Wyndham Hotels & Resorts(WH)

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Wyndham Hotels & Resorts(WH) - 2023 Q1 - Quarterly Report
2023-04-27 17:16
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 interim financial statements for Q1 2023 and 2022, including auditor's review and detailed notes, highlighting a net income decrease and segment reporting change [Report of Independent Registered Public Accounting Firm](index=3&type=section&id=Report%20of%20Independent%20Registered%20Public%20Accounting%20Firm) The independent auditors, Deloitte & Touche LLP, reviewed the interim financial statements and are not aware of any material modifications needed for conformity with U.S. GAAP. They also referenced their unqualified opinion on the audited December 31, 2022 consolidated financial statements[9](index=9&type=chunk)[10](index=10&type=chunk) [Condensed Consolidated Statements of Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Condensed Consolidated Statements of Income (Q1 2023 vs Q1 2022) | Metric | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :--- | :--- | :--- | | **Net Revenues** | **$313 million** | **$371 million** | | Operating Income | $113 million | $160 million | | **Net Income** | **$67 million** | **$106 million** | | Diluted EPS | $0.77 | $1.14 | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Condensed Consolidated Balance Sheet Highlights | Metric | March 31, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Cash and cash equivalents | $150 million | $161 million | | **Total Assets** | **$4,084 million** | **$4,123 million** | | Long-term debt | $2,051 million | $2,057 million | | **Total Liabilities** | **$3,148 million** | **$3,161 million** | | **Total Stockholders' Equity** | **$936 million** | **$962 million** | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash Flow Summary (Q1 2023 vs Q1 2022) | Activity | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | $93 million | $135 million | | Net cash (used in)/provided by investing activities | ($9 million) | $192 million | | Net cash used in financing activities | ($95 million) | ($82 million) | | **Net (decrease)/increase in cash** | **($11 million)** | **$245 million** | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes provide detailed explanations of the financial statements. Key disclosures include a change in segment reporting where the Hotel Management business was aggregated into the Hotel Franchising segment in Q1 2023. The company's primary business is hotel franchising. Details on revenue recognition, debt structure, stock-based compensation, and legal contingencies are also provided. As of March 31, 2023, the company had $381 million remaining under its stock repurchase program and total long-term debt of $2.08 billion - In Q1 2023, the company changed its reportable segments. The remaining hotel management business no longer meets quantitative thresholds and has been aggregated into the Hotel Franchising segment on a prospective basis[30](index=30&type=chunk)[35](index=35&type=chunk)[78](index=78&type=chunk) - As of March 31, 2023, the company had **$381 million** of remaining availability under its stock repurchase program[41](index=41&type=chunk) Long-Term Debt Composition (as of March 31, 2023) | Debt Instrument | Amount Outstanding | | :--- | :--- | | $400 million term loan A (due 2027) | $399 million | | $1.6 billion term loan B (due 2025) | $1,141 million | | 4.375% senior unsecured notes (due 2028) | $494 million | | Finance leases | $43 million | | **Total Long-Term Debt** | **$2,077 million** | - The company has interest rate swaps hedging over **96%** of its **$1.1 billion** term loan B exposure as of March 31, 2023[54](index=54&type=chunk) - The company believes it has adequately accrued for legal matters with reserves of **$4 million** as of March 31, 2023, and estimates potential exposure could range up to approximately **$8 million** in excess of these accruals[69](index=69&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.](index=20&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations.) Management discusses the company's Q1 2023 performance, highlighting a 9% global RevPAR increase, a 16% net revenue decrease due to business exits, and sufficient liquidity for capital deployment [Operating Statistics](index=22&type=section&id=Operating%20Statistics) Key Operating Statistics (Q1 2023 vs Q1 2022) | Metric | Q1 2023 | Q1 2022 | % Change | | :--- | :--- | :--- | :--- | | Total Rooms | 844,800 | 813,300 | 4% | | U.S. RevPAR | $43.84 | $42.11 | 4% | | International RevPAR | $27.99 | $21.95 | 28% | | **Global RevPAR** | **$37.20** | **$34.06** | **9%** | - Excluding currency effects, global RevPAR increased **12%** year-over-year, driven by a **4%** increase in the U.S. and a **37%** increase internationally. Approximately **two-thirds** of this growth was due to stronger pricing power[97](index=97&type=chunk) [Results of Operations](index=23&type=section&id=Results%20of%20Operations) - Net revenues decreased by **$58 million (16%)** in Q1 2023 compared to Q1 2022. This was primarily driven by a **$67 million** reduction from exiting the select-service management business and selling owned hotels, and a **$21 million** decrease in cost-reimbursement revenues[98](index=98&type=chunk)[100](index=100&type=chunk) - Total expenses decreased by **$11 million (5%)**, mainly due to lower costs associated with the exited businesses, partially offset by the absence of a **$36 million** gain on an asset sale that occurred in Q1 2022[99](index=99&type=chunk)[100](index=100&type=chunk) Adjusted EBITDA Reconciliation (Q1 2023 vs Q1 2022) | Metric | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :--- | :--- | :--- | | Net Income | $67 million | $106 million | | **Adjusted EBITDA** | **$147 million** | **$159 million** | - Hotel Franchising segment's Adjusted EBITDA increased by **$9 million (6%)** to **$164 million**, driven by higher royalties from RevPAR and rooms growth[103](index=103&type=chunk)[104](index=104&type=chunk) [Development](index=25&type=section&id=Development) - The global development pipeline grew **11%** year-over-year to approximately **1,800 hotels** and **226,000 rooms**. The U.S. pipeline grew **28%**[106](index=106&type=chunk) - The pipeline for the ECHO Suites Extended Stay by Wyndham brand has reached **205 contracts**, with over **25,000 rooms**[106](index=106&type=chunk) [Financial Condition, Liquidity and Capital Resources](index=25&type=section&id=Financial%20Condition,%20Liquidity%20and%20Capital%20Resources) - As of March 31, 2023, the company's liquidity was approximately **$890 million**, which is considered sufficient to fund operating activities, capital expenditures, and growth needs[109](index=109&type=chunk) - The company was in compliance with all financial covenants as of March 31, 2023, with a first-lien leverage ratio of **2.2 times**, well below the maximum of **5.0 times**[110](index=110&type=chunk)[125](index=125&type=chunk) - Net cash from operating activities decreased by **$42 million** year-over-year, primarily due to unfavorable working capital timing and the impact from the sale of owned hotels and exit of the select-service management business[117](index=117&type=chunk) - Capital deployment priorities are investing in the business, maintaining a regular dividend, and returning excess cash to shareholders via stock repurchases[119](index=119&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk.](index=28&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk.) The company's principal market risks are interest rate and currency exchange rate fluctuations, managed through debt mix and hedging instruments, with potential impacts quantified - The company's primary market exposures are interest rate and currency exchange rate risks[133](index=133&type=chunk) - A hypothetical **10%** change in the effective interest rate on the **$444 million** of net variable-rate borrowings would result in a **$2 million** change to annual interest expense[134](index=134&type=chunk) - The company has exposure to foreign currency fluctuations, particularly the Canadian Dollar, Chinese Yuan, Euro, Brazilian Real, British Pound, and Argentine Peso. A hypothetical **10%** change in exchange rates would cause an approximate **$10 million** change in the fair value of outstanding forward contracts[136](index=136&type=chunk)[137](index=137&type=chunk) [Item 4. Controls and Procedures.](index=29&type=section&id=Item%204.