Core Viewpoint - The article highlights a significant consumer dissatisfaction regarding the use of allegedly "disposable" slippers in a high-end hotel, which were found to be reused and inadequately cleaned, raising concerns about hygiene and the misinterpretation of environmental policies [1][5][8]. Group 1: Consumer Experience - A consumer, Ms. Wang, paid over 4,000 yuan for hotel accommodations but received slippers that showed clear signs of previous use, leading to her complaint [1][4]. - The hotel management claimed that the reuse of slippers was in line with environmental policies, despite the slippers being of low quality and unsuitable for repeated use [5][6]. Group 2: Environmental Policy Misinterpretation - The hotel cited Zhejiang's environmental regulations as justification for reusing slippers, while simultaneously violating other aspects of the same regulations by providing single-use toiletries [6][7]. - The regulations encourage the use of reusable, hygienic alternatives and discourage the provision of single-use items, indicating a contradiction in the hotel's practices [6][7]. Group 3: Industry Practices and Standards - The article notes that many hotels in Zhejiang have begun to implement reusable slippers correctly, with clear communication to guests about their use [8][9]. - Experts suggest that hotels should provide high-quality, washable slippers and inform guests about their cleaning standards to align with both hygiene and environmental goals [9]. Group 4: Wyndham's Hygiene Issues - Wyndham hotels have faced multiple hygiene scandals in China, raising questions about their operational standards compared to their reputation in Western markets [10][13]. - The rapid expansion of Wyndham through franchising has led to inadequate oversight of hygiene practices in its Chinese locations, contributing to recurring issues [13].

Core Viewpoint - The incident highlights a significant gap between consumer expectations and the actual service provided by the hotel, raising concerns about hygiene and the misuse of environmental policies [1][6][8]. Group 1: Consumer Experience - A consumer reported receiving used "disposable" slippers during a stay at a high-end hotel, which were found to be in poor condition, leading to dissatisfaction with the service [1][4]. - The hotel manager claimed that the reuse of slippers was in line with environmental policies, but the consumer argued that the slippers were not suitable for repeated use due to their low cost and poor quality [4][6]. Group 2: Environmental Policy Misinterpretation - The hotel cited Zhejiang's environmental regulations as justification for reusing slippers, but the consumer pointed out that the hotel still provided other disposable items, contradicting the policy [6][8]. - Zhejiang's regulations, effective since December 2019, aim to limit the provision of disposable items in hotels, promoting the use of reusable alternatives [6][7]. Group 3: Industry Practices and Standards - The hotel industry in Zhejiang is encouraged to adopt environmentally friendly practices, but there are inconsistencies in how these policies are implemented across different establishments [8][9]. - Experts suggest that hotels should communicate their policies clearly to guests and provide high-quality reusable items that meet hygiene standards, rather than using low-cost alternatives [9]. Group 4: Broader Implications for the Hotel Brand - The Wyndham brand has faced multiple hygiene-related scandals in China, raising questions about its operational standards and oversight in the region [10][11]. - The rapid expansion of Wyndham's franchise model in China may contribute to inadequate monitoring of hygiene practices, leading to repeated violations [11].

Core Insights - The international hotel groups are experiencing robust global growth, but the Greater China region is showing a decline in performance [1][13]. Group 1: Marriott International - In Q2 2025, Marriott's global hotel revenue increased by 5% to $6.74 billion, with RevPAR at $136, up 1.5% year-over-year [2][4]. - In Greater China, RevPAR decreased by 0.5% to $80.06, while occupancy rose by 0.5 percentage points to 68.6% [3][4]. Group 2: InterContinental Hotels Group (IHG) - IHG's global RevPAR was $91.45, a 0.3% increase, with occupancy at 69.7%, down 0.2 percentage points [4]. - In Greater China, all key metrics declined: RevPAR fell by 3% to $40.49, occupancy decreased to 60%, and ADR dropped by 2.9% to $67.51 [4][5]. Group 3: Hilton Worldwide - Hilton reported a global revenue of $3.14 billion, a 6% increase, with RevPAR at $121.79, down 0.5% [5][6]. - The Asia Pacific region showed a slow recovery, with China underperforming compared to Southeast Asia [6][20]. Group 4: Hyatt Hotels - Hyatt's global RevPAR was $151, up 1.6%, with occupancy at 73.1%, an increase of 0.5 percentage points [7][9]. - In Greater China, RevPAR increased by 2.1% to $85, while ADR decreased by 3.1% to $117 [9]. Group 5: Wyndham Hotels & Resorts - Wyndham's net income reached $87 million, a 1% increase, with global RevPAR at $47.55, down 3% year-over-year [10][11]. - The Chinese market faced challenges, with RevPAR declining by 8% [11][12]. Group 6: Market Challenges in Greater China - The decline in performance for international hotel brands in China is attributed to external factors such as tightened government budgets and increased competition from domestic hotels [15][16]. - Domestic hotels are enhancing service quality and competitive pricing, impacting international brands' market share [17][18]. Group 7: Strategies for Recovery - International hotel groups are focusing on expanding their presence in China and adapting to local market preferences [19][20]. - Strategies include leveraging social media for marketing, enhancing customer engagement through localized loyalty programs, and integrating local cultural elements into service offerings [20].

