Core Points - Wyndham Hotels & Resorts announced the departure of Michele Allen, the Chief Financial Officer, who will pursue a new career opportunity outside the hotel industry. Kurt Albert has been appointed as the Interim Chief Financial Officer [1][2] - The company will conduct a comprehensive search for a permanent CFO, considering both internal and external candidates. Michele Allen will assist in an advisory role until the end of 2025 to ensure a smooth transition [1][2] - Wyndham has reaffirmed its full-year 2025 outlook as provided in its third-quarter earnings materials released on October 22, 2025 [3] Company Overview - Wyndham Hotels & Resorts is the world's largest hotel franchising company, with approximately 8,300 hotels across around 100 countries on six continents. The company operates a portfolio of 25 hotel brands and has over 855,000 rooms [4] - Wyndham Rewards, the company's loyalty program, has approximately 121 million enrolled members, allowing them to redeem points at various hotels and vacation rentals globally [4]

Core Points - Days Inns - Canada has renewed its partnership with Curling Canada for the 2026 season, continuing its role as an Official Partner [1][2] - The partnership will include Days Inns' presence at major curling events such as the 2026 Scotties Tournament of Hearts and the 2026 BKT World Women's Championship [2][3] - Days Inns - Canada will engage with curling fans through on-site activations and promotional offers, enhancing the experience for attendees [3][4] Company Overview - Days Inns - Canada operates over 105 properties and more than 8,515 rooms across the country, offering a range of amenities including free Wi-Fi and breakfast [5][6] - The company is part of Realstar Hospitality and is affiliated with Wyndham Hotels & Resorts, which is the largest hotel franchising company globally [6] Industry Context - Curling Canada is the governing body for curling in Canada, responsible for promoting and organizing the sport at various levels, from youth to seniors [7] - The partnership with Days Inns - Canada aims to provide savings and enhance the experience for curling fans, demonstrating the value of corporate sponsorship in sports [4][7]

Revenue and Income - Net revenues for the three months ended September 30, 2025 decreased by $14 million, or 4%, primarily due to lower royalty and franchise fees[126] - Operating income for the three months ended September 30, 2025 increased by $7 million, or 4%, compared to the prior year[126] - Net income for the three months ended September 30, 2025 increased by $3 million, or 3%, compared to the prior year[129] - For the nine months ended September 30, 2025, net revenues increased by $28 million, or 3%, driven by higher ancillary revenues from the co-branded credit card program[133] - Net income for the nine months ended September 30, 2025, increased by $49 million, or 24%, compared to the prior year period[138] - Adjusted EBITDA for the nine months ended September 30, 2025, increased by $25 million, or 4%, compared to the prior year period[140] Expenses and Costs - Marketing, reservation, and loyalty expenses decreased by $18 million, or 12%, compared to the prior year[126] - Total expenses for the nine months ended September 30, 2025, decreased by $44 million, or 6%, compared to the prior year period[134] - Interest expense, net for the three months ended September 30, 2025 increased by $2 million, or 6%, due to a higher average debt balance[128] - Interest expense, net for the nine months ended September 30, 2025, increased by $10 million, or 11%, primarily due to a higher average debt balance[135] - Restructuring expenses incurred during the nine months ended September 30, 2025, totaled $16 million, impacting 178 employees[143] Development and Growth - Total rooms increased by 4% year-over-year, with a 1% growth in the U.S. and a 9% growth internationally[121] - The global development pipeline consisted of approximately 2,180 hotels and 257,000 rooms, representing a 4% year-over-year increase[142] - The company awarded 204 new contracts during the third quarter of 2025, an increase of 24% year-over-year[142] Assets and Liabilities - Total assets increased by $123 million to $4,346 million as of September 30, 2025, primarily due to an increase in accounts receivable and development advance notes[148] - Total liabilities rose by $190 million to $3,763 million, mainly driven by a $164 million increase in outstanding debt[148] - Total stockholders' equity decreased by $67 million to $583 million, primarily due to $223 million in stock repurchases and $96 million in declared dividends[148] Cash Flow and Liquidity - Net cash provided by operating activities increased by $59 million to $215 million compared to the prior year, attributed to the absence of payments related to a hostile takeover attempt in 2024[158] - Total liquidity increased to $790 million following an amendment and extension of the revolving credit facility in October 2025[153] - Capital expenditures for the nine months ended September 30, 2025, amounted to $30 million, with an anticipated total of $40-45 million for the year[161] - The company invested $73 million in development advance notes during the nine months ended September 30, 2025, expecting to invest approximately $110 million for the full year[162] - Approximately 2.5 million shares were repurchased at an average price of $87.70, costing $223 million during the nine months ended September 30, 2025[165] - Cash dividends declared were $0.41 per share in the first three quarters of 2025, totaling $96 million[166] Tax and Interest Rates - The effective tax rate for the three months ended September 30, 2025 was 26.1%, compared to 25.5% in the prior year[128] - The effective tax rate for the nine months ended September 30, 2025, was 24.5%[136] - A one-point change in underlying interest rates would result in approximately a $7 million increase or decrease in annual interest expense[177] - A hypothetical 10% change in the effective weighted average interest rate on variable-rate borrowings would result in a $3 million increase or decrease in annual long-term debt interest expense[177] Foreign Currency and Market Risk - The company has foreign currency rate exposure to fluctuations in several currencies, including the Canadian Dollar, Chinese Yuan, Euro, Brazilian Real, British Pound, and Argentine Peso[179] - The absolute notional amount of outstanding foreign exchange hedging instruments was $295 million as of September 30, 2025[180] - A hypothetical 10% change in foreign currency exchange rates would have resulted in approximately a $9 million increase or decrease to the fair value of outstanding forward foreign currency exchange contracts[181] - Total net exposure in Argentina relating to foreign currency was approximately $8 million as of September 30, 2025[182] - The company incurred $1 million of foreign currency exchange losses associated with highly inflationary economies during the nine months ended September 30, 2024[182] - The company's total market risk is influenced by market volatility and liquidity, with limitations in sensitivity analyses due to single-point time constraints[183]