%20Controls%20and%20Procedures.) Management concluded that disclosure controls and procedures were effective as of March 31, 2023, with no material changes to internal control over financial reporting during the quarter - Based on an evaluation as of March 31, 2023, the principal executive and financial officers concluded that the company's disclosure controls and procedures were effective[141](index=141&type=chunk) - There were no changes in internal control over financial reporting during the quarter that have materially affected, or are reasonably likely to materially affect, internal controls[141](index=141&type=chunk) PART II OTHER INFORMATION [Item 1. Legal Proceedings.](index=30&type=section&id=Item%201.%20Legal%20Proceedings.) The company is involved in various legal proceedings in the ordinary course of business, none of which are expected to have a material adverse effect on its financial condition - The company is involved in various claims and legal proceedings, but management does not expect them to have a material adverse effect on its financial condition[143](index=143&type=chunk) [Item 1A. Risk Factors.](index=30&type=section&id=Item%201A.%20Risk%20Factors.) This section directs readers to the risk factors detailed in the company's Annual Report on Form 10-K for the fiscal year ended December 31, 2022 - For a discussion of risk factors, the report refers to Item 1A of the company's Annual Report on Form 10-K for the year ended December 31, 2022[144](index=144&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.](index=30&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds.) This section details the company's Q1 2023 stock repurchase activity, including 790,165 shares bought for $55.3 million, with $381 million remaining for future repurchases Share Repurchases for Q1 2023 | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | January | 51,303 | $71.69 | | February | 90,776 | $77.11 | | March | 648,086 | $68.84 | | **Total** | **790,165** | **$69.98** | - As of March 31, 2023, the company had approximately **$381 million** remaining under its publicly announced share repurchase plan[145](index=145&type=chunk) [Item 3. Defaults Upon Senior Securities.](index=30&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities.) The company reported no defaults upon senior securities - None[146](index=146&type=chunk) [Item 4. Mine Safety Disclosures.](index=30&type=section&id=Item%204.%20Mine%20Safety%20Disclosures.) This item is not applicable to the company - Not applicable[147](index=147&type=chunk) [Item 5. Other Information.](index=30&type=section&id=Item%205.%20Other%20Information.) The company reported no other information for this item - None[148](index=148&type=chunk) [Item 6. Exhibits.](index=30&type=section&id=Item%206.%20Exhibits.) This section refers to the exhibit index, which lists all documents filed with the report, including certifications by the CEO and CFO, and various employment agreements - The report includes an exhibit index listing filed documents such as corporate governance documents, employment agreements, and Sarbanes-Oxley certifications[149](index=149&type=chunk)[156](index=156&type=chunk)
Wyndham Hotels & Resorts(WH) - 2023 Q1 - Earnings Call Transcript
2023-04-27 15:44
Financial Data and Key Metrics Changes - The company reported a 10% increase in adjusted EBITDA on a comparable basis, exceeding expectations [6][24] - Free cash flow generated was $84 million, with a conversion rate from adjusted EBITDA of approximately 57% [7][27] - Adjusted diluted EPS was $0.86, reflecting a 15% increase on a comparable basis [24][32] Business Line Data and Key Metrics Changes - Domestic RevPAR grew by 4% year-over-year, while international RevPAR saw a significant increase of 37% [6][24] - The company opened over 10,000 rooms globally, maintaining a retention rate of 95.3% [8][10] - The development pipeline grew by 11% year-over-year, reaching a record of 226,000 rooms [10][12] Market Data and Key Metrics Changes - U.S. unemployment is at its lowest level since the 1960s, with consumer savings at $1.6 trillion, driving increased travel spending [7][24] - International occupancy improved to 84% of 2019 levels, with notable growth in China [26][81] - Latin America experienced a 60% increase in RevPAR, leading the international growth [58] Company Strategy and Development Direction - The company is focusing on high-margin franchising, transitioning away from select service management [19][20] - There is a strong emphasis on the extended stay sector, with 205 ECHO Suites contracts awarded since launch [11][12] - The company aims to leverage infrastructure spending opportunities, estimating over $150 million in incremental royalties [14][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the business model, expecting continued growth despite potential economic challenges [32][70] - The company anticipates a strong summer travel season, with 93% of guests planning trips in the next six months [68][72] - The outlook for 2023 has been updated, projecting fee-related revenues of $1.38 billion to $1.41 billion [32][34] Other Important Information - The Wyndham Rewards Loyalty program was recognized as the best hotel loyalty program for the fifth consecutive year [15] - The company ended the quarter with approximately $900 million in total liquidity and a net leverage ratio of 3.0x [28][29] Q&A Session Summary Question: Financing for new construction and conversions - Management indicated that most new construction additions in 2023 already have financing in place, and the majority of conversions also have financing secured [39][40] Question: Share buyback strategy - The company plans to deploy over $200 million for share buybacks this year, with flexibility to leverage if stock is trading at a discount [46][47] Question: Competitive environment and development opportunities - Management noted no significant changes in the competitive landscape, with strong interest in economy and mid-scale brands [50][51] Question: International market recovery - The company reported strong growth in international RevPAR, particularly in Latin America and China, with occupancy levels improving [58][81] Question: ECHO brand potential - The ECHO brand is expected to contribute significantly, with plans for 300 new constructions in the first 10 years [90]
Wyndham Hotels & Resorts(WH) - 2023 Q1 - Earnings Call Presentation
2023-04-27 13:28
WYNDHAM HOTELS & RESORTS Investor Presentation April 26, 2023 Microtel Inn & Suites by Wyndham Rehoboth Beach, Delaware, USA = Opened January 2023 r Introduction to Wyndham Hotels & Resorts Largest hotel franchisor by hotels worldwide Leading brands in the resilient select-service segment Asset-light business model generating significant free cash flow Primarily leisure-focused "drive to" portfolio of hotels | --- | --- | --- | --- | |---------------|-----------|-----------------------|--------------------- ...