Core Insights - Wyndham Hotels & Resorts has opened the newly remodeled Comwell Hvide Hus Aalborg, Dolce by Wyndham, enhancing its presence in Denmark's hospitality market [1][2] - The hotel is strategically located near Aalborg's city center, making it an attractive destination for both leisure and business travelers [2][7] - The transformation of the hotel aligns with the growing demand for unique travel experiences, particularly in the Nordics [3][9] Company Overview - Wyndham Hotels & Resorts is the world's largest hotel franchising company, operating approximately 8,300 hotels across around 100 countries [14] - The company offers a diverse portfolio of 25 hotel brands, catering to various market segments, including economy and midscale [14] - Wyndham Rewards, the company's loyalty program, has approximately 120 million enrolled members, providing extensive opportunities for point redemption [14] Hotel Features - Comwell Hvide Hus Aalborg features 198 upgraded rooms designed with Danish brand HAY's furniture, emphasizing simplicity and elegance [5] - The hotel includes 13 customizable conference rooms, accommodating up to 365 guests, and is conveniently located near Aalborg Train Station and Aalborg Airport [7] - Dining options include Restaurant Vesterbro, offering a seasonal menu with local produce, and Bar V, providing a relaxed atmosphere with a terrace view [6] Market Positioning - The Dolce by Wyndham brand focuses on lifestyle and experience-driven travel, appealing to modern travelers seeking unique accommodations [3][10] - The hotel aims to attract a diverse clientele, including culture seekers, culinary explorers, and business professionals [3][9] - The opening of Comwell Hvide Hus Aalborg marks a significant addition to Wyndham's portfolio in the Nordics, reflecting the brand's growth strategy in Europe [10][11]

Core Insights - Wyndham Rewards has been recognized as the 1 hotel rewards program by USA Today, highlighting its value and ease of use for travelers [1][8] - The program offers approximately $12 back in rewards for every $100 spent, making it one of the most valuable in the industry [1] - Wyndham Rewards has around 120 million enrolled members globally, emphasizing its extensive reach and popularity [3][8] Program Features - Members earn a minimum of 1,000 points with every qualified stay, with free night redemption starting at just 7,500 points [3][8] - The program includes accessible status levels that begin after just five nights of stays, enhancing member benefits [4] - New features like Wyndham Rewards Experiences allow members to use points for unique events, while Travel Bundles facilitate earning and redeeming points across various travel services [4] Credit Card Offerings - Wyndham Rewards has co-branded credit cards with Barclays, including the Earner® Card, Earner Plus® Card, and Earner Business® Card, designed to maximize points for both travel and everyday purchases [5][6] - These credit cards offer up to 8x points on gas and stays at Wyndham hotels, and up to 5x points on business-related expenses [6] - New cardholders can earn up to 90,000 points, equivalent to up to 12 free nights, by meeting qualifying spend requirements [7]

上海世博桐森酒店即将在2025年第四季度开门迎客。这是该国际酒店品牌在亚太地区的首次亮相，更是 凯悦集团在亚太"生活方式"领域投下的一枚"深水炸弹"——未来五年，凯悦计划于亚太地区新增近90家 新酒店，重点布局奢华及生活方式品牌。 像凯悦一样深耕中国市场的国际酒店集团并非个例。近年来，越来越多的国际酒店品牌选择将亚太首店 甚至全球旗舰项目放在中国。全球第二大经济体，正在吸引着更多新潮的酒店品牌入驻。 从西安沣东新城的芮峭奢选温德姆，到上海的桐森，再到杭州西湖的铂翎汇臻选——国际酒店集团正 以"首店"为矛，在中国市场掀起新一轮卡位战。这场"首店"竞赛背后，究竟藏着怎样的商业逻辑？ 国际酒店品牌"首店"，首选中国 这两年，国内的酒店市场迎来"首店"爆发期。希尔顿、雅高、温德姆等多个酒店集团频频引入新品牌， 意图拓宽国内市场版图。据不完全统计，今年约有10个国际新品牌进入国内市场，或在国内开出首店。 凯悦酒店集团 今年第四季度即将启幕的上海世博桐森酒店是桐森品牌（Thompson Shanghai Expo）在亚太地区的首 秀，也是凯悦集团"生活方式"战略的重要落子。 而在香港地区的苏豪希尔顿摩庭酒店，是该品牌在亚 ...

Analyst's Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or a ...

The collaboration between Wyndham and Ovolo, a pioneer of the lifestyle hotel movement in Asia Pacific, comes amid booming consumer demand for experiential travel—valued by McKinsey as a $1 trillion USD opportunity globally—driven largely by younger travelers, including Gen Z. As part of the partnership, five existing Ovolo hotels, representing over 450 rooms, located in Sydney, Brisbane, Canberra, Melbourne, and Hong Kong, are expected to officially become part of Wyndham's global portfolio later this fall ...