Financial Data and Key Metrics Changes - The company reported a 21% increase in room openings and signed 24% more deals in the quarter, with a global pipeline growing by 4% to 257,000 rooms [5][6] - Adjusted EBITDA for the third quarter was $213 million, with fee-related and other revenues declining 3% year over year [16][17] - Adjusted diluted EPS for the quarter was $1.46, up 1% on a comparable basis [17] - Adjusted free cash flow was $97 million in the third quarter and $265 million year to date, with a conversion rate from adjusted EBITDA of 48% [18] Business Line Data and Key Metrics Changes - Ancillary fee streams increased by 18%, contributing to the overall revenue despite a decline in other franchise fees [5][11] - The company introduced Dazzler Select by Wyndham, expanding its brand offerings in the economy lifestyle space [7] Market Data and Key Metrics Changes - RevPAR declined 5% in constant currency globally and domestically, with a notable decline in the select service segments in the U.S. [10] - Internationally, RevPAR declined 2%, primarily driven by an 8% decline in Asia-Pacific, particularly in China [10] - EMEA grew its net rooms by 8%, while Latin America and the Caribbean grew net rooms by 4% [8][9] Company Strategy and Development Direction - The company is focusing on higher-fee-par brands and expanding direct franchising in regions that previously relied on master licensees [6] - The introduction of Wyndham Rewards Insider aims to enhance customer engagement and loyalty, tapping into the growing subscription economy [12][88] Management's Comments on Operating Environment and Future Outlook - Management noted that despite a challenging macro environment, there are no structural concerns in the economy segment, with positive indicators such as improved cancellation rates [26][27] - The outlook for full-year constant currency global RevPAR has been adjusted to a decline of 3% to 2%, reflecting a reduction from previous expectations [20][21] Other Important Information - The company completed the refinancing of its revolving credit facility, increasing total capacity to $1 billion and reducing borrowing costs [19] - The marketing fund expenses are expected to exceed revenues by approximately $5 million, reflecting investments in initiatives to strengthen the franchise system [22][96] Q&A Session Summary Question: Can you talk about what's in your control and what you're doing regarding the RevPAR environment? - Management indicated that there are no structural concerns and highlighted positive booking lead times and improved cancellation rates [26][27] Question: How has government spending affected infrastructure-related travel demand? - Management remains optimistic about infrastructure spending as a multi-year tailwind, despite some projects being paused [35][36] Question: What are the early trends in RevPAR for Q4? - Early trends show RevPAR tracking about 100 basis points above September performance, with stabilization in booking pace [41] Question: Can you discuss net unit growth momentum for next year? - Management expressed confidence in net unit growth, with a strong pipeline and record room openings year to date [48][49] Question: What is the outlook for ancillary revenue growth? - Ancillary revenues are expected to continue growing, driven by several initiatives including credit card programs and technology enhancements [59][60] Question: How does the company view the impact of key money deals versus growth in China? - Key money deals are seen as accretive to RevPAR, and the company is experiencing strong growth in China without the use of key money [65][70] Question: Can you elaborate on the Wyndham Rewards Insider program? - The program is expected to enhance engagement and loyalty, with significant potential for long-term fee growth [87][88]

