Core Insights - Wyndham Hotels reported revenue of $367 million for the quarter ended June 2024, reflecting a year-over-year increase of 1.4% [1] - The company's EPS was $1.13, up from $0.93 in the same quarter last year, indicating a positive earnings performance [1] Financial Performance Metrics - The reported revenue of $367 million was below the Zacks Consensus Estimate of $371 million, resulting in a revenue surprise of -1.08% [3] - Wyndham delivered an EPS surprise of +8.65%, with the consensus EPS estimate being $1.04 [3] - Total Rooms stood at 884,900, slightly above the average estimate of 884,014 [4] - Total RevPAR was reported at $45.99, lower than the estimated $47.02 [4] - Fee-related and other revenues from royalties and franchise fees were $144 million, compared to the average estimate of $150.37 million, marking a year-over-year change of +1.4% [4] - Marketing, reservation, and loyalty revenues were $150 million, exceeding the average estimate of $148.96 million, with a year-over-year increase of +3.5% [4] - License and other fees generated $31 million, slightly above the estimated $30.80 million, representing a +6.9% change year-over-year [4] - Other fee-related revenues totaled $39 million, compared to the average estimate of $38.37 million, reflecting a +5.4% year-over-year change [4] - Management and other fees were reported at $2 million, below the average estimate of $2.58 million, indicating a significant year-over-year decline of -60% [4] Stock Performance - Shares of Wyndham have returned +1.4% over the past month, compared to the Zacks S&P 500 composite's +1.8% change [6] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [6]

Company Performance - Wyndham reported quarterly earnings of $1.13 per share, exceeding the Zacks Consensus Estimate of $1.04 per share, and showing an increase from $0.93 per share a year ago [7] - The company posted revenues of $367 million for the quarter ended June 2024, which was 1.08% below the Zacks Consensus Estimate, but an increase from $362 million in the same quarter last year [2] - Over the last four quarters, Wyndham has surpassed consensus EPS estimates four times [8] Stock Performance - Wyndham shares have declined approximately 7.9% since the beginning of the year, while the S&P 500 has gained 16.5% [3] - The current consensus EPS estimate for the upcoming quarter is $2.49, reflecting a year-over-year change of +10.2% [6] - The current consensus EPS estimate for the current fiscal year is $4.25 on revenues of $1.45 billion [5] Earnings Outlook - The estimate revisions trend for Wyndham is mixed, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [11] - Future stock price movements will largely depend on management's commentary during the earnings call [9] - The Hotels and Motels industry is currently ranked in the top 42% of Zacks industries, suggesting a favorable outlook compared to the bottom 50% [13]