PART I FINANCIAL INFORMATION [Item 1. Condensed Consolidated Financial Statements (Unaudited).](index=3&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited).) This section presents the unaudited condensed consolidated financial statements for Wyndham Hotels & Resorts [Report of Independent Registered Public Accounting Firm](index=3&type=section&id=Report%20of%20Independent%20Registered%20Public%20Accounting%20Firm) The independent auditor's review found no material modifications needed for the interim financial statements[9](index=9&type=chunk) [Condensed Consolidated Statements of Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) The statements detail revenues, expenses, and net income for the three and six-month periods Condensed Consolidated Statements of Income (Unaudited) | Metric (in millions) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------- | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Net revenues | $397 | $367 | $713 | $671 | | Total expenses | $247 | $222 | $451 | $476 | | Operating income | $150 | $145 | $262 | $195 | | Income before income taxes | $116 | $112 | $194 | $133 | | Net income | $87 | $86 | $149 | $102 | | Basic EPS | $1.13 | $1.07 | $1.92 | $1.27 | | Diluted EPS | $1.13 | $1.07 | $1.90 | $1.26 | - For the three months ended June 30, 2025, net revenues increased by **$30 million (8%)** and net income increased by **$1 million (1%)** compared to the prior-year period[15](index=15&type=chunk) - For the six months ended June 30, 2025, net revenues increased by **$42 million (6%)** and net income increased by **$47 million (46%)** compared to the prior-year period[15](index=15&type=chunk) [Condensed Consolidated Statements of Comprehensive Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) The statements show net income adjusted for other comprehensive income items Condensed Consolidated Statements of Comprehensive Income (Unaudited) | Metric (in millions) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------- | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Net income | $87 | $86 | $149 | $102 | | Other comprehensive income/(loss), net of tax | $(2) | $(2) | $(14) | $6 | | Comprehensive income | $85 | $84 | $135 | $108 | - Comprehensive income for the three months ended June 30, 2025, was **$85 million**, a slight increase from $84 million in the prior-year period[18](index=18&type=chunk) - For the six months ended June 30, 2025, comprehensive income was **$135 million**, up from $108 million in the prior-year period[18](index=18&type=chunk) [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheets present the company's assets, liabilities, and equity at period end Condensed Consolidated Balance Sheets (Unaudited) | Metric (in millions) | June 30, 2025 | December 31, 2024 | | :------------------- | :------------ | :---------------- | | Total assets | $4,298 | $4,223 | | Total liabilities | $3,728 | $3,573 | | Total stockholders' equity | $570 | $650 | | Cash and cash equivalents | $50 | $103 | | Long-term debt | $2,532 | $2,420 | - Total assets increased by **$75 million** and total liabilities increased by **$155 million** from December 31, 2024, to June 30, 2025[143](index=143&type=chunk) - Total stockholders' equity decreased by **$80 million** due to stock repurchases and dividends, partially offset by net income[143](index=143&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) The statements detail cash movements from operating, investing, and financing activities Condensed Consolidated Statements of Cash Flows (Unaudited) | Metric (in millions) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------- | :------------------------------- | :------------------------------- | | Net cash provided by operating activities | $129 | $77 | | Net cash used in investing activities | $(71) | $(31) | | Net cash used in financing activities | $(122) | $(32) | | Net (decrease)/increase in cash, cash equivalents and restricted cash | $(63) | $13 | | Cash, cash equivalents and restricted cash, end of period | $50 | $79 | - Net cash from operating activities increased by **$52 million**, primarily due to the absence of hostile takeover defense payments made in 2024[150](index=150&type=chunk) - Net cash used in investing and financing activities increased by **$40 million** and **$90 million**, respectively[150](index=150&type=chunk)[151](index=151&type=chunk) [Condensed Consolidated Statements of Equity](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Equity) The statements reconcile the changes in stockholders' equity over the period Condensed Consolidated Statements of Equity (Unaudited) | Metric (in millions) | Balance as of Dec 31, 2024 | Net Income (Q1 2025) | Other Comp. Loss (Q1 2025) | Dividends (Q1 2025) | Repurchase of Common Stock (Q1 2025) | Balance as of Mar 31, 2025 | Net Income (Q2 2025) | Other Comp. Loss (Q2 2025) | Dividends (Q2 2025) | Repurchase of Common Stock (Q2 2025) | Balance as of Jun 30, 2025 | | :------------------- | :------------------------- | :------------------- | :------------------------- | :------------------ | :----------------------------------- | :------------------------- | :------------------- | :------------------------- | :------------------ | :----------------------------------- | :------------------------- | | Total Equity | $650 | $61 | $(13) | $(32) | $(76) | $579 | $87 | $(2) | $(32) | $(77) | $570 | - Total equity decreased from **$650 million** to **$570 million** due to **$153 million** in stock repurchases and **$64 million** in dividends, partially offset by net income[26](index=26&type=chunk)[143](index=143&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed disclosures supporting the condensed consolidated financial statements [1. BASIS OF PRESENTATION](index=9&type=section&id=1.%20BASIS%20OF%20PRESENTATION) The company operates as a global hotel franchisor with financial statements prepared under U.S. GAAP[27](index=27&type=chunk)[28](index=28&type=chunk)[29](index=29&type=chunk)[30](index=30&type=chunk) [2. NEW ACCOUNTING PRONOUNCEMENTS](index=9&type=section&id=2.%20NEW%20ACCOUNTING%20PRONOUNCEMENTS) The company details the adoption and future impact of new FASB accounting standards - The Company adopted the FASB's "Improvements to Income Tax Disclosures" on January 1, 2025, prospectively[31](index=31&type=chunk) - The Company will adopt the FASB's "Disaggregation of Income Statement Expenses" on January 1, 2027, expecting only additional disclosures[32](index=32&type=chunk) [3. REVENUE RECOGNITION](index=10&type=section&id=3.