Wyndham Hotels & Resorts(WH) - 2022 Q4 - Annual Report
2023-02-16 17:38
UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K Delaware 82-3356232 (State or Other Jurisdiction of Incorporation or Organization) 22 Sylvan Way 07054 Parsippany, New Jersey (Zip Code) ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-38432 W ...
Wyndham Hotels & Resorts(WH) - 2022 Q4 - Earnings Call Transcript
2023-02-16 16:50
Financial Data and Key Metrics Changes - The company reported global RevPAR growth of over 16% for the full year 2022, with adjusted EBITDA of $650 million and free cash flow of $360 million [7][26][34] - Adjusted diluted EPS for Q4 was $0.72, a 4% increase year-over-year, while full year adjusted diluted EPS was $3.96, a 25% increase [29][31] - The company generated $310 million in fee-related and other revenues in Q4, bringing full year total to $1.35 billion [26][27] Business Line Data and Key Metrics Changes - The franchising segment grew Q4 revenue by 12% year-over-year, with adjusted EBITDA increasing 8% to $138 million [27] - The hotel management segment saw declines in revenue and adjusted EBITDA due to the sale of select-service management and owned hotel businesses [28][30] - The corporate and other segment expenses were relatively flat compared to 2021, with $7 million of higher expenses due to inflationary pressures [28][30] Market Data and Key Metrics Changes - Domestic RevPAR finished 12% ahead of 2021 and 9% ahead of 2019, with growth accelerating to 480 basis points in Q4 [32] - Internationally, Q4 constant currency RevPAR was 46% ahead of last year and 23% above 2019 [33] - The company added 27,000 rooms in the U.S. and 37% more rooms internationally compared to the previous year [9][10] Company Strategy and Development Direction - The company aims for global net room growth of 2% to 4% and global RevPAR growth of 4% to 6% in 2023 [37][38] - The capital allocation strategy includes pursuing accretive M&A transactions and incentivizing franchisees to invest in new brand prototypes [35][36] - The company is focused on expanding its ECHO Suites brand, with expectations for significant growth in the coming years [45][46] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the recovery of leisure travel as a priority for discretionary spending among middle-income Americans in 2023 [21][22] - The company anticipates continued strong demand for its economy and mid-scale brands, particularly in light of infrastructure spending [22][70] - Management noted that the U.S. business has fully recovered to pre-COVID levels, while international markets still present growth opportunities [55][56] Other Important Information - The company’s loyalty program, Wyndham Rewards, grew by 8% to 99 million members, driving a 23% increase in direct bookings [24][73] - The company qualified for the 2022 Dow Jones Sustainability Index, reflecting its commitment to sustainability and environmental practices [26] Q&A Session Summary Question: Environment for tuck-in acquisitions - Management indicated that the environment for acquisitions is improving, with a focus on strategic and methodical evaluations of potential deals [42][43] Question: Impact of ECHO on room growth - Management confirmed that ECHO's impact on 2023 net room growth is minimal, with expectations for more significant contributions in 2024 [44][45] Question: Components of loan growth guidance - Management explained that 80% of the pipeline is new construction, with a typical realization period of 4 to 5 years [48] Question: Impact of government spending on infrastructure - Management expects significant revenue opportunities from government infrastructure spending, estimating over $3 billion for franchisees [69][70] Question: Loyalty membership and direct bookings - Management reported that loyalty membership grew to 99 million, with direct bookings increasing significantly [73]
Wyndham Hotels & Resorts(WH) - 2022 Q4 - Earnings Call Presentation
2023-02-16 15:09
WYNDHAM HOTELS & RESORTS Investor Presentation February 15, 2023 La Quinta Inn & Suites by Wyndham Del Rio, Texas, USA Opened December 2022 Introduction to Wyndham Hotels & Resorts Largest hotel franchisor by hotels worldwide Leading brands in the resilient select-service segment Asset-light business model generating significant free cash flow Primarily leisure-focused "drive to" portfolio of hotels | --- | --- | --- | --- | |---------------|-----------|-----------------------|-----------------------| | | | ...
Wyndham Hotels & Resorts(WH) - 2022 Q3 - Earnings Call Presentation
2022-10-26 16:27
WYNDHAM HOTELS & RESORTS Investor Presentation October 25, 2022 Grandover Resort & Spa, a Wyndham Grand Hotel Greensboro, North Carolina, USA Introduction to Wyndham Hotels & Resorts Largest hotel franchisor by hotels worldwide Leading brands in the resilient select-service segment Asset-light business model generating significant free cash flow Primarily leisure-focused "drive to" portfolio of hotels | --- | --- | --- | --- | |---------|---------------|-----------------------|-----------------------| | | | ...