Financial Performance - Adjusted EBITDA rose by 13% year-over-year to $178 million, with adjusted diluted EPS increasing by 22% to $1.13[2][10] - Net income for the second quarter was $86 million, a 23% increase compared to the prior-year quarter[2][10] - Net revenues for Q2 2024 were $367 million, a slight increase from $362 million in Q2 2023, while net revenues for the first half of 2024 totaled $671 million, down from $674 million in the same period last year[29] - Operating income for Q2 2024 was $145 million, compared to $123 million in Q2 2023, indicating a year-over-year increase of approximately 17.9%[29] - Net income for Q2 2024 was $86 million, up from $70 million in Q2 2023, representing a growth of 22.9%[29] - Adjusted EBITDA for the first half of 2024 was $141 million, compared to $147 million in the first half of 2023, reflecting a decrease of 4.1%[32] - The company reported a basic earnings per share of $1.07 for Q2 2024, up from $0.82 in Q2 2023, reflecting a growth of 30.5%[29] - Net income for the six months ended June 30, 2024, was $102 million, compared to $137 million for the same period in 2023, reflecting a decrease of 25.6%[51] - Adjusted net income for the three months ended June 30, 2024, was $91 million, an increase from $80 million in 2023, marking a growth of 13.8%[51] Development and Growth - System-wide rooms grew by 4% year-over-year, with over 18,000 rooms opened globally, including a 16% increase in the U.S.[2] - The development pipeline reached a record 245,000 rooms, reflecting a 7% year-over-year increase and a 33% rise in awarded contracts[2][4] - Approximately 70% of the development pipeline is in the midscale and above segments, which grew 4% year-over-year[4] - The global room count increased by 33,400 rooms, reaching 884,900 as of June 30, 2024, representing a 4% growth year-over-year[41] - The company added 31,200 rooms globally in the first half of 2024, a 11% increase from the previous year[41] - The total international room count increased by 29,100 rooms, reaching 385,500 as of June 30, 2024, an 8% growth year-over-year[41] - The number of rooms is expected to grow by 3% to 4% year-over-year[53] Cash Flow and Shareholder Returns - The company generated adjusted free cash flow of $69 million in the second quarter, ending with a cash balance of $70 million[12] - Free cash flow for Q2 2024 was $27 million, down from $92 million in Q2 2023, indicating a decline of 70.7%[35] - The company returned $162 million to shareholders through share repurchases and dividends, with $131 million allocated for share buybacks[2][15] - The adjusted free cash flow conversion rate is anticipated to be approximately 60%[53] Debt and Financial Outlook - Total debt increased to $2.427 billion as of June 30, 2024, from $2.201 billion at the end of 2023, marking an increase of approximately 10.3%[36] - The net debt leverage ratio increased to 3.5x as of June 30, 2024, compared to 3.2x at the end of 2023[38] - The company successfully repriced its Term Loan B Facility, reducing the interest rate by 60 basis points to SOFR plus 1.75%[2][14] - As of June 30, 2024, total outstanding debt amounts to $2.427 billion, with $1.445 billion maturing thereafter[39] - Full-year 2024 adjusted diluted EPS outlook is refined to $4.20 - $4.32, with adjusted net income expected between $338 million and $348 million[16] - The company projects adjusted net income for 2024 to be between $338 million and $348 million, with adjusted diluted EPS expected to range from $4.20 to $4.32[53] - Adjusted EBITDA for 2024 is forecasted to be between $690 million and $700 million[53] - The outlook for fee-related and other revenues in 2024 is estimated to be between $1,410 million and $1,430 million[53] - The company’s capital expenditures for 2024 are projected to be approximately $40 million[53] Revenue Per Available Room (RevPAR) - Global RevPAR increased by 2% in constant currency, with U.S. RevPAR remaining flat and international RevPAR growing by 7%[4] - For the three months ended June 30, 2024, the total RevPAR for the United States was $55.44, showing no percentage change compared to the previous year[43] - International RevPAR for the three months ended June 30, 2024, was $34.11, reflecting a 7% increase year-over-year[43] - The company experienced a 39% increase in RevPAR in Latin America for the six months ended June 30, 2024, reaching $50.41[43] - The average royalty rate for the United States increased by 9 basis points to 4.7%, while the global average rose by 4 basis points to 4.0%[43] Other Expenses - The company incurred payments related to hostile takeover defense amounting to $46 million in the first half of 2024[34] - Total adjustments before tax for the six months ended June 30, 2024, amounted to $72 million, significantly higher than $24 million in the same period of 2023[51]

Core Viewpoint - Wyndham Hotels & Resorts, Inc. is expected to report second-quarter 2024 results on July 24, with earnings anticipated to beat the Zacks Consensus Estimate by 4% based on previous performance [1] Q2 Estimates - The Zacks Consensus Estimate for second-quarter 2024 earnings is $1.05, compared to adjusted earnings of 93 cents in the prior-year quarter [2] - Revenue estimates are pegged at $373.9 million, indicating a 3.3% year-over-year increase [2] Factors to Note - The company's results are likely supported by expansion efforts and the integration of AI across operations, enhancing efficiency and service quality [3] - AI is utilized in call centers for real-time coaching and call handling, allowing agents to focus more on guest assistance [3] - Wyndham is focused on expanding its geographic footprint and product offerings through a diversified brand portfolio and disciplined capital allocation strategy [4] Revenue Estimates - The consensus estimate for Marketing, reservation and loyalty revenues is $150 million, reflecting a 6.3% year-over-year increase [5] - Royalties and franchise fees revenues are estimated at $151 million, up 3.4% year over year [5] Earnings Prediction Model - The model predicts an earnings beat for Wyndham, supported by a positive Earnings ESP of +0.11% and a Zacks Rank of 3 (Hold) [6]

Cash flow can come from bond interest, interest from other types of investments, and of course, dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns. Big, established firms that have more secur ...

Core Viewpoint - The upcoming earnings report for Wyndham Hotels is anticipated to influence its stock price significantly, with expectations of a year-over-year earnings increase and higher revenues, but actual results will determine the stock's movement [1][6]. Earnings Expectations - Wyndham Hotels is expected to report quarterly earnings of $1.05 per share, reflecting a year-over-year increase of +12.9% [2]. - Revenues are projected to be $373.9 million, which is a 3.3% increase from the same quarter last year [14]. Estimate Revisions - The consensus EPS estimate has been revised 0.81% lower in the last 30 days, indicating a reassessment by analysts [3]. - The Most Accurate Estimate for Wyndham is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +0.11%, suggesting a bullish outlook from analysts [18][19]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive Earnings ESP is a strong predictor of an earnings beat, especially when combined with a solid Zacks Rank [17]. - Wyndham has a Zacks Rank of 3, which suggests a neutral outlook, but the positive Earnings ESP indicates a likelihood of beating the consensus EPS estimate [9][19]. Historical Performance - In the last four quarters, Wyndham has consistently beaten consensus EPS estimates, achieving a surprise of +4% in the most recent quarter [10][21].