%20REVENUE%20RECOGNITION) This note provides a breakdown of revenue streams and related contract costs and liabilities Deferred Revenues (in millions) | Category | June 30, 2025 | December 31, 2024 | | :------- | :------------ | :---------------- | | Deferred initial franchise fee revenues | $146 | $145 | | Deferred loyalty program revenues | $87 | $97 | | Deferred co-branded credit card program revenues | $70 | $22 | | Deferred other revenues | $16 | $26 | | Total | $319 | $290 | Disaggregation of Net Revenues (in millions) | Revenue Type | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------- | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Royalties and franchise fees | $147 | $144 | $272 | $260 | | Marketing and reservation fees | $140 | $123 | $238 | $220 | | Loyalty revenue | $25 | $27 | $43 | $47 | | Management and other fees | $2 | $2 | $5 | $5 | | License and other fees | $33 | $31 | $60 | $57 | | Other revenue | $50 | $39 | $95 | $80 | | Net revenues | $397 | $367 | $713 | $671 | - Capitalized contract costs increased from **$76 million** as of December 31, 2024, to **$79 million** as of June 30, 2025[37](index=37&type=chunk) [4. EARNINGS PER SHARE](index=11&type=section&id=4.%20EARNINGS%20PER%20SHARE) This note details the calculation of earnings per share and summarizes capital return activities Earnings Per Share and Dividends (in millions, except per share data) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----- | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Net income | $87 | $86 | $149 | $102 | | Basic EPS | $1.13 | $1.07 | $1.92 | $1.27 | | Diluted EPS | $1.13 | $1.07 | $1.90 | $1.26 | | Cash dividends declared per share | $0.41 | $0.38 | $0.82 | $0.76 | | Aggregate dividends paid to stockholders | $32 | $31 | $65 | $63 | Stock Repurchase Activity (in millions, except per share data) | Period | Shares Repurchased | Cost | Average Price Per Share | Remaining Availability | | :----- | :----------------- | :--- | :---------------------- | :--------------------- | | Six months ended June 30, 2025 | 1.7 | $153 | $88.73 | $386 (as of June 30, 2025) | [5. RECEIVABLES](index=12&type=section&id=5.%20RECEIVABLES) This note outlines the composition of trade and loan receivables and related allowances Allowance for Doubtful Accounts on Trade Accounts Receivable (in millions) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----- | :------------------------------- | :------------------------------- | | Balance as of January 1 | $61 | $60 | | Provision for doubtful accounts | $6 | $3 | | Bad debt write-offs | $(2) | $(1) | | Balance as of June 30 | $65 | $62 | Loan Receivables, Net (in millions) | Category | June 30, 2025 | December 31, 2024 | | :------- | :------------ | :---------------- | | Other current assets | $20 | $1 | | Other non-current assets | $63 | $31 | | Total loan receivables, net | $83 | $32 | - Loan receivables had a weighted average interest rate of **7.1%** and a remaining term of **2.5 years** as of June 30, 2025[43](index=43&type=chunk) [6. FRANCHISING, MARKETING AND RESERVATION ACTIVITIES](index=12&type=section&id=6.%20FRANCHISING%2C%20MARKETING%20AND%20RESERVATION%20ACTIVITIES) This note details fees, development advances, and related expenses for core business activities Initial Franchise Fees (in millions) | Period | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----- | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Initial franchise fees | $6 | $5 | $11 | $14 | Development Advance Notes (in millions) | Metric | June 30, 2025 | December 31, 2024 | | :----- | :------------ | :---------------- | | Other non-current assets | $356 | $308 | - The Company recorded an impairment charge of **$10 million** related to development advance notes during the first quarter of 2024[49](index=49&type=chunk) Development Advance Notes Forgiveness and Impairment (in millions) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----- | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Forgiveness of notes | $8 | $6 | $14 | $11 | | Impairment | $0 | $0 | $0 | $10 | | Bad debt expense related to notes | $0 | $0 | $1 | $0 | - Net payments of development advance notes were **$51 million** for the six months ended June 30, 2025, down from $64 million in the prior-year period[52](index=52&type=chunk) [7. INCOME TAXES](index=13&type=section&id=7.%20INCOME%20TAXES) This note provides information on the company's income tax payments and effective tax rates Cash Income Tax Payments and Effective Tax Rates | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :----- | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Cash income tax payments, net of refunds | $44 million | $37 million | N/A | N/A | | Effective tax rate (3 months) | N/A | N/A | 25.0% | 23.2% | | Effective tax rate (6 months) | 23.2% | 23.3% | N/A | N/A | - The effective tax rate for Q2 2024 was lower due to the non-taxable reversal of a separation-related reserve[55](index=55&type=chunk) - The Company does not expect the Pillar II directive or the OBBBA to have a material impact on its 2025 financial results[57](index=57&type=chunk)[59](index=59&type=chunk) [8. LONG-TERM DEBT AND BORROWING ARRANGEMENTS](index=14&type=section&id=8.%20LONG-TERM%20DEBT%20AND%20BORROWING%20ARRANGEMENTS) This note details the company's debt structure, interest rates, maturities, and hedging activities Company Indebtedness (in millions) | Debt Type | June 30, 2025 Amount | June 30, 2025 Weighted Average Rate | December 31, 2024 Amount | December 31, 2024 Weighted Average Rate | | :-------- | :------------------- | :---------------------------------- | :----------------------- | :-------------------------------------- | | $750M revolving credit facility | $221 | 6.28% | $88 | 7.17% | | $400M term loan A | $352 | 6.18% | $364 | 7.02% | | $1.5B term loan B | $1,507 | 5.33% | $1,515 | 4.20% | | $500M 4.375% senior unsecured notes | $497 | 4.38% | $496 | 4.38% | | Total long-term debt | $2,577 | 5.32% | $2,463 | 4.84% | Debt Maturities and Revolving Credit Facility Capacity (in millions) | Maturity Period | Long-Term Debt (June 30, 2025) | | :-------------- | :----------------------------- | | Within 1 year | $45 | | Between 1 and 2 years | $558 | | Between 2 and 3 years | $15 | | Between 3 and 4 years | $512 | | Between 4 and 5 years | $1,447 | | Thereafter | $0 | | Total | $2,577 | | Revolving Credit Facility (June 30, 2025) | Amount | | :-------------------------------------- | :----- | | Total capacity | $750 | | Less: Borrowings | $221 | | Available capacity | $529 | - The Company uses interest rate swaps to hedge **$1.4 billion** of its variable-rate debt, covering nearly **95%** of term loan B[65](index=65&type=chunk) Net Interest Expense (in millions) | Period | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----- | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Net interest expense | $34 | $30 | $68 | $59 | [9. FAIR VALUE](index=15&type=section&id=9.