Wyndham Hotels & Resorts(WH) - 2022 Q3 - Quarterly Report
2022-10-26 16:27
[PART I — FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20FINANCIAL%20INFORMATION) [Item 1. Condensed Consolidated Financial Statements (Unaudited).](index=3&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited).) The unaudited financial statements show mixed revenue due to business exits but strong nine-month net income growth [Report of Independent Registered Public Accounting Firm](index=3&type=section&id=Report%20of%20Independent%20Registered%20Public%20Accounting%20Firm) - Deloitte & Touche LLP reviewed the interim financial statements and found **no material modifications required** for conformity with U.S. GAAP[9](index=9&type=chunk) - The firm previously issued an **unqualified opinion** on the consolidated financial statements as of December 31, 2021[10](index=10&type=chunk) [Condensed Consolidated Statements of Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Condensed Consolidated Statements of Income (Unaudited) - Three Months Ended September 30, | Metric | 2022 (Millions) | 2021 (Millions) | Change (Millions) | % Change | | :----- | :-------------- | :-------------- | :---------------- | :------- | | Net Revenues | $407 | $463 | $(56) | (12%) | | Operating Income | $160 | $161 | $(1) | (1%) | | Net Income | $101 | $103 | $(2) | (2%) | | Basic EPS | $1.13 | $1.10 | $0.03 | 3% | | Diluted EPS | $1.13 | $1.09 | $0.04 | 4% | Condensed Consolidated Statements of Income (Unaudited) - Nine Months Ended September 30, | Metric | 2022 (Millions) | 2021 (Millions) | Change (Millions) | % Change | | :----- | :-------------- | :-------------- | :---------------- | :------- | | Net Revenues | $1,164 | $1,173 | $(9) | (1%) | | Operating Income | $465 | $358 | $107 | 30% | | Net Income | $299 | $195 | $104 | 53% | | Basic EPS | $3.28 | $2.09 | $1.19 | 57% | | Diluted EPS | $3.26 | $2.08 | $1.18 | 57% | [Condensed Consolidated Statements of Comprehensive Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) Condensed Consolidated Statements of Comprehensive Income (Unaudited) | Metric | Three Months Ended Sep 30, 2022 (Millions) | Three Months Ended Sep 30, 2021 (Millions) | Nine Months Ended Sep 30, 2022 (Millions) | Nine Months Ended Sep 30, 2021 (Millions) | | :----- | :--------------------------------------- | :--------------------------------------- | :-------------------------------------- | :-------------------------------------- | | Net Income | $101 | $103 | $299 | $195 | | Foreign currency translation adjustments | $(7) | $(1) | $(9) | $0 | | Unrealized gains on cash flow hedges | $19 | $4 | $59 | $22 | | Other comprehensive income, net of tax | $12 | $3 | $50 | $22 | | Comprehensive Income | $113 | $106 | $349 | $217 | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Condensed Consolidated Balance Sheets (Unaudited) | Metric | September 30, 2022 (Millions) | December 31, 2021 (Millions) | Change (Millions) | % Change | | :----- | :---------------------------- | :--------------------------- | :---------------- | :------- | | Cash and cash equivalents | $286 | $171 | $115 | 67% | | Total current assets | $640 | $720 | $(80) | (11%) | | Total assets | $4,210 | $4,269 | $(59) | (1%) | | Total current liabilities | $400 | $397 | $3 | 1% | | Long-term debt | $2,063 | $2,063 | $0 | 0% | | Total liabilities | $3,154 | $3,180 | $(26) | (1%) | | Total stockholders' equity | $1,056 | $1,089 | $(33) | (3%) | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Condensed Consolidated Statements of Cash Flows (Unaudited) - Nine Months Ended September 30, | Activity | 2022 (Millions) | 2021 (Millions) | Change (Millions) | | :------- | :-------------- | :-------------- | :---------------- | | Operating activities | $349 | $327 | $22 | | Investing activities | $190 | $(21) | $211 | | Financing activities | $(420) | $(606) | $186 | | Effect of changes in exchange rates on cash | $(4) | $0 | $(4) | | Net increase/(decrease) in cash | $115 | $(300) | $415 | | Cash, cash equivalents and restricted cash, end of period | $286 | $193 | $93 | [Condensed Consolidated Statements of Equity](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Equity) - Total equity decreased by **$33 million** from December 31, 2021, to September 30, 2022, primarily due to **$313 million in common stock repurchases** and **$88 million in dividends**[20](index=20&type=chunk)[24](index=24&type=chunk)[136](index=136&type=chunk) Key Equity Changes (Nine Months Ended September 30, 2022) | Metric | Amount (Millions) | | :----- | :---------------- | | Net income | $299 | | Other comprehensive income | $50 | | Dividends | $(88) | | Repurchase of common stock | $(313) | | Balance as of September 30, 2022 | $1,056 | | Balance as of December 31, 2021 | $1,089 | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) [Note 1. BASIS OF PRESENTATION](index=9&type=section&id=Note%201.%20BASIS%20OF%20PRESENTATION) - Wyndham Hotels & Resorts, Inc. is a leading global hotel franchisor, licensing its brands to hotel owners in **over 95 countries**[25](index=25&type=chunk) - The Company operates in two segments: **Hotel Franchising** (licensing brands and related services) and **Hotel Management** (providing management services for full-service hotels)[29](index=29&type=chunk) [Note 2. NEW ACCOUNTING PRONOUNCEMENTS](index=9&type=section&id=Note%202.%20NEW%20ACCOUNTING%20PRONOUNCEMENTS) - **No new accounting pronouncements** were applicable to the Company during the nine months ended September 30, 2022[28](index=28&type=chunk) [Note 3. REVENUE RECOGNITION](index=9&type=section&id=Note%203.%20REVENUE%20RECOGNITION) - Capitalized contract costs for obtaining hotel franchise and management contracts were **$32 million** as of September 30, 2022[33](index=33&type=chunk) Deferred Revenues | Type | September 30, 2022 (Millions) | December 31, 2021 (Millions) | | :--- | :---------------------------- | :--------------------------- | | Deferred initial franchise fee revenues | $141 | $145 | | Deferred loyalty program revenues | $86 | $76 | | Deferred other revenues | $18 | $14 | | Total | $245 | $235 | Disaggregation of Net Revenues by Segment (Three Months Ended September 30) | Segment | 2022 (Millions) | 2021 (Millions) | | :------ | :-------------- | :-------------- | | Hotel Franchising | $367 | $337 | | Hotel Management | $40 | $126 | | Net revenues | $407 | $463 | [Note 4. EARNINGS PER SHARE](index=11&type=section&id=Note%204.