Financial Data and Key Metrics Changes - The company reported a 21% increase in room openings and signed 24% more deals in the quarter, with a global pipeline growing by 4% to 257,000 rooms [5][6] - Adjusted EBITDA for the third quarter was $213 million, with fee-related and other revenues declining 3% year over year [16][17] - Adjusted diluted EPS for the quarter was $1.46, up 1% on a comparable basis [17] - Adjusted free cash flow was $97 million in the third quarter, totaling $265 million year to date [18] Business Line Data and Key Metrics Changes - Ancillary fee streams increased by 18%, contributing to the overall revenue despite a decline in fee-related revenues [5][11] - The company introduced new brands and expanded its offerings, including the Dazzler Select by Wyndham targeting the economy lifestyle space [7] Market Data and Key Metrics Changes - RevPAR declined 5% in constant currency globally and domestically, with a notable decline in the select service segments in the U.S. [10] - Internationally, RevPAR declined 2%, primarily driven by an 8% decline in Asia-Pacific, particularly in China [10] Company Strategy and Development Direction - The company is focusing on higher-fee-par brands and expanding direct franchising in regions that previously relied on master licensees [6][7] - The introduction of Wyndham Rewards Insider aims to enhance customer engagement and loyalty, tapping into the growing subscription economy [12][88] Management's Comments on Operating Environment and Future Outlook - Management noted that there are no structural concerns in the economy segment despite recent RevPAR trends, citing stable booking lead times and improved cancellation rates [26][27] - The outlook for full-year constant currency global RevPAR has been adjusted to a decline of 3% to 2%, reflecting a reduction from previous forecasts [20][21] Other Important Information - The company completed the refinancing of its revolving credit facility, increasing total capacity to $1 billion and extending maturity to 2030 [19] - The marketing fund expenses are expected to exceed revenues by approximately $5 million, reflecting a strategic investment in long-term initiatives [22][96] Q&A Session Summary Question: Can you discuss the RevPAR environment and what actions are being taken? - Management indicated that there are no structural issues affecting the economy segment, with positive indicators such as improved cancellation rates and stable booking lead times [26][27] Question: How is the infrastructure spending impacting the business? - The company views the $1.2 trillion infrastructure spending as a multi-year tailwind, with significant revenue potential for hotels in those markets [35][36] Question: What are the expectations for ancillary revenue growth? - Ancillary revenues are expected to continue growing, driven by initiatives such as the credit card program and new technology implementations [59][60] Question: Can you elaborate on the impact of the marketing fund overspend? - The overspend is viewed as an investment in long-term initiatives, with expectations to recover these funds in future periods [96][98]

Financial Data and Key Metrics Changes - The company reported a 21% increase in room openings and signed 24% more deals in Q3 2025, growing the global pipeline by 4% to 257,000 rooms [6][10] - Adjusted EBITDA for the quarter was $213 million, with fee-related and other revenues declining 3% year over year to $382 million [16][17] - Adjusted diluted EPS increased by 1% to $1.46, while adjusted free cash flow was $97 million for the quarter and $265 million year to date [17][18] Business Line Data and Key Metrics Changes - Ancillary fee streams grew by 18%, driven by new strategic partnerships and technology initiatives [12][16] - The company introduced Dazzler Select by Wyndham, expanding its brand into the economy lifestyle space [7][8] - The U.S. mid-scale and above system grew by over 200 basis points, with significant contributions from new constructions and conversions [7][10] Market Data and Key Metrics Changes - RevPAR declined by 5% in constant currency globally and domestically, with the U.S. showing particular softness in the select service segments [10][11] - Internationally, RevPAR decreased by 2%, primarily due to declines in Asia Pacific and Latin America [10][11] - Canada saw an 8% increase in RevPAR, indicating strong domestic travel [11] Company Strategy and Development Direction - The company is focusing on development in higher fee geographies and expanding direct franchising [6][7] - A strategic partnership with the Ovalo Group was announced to enhance upscale offerings in Australia [10] - The introduction of Wyndham Rewards Insider aims to capture a share of the growing subscription economy [12][13] Management's Comments on Operating Environment and Future Outlook - Management noted that RevPAR trends are softening, expecting full-year constant currency global RevPAR to decline between 2% to 3% [18][19] - The company remains focused on cost discipline and delivering strong ancillary revenue growth despite the challenging economic environment [21] - Management expressed optimism about infrastructure spending and private investment in reshoring and manufacturing, particularly in data centers [34][36] Other Important Information - The company completed refinancing its revolving credit facility, increasing total capacity to $1 billion [18] - The marketing fund revenues exceeded expenses by $18 million in Q3 2025, compared to $12 million in Q3 2024 [15][16] - The company has a strong track record of recovering marketing fund investments, with expectations of recovery in the near term [108] Q&A Session Summary Question: What actions are being taken in the current RevPAR environment? - Management indicated that there are no structural concerns in the economy segment, with positive indicators such as improved cancellation rates and consistent lengths of stay [24][25] Question: How is government spending affecting project pipelines? - Management remains optimistic about infrastructure spending, noting that contracted room nights are pacing well ahead of last year [34][35] Question: What are the early trends for Q4 RevPAR? - Early trends in October show RevPAR tracking about 100 basis points above September performance in key states [42][43] Question: What is the outlook for net unit growth? - The company is confident in its net unit growth outlook, with a record 48,000 organic rooms opened year to date [51][53] Question: Can you elaborate on ancillary revenue growth expectations? - Ancillary revenues are expected to continue growing, driven by credit card initiatives and new technology [64][66] Question: How does the introduction of Wyndham Rewards Insider fit into the strategy? - The program aims to enhance member engagement and is expected to provide long-term fee growth opportunities [96][99]

