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]

Core Insights - The hospitality company has revised its full-year outlook downward due to lower-than-expected revenue reported in the third quarter [1] Financial Performance - The company experienced a decline in revenue during the third quarter, prompting the adjustment in its financial forecast [1]

[Executive Summary & Third Quarter Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Third%20Quarter%20Highlights) Wyndham Hotels & Resorts reported resilient Q3 2025 results, showcasing growth in system size and development pipeline, alongside significant shareholder returns [Q3 2025 Performance Highlights](index=1&type=section&id=Q3%202025%20Performance%20Highlights) Wyndham Hotels & Resorts reported resilient third-quarter 2025 results, demonstrating growth in system size and development pipeline, alongside double-digit growth in ancillary revenues, despite a challenging macro environment. The company also returned $101 million to shareholders - Amid a challenging macro backdrop, Wyndham delivered **record year-to-date organic room openings** and grew its **global pipeline to an all-time high**[2](index=2&type=chunk) Q3 2025 Key Performance Indicators (YoY Change) | Metric | Q3 2025 YoY Change | | :-------------------------------- | :------------------ | | System-wide rooms | +4% | | Development contracts awarded | +24% | | Development pipeline | +4% | | Ancillary revenues | +18% | | Diluted EPS | +5% to $1.36 | | Adjusted diluted EPS | +5% to $1.46 | | Net income | +3% to $105 million | | Adjusted net income | +2% to $112 million | | Adjusted EBITDA | +2% to $213 million | | Shareholder returns | $101 million (repurchases & dividends) | [Reporting Methodology Update](index=2&type=section&id=Reporting%20Methodology%20Update) This section details Wyndham's revised reporting methodology, specifically the exclusion of Super 8 China rooms from key operational metrics starting Q2 2025 [Super 8 China Exclusion](index=2&type=section&id=Super%208%20China%20Exclusion) Effective Q2 2025, Wyndham revised its reporting to exclude rooms under the Super 8 China master license agreement from system size, RevPAR, and royalty rate metrics, though financial fees from this agreement continue to be reflected - Beginning in **Q2 2025**, the Company revised its reporting methodology to exclude the impact of all rooms under the **Super 8 China master license agreement** from its reported **system size, RevPAR and royalty rate**, and corresponding growth metrics[4](index=4&type=chunk) - Financial results will continue to reflect fees from the Super 8 master licensee in China, which contributed less than **$3 million** to the Company's **full-year 2024 consolidated adjusted EBITDA**[4](index=4&type=chunk) [Operational Performance](index=2&type=section&id=Operational%20Performance) Wyndham's global system size and development pipeline grew, reaching record highs, while global RevPAR experienced a decline in Q3 2025 [System Size and Development](index=2&type=section&id=System%20Size%20and%20Development) Wyndham's global system size grew 4% year-over-year, reaching 855,400 rooms, with notable growth in higher RevPAR segments and regions. The development pipeline also hit a record high of 257,000 rooms, driven by a 24% increase in new contracts Global System Size (Rooms) as of September 30 | Region | 2025 (Rooms) | 2024 (Rooms) | YOY Change (bps) | | :------------- | :----- | :----- | :--------- | | United States | 503,400 | 500,600 | +60 | | International | 352,000 | 322,600 | +910 | | Global | 855,400 | 823,200 | +390 | - Global system grew **4%** including **2% growth** in higher RevPAR midscale and above segments in the U.S. and **7% growth** in higher RevPAR EMEA and Latin America regions[5](index=5&type=chunk) - The development pipeline reached a **record 257,000 rooms** (**2,180 hotels**), a **4% year-over-year increase**, with **204 new contracts** awarded globally (**+24% YoY**)[6](index=6&type=chunk)[7](index=7&type=chunk) - Approximately **70% of the pipeline** is in midscale and above segments (which grew **4% YoY**), **17% in extended stay**, and **58% is international**. About **75% of the pipeline** is new construction, with **36% of these projects** having broken ground[7](index=7&type=chunk) [RevPAR Performance](index=2&type=section&id=RevPAR%20Performance) Global RevPAR decreased by 5% in constant currency for Q3 2025, primarily due to declines in the U.S. (5%) and internationally (2%), with Asia Pacific and Latin America being key drivers of the international decline. This was partially offset by growth in EMEA and Canada Third Quarter 2025 RevPAR (Constant Currency YoY Change) | Region | Q3 