%20EARNINGS%20PER%20SHARE) - The Company had **$169 million** of remaining availability under its stock repurchase program as of September 30, 2022[35](index=35&type=chunk) Earnings Per Share and Dividends (Unaudited) | Metric | Three Months Ended Sep 30, 2022 | Three Months Ended Sep 30, 2021 | Nine Months Ended Sep 30, 2022 | Nine Months Ended Sep 30, 2021 | | :----- | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | Basic EPS | $1.13 | $1.10 | $3.28 | $2.09 | | Diluted EPS | $1.13 | $1.09 | $3.26 | $2.08 | | Cash dividends declared per share | $0.32 | $0.24 | $0.96 | $0.56 | | Aggregate dividends paid | $29 | $23 | $88 | $53 | Stock Repurchase Program Activity (Nine Months Ended September 30, 2022) | Metric | Shares (Millions) | Cost (Millions) | Average Price Per Share | | :----- | :---------------- | :-------------- | :---------------------- | | As of December 31, 2021 | 9.0 | $519 | $57.55 | | For the nine months ended Sep 30, 2022 | 4.3 | $312 | $72.17 | | As of September 30, 2022 | 13.3 | $831 | $62.29 | [Note 5. ACCOUNTS RECEIVABLE](index=11&type=section&id=Note%205.%20ACCOUNTS%20RECEIVABLE) Allowance for Doubtful Accounts Activity (Nine Months Ended September 30) | Metric | 2022 (Millions) | 2021 (Millions) | | :----- | :-------------- | :-------------- | | Balance as of January 1, | $81 | $72 | | (Recovery of)/provision for doubtful accounts | $(3) | $15 | | Bad debt write-offs | $(6) | $(8) | | Balance as of September 30, | $72 | $79 | [Note 6. HOTEL BRAND ACQUISITION](index=12&type=section&id=Note%206.%20HOTEL%20BRAND%20ACQUISITION) - Wyndham acquired the Vienna House hotel brand in September 2022 for **$44 million**, adding 41 franchised hotels in Europe[37](index=37&type=chunk) Vienna House Acquisition - Assets Acquired | Asset Type | Amount (Millions) | | :--------- | :---------------- | | Franchise agreements | $17 | | Trademark | $27 | | Total assets acquired | $44 | [Note 7. ASSETS AND LIABILITIES HELD FOR SALE](index=12&type=section&id=Note%207.%20ASSETS%20AND%20LIABILITIES%20HELD%20FOR%20SALE) - The Company completed the sales of its two owned hotels in March and May 2022, resulting in **no assets or liabilities held for sale** as of September 30, 2022[39](index=39&type=chunk)[40](index=40&type=chunk) [Note 8. INTANGIBLE ASSETS](index=13&type=section&id=Note%208.%20INTANGIBLE%20ASSETS) - The Company exited its select-service hotel management business in March 2022, receiving an **$84 million termination fee** which offset the write-off of related management contract intangible assets[42](index=42&type=chunk) Intangible Assets (Millions) | Asset Type | September 30, 2022 (Net Carrying Amount) | December 31, 2021 (Net Carrying Amount) | | :--------- | :--------------------------------------- | :--------------------------------------- | | Goodwill | $1,525 | $1,525 | | Trademarks (unamortized) | $1,228 | $1,201 | | Franchise agreements (amortized) | $379 | $382 | | Management agreements (amortized) | $1 | $91 | | Total Amortized Intangible Assets | $382 | $474 | [Note 9. FRANCHISING, MARKETING AND RESERVATION ACTIVITIES](index=13&type=section&id=Note%209.%20FRANCHISING%2C%20MARKETING%20AND%20RESERVATION%20ACTIVITIES) - Initial franchise fees were **$4 million for Q3 2022** and **$10 million for YTD Q3 2022**[43](index=43&type=chunk) Development Advance Notes (Nine Months Ended September 30) | Metric | 2022 (Millions) | 2021 (Millions) | | :----- | :-------------- | :-------------- | | Payments of development advance notes | $(40) | $(26) | | Proceeds from repayment of development advance notes | $4 | $1 | | Payments of development advance notes, net | $(36) | $(25) | [Note 10. INCOME TAXES](index=14&type=section&id=Note%2010.%20INCOME%20TAXES) - The Inflation Reduction Act (IRA) is **not expected to have a material impact** on the Company's financial results[49](index=49&type=chunk) Effective Tax Rates | Period | 2022 | 2021 | | :----- | :--- | :--- | | Three Months Ended Sep 30, | 27.3% | 25.9% | | Nine Months Ended Sep 30, | 25.8% | 27.0% | [Note 11. LONG-TERM DEBT AND BORROWING ARRANGEMENTS](index=15&type=section&id=Note%2011.%20LONG-TERM%20DEBT%20AND%20BORROWING%20ARRANGEMENTS) - In April 2022, the Company amended its credit agreement, extending the **$750 million revolving credit facility** to April 2027 and adding a new **$400 million Term Loan A facility**[57](index=57&type=chunk) - The Company hedges **$1.1 billion** of its Term Loan B interest rate exposure with pay-fixed/receive-variable interest rate swaps[60](index=60&type=chunk) Indebtedness as of September 30, 2022 (Millions) | Debt Type | Amount | Weighted Average Rate | | :-------- | :----- | :-------------------- | | Term loan A (due April 2027) | $399 | 3.38% | | Term loan B (due May 2025) | $1,139 | 3.61% | | 4.375% senior unsecured notes (due August 2028) | $494 | 4.38% | | Finance leases | $46 | 4.50% | | Total long-term debt | $2,078 | | [Note 12. FAIR VALUE](index=16&type=section&id=Note%2012.%20FAIR%20VALUE) - The Company uses cash flow hedges and foreign currency forward contracts to manage market risks, **not for trading or speculation**[68](index=68&type=chunk)[164](index=164&type=chunk) - A hypothetical **10% change** in the effective weighted average interest rate would result in a **$1 million annual change** in interest expense[165](index=165&type=chunk) - A hypothetical **10% change** in the U.S. dollar against all currency exposures would result in an approximately **$6 million change** to the fair value of outstanding forward contracts[168](index=168&type=chunk) [Note 13. COMMITMENTS AND CONTINGENCIES](index=18&type=section&id=Note%2013.%20COMMITMENTS%20AND%20CONTINGENCIES) - The Company is involved in approximately **30 pending legal matters**, including claims related to alleged sex trafficking at franchised/managed properties[73](index=73&type=chunk) - Accruals for legal contingencies totaled **$3 million** as of September 30, 2022, with a potential exposure of up to **$3 million** in excess of recorded accruals[75](index=75&type=chunk) - The Company settled post-closing adjustment claims related to the sale of its European Vacation Rentals business for **$2 million** in Q3 2022[77](index=77&type=chunk) [Note 14. STOCK-BASED COMPENSATION](index=19&type=section&id=Note%2014.%20STOCK-BASED%20COMPENSATION) - In 2022, the Company granted **$28 million in RSUs** and up to **$12 million in PSUs** to key employees and senior officers[79](index=79&type=chunk) Stock-Based Compensation Expense (Millions) | Period | 2022 | 2021 | | :----- | :--- | :--- | | Three Months Ended Sep 30, | $8 | $7 | | Nine Months Ended Sep 30, | $25 | $20 | [Note 15. SEGMENT INFORMATION](index=20&type=section&id=Note%2015.