Investor Presentation October 23, 2025 WYNDHAM HOTELS & RESORTS La Quinta Inn & Suites by Wyndham Phoenix, Arizona, USA Opened August 2025 Introduction to Wyndham Hotels & Resorts Largest hotel franchisor worldwide(a) 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 ~8.300" Hotels ~855,000~ Current Rooms ~257,000 ~70% Leisure Guest Mix Data is approximated as of September 30, 2025 ...

Core Insights - Wyndham reported total revenue of $382 million for Q3 2025, a decrease of 5% compared to $394 million in Q3 2024 [1] - The company achieved a net profit of $105 million, representing a year-on-year increase of 3% [1] - Adjusted net profit was $112 million, up 2% year-on-year [1] Financial Performance - Total revenue for Q3 2025: $382 million, down 5% from Q3 2024's $394 million [1] - Net profit for Q3 2025: $105 million, up 3% year-on-year [1] - Adjusted net profit for Q3 2025: $112 million, up 2% year-on-year [1] Development Pipeline - As of September 30, 2025, Wyndham's development pipeline includes approximately 2,180 hotels and 257,000 rooms, a year-on-year growth of 4% [1] - About 70% of the pipeline is in the midscale and above segments, indicating a strategic shift towards higher-margin market segments [1] Regional Performance - The decline in revenue per available room (RevPAR) was primarily driven by the Asia-Pacific region (including China, with a RevPAR decrease of 10%) and Latin America (with a RevPAR decrease of 5%) [1]

Core Insights - Wyndham Hotels reported a revenue of $382 million for the quarter ended September 2025, which is a decrease of 3.5% compared to the same period last year [1] - The company's EPS was $1.46, an increase from $1.39 in the year-ago quarter, resulting in an EPS surprise of +2.82% against a consensus estimate of $1.42 [1] - The reported revenue fell short of the Zacks Consensus Estimate of $402.09 million, indicating a surprise of -5% [1] Financial Performance Metrics - Total Rooms stood at 855,400, below the average estimate of 874,696 based on four analysts [4] - Total RevPAR was reported at $50.05, slightly lower than the average estimate of $50.57 from four analysts [4] - Fee-related and other revenues from royalties and franchise fees were $147 million, compared to the estimated $161.29 million, reflecting a year-over-year decline of -7.6% [4] - Marketing, reservation, and loyalty revenues were $149 million, below the average estimate of $159.31 million, marking a -7.5% change year-over-year [4] - Management and other fees generated $2 million, compared to the estimated $3 million, representing a significant year-over-year decline of -33.3% [4] - License and other fees reached $35 million, exceeding the estimated $33.83 million, with a year-over-year increase of +9.4% [4] - Other fee-related revenues amounted to $49 million, surpassing the average estimate of $42.13 million, showing a year-over-year growth of +25.6% [4] Stock Performance - Wyndham's shares have returned -1.8% over the past month, contrasting with the Zacks S&P 500 composite's +1.1% change [3] - The stock currently holds a Zacks Rank 4 (Sell), suggesting potential underperformance relative to the broader market in the near term [3]

Core Viewpoint - Wyndham Hotels reported quarterly earnings of $1.46 per share, exceeding the Zacks Consensus Estimate of $1.42 per share, and showing an increase from $1.39 per share a year ago, representing an earnings surprise of +2.82% [1] Financial Performance - The company posted revenues of $382 million for the quarter ended September 2025, which missed the Zacks Consensus Estimate by 5%, and decreased from $396 million year-over-year [2] - Over the last four quarters, Wyndham has surpassed consensus EPS estimates four times but has only topped consensus revenue estimates once [2] Stock Performance and Outlook - Wyndham shares have declined approximately 19.5% since the beginning of the year, contrasting with the S&P 500's gain of 14.5% [3] - The current consensus EPS estimate for the upcoming quarter is $1.10 on revenues of $348.9 million, and for the current fiscal year, it is $4.69 on revenues of $1.46 billion [7] Industry Context - The Hotels and Motels industry, to which Wyndham belongs, is currently ranked in the bottom 35% of over 250 Zacks industries, indicating a challenging environment [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Wyndham's stock performance [5]