2025 RevPAR ($) | YoY Constant Currency % Change | | :------------- | :------------- | :----------------------------- | | United States | $55.07 | (5%) | | International | $43.11 | (2%) | | Global | $50.05 | (5%) | - U.S. RevPAR performance reflected a **300 basis-point reduction** in occupancy and a **200 basis-point decline** in ADR, with softer results in Texas, Florida, and California partially offset by strength in the Midwest[8](index=8&type=chunk) - Internationally, the decrease was primarily driven by Asia Pacific (including China, where RevPAR declined **10%**) and Latin America (RevPAR declined **5%**), partially offset by **4% growth** in EMEA and **8% growth** in Canada, reflecting pricing power[8](index=8&type=chunk) [Financial Results](index=3&type=section&id=Financial%20Results) This section covers Wyndham's Q3 2025 operating results, balance sheet, liquidity, and shareholder returns, detailing revenue and profit changes, cash flow, and capital allocation [Third Quarter Operating Results](index=3&type=section&id=Third%20Quarter%20Operating%20Results) Wyndham reported a slight increase in net income and adjusted EBITDA for Q3 2025, despite a decline in fee-related and other revenues. Marketing fund variability had a favorable impact on adjusted EBITDA and EPS Q3 2025 Operating Results (vs. Q3 2024) | Metric | Q3 2025 ($M) | Q3 2024 ($M) | Change ($M) | | :-------------------------- | :------ | :------ | :----- | | Fee-related and other revenues | $382 | $394 | ($12) | | Net Income | $105 | $102 | $3 | | Adjusted Net Income | $112 | $110 | $2 | | Adjusted EBITDA | $213 | $208 | $5 | | Diluted EPS | $1.36 | $1.29 | $0.07 | | Adjusted Diluted EPS | $1.46 | $1.39 | $0.07 | - Fee-related and other revenues declined **3%** on a comparable basis, reflecting a **5% RevPAR decline** and lower other franchise fees, partially offset by an **18% increase** in ancillary revenue, royalty rate expansion, and global net room growth[10](index=10&type=chunk)[11](index=11&type=chunk) - Adjusted EBITDA remained flat on a comparable basis, excluding a **$6 million favorable impact** from marketing fund variability. Lower royalties and franchise fees, along with elevated costs (insurance, litigation, employee benefits), were offset by cost containment measures[10](index=10&type=chunk)[11](index=11&type=chunk) [Balance Sheet and Liquidity](index=4&type=section&id=Balance%20Sheet%20and%20Liquidity) The company generated strong cash flow in Q3 2025 and maintained a healthy liquidity position. Wyndham also successfully refinanced its revolving credit facility, increasing capacity and extending maturity Q3 2025 Cash Flow and Liquidity | Metric | Amount | | :-------------------------------- | :----- | | Net cash provided by operating activities | $86 million | | Free cash flow | $97 million | | Cash balance (Sept 30, 2025) | $70 million | | Total liquidity (Sept 30, 2025) | ~$540 million | | Net debt leverage ratio (Sept 30, 2025) | 3.5x | - In October 2025, the Company refinanced its **$750 million revolving credit facility**, extending maturity to **October 2030**, increasing capacity by **$250 million to $1 billion**, and reducing borrowing costs by **35 basis points**[14](index=14&type=chunk) [Share Repurchases and Dividends](index=4&type=section&id=Share%20Repurchases%20and%20Dividends) Wyndham continued to return capital to shareholders through significant share repurchases and quarterly cash dividends during the third quarter of 2025 Shareholder Returns (Q3 2025 & YTD) | Metric | Q3 2025 | Year-to-Date (Sept 30) | | :----------------------- | :---------- | :----------------------- | | Shares repurchased | ~830,000 shares | ~2.5 million shares | | Value of repurchases | $70 million | $223 million | | Common stock dividends paid | $31 million | N/A | | Dividend per share | $0.41 | N/A | - The increase in diluted EPS and adjusted diluted EPS primarily reflects the benefit of a **lower share count** due to share repurchase activity[17](index=17&type=chunk) [Full-Year 2025 Outlook](index=5&type=section&id=Full-Year%202025%20Outlook) Wyndham updated its full-year 2025 financial guidance, revising expectations for global RevPAR, revenues, and profitability metrics downwards due to market conditions [Updated 2025 Guidance](index=5&type=section&id=Updated%202025%20Guidance) Wyndham updated its full-year 2025 outlook, maintaining rooms growth expectations but revising global RevPAR, fee-related revenues, Adjusted EBITDA, Adjusted Net Income, and Adjusted Diluted EPS downwards, reflecting current market conditions Full-Year 2025 Outlook Update | Metric | Updated Outlook | Prior Outlook | | :-------------------------------- | :-------------------- | :-------------------- | | Year-over-year