%20SEGMENT%20INFORMATION) Adjusted EBITDA by Segment (Three Months Ended September 30) | Segment | 2022 (Millions) | 2021 (Millions) | % Change | | :------ | :-------------- | :-------------- | :------- | | Hotel Franchising | $201 | $193 | 4% | | Hotel Management | $7 | $16 | (56%) | | Total Company | $191 | $194 | (2%) | Adjusted EBITDA by Segment (Nine Months Ended September 30) | Segment | 2022 (Millions) | 2021 (Millions) | % Change | | :------ | :-------------- | :-------------- | :------- | | Hotel Franchising | $541 | $464 | 17% | | Hotel Management | $33 | $38 | (13%) | | Total Company | $524 | $459 | 14% | [Note 16. OTHER EXPENSES AND CHARGES](index=22&type=section&id=Note%2016.%20OTHER%20EXPENSES%20AND%20CHARGES) - A **$35 million gain** was recognized from the sale of Wyndham Grand Bonnet Creek Resort in March 2022[90](index=90&type=chunk) - Separation-related charges were **$1 million for Q3 2022**, with the nine-month charge offset by a **$1 million reserve reversal**[92](index=92&type=chunk) [Note 17. ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS)](index=23&type=section&id=Note%2017.%20ACCUMULATED%20OTHER%20COMPREHENSIVE%20INCOME%2F(LOSS)) Components of Accumulated Other Comprehensive Income/(Loss) (Millions) | Component | Balance as of Dec 31, 2021 | Balance as of Sep 30, 2022 | Change | | :-------- | :------------------------- | :------------------------- | :----- | | Foreign Currency Translation Adjustments | $2 | $(7) | $(9) | | Cash Flow Hedges | $(17) | $42 | $59 | | Total AOCI | $(15) | $35 | $50 | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.](index=23&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations.) Management discusses financial performance, highlighting impacts from business exits and growth in the franchising segment [Forward-Looking Statements](index=23&type=section&id=Forward-Looking%20Statements) - The report contains forward-looking statements regarding strategy and financial results, subject to **known and unknown risks** and uncertainties[95](index=95&type=chunk) - Factors that could cause actual results to differ include **general economic conditions**, the impact of COVID-19, and operating risks in the hospitality industry[96](index=96&type=chunk) [BUSINESS AND OVERVIEW](index=24&type=section&id=BUSINESS%20AND%20OVERVIEW) - Wyndham Hotels & Resorts is a leading global hotel franchisor, licensing brands in **over 95 countries**[100](index=100&type=chunk) - The Company operates in **Hotel Franchising** and **Hotel Management** segments, generating revenue from royalties, franchise fees, and management fees[102](index=102&type=chunk)[103](index=103&type=chunk) [RESULTS OF OPERATIONS](index=24&type=section&id=RESULTS%20OF%20OPERATIONS) [OPERATING STATISTICS](index=25&type=section&id=OPERATING%20STATISTICS) Operating Statistics as of September 30, 2022 | Metric | 2022 | 2021 | % Change | | :----- | :--- | :--- | :------- | | Total rooms | 836,000 | 802,600 | 4% | | U.S. rooms | 492,900 | 486,800 | 1% | | International rooms | 343,100 | 315,800 | 9% | RevPAR and Average Royalty Rate (Three Months Ended September 30) | Metric | 2022 | 2021 | Change | | :----- | :--- | :--- | :----- | | Global RevPAR | $49.17 | $45.80 | 7% | | Global RevPAR (excl. currency) | N/A | N/A | 12% | | Global Average Royalty Rate | 3.9% | 4.1% | (20 bps) | RevPAR and Average Royalty Rate (Nine Months Ended September 30) | Metric | 2022 | 2021 | % Change | | :----- | :--- | :--- | :------- | | Global RevPAR | $42.58 | $35.94 | 18% | | Global RevPAR (excl. currency) | N/A | N/A | 22% | | Global Average Royalty Rate | 4.0% | 4.1% | (10 bps) | [THREE MONTHS ENDED SEPTEMBER 30, 2022 VS. THREE MONTHS ENDED SEPTEMBER 30, 2021](index=26&type=section&id=THREE%20MONTHS%20ENDED%20SEPTEMBER%2030%2C%202022%20VS.%20THREE%20MONTHS%20ENDED%20SEPTEMBER%2030%2C%202021) - Net revenues decreased by **$56 million**, primarily due to **$92 million lower revenues** from exited businesses, partially offset by higher royalty and license fees[109](index=109&type=chunk)[110](index=110&type=chunk) - Total expenses decreased by **$55 million**, driven by **$87 million lower expenses** from exited businesses[109](index=109&type=chunk)[110](index=110&type=chunk) Consolidated Financial Performance (Three Months Ended September 30) | Metric | 2022 (Millions) | 2021 (Millions) | Change (Millions) | % Change | | :----- | :-------------- | :-------------- | :---------------- | :------- | | Net revenues | $407 | $463 | $(56) | (12%) | | Total expenses | $247 | $302 | $(55) | (18%) | | Operating income | $160 | $161 | $(1) | (1%) | | Net income | $101 | $103 | $(2) | (2%) | [Hotel Franchising](index=27&type=section&id=Hotel%20Franchising_Q3) - Rooms growth was driven by organic growth, conversion of managed properties to franchise, and the **acquisition of the Vienna House brand**[114](index=114&type=chunk) Hotel Franchising Performance (Three Months Ended September 30) | Metric | 2022 (Millions) | 2021 (Millions) | % Change | | :----- | :-------------- | :-------------- | :------- | | Net Revenues | $367 | $337 | 9% | | Adjusted EBITDA | $201 | $193 | 4% | | Total rooms | 816,300 | 758,600 | 8% | | Global RevPAR (excl. currency) | N/A | N/A | 13% | [Hotel Management](index=28&type=section&id=Hotel%20Management_Q3) - The decline in rooms and revenues was driven by the **exit from the select-service management business**[116](index=116&type=chunk)[119](index=119&type=chunk) Hotel Management Performance (Three Months Ended September 30) | Metric | 2022 (Millions) | 2021 (Millions) | % Change | | :----- | :-------------- | :-------------- | :------- | | Net Revenues | $40 | $126 | (68%) | | Adjusted EBITDA | $7 | $16 | (56%) | | Total rooms | 19,700 | 44,000 | (55%) | | Global RevPAR (excl. currency) | N/A | N/A | 16% | [Corporate and Other](index=28&type=section&id=Corporate%20and%20Other_Q3) - Corporate and Other Adjusted EBITDA was unfavorable by **$2 million** due to inflationary cost pressures[117](index=117&type=chunk) [NINE MONTHS ENDED SEPTEMBER 30, 2022 VS. NINE MONTHS ENDED SEPTEMBER 30, 2021](index=28&type=section&id=NINE%20MONTHS%20ENDED%20SEPTEMBER%2030%2C%202022%20VS.