%20FAIR%20VALUE) This note describes the methodologies used for fair value measurements and derivative instruments - The Company measures financial assets and liabilities at fair value using a three-level hierarchy based on input observability[69](index=69&type=chunk)[70](index=70&type=chunk)[71](index=71&type=chunk)[72](index=72&type=chunk) - The Company uses cash flow hedges and foreign currency forward contracts to manage risk, not for speculative purposes[73](index=73&type=chunk)[74](index=74&type=chunk)[75](index=75&type=chunk) - For the six months ended June 30, 2025, the Company recognized **$6 million in losses** from freestanding foreign currency exchange contracts[75](index=75&type=chunk) [10. COMMITMENTS AND CONTINGENCIES](index=17&type=section&id=10.%20COMMITMENTS%20AND%20CONTINGENCIES) This note discloses information on legal proceedings and potential financial exposures - The Company is involved in approximately **60 pending litigation matters**, including claims related to sex trafficking at franchised/managed hotels[78](index=78&type=chunk) Legal Contingency Accruals (in millions) | Metric | June 30, 2025 | December 31, 2024 | | :----- | :------------ | :---------------- | | Reserves for legal matters | $2 | $3 | - The potential exposure from adverse litigation outcomes could aggregate up to approximately **$8 million** in excess of recorded accruals[80](index=80&type=chunk) [11. STOCK-BASED COMPENSATION](index=17&type=section&id=11.%20STOCK-BASED%20COMPENSATION) This note details the company's equity incentive plan and related compensation expenses - As of June 30, 2025, **4.2 million shares** remained available under the 2018 Equity and Incentive Plan[82](index=82&type=chunk) - During 2025, the Company granted **$32 million in RSUs** and approved PSUs with a maximum grant value of **$20 million**[83](index=83&type=chunk)[84](index=84&type=chunk) Stock-Based Compensation Expense (in millions) | Period | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----- | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Stock-based compensation expense | $9 | $12 | $19 | $22 | [12. SEGMENT INFORMATION](index=18&type=section&id=12.%20SEGMENT%20INFORMATION) This note provides financial information for the company's reportable operating segments - Wyndham Hotels' primary reportable segment is **Hotel Franchising**, which involves licensing lodging brands and providing related services[89](index=89&type=chunk) - The Company changed its primary measure of segment profit from adjusted EBITDA to **net income** following a 2023 accounting update[91](index=91&type=chunk) Segment Profitability (Net Income) (in millions) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----- | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Consolidated net income | $87 | $86 | $149 | $102 | Adjusted EBITDA by Segment (in millions) | Segment | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------ | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Hotel Franchising Adjusted EBITDA | $214 | $195 | $375 | $353 | | Corporate Adjusted EBITDA | $(19) | $(17) | $(35) | $(35) | | Total Company Adjusted EBITDA | $195 | $178 | $340 | $318 | [13. OTHER EXPENSES AND CHARGES](index=19&type=section&id=13.%20OTHER%20EXPENSES%20AND%20CHARGES) This note details transaction-related, separation-related, restructuring, and impairment charges Transaction-Related Expenses (in millions) | Period | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----- | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Transaction-related expenses | $1 | $5 | $1 | $46 | - Transaction-related expenses in 2024 were primarily due to costs from a failed hostile takeover defense and loan repricing[95](index=95&type=chunk) Separation-Related Income (in millions) | Period | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----- | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Separation-related income | $0 | $12 | $0 | $11 | - In Q2 2025, the Company incurred **$13 million** in restructuring expenses, expected to yield **$15 million** in annualized savings[99](index=99&type=chunk)[139](index=139&type=chunk) Restructuring Activity (in millions) | Plan | Liability as of Dec 31, 2024 | Costs Recognized (6M 2025) | Cash Payments (6M 2025) | Liability as of Jun 30, 2025 | | :--- | :--------------------------- | :------------------------- | :---------------------- | :--------------------------- | | 2024 Plan (Personnel-related) | $5 | $0 | $(3) | $2 | | 2025 Plan (Personnel-related) | $0 | $8 | $(2) | $6 | | 2025 Plan (Facility-related) | $0 | $5 | $0 | $5 | | Total accrued restructuring | $5 | $13 | $(5) | $13 | - An impairment charge of **$12 million** was recorded in the first quarter of 2024, primarily related to development advance notes[102](index=102&type=chunk) [14. ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS)](index=21&type=section&id=14.%20ACCUMULATED%20OTHER%20COMPREHENSIVE%20INCOME%2F(LOSS)) This note reconciles the changes in each component of accumulated other comprehensive income Components of Accumulated Other Comprehensive Income/(Loss) (in millions) | Component | Balance as of Dec 31, 2024 | Period Change (Q1 2025) | Balance as of Mar 31, 2025 | Period Change (Q2 2025) | Balance as of Jun 30, 2025 | | :-------- | :------------------------- | :---------------------- | :------------------------- | :---------------------- | :------------------------- | | Foreign Currency Translation Adjustments | $3 | $2 | $5 | $5 | $10 | | Cash Flow Hedges | $14 | $(15) | $(1) | $(7) | $(8) | | Total Accumulated Other Comprehensive Income/(Loss) | $17 | $(13) | $4 | $(2) | $2 | - AOCI decreased from **$17 million** to **$2 million** primarily due to unrealized losses on cash flow hedges[104](index=104&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.](index=22&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations.) This section provides management's perspective on the company's financial condition and results of operations [Forward-Looking Statements](index=22&type=section&id=Forward-Looking%20Statements) The