rooms growth | 4.0% - 4.6% | 4.0% - 4.6% | | Year-over-year global RevPAR growth (constant currency) | (3%) - (2%) | (2%) - 1% | | Fee-related and other revenues ($ billion) | $1.43 - $1.45 | $1.45 - $1.49 | | Adjusted EBITDA ($ million) | $715 - $725 | $730 - $745 | | Adjusted net income ($ million) | $347 - $358 | $358 - $372 | | Adjusted diluted EPS ($) | $4.48 - $4.62 | $4.60 - $4.78 | | Adjusted free cash flow conversion rate | ~57% | ~57% | - The Company expects marketing fund expenses to exceed revenues by approximately **$5 million** during full-year 2025, an intentional investment expected to be recovered in future periods[18](index=18&type=chunk) [Additional Information](index=5&type=section&id=Additional%20Information) This section provides practical details for accessing conference calls, clarifies the use of non-GAAP financial measures, offers company background, and includes cautionary forward-looking statements [Conference Call Information](index=5&type=section&id=Conference%20Call%20Information) Details for accessing Wyndham Hotels' Q3 2025 earnings conference call and webcast replay are provided - A conference call to discuss results and outlook was scheduled for **Thursday, October 23, 2025, at 8:30 a.m. ET**, accessible via webcast at https://investor.wyndhamhotels.com or by dialing **800 343-4136**[20](index=20&type=chunk) [Presentation of Financial Information](index=5&type=section&id=Presentation%20of%20Financial%20Information) This section clarifies the use of non-GAAP financial measures, explaining their purpose for management and investors in assessing operating performance and comparability - Non-GAAP measures are used to illustrate relevant period-over-period comparisons and provide additional tools for understanding and assessing ongoing operating performance[21](index=21&type=chunk) - Management uses these measures internally to assess operating performance, compare to other companies, and make day-to-day operating decisions, including compensation evaluations[21](index=21&type=chunk) - Non-GAAP measures should not be considered in isolation or as a substitute for GAAP results and may not be comparable to similarly-titled measures used by other companies[21](index=21&type=chunk) [About Wyndham Hotels & Resorts](index=6&type=section&id=About%20Wyndham%20Hotels%20%26%20Resorts) Wyndham Hotels & Resorts is the world's largest hotel franchising company, operating a portfolio of 25 brands across approximately 100 countries, primarily in the economy and midscale segments, supported by its Wyndham Rewards loyalty program - Wyndham Hotels & Resorts is the **world's largest hotel franchising company** by number of franchised properties, with approximately **8,300 hotels** across approximately **100 countries**[23](index=23&type=chunk) - The company commands a leading presence in the economy and midscale segments of the lodging industry with over **855,000 rooms** and a portfolio of **25 hotel brands**[23](index=23&type=chunk) - Its Wyndham Rewards loyalty program has approximately **121 million enrolled members**[23](index=23&type=chunk) [Forward-Looking Statements](index=6&type=section&id=Forward-Looking%20Statements) This section serves as a cautionary statement regarding forward-looking information, highlighting inherent risks and uncertainties that could cause actual results to differ materially from projections - The press release contains forward-looking statements regarding future performance and operations, identified by words such as 'will,' 'expect,' 'believe,' and 'outlook'[24](index=24&type=chunk) - Such statements involve known and unknown risks, uncertainties, and other factors that may cause actual results to differ materially, including general economic conditions, market performance, and operating risks[24](index=24&type=chunk)[25](index=25&type=chunk) - Readers are cautioned not to place undue reliance on these statements, and Wyndham undertakes no obligation to publicly update or revise them, except as required by law[24](index=24&type=chunk)[26](index=26&type=chunk) [Contacts](index=7&type=section&id=Contacts) Contact information for investor relations and global communications is provided for inquiries - Investors can contact **Matt Capuzzi, Senior Vice President, Investor Relations** at **973 753-6453** or ir@wyndham.com[27](index=27&type=chunk) - Media inquiries can be directed to **Maire Griffin, Senior Vice President, Global Communications** at **973 753-6590** or WyndhamHotelsNews@wyndham.com[27](index=27&type=chunk) [Financial Tables](index=8&type=section&id=Financial%20Tables) This section compiles detailed financial statements, including income statements, segment