%20NINE%20MONTHS%20ENDED%20SEPTEMBER%2030%2C%202021) - Net revenues decreased by **$9 million**, primarily due to **$173 million lower revenues** from exited businesses, largely offset by higher fees[118](index=118&type=chunk)[126](index=126&type=chunk) - Total expenses decreased by **$116 million**, driven by **$178 million lower expenses** from exited businesses and a **$35 million gain on asset sale**[122](index=122&type=chunk)[126](index=126&type=chunk) Consolidated Financial Performance (Nine Months Ended September 30) | Metric | 2022 (Millions) | 2021 (Millions) | Change (Millions) | % Change | | :----- | :-------------- | :-------------- | :---------------- | :------- | | Net revenues | $1,164 | $1,173 | $(9) | (1%) | | Total expenses | $699 | $815 | $(116) | (14%) | | Operating income | $465 | $358 | $107 | 30% | | Net income | $299 | $195 | $104 | 53% | [Hotel Franchising](index=31&type=section&id=Hotel%20Franchising_YTD) - Revenue increases were partially offset by **$61 million higher marketing, reservation, and loyalty expenses**[129](index=129&type=chunk) Hotel Franchising Performance (Nine Months Ended September 30) | Metric | 2022 (Millions) | 2021 (Millions) | % Change | | :----- | :-------------- | :-------------- | :------- | | Net Revenues | $974 | $829 | 17% | | Adjusted EBITDA | $541 | $464 | 17% | | Total rooms | 816,300 | 758,600 | 8% | | Global RevPAR (excl. currency) | N/A | N/A | 24% | [Hotel Management](index=31&type=section&id=Hotel%20Management_YTD) - The decrease in Adjusted EBITDA was partially offset by **$30 million of lower expenses** associated with the exit from select-service hotel management and owned hotel businesses[133](index=133&type=chunk) Hotel Management Performance (Nine Months Ended September 30) | Metric | 2022 (Millions) | 2021 (Millions) | % Change | | :----- | :-------------- | :-------------- | :------- | | Net Revenues | $190 | $344 | (45%) | | Adjusted EBITDA | $33 | $38 | (13%) | | Total rooms | 19,700 | 44,000 | (55%) | | Global RevPAR (excl. currency) | N/A | N/A | 23% | [Corporate and Other](index=33&type=section&id=Corporate%20and%20Other_YTD) - Corporate and Other Adjusted EBITDA was unfavorable by **$7 million** due to inflationary cost pressures[134](index=134&type=chunk) [DEVELOPMENT](index=33&type=section&id=DEVELOPMENT) - The Company awarded **214 new contracts** in Q3 2022, up from 151 in Q3 2021[135](index=135&type=chunk) - Global development pipeline grew **10% year-over-year** to over 1,600 hotels and 212,000 rooms[135](index=135&type=chunk) - Approximately **76% of the pipeline** is in midscale and above segments, **60% is international**, and **80% is new construction**[135](index=135&type=chunk) [FINANCIAL CONDITION, LIQUIDITY AND CAPITAL RESOURCES](index=33&type=section&id=FINANCIAL%20CONDITION%2C%20LIQUIDITY%20AND%20CAPITAL%20RESOURCES) [Financial Condition](index=33&type=section&id=Financial%20Condition) - The decrease in total assets was primarily due to the **sale of two owned hotels** and a reduction in intangible assets, partially offset by an increase in cash[136](index=136&type=chunk) Financial Condition Summary (Millions) | Metric | September 30, 2022 | December 31, 2021 | Change | | :----- | :----------------- | :---------------- | :----- | | Total assets | $4,210 | $4,269 | $(59) | | Total liabilities | $3,154 | $3,180 | $(26) | | Total stockholders' equity | $1,056 | $1,089 | $(33) | [Liquidity and Capital Resources](index=33&type=section&id=Liquidity%20and%20Capital%20Resources) - As of September 30, 2022, the Company's liquidity approximated **$1.0 billion**[138](index=138&type=chunk) - The **$750 million revolving credit facility** was extended to April 2027, and a new **$400 million senior secured Term Loan A facility** was issued in April 2022[139](index=139&type=chunk) - The Company expects existing cash and financing access to be **sufficient to fund operating activities**, capital expenditures, and growth needs[138](index=138&type=chunk)[146](index=146&type=chunk) [CASH FLOW](index=34&type=section&id=CASH%20FLOW) - Net cash provided by investing activities increased due to proceeds from the **sales of two owned hotels** and a termination fee from CorePoint Lodging[148](index=148&type=chunk) - Net cash used in financing activities decreased due to the absence of a **$500 million senior unsecured notes redemption** in 2021[149](index=149&type=chunk) Cash Flow Summary (Nine Months Ended September 30) | Activity | 2022 (Millions) | 2021 (Millions) | Change (Millions) | | :------- | :-------------- | :-------------- | :---------------- | | Operating activities | $349 | $327 | $22 | | Investing activities | $190 | $(21) | $211 | | Financing activities | $(420) | $(606) | $186 | | Net change in cash | $115 | $(300) | $415 | [Capital Deployment](index=35&type=section&id=Capital%20Deployment) - Capital deployment priorities include **business investment**, regular dividend payments, and stock repurchases[150](index=150&type=chunk) - Capital expenditures were **$28 million** for the nine months ended September 30, 2022, with an anticipated **$40 million** for the full year[151](index=151&type=chunk) - Development advance notes, net of repayments, totaled **$36 million** for the nine months ended September 30, 2022, with an anticipated **$55 million** for the full year[152](index=152&type=chunk) [Stock Repurchase Program](index=35&type=section&id=Stock%20Repurchase%20Program) - The Board increased the stock repurchase program capacity by **$400 million** in February 2022 and an additional **$400 million** in October 2022[153](index=153&type=chunk)[154](index=154&type=chunk)[177](index=177&type=chunk) - As of September 30, 2022, **$169 million remained available** under the stock repurchase program[154](index=154&type=chunk)[177](index=177&type=chunk) Stock Repurchase Activity (Three Months Ended September 30, 2022) | Period | Total Number of Shares Purchased | Average Price Paid per Share | | :----- | :----------------------------- | :--------------------------- | | July | 644,043 | $67.29 | | August | 638,048 | $69.02 | | September | 711,666 | $63.71 | | Total | 1,993,757 | $66.57 | [Dividend Policy](index=35&type=section&id=Dividend%20Policy) - Cash dividends of **$0.32 per share** were declared in each of the first three quarters of 2022, totaling **$88 million**[155](index=155&type=chunk) - Future dividend declarations are at the **Board's discretion**[156](index=156&type=chunk) [LONG-TERM DEBT COVENANTS](index=35&type=section&id=LONG-TERM%20DEBT%20COVENANTS) - The Company's credit facilities require compliance with a maximum **first-lien leverage ratio of 5.0 times**[157](index=157&type=chunk) - As of September 30, 2022, the Company was in compliance with financial covenants, with an annualized first-lien leverage ratio of **2.0 times**[157](index=157&type=chunk)[159](index=159&type=chunk) [SEASONALITY](index=36&type=section&id=SEASONALITY) - Revenues are