report contains forward-looking statements subject to various risks and uncertainties - Factors that could cause actual results to differ materially include economic conditions, industry environment, and geopolitical conflicts[106](index=106&type=chunk) [BUSINESS AND OVERVIEW](index=22&type=section&id=BUSINESS%20AND%20OVERVIEW) Wyndham Hotels & Resorts is a leading global hotel franchisor operating in approximately 100 countries[109](index=109&type=chunk) [RESULTS OF OPERATIONS](index=22&type=section&id=RESULTS%20OF%20OPERATIONS) This section analyzes the company's operating statistics and financial results for the reporting periods [OPERATING STATISTICS](index=23&type=section&id=OPERATING%20STATISTICS) This subsection presents key performance indicators for the company's hotel system - The Company revised its reporting to exclude approximately **67,300 rooms** in China due to operational challenges[113](index=113&type=chunk) Key Operating Statistics | Metric | As of June 30, 2025 | As of June 30, 2024 (Recasted) | % Change YoY | | :----- | :------------------ | :----------------------------- | :----------- | | Total rooms | 846,700 | 816,300 | 4% | | US rooms | 503,300 | 499,400 | 1% | | International rooms | 343,400 | 316,900 | 8% | | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 (Recasted) | % Change YoY | | :----- | :------------------------------- | :------------------------------------------ | :----------- | | Global RevPAR | $47.55 | $49.08 | (3%) | | US RevPAR | $53.32 | $55.44 | (4%) | | International RevPAR | $39.45 | $39.40 | 0% | | Global average royalty rate | 4.0% | 4.0% | 2 bps | | US average royalty rate | 4.7% | 4.7% | 6 bps | | International average royalty rate | 2.6% | 2.5% | 13 bps | | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 (Recasted) | % Change YoY | | :----- | :----------------------------- | :---------------------------------------- | :----------- | | Global RevPAR | $43.03 | $43.78 | (2%) | | US RevPAR | $47.86 | $48.54 | (1%) | | International RevPAR | $36.18 | $36.48 | (1%) | | Global average royalty rate | 4.0% | 4.0% | 8 bps | | US average royalty rate | 4.7% | 4.6% | 12 bps | | International average royalty rate | 2.6% | 2.5% | 12 bps | - Rooms grew **4% year-over-year**, driven by **1% growth** in the U.S. and **8%** internationally[119](index=119&type=chunk) - Excluding currency effects, global RevPAR for Q2 2025 decreased **3% YoY**, with a **4% decline** in the U.S. and **1% growth** internationally[120](index=120&type=chunk) [THREE MONTHS ENDED JUNE 30, 2025 VS. THREE MONTHS ENDED JUNE 30, 2024](index=26&type=section&id=THREE%20MONTHS%20ENDED%20JUNE%2030%2C%202025%20VS.%20THREE%20MONTHS%20ENDED%20JUNE%2030%2C%202024) This subsection compares financial results for the second quarter of 2025 and 2024 Three Months Ended June 30, 2025 vs. 2024 Financial Highlights (in millions) | Metric | 2025 | 2024 | Change | % Change | | :----- | :--- | :--- | :----- | :------- | | Net revenues | $397 | $367 | $30 | 8% | | Total expenses | $247 | $222 | $25 | 11% | | Operating income | $150 | $145 | $5 | 3% | | Net income | $87 | $86 | $1 | 1% | - Net revenues increased by **$30 million (8%)** driven by higher marketing, reservation, loyalty, and ancillary revenues[122](index=122&type=chunk)[123](index=123&type=chunk) - Total expenses increased by **$25 million (11%)** due to higher operating, marketing, and restructuring costs[122](index=122&type=chunk)[123](index=123&type=chunk)[124](index=124&type=chunk) - Hotel Franchising adjusted EBITDA increased by **$19 million (10%)** to **$214 million**[126](index=126&type=chunk)[127](index=127&type=chunk) [SIX MONTHS ENDED JUNE 30, 2025 VS. SIX MONTHS ENDED JUNE 30, 2024](index=29&type=section&id=SIX%20MONTHS%20ENDED%20JUNE%2030%2C%202025%20VS.%20SIX%20MONTHS%20ENDED%20JUNE%2030%2C%202024) This subsection compares financial results for the first half of 2025 and 2024 Six Months Ended June 30, 2025 vs. 2024 Financial Highlights (in millions) | Metric | 2025 | 2024 | Change | % Change | | :----- | :--- | :--- | :----- | :------- | | Net revenues | $713 | $671 | $42 | 6% | | Total expenses | $451 | $476 | $(25) | (5%) | | Operating income | $262 | $195 | $67 | 34% | | Net income | $149 | $102 | $47 | 46% | - Net revenues increased by **$42 million (6%)** driven by higher ancillary, marketing, and royalty revenues[129](index=129&type=chunk)[132](index=132&type=chunk) - Total expenses decreased by **$25 million (5%)** due to lower transaction-related expenses and the absence of a prior-year impairment charge[129](index=129&type=chunk)[132](index=132&type=chunk) - Hotel Franchising adjusted EBITDA increased by **$22 million (6%)** to **$375 million**[135](index=135&type=chunk)[136](index=136&type=chunk) [DEVELOPMENT](index=31&type=section&id=DEVELOPMENT) This section discusses the company's hotel development pipeline and contract activity - The global development pipeline reached a record high of approximately **2,150 hotels** and **255,000 rooms**, a **5%** year-over-year increase[138](index=138&type=chunk) - Approximately **70%** of the pipeline is in midscale and above segments, and **76%** is new construction[138](index=138&type=chunk) - The Company awarded **229 new contracts** in Q2 2025, a **40% increase** year-over-year[138](index=138&type=chunk) [RESTRUCTURING](index=31&type=section&id=RESTRUCTURING) This section details the company's recent restructuring initiatives and associated costs - In Q2 2025, the Company approved a restructuring plan, incurring **$13 million** in expenses and impacting **156 employees**[139](index=139&type=chunk) - The 2025 plan is expected to generate annualized savings of approximately **$15 million**[139](index=139&type=chunk) Restructuring Activity for Six Months Ended June 30, 2025 (in millions) | Plan | Liability as of Dec 31, 2024 | Costs Recognized | Cash Payments | Liability as of Jun 30, 2025 | | :--- | :--------------------------- | :--------------- | :------------ | :--------------------------- | | 2024 Plan (Personnel-related) | $5 | $0 | $(3) | $2 | | 2025 Plan (Personnel-related) | $0 | $8 | $(2) | $6 | | 2025 Plan (Facility-related) | $0 | $5 | $0 | $5 | | Total accrued restructuring | $5 | $13 | $(5) | $13 | [FINANCIAL CONDITION, LIQUIDITY AND CAPITAL RESOURCES](index=32&type=section&id=FINANCIAL%20CONDITION%2C%20LIQUIDITY%20AND%20CAPITAL%20RESOURCES) This section analyzes the company's balance sheet, liquidity position, cash flows, and capital deployment [Financial