Core Points - Days Inns - Canada has made a significant donation to Food Banks Canada for the second consecutive year, supporting the Food For All initiative to help replenish food supplies and distribute perishable items across the country [1][2] - Food bank usage in Canada is increasing at an alarming rate, highlighting the importance of corporate efforts and community involvement in addressing food insecurity [2][7] - Food Banks Canada has been active for 40 years, with over 5,100 food banks and community organizations serving vulnerable populations, reporting nearly two million visits in March 2023 [3] - The organization has sourced and shared over 1.4 billion pounds of food and provided nearly $168 million in funding over the past decade to enhance local capacity and reduce the need for food banks [3] - Days Inns - Canada's FeedSummer campaign runs until August 31, 2024, encouraging guests and hotel teams to contribute through monetary donations, volunteering, or supporting local food banks [4] Company Overview - Days Inns - Canada is part of Realstar Hospitality, operating over 105 independently owned properties with more than 8,385 rooms across Canada [9] - The brand is associated with Wyndham Hotels & Resorts, which is the largest hotel franchising company globally, with approximately 8,900 hotels in nearly 95 countries [9]

Group 1: Company Overview - Days Inns Canada is a leading hotel chain with over 105 independently owned properties and more than 8,385 rooms across Canada [3] - It is part of Realstar Hospitality and operates under the Wyndham Hotels & Resorts brand, which has approximately 8,900 hotels globally [3] - Days Inn by Wyndham participates in the Wyndham Rewards guest reward program, enhancing customer loyalty [3] Group 2: Partnership with Food Banks Canada - Days Inns Canada has partnered with Food Banks Canada for the second consecutive year, contributing to the Food For All initiative to help replenish food supplies [5] - The FeedSummer campaign runs until August 31, 2024, encouraging guests and hotel teams to donate or volunteer to support local food banks [6] - Food Banks Canada has been active for 40 years, with over 5,100 food banks serving Canadians facing food insecurity, making nearly two million visits in March of the previous year [4] Group 3: Impact and Contributions - Food Banks Canada has sourced and shared over 1.4 billion pounds of food in the past decade and provided nearly $168 million in funding to enhance local food bank capacities [4] - The partnership aims to relieve hunger today and prevent it tomorrow, aligning with the vision of a Canada where no one goes hungry [4][5]

Core Insights - ECHO Suites is positioned to meet the growing demand for long-term, comfortable, and affordable accommodations in booming cities like Spartanburg, with a well-designed prototype tailored for operators [1][6] - The brand aims to have 75 hotels open or under construction by the end of 2026 and 300 open hotels by 2032, indicating significant growth potential [2][11] Company Developments - The first ECHO Suites has opened in Spartanburg, marking a milestone in the brand's development pipeline, which now includes nearly 270 hotels and over 33,000 rooms across the U.S. and Canada [11] - Mandeep Singh has been appointed as vice president of Extended Stay Operations, bringing over 20 years of experience to oversee the growing portfolio of extended-stay brands [8] Market Context - The launch of ECHO Suites coincides with historic infrastructure investments in the U.S., including $1.2 trillion from the 2021 Infrastructure and Jobs Act and $280 billion from the CHIPS and Science Act of 2022, which are expected to drive demand for extended-stay accommodations [5] - The construction projects across the country are projected to create a $3.3 billion opportunity in additional room revenue for Wyndham franchisees over the multi-year period [12] Product Features - The ECHO Suites prototype is a purpose-built, all-new construction with 124 rooms, requiring under two acres of land and designed to maximize revenue-generating square footage [15] - The design includes single- and two-queen studio suites with kitchens, along with public spaces such as a lobby, fitness center, and 24/7 guest laundry, aimed at reducing labor needs [15]

Company Overview - AmericInn by Wyndham is a Midwest brand founded in Minneapolis-Saint Paul, known for its cozy comfort and genuine hospitality, with over 225 locations across the United States [2][15] - The company emphasizes American values and aims to positively impact both guests and communities [2] Promotional Campaign - AmericInn is launching a contest to find the "Cheesiest Family" who will embark on a cheese-filled adventure through Wisconsin, Minnesota, and Iowa [1][9] - The winning family will experience various cheese-themed activities and stay at AmericInn properties, sharing their journey on social media [1][10] Contest Details - Families interested in participating must submit a written entry or a video highlighting their storytelling skills and love for cheese [5][13] - The contest is open until July 30, 2024, and the winning family will be announced around August 12, 2024 [11][14] Rewards - The prize package for the winning family includes seven paid nights at AmericInn hotels, a $10,000 travel stipend, $5,000 cash, and a suitcase full of AmericInn merchandise, with an approximate retail value of $15,700 [12][14] Market Insights - Research indicates that nearly 96% of Americans enjoy cheese regularly, with about one-third consuming it in meals an average of three times daily [9]