generally higher in the **second and third quarters** due to increased leisure travel[160](index=160&type=chunk) - Seasonality can cause **fluctuations in quarterly operating results**, earnings, profit margins, and cash flows[160](index=160&type=chunk) [COMMITMENTS AND CONTINGENCIES](index=36&type=section&id=COMMITMENTS%20AND%20CONTINGENCIES_MD&A) - The Company is involved in various claims and legal proceedings, as detailed in **Note 13**[161](index=161&type=chunk) - The Company believes its accruals are adequate and does **not expect a material adverse effect** on its financial condition or liquidity[161](index=161&type=chunk) [CRITICAL ACCOUNTING POLICIES](index=36&type=section&id=CRITICAL%20ACCOUNTING%20POLICIES) - Financial statements rely on **estimates and assumptions** that are inherently uncertain[162](index=162&type=chunk) - Critical accounting policies are described in the Company's **2021 Annual Report on Form 10-K**[162](index=162&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk.](index=36&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk.) The Company manages interest rate and foreign currency risks using derivative instruments for hedging purposes - The Company uses interest rate swap contracts and foreign currency forwards to reduce market risks, acting **exclusively as an end user**[163](index=163&type=chunk)[164](index=164&type=chunk) - A hypothetical **10% change** in the effective weighted average interest rate would result in a **$1 million** change to annual interest expense[165](index=165&type=chunk) - A hypothetical **10% change** in the U.S. dollar against all currency exposures would result in an approximately **$6 million** change to the fair value of hedging contracts[168](index=168&type=chunk) - Argentina is considered a **highly inflationary economy**, with the Company having **$3 million** in total net assets there as of September 30, 2022[169](index=169&type=chunk) [Item 4. Controls and Procedures.](index=37&type=section&id=Item%204.%20Controls%20and%20Procedures.) Management concluded that disclosure controls and procedures were effective, with no material changes to internal controls - As of September 30, 2022, disclosure controls and procedures were evaluated and **deemed effective** by management[173](index=173&type=chunk) - **No material changes** occurred in internal control over financial reporting during the period[173](index=173&type=chunk) [PART II — OTHER INFORMATION](index=38&type=section&id=PART%20II%20OTHER%20INFORMATION) [Item 1. Legal Proceedings.](index=38&type=section&id=Item%201.%20Legal%20Proceedings.) The Company's legal proceedings are not expected to have a material adverse effect on its financial condition - The Company is involved in various legal proceedings, none of which are expected to have a **material adverse effect** on its financial condition[175](index=175&type=chunk) - Further details on claims and legal actions are provided in **Note 13** to the Condensed Consolidated Financial Statements[175](index=175&type=chunk) [Item 1A. Risk Factors.](index=38&type=section&id=Item%201A.%20Risk%20Factors.) A comprehensive discussion of business risks is contained in the Company's 2021 Annual Report on Form 10-K - Risk factors affecting the Company's business and financial condition are detailed in **Item 1A of its Annual Report on Form 10-K** for the fiscal year ended December 31, 2021[176](index=176&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.](index=38&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds.) The Board authorized an additional $400 million for the stock repurchase program and the Company repurchased 1.99 million shares in Q3 2022 - The Board increased the stock repurchase program capacity by an additional **$400 million** in October 2022[177](index=177&type=chunk) - As of September 30, 2022, approximately **$168.9 million remained available** under the repurchase plan[177](index=177&type=chunk) Common Stock Repurchases (Quarter Ended September 30, 2022) | Period | Total Number of Shares Purchased | Average Price Paid per Share | | :----- | :----------------------------- | :--------------------------- | | July | 644,043 | $67.29 | | August | 638,048 | $69.02 | | September | 711,666 | $63.71 | | Total | 1,993,757 | $66.57 | [Item 3. Defaults Upon Senior Securities.](index=38&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities.) No defaults upon senior securities were reported during the period - **No defaults** upon senior securities were reported[178](index=178&type=chunk) [Item 4. Mine Safety Disclosures.](index=38&type=section&id=Item%204.%20Mine%20Safety%20Disclosures.) This item is not applicable to the Company's operations - Mine Safety Disclosures are **not applicable** to the Company[179](index=179&type=chunk) [Item 5. Other Information.](index=38&type=section&id=Item%205.%20Other%20Information.) No other information was reported under this item for the period - **No other information** was reported under this item[180](index=180&type=chunk) [Item 6. Exhibits.](index=38&type=section&id=Item%206.%20Exhibits.) This section lists all exhibits filed as part of the Form 10-Q, providing supplementary information to the report - The exhibit index includes corporate governance documents, certifications (302 and 906), and **XBRL instance and taxonomy documents**[187](index=187&type=chunk) [Signatures](index=39&type=section&id=Signatures) The report was officially signed on October 26, 2022, by the Chief Financial Officer and Chief Accounting Officer - The report was signed by **Michele Allen, Chief Financial Officer**, and **Nicola Rossi, Chief Accounting Officer**, on October 26, 2022[185](index=185&type=chunk)
Wyndham Hotels & Resorts(WH) - 2022 Q3 - Earnings Call Transcript
2022-10-26 16:25
Wyndham Hotels & Resorts, Inc. (NYSE:WH) Q3 2022 Earnings Conference Call October 26, 2022 8:30 AM ET Company Participants Matt Capuzzi - Senior Vice President, Investor Relations Geoff Ballotti - Chief Executive Officer Michele Allen - Chief Financial Officer Conference Call Participants Patrick Scholes - Truist Securities Joe Greff - JPMorgan David Katz - Jefferies Michael Bellisario - Baird Dany Asad - Bank of America Ian Zaffino - Oppenheimer Stephen Grambling - Morgan Stanley Dan Wasiolek - Morningstar ...
Wyndham Hotels & Resorts(WH) - 2022 Q2 - Quarterly Report
2022-07-27 20:03
Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (Former name, former address and former fiscal year, if changed since last report) (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation ...