All Wyndham Rewards Earner Cards also include the following:
10 percent discount on number of points redeemed for free nights
Exclusive savings when booking stays with the Wyndham Rewards Earner Cardmember Rate
No foreign transaction fees on international purchases
$0 Fraud Liability protection
No limit to the points cardmembers can earn
“As the travel landscape continues to evolve, Wyndham Rewards remains consistent in providing convenience, flexibility and affordability that road trippers and road warriors need,” said Nichelle Evans, managing director, travel and affinity partnerships, Barclays. “The refreshed Wyndham Rewards Earner and Earner Plus Cards, as well as the new Wyndham Rewards Earner Business Card, reward travelers for their important purchases on the road – filling up their tank and getting a good night’s sleep. The earning structure combined with other perks like automatic Wyndham Rewards membership upgrades and generous anniversary bonuses equivalent to free nights make these cards the top option for those planning to hit the road.”
About Barclays US Consumer Bank Barclays US Consumer Bank is one of the fastest-growing top 10 credit card issuers in the United States. The bank creates customized, co-branded credit card programs for some of the country’s most successful travel, entertainment, retail and affinity institutions, and offers online savings accounts and CDs. For more information, visit www.BarclaysUS.com.
About Wyndham Rewards Named the No. 1 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 9,000 hotels or tens of thousands of vacation club resorts and vacation rentals globally through affiliation with Wyndham Destinations and others. Wyndham Rewards has 84 million enrolled members around the globe. Join for free today at www.wyndhamrewards.com. You’ve earned this.®
About Wyndham Hotels & Resorts Wyndham Hotels & Resorts (NYSE: WH) is the world’s largest hotel franchising company by the number of properties, with over 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.
1Earning Points and Member Level details: Conditions and restrictions apply. Without limitation, bonus point offers may require cardmember to meet minimum spend obligations. For the Wyndham Rewards Earner Card with No Annual Fee please refer to the Reward Rules within the Wyndham Rewards Earner Terms and Conditions for additional information about the rewards program.
2Wyndham Rewards Go Free awards at participating properties can require as many as 30,000 points per bedroom. Award is subject to availability & Member must have enough points for all bedrooms in desired accommodation to book. Resort fees may apply (even for award nights); points can’t be used to pay them. Most properties: award applies to room rate only, including taxes. Blackout dates/rates, minimum length of stay requirements & other restrictions apply; see wyndhamrewards.com/terms for more information.
3Eligible purchases made at Hotels By Wyndham and on qualifying gas purchases.
4Eligible dining and grocery purchases.
5Excluding Wyndham Timeshare resort down payments.
6Earning Points and Member Level details: Conditions and restrictions apply. Without limitation, bonus point offers may require cardmember to meet minimum spend obligations. For the Wyndham Rewards Earner Plus Card with $75 Annual Fee please refer to the Reward Rules within the Wyndham Rewards Earner Plus Terms and Conditions for additional information about the rewards program.
7After payment of the renewal fee.
8Earning Points and Member Level details: Conditions and restrictions apply. Without limitation, bonus point offers may require cardmember to meet minimum spend obligations. For the Wyndham Rewards Earner Business Card with $95 Annual Fee please refer to the Reward Rules within the Wyndham Rewards Earner Business Terms and Conditions for additional information about the rewards program.
9Eligible marketing, advertising and utilities.
Looks to become first hotel company to offer mobile check-in, checkout across nearly 6,000 economy and midscale hotels
PARSIPPANY, N.J. (September 24, 2020) – Wyndham Hotels & Resorts, the world’s largest hotel franchising company with more than 9,000 hotels across approximately 90 countries, today announced the arrival of its new mobile app for iOS and Android, combining best-in-class design with personal experiences, account management, gamification and more.
Available today in both platforms’ app stores, the new app—which prioritizes low-contact in-stay features and is slated to be the first to offer mobile check-in and checkout at nearly 6,000 economy and midscale hotels in the U.S.—comes at a critical time as both travelers and hoteliers look for innovative, digital solutions to help navigate the challenges of the coronavirus pandemic.
“More than ever, travelers are seeking drive-to accommodations and Wyndham offers the power of established brands that they know and trust—brands like La Quinta® by Wyndham, Days Inn® by Wyndham and Super 8® by Wyndham,” said Jessica Davidson, senior vice president, Digital, Wyndham Hotels & Resorts. “For everyday travelers, especially those traveling during the pandemic, this app is a game changer, delivering the features guests expect today alongside a robust foundation for the future.”
Delivering Simplicity and Innovation for the Everyday Traveler Chief among the key offerings in the new Wyndham mobile app are features and functionality that simplify the hotel booking process while reducing direct contact between travelers and hotel staff.
Mobile Check-In / Checkout – Available at nearly 300 hotels throughout the U.S., with plans to expand to nearly 6,000 hotels before end of year, guests can leverage mobile check-in and checkout to reduce contact between themselves and hotel staff.
Lightning BookSM – Designed for road trippers and road warriors, guests can search for and book the nearest Wyndham hotel for the night in as a few as three taps. They can also see in real time their proximity from the hotel and book using Wyndham Rewards® points, should they prefer to do so.
Digital Room Key – Coming later this year to select resorts like the Wyndham Grand Bonnet Creek in Orlando, Fla. and Wyndham Grand Rio Mar in Rio Grande, P.R., guests may choose to receive their room key digitally via their mobile phone and use throughout the duration of their stay. Expansion to other hotels and resorts is anticipated over the next 12 months as additional locations choose to leverage and implement.
Creating an Immersive Experience Building on the app’s core features is a fully reimagined user experience that is filled with personal touches while anticipating and adapting to users’ real-time needs based on where they are and what they want to do.
In-Stay Mode – Open the mobile app within three days of a stay and the home screen defaults to prioritize and display information that’s of the most relevance to the guest, such as important stay details, front desk texting, local attractions, mobile check-in availability and more.
My App Passport – Guests can track their engagements with memorable stamps, animations and more when they achieve select in-app accomplishments such as booking a stay or redeeming points. New stamps and achievements are expected to be added over time.
Special Offers – Open the mobile app without an immediate, upcoming or current stay and guests are greeted by name along with their current Wyndham Rewards point balance, search functionality and the latest promotional offers. Guests can learn more with a single tap and register for offers just as easily.
Account Management – Guests can make the most of their travels with simple and intuitive account management, including the ability to easily update their Wyndham Rewards member profiles and stay preferences, add preferred methods of payment, view previous and upcoming stays, check their personalized offers, purchase points and more.
Added Davidson, “Our new app could not have arrived at a more critical time. The pandemic has propelled digital adoption and travelers now expect streamlined, low-contact experiences. This app allows our thousands of franchisees to help deliver upon those expectations, while providing the easiest and fastest possible path to booking direct. It’s a win-win both for our guests and for our franchisees.”
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.
Culture, Opportunities and Amenities Result in Accolade for Global Hotel Company
Parsippany, N.J. (September 21, 2020) – Wyndham Hotels & Resorts has been named among the Best Places to Work in New Jersey by NJBIZ Magazine, marking the first time the Parsippany-based global hotel company has been recognized by the ranking. The annual list recognizes the top places of employment in New Jersey that benefit the state’s economy, its workforce and its businesses.
“We know that providing great experiences for our team members is the foundation for the great experiences we provide for our guests,” said Mary Falvey, chief administrative officer, Wyndham Hotels & Resorts. “Based on our values, our Count on Me service culture and driven by our mission to make hotel travel possible for all, we create an engaging, safe and rewarding environment that attracts the best people to deliver value for our guests, franchisees, shareholders and communities.”
With over 9,000 hotels across approximately 90 countries on six continents, Wyndham Hotels & Resorts is the world’s largest hotel franchising company by the number of properties. Through its network of over 813,000 rooms appealing to the everyday traveler, Wyndham commands a leading presence in the economy and midscale segments of the lodging industry. Wyndham Hotels & Resorts is represented in the Garden State with its global headquarters in Parsippany as well as a portfolio of company-managed and independently owned and operated franchised hotels.
Team members are provided paid time-off each year to volunteer in their communities. The Company offers career development opportunities, including continuing education reimbursement, professional development courses and a wide range of affinity business groups. In addition to comprehensive benefits, there are special recognition programs, regular on-site learning hours and celebrations, team member discounts and flexible work arrangements. The Company also provides low and no-cost health and wellness programs, including in its Parsippany offices, a full-time nurse practitioner. Additional amenities include an on-site fitness center; an expansive, serene courtyard for team members to enjoy lunch; and various outdoor events, a weekly car wash, a credit union, dry cleaning, general store, coffee barista and an award-winning cafeteria featuring fresh, sustainable, locally-grown antibiotic- and hormone-free choices. Additionally, its Parsippany Campus is home to a sprawling walking trail that surrounds the campus to promote wellness as well as a community garden, created and managed by team member volunteers who harvest fresh vegetables for donation to local food pantries.
Produced by NJBIZ and managed by Best Companies Group (BCG), the survey included evaluating each nominated company’s workplace policies, practices, philosophy, systems and demographics in addition to an associate survey to measure associate experience. The combined scores determined the top companies and the final ranking.
About Wyndham Hotels & Resorts
Wyndham Hotels & Resorts (NYSE: WH) is the world’s largest hotel franchising company by the number of properties, with over 9,000 hotels across approximately 90 countries on six continents. Through its network of over 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 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 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 health and safety of guests and hotel team members is our top priority, which is why, effective August 10, 2020, face coverings will be required for guests and staff in indoor public spaces at Wyndham Hotels & Resorts properties in the U.S. and Canada.
“We all must play a role in slowing the spread of COVID-19,” said Geoff Ballotti, president and CEO, Wyndham Hotels & Resorts. “This is a simple step we can take to help protect guests, team members, franchisees, and the countless communities we serve.”
The new requirement comes on the heels of updated guidelines from the American Hotel and Lodging Association (AHLA) and builds on Wyndham’s previously announced Count on UsSM initiative, which is grounded in guidance from the U.S. Centers for Disease Control and Prevention (CDC) and designed to elevate hotel health and safety protocols in response to COVID-19. Learn more at www.wyndhamhotels.com/COVID-19.
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.
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.
PARSIPPANY, N.J. (April 6, 2020) – As the global novel coronavirus pandemic creates unprecedented circumstances for hospitality workers around the country, Wyndham Hotels & Resorts has partnered with leading organizations to give team members whose positions have been furloughed or eliminated access to job opportunities opening up across various industries including retail, grocery, senior living and more.
The new relationships empower Wyndham’s affected hotel-level and corporate team members with opportunities to align their hospitality experience with thousands of newly available full-time, part-time, or temporary positions within leading corporations that are rapidly expanding their workforces to meet changing demands.
Team members whose positions were furloughed or eliminated may access employment opportunities with well-known national and regional organizations, including:
Albertsons Companies
Amazon
Dollar Tree & Family Dollar
Domino’s
Lowe’s
Pizza Hut
Senior Living Works
University of Texas Medical Branch
Walgreens
Walmart
Wyndham is also working closely with the American Hotel & Lodging Association (AHLA) and the AHLA Foundation to identify and make available additional relevant work opportunities for hospitality professionals, available on AHLA’s website.
“In such difficult and destabilizing times, it’s more important than ever for businesses to come together to help serve those who need us most,” said Mary Falvey, chief administrative officer at Wyndham Hotels & Resorts. “Our team members are the best of the best – their passion for hospitality makes them ideal candidates to help fill these essential positions on a temporary basis. We’re grateful to partner with other leading companies who recognize and celebrate the skillset and service these team members can provide while the hotel industry works to overcome the impact of this crisis.”
Team members at all levels are eligible to explore positions and can access relevant information and resources through Wyndham’s online human resources and learning portal or on the Company’s new Workforce Resources page, available here.
About Wyndham Hotels & Resorts
Wyndham Hotels & Resorts (NYSE: WH) is the world’s largest hotel franchising company by the number of properties, with approximately 9,300 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.
The COVID-19 pandemic has essentially stopped most travel, and accordingly, we’ve been forced to make incredibly difficult decisions that affect our entire Wyndham family. These include job eliminations, salary reductions and reduced-hour work weeks impacting nearly half of our 2,500 corporate team members around the globe, as well as team member furloughs and property closures at some of our managed hotels. Additionally, our President and CEO is indefinitely forgoing 100 percent of his salary and our Board of Directors is indefinitely forgoing 100 percent of its cash compensation.
We also know this is an incredibly challenging environment for our thousands of franchised hotel owners. To help them weather operational difficulties, we’ve taken a number of proactive measures around the world to support our franchisees during this challenging period. We’re also providing guidance and resources designed to help owners identify and, if appropriate, leverage government-sponsored programs that may help them and their businesses.
While these are extraordinary times, we know they will pass. We remain confident in the strength and resiliency of our business and we are committed to the health and safety of our team members, owners and guests. The travel industry will inevitably rebound, and when it does, Wyndham will be there, ready to welcome the everyday traveler to its approximately 9,300 hotels around the world.
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