Condition](index=32&type=section&id=Financial%20Condition) This subsection provides a summary of changes in the company's financial position Financial Condition Summary (in millions) | Metric | June 30, 2025 | December 31, 2024 | Change | | :----- | :------------ | :---------------- | :----- | | Total assets | $4,298 | $4,223 | $75 | | Total liabilities | $3,728 | $3,573 | $155 | | Total stockholders' equity | $570 | $650 | $(80) | - Total assets increased by **$75 million**, total liabilities increased by **$155 million**, and total equity decreased by **$80 million**[143](index=143&type=chunk) [Liquidity and Capital Resources](index=32&type=section&id=Liquidity%20and%20Capital%20Resources) This subsection discusses the company's available liquidity and compliance with debt covenants - As of June 30, 2025, the Company's liquidity was approximately **$580 million**, including **$529 million** available under its revolving credit facility[145](index=145&type=chunk)[146](index=146&type=chunk) - The Company was in compliance with all financial covenants, with a first-lien leverage ratio of **2.9 times** (maximum allowed 5.0 times)[146](index=146&type=chunk)[162](index=162&type=chunk)[164](index=164&type=chunk) - The Company has **$1.4 billion** in interest rate swaps hedging approximately **95%** of its term loan B[148](index=148&type=chunk) [CASH FLOW](index=33&type=section&id=CASH%20FLOW) This subsection analyzes the major sources and uses of cash during the period Changes in Cash, Cash Equivalents and Restricted Cash (in millions) | Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change | | :------- | :------------------------------- | :------------------------------- | :----- | | Operating activities | $129 | $77 | $52 | | Investing activities | $(71) | $(31) | $(40) | | Financing activities | $(122) | $(32) | $(90) | | Net change in cash | $(63) | $13 | $(76) | - Net cash from operating activities increased by **$52 million**, primarily due to the absence of payments for a hostile takeover defense in 2024[150](index=150&type=chunk) - Net cash used in investing increased by **$40 million** due to higher development loans, while financing use increased by **$90 million**[151](index=151&type=chunk) [Capital Deployment](index=33&type=section&id=Capital%20Deployment) This subsection outlines the company's strategy for allocating capital to growth and shareholder returns - Capital expenditures for the first half of 2025 were **$19 million**, with a full-year forecast of **$40-45 million**[153](index=153&type=chunk) - The Company deployed **$51 million** in net development advance notes and expects to invest approximately **$110 million** for the full year 2025[154](index=154&type=chunk) - **$52 million** was spent on loans to franchisees during the first half of 2025 to support hotel development[155](index=155&type=chunk) [Stock Repurchase Program](index=33&type=section&id=Stock%20Repurchase%20Program) This subsection provides details on the company's share repurchase activities - The Board authorized a **$400 million** increase to the share repurchase plan in 2024, which has no termination date[158](index=158&type=chunk) Common Stock Repurchases for Q2 2025 (excluding excise taxes and fees) | Period | Total Number of Shares Purchased | Average Price Paid per Share | Approximate Dollar Value of Shares that May Yet Be Purchased Under Plan | | :----- | :------------------------------- | :--------------------------- | :-------------------------------------------------------------------- | | April | 527,144 | $83.28 | $418,473,345 | | May | 41,210 | $84.92 | $414,973,623 | | June | 354,484 | $80.74 | $386,354,100 | | Total | 922,838 | $82.38 | $386,354,100 (as of June 30, 2025) | - During the first half of 2025, the Company repurchased **1.7 million shares** for **$153 million**, with **$386 million** remaining available under the program[159](index=159&type=chunk) [Dividend Policy](index=34&type=section&id=Dividend%20Policy) This subsection describes the company's policy and recent history of dividend payments - The Company declared cash dividends of **$0.41 per share** in Q1 and Q2 2025, totaling **$64 million**[160](index=160&type=chunk) - Future dividend declarations are at the Board's discretion and depend on various factors[161](index=161&type=chunk) [LONG-TERM DEBT COVENANTS](index=34&type=section&id=LONG-TERM%20DEBT%20COVENANTS) This section confirms the company's compliance with its debt covenants - The Company was in compliance with all debt covenants as of June 30, 2025, with a first-lien leverage ratio of **2.9 times**[162](index=162&type=chunk)[164](index=164&type=chunk) [SEASONALITY](index=34&type=section&id=SEASONALITY) This section discusses the seasonal nature of the company's business - Revenues are generally higher in the second and third quarters due to increased leisure travel[165](index=165&type=chunk) [COMMITMENTS AND CONTINGENCIES](index=34&type=section&id=COMMITMENTS%20AND%20CONTINGENCIES) This section provides an update on potential liabilities from legal and regulatory proceedings - Potential exposure from adverse legal outcomes could range up to **$8 million** in excess of recorded accruals[166](index=166&type=chunk) [CRITICAL ACCOUNTING POLICIES](index=35&type=section&id=CRITICAL%20ACCOUNTING%20POLICIES) This section highlights the significant estimates and judgments used in preparing financial statements - The preparation of financial statements requires management to make estimates and assumptions that are inherently uncertain[167](index=167&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk.](index=35&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk.) This section details the company's exposure to interest rate and foreign currency exchange rate risks - The Company uses derivative instruments to manage interest rate and foreign currency risk, not for speculative purposes[168](index=168&type=chunk)[169](index=169&type=chunk) - A hypothetical **10% change** in the effective interest rate on variable-rate debt would impact annual interest expense by **$3 million**[170](index=170&type=chunk) - A hypothetical **10% change** in foreign currency exchange rates would impact the fair value of forward contracts by approximately **$10 million**[172](index=172&type=chunk)[173](index=173&type=chunk) - The Company incurred **$1 million** in foreign currency exchange losses related to highly inflationary countries for the six months ended June 30, 2025[174](index=174&type=chunk) [Item 4. Controls and Procedures.](index=36&type=section&id=Item%204.%20Controls%20and%20Procedures.) This section confirms the effectiveness of the company's disclosure controls and internal controls - Management concluded that disclosure controls and procedures were effective as of June 30, 2025[179](index=179&type=chunk) - There have been no material changes in the Company's internal control over financial reporting during the period[179](index=179&type=chunk) PART II OTHER INFORMATION [Item 1. Legal Proceedings.](index=37&type=section&id=Item%201.%20Legal%20Proceedings.) This section states no current proceedings are expected to have a material adverse effect on the company[181](index=181&type=chunk) [Item 1A. Risk Factors.](index=37&type=section&id=Item%201A.%20Risk%20Factors.) This section directs readers to the risk factors detailed in the company's most recent Annual Report[182](index=182&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.](index=37&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds.) This section summarizes common stock repurchases for the quarter ended June 30, 2025 - The Board has continuously increased the capacity of the share repurchase plan, which has no termination date[183](index=183&type=chunk) Common Stock Repurchases for Q2 2025 (excluding excise taxes and fees) | Period | Total Number of Shares Purchased | Average Price Paid per Share | Approximate Dollar Value of Shares that May Yet Be Purchased Under Plan | | :----- | :------------------------------- | :--------------------------- | :-------------------------------------------------------------------- | | April | 527,144 | $83.28 | $418,473,345 | | May | 41,210 | $84.92 | $414,973,623 | | June | 354,484 | $80.74 | $386,354,100 | | Total | 922,838 | $82.38 | $386,354,100 (as of June 30, 2025) | [Item 3. Defaults Upon Senior Securities.](index=37&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities.) This section states that there were no defaults upon senior securities during the reporting period[184](index=184&type=chunk) [Item 4. Mine Safety Disclosures.](index=37&type=section&id=Item%204.%20Mine%20Safety%20Disclosures.) This section indicates that mine safety disclosures are not applicable to the company[185](index=185&type=chunk) [Item 5. Other Information.](index=37&type=section&id=Item%205.%20Other%20Information.) This section reports no new or modified Rule 10b5-1 trading arrangements for directors or officers[186](index=186&type=chunk) [Item 6. Exhibits.](index=37&type=section&id=Item%206.%20Exhibits.) This section lists all exhibits filed with the Form 10-Q report, including certifications and XBRL documents[193](index=193&type=chunk) [Signatures](index=38&type=section&id=Signatures) This section contains the required signatures from the Chief Financial Officer and Chief Accounting Officer[191](index=191&type=chunk)

Financial Data and Key Metrics Changes - The company reported a 5% growth in comparable adjusted EBITDA and an 11% increase in EPS despite a challenging RevPAR environment [6][24] - Adjusted free cash flow reached approximately $170 million year to date, with nearly $220 million returned to shareholders [7][25] - Fee-related and other revenues increased by $31 million year over year, primarily due to higher royalties and franchise fees [23] Business Line Data and Key Metrics Changes - The company experienced a nearly 20% increase in ancillary fee streams [6] - Over 16,000 rooms were opened in Q2, bringing year-to-date new additions to over 30,000 rooms, a record for the first half of the year [12] - Contract signings increased by 40% compared to the prior year, contributing to a 5% growth in the global development pipeline [12][47] Market Data and Key Metrics Changes - Global RevPAR declined by 3% in constant currency, with international RevPAR growing by 1% [16] - EMEA RevPAR grew by 7%, while Latin America and the Caribbean saw an 18% increase driven by strong ADR [17] - U.S. RevPAR declined by 4%, with a normalized decline of approximately 2.3% [18] Company Strategy and Development Direction - The company is focusing on developing higher fee par brands and expanding direct franchising in regions previously reliant on master license agreements [16] - The development pipeline reached a record 255,000 rooms, with a significant increase in contract signings and openings [12][47] - The company aims to enhance long-term earnings potential by focusing on high-quality, fee-generating properties [16] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing economic volatility due to higher interest rates and inflation, particularly affecting economy and mid-scale guests [19] - The company remains optimistic about RevPAR growth returning to historical levels, supported by low supply levels [38] - The outlook for net room growth has been raised to 4% to 4.6%, reflecting confidence in development activity [26][47] Other Important Information - The company launched several new technology-driven tools to enhance guest engagement and operational efficiency [9][10] - Franchisee satisfaction was reported to be higher than in any past conference, indicating strong confidence in future business prospects [11] - The company is committed to disciplined capital allocation, with $550 million available for deployment this year [25][120] Q&A Session Summary Question: Insights on RevPAR trends - Management noted that RevPAR was down 2.3% normalized in Q2, with ongoing softness in leisure-focused markets but strength in industrial states [32][33] Question: Net unit growth expectations - The company expressed optimism about net room growth, with expectations raised to 4% to 4.6% for the year, driven by strong development activity [47][96] Question: Impact of Super 8 master licensee situation - Management confirmed a shift towards direct franchising, with significant growth in this area since the spin-off [50][52] Question: Ancillary revenue growth - Ancillary revenues grew by 19% in Q2, driven by the co-branded credit card program, with expectations for continued momentum [60][61] Question: Key money environment - The company reported a consistent environment for key money, with successful penetration in the midscale and above segments [66][67] Question: Echo Suites brand growth - Management highlighted strong growth in the Echo Suites pipeline, with a focus on both new construction and one-off deals [74][75] Question: Q4 RevPAR expectations - Management indicated that Q4 would face tougher comparisons due to elevated demand last year from hurricane-related relief efforts [117]