performance, cash flows, balance sheet summaries, and key revenue drivers [Income Statement (Table 1)](index=8&type=section&id=Table%201) This table presents the unaudited consolidated income statement for Wyndham Hotels & Resorts for the three and nine months ended September 30, 2025, and 2024 Income Statement (In millions, except per share data) | Metric | Three Months Ended Sep 30, 2025 | Three Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2025 | Nine Months Ended Sep 30, 2024 | | :-------------------------------- | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | Royalties and franchise fees | $147 | $159 | $420 | $419 | | Fee-related and other revenues | $382 | $394 | $1,095 | $1,063 | | Net revenues | $382 | $396 | $1,095 | $1,067 | | Total expenses | $204 | $225 | $657 | $701 | | Operating income | $178 | $171 | $438 | $366 | | Net income | $105 | $102 | $253 | $204 | | Diluted EPS | $1.36 | $1.29 | $3.26 | $2.54 | [Historical Revenue and Adjusted EBITDA by Segment (Table 2)](index=9&type=section&id=Table%202) This table provides historical revenue and Adjusted EBITDA data segmented by Hotel Franchising and Corporate for recent quarters of 2025 and full-year 2024 Historical Revenue and Adjusted EBITDA by Segment (In millions) | Metric | Q1 2025 | Q2 2025 | Q3 2025 | Q3 2024 | FY 2024 | | :-------------------- | :------ | :------ | :------ | :------ | :------ | | **Hotel Franchising** | | | | | | | Net revenues | $316 | $397 | $382 | $396 | $1,408 | | Adjusted EBITDA | $161 | $214 | $228 | $224 | $767 | | **Corporate** | | | | | | | Adjusted EBITDA | ($16) | ($19) | ($15) | ($16) | ($73) | | **Total Company** | | | | | | | Net revenues | $316 | $397 | $382 | $396 | $1,408 | | Net income | $61 | $87 | $105 | $102 | $289 | | Adjusted EBITDA | $145 | $195 | $213 | $208 | $694 | [Condensed Cash Flows (Table 3)](index=10&type=section&id=Table%203) This table presents the condensed cash flow statement and free cash flow calculation for the nine months ended September 30, 2025, and 2024, along with quarterly free cash flow Condensed Cash Flows (In millions) | Metric | Nine Months Ended Sep 30, 2025 | Nine Months Ended Sep 30, 2024 | | :-------------------------------- | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | $215 | $156 | | Net cash used in investing activities | ($86) | ($40) | | Net cash used in financing activities | ($172) | ($100) | | Net (decrease)/increase in cash | ($43) | $16 | | Cash, cash equivalents and restricted cash, end of period | $70 | $82 | | **Free Cash Flow** | | | | Q3 2025 | $97 | $95 | | YTD Sep 30, 2025 | $258 | $220 | [Balance Sheet Summary and Debt (Table 4)](index=11&type=section&id=Table%204) This table provides a summary of the balance sheet as of September 30, 2025, and December 31, 2024, along with details of outstanding debt and its maturity profile Balance Sheet Summary (In millions) | Metric | As of Sep 30, 2025 | As of Dec 31, 2024 | | :-------------------------------- | :----------------- | :----------------- | | Total assets | $4,346 | $4,223 | | Total liabilities | $3,763 | $3,573 | | Total stockholders' equity | $583 | $650 | | Total debt | $2,627 | $2,463 | | Cash and cash equivalents | $70 | $103 | | Net debt | $2,557 | $2,360 | | Net debt leverage ratio | 3.5x | 3.4x | Outstanding Debt Maturity as of September 30, 2025 (In millions) | Maturity Period | Amount | | :---------------- | :----- | | Within 1 year | $45 | | Between 1 and 2 years | $611 | | Between 2 and 3 years | $513 | | Between 3 and 4 years | $15 | | Between 4 and 5 years | $1,443 | | Thereafter | $0 | | Total | $2,627 | [Revenue Drivers (Table 5)](index=12&type=section&id=Table%205) This table details the key revenue drivers, including global room count changes, system size by segment and region, regional RevPAR growth, and average royalty rates for Q3 and YTD 2025 compared to 2024 Global Room Count Changes (Nine Months Ended September 30) | Metric | 2025 (Rooms) | 2024 (Rooms) | Change (Rooms) | % Change | | :-------------------------- | :----- | :----- | :----- | :------- | | Beginning Room Count (Jan 1) | 835,700 | 803,700 | 32,000 | 4% | | Additions | 48,500 | 44,400 | 4,100 | 9% | | Deletions | (28,800) | (24,900) | (3,900) | (16%) | | Ending Room Count (Sep 30) | 855,400 | 823,200 | 32,200 | 4% | System Size by Segment/Region as of September 30, 2025 | Segment/Region | Rooms | % Change YoY | FY 2024 Royalty Contribution (%) | | :-------------------- | :------ | :----------- | :--------------------------- | | U.S. Economy | 223,200 | (2%) | N/A | | U.S. Midscale and Above | 280,200 | 2% | N/A | | Total United States | 503,400 | 1% | 78% | | Greater China | 127,600 | 14% | 4% | | EMEA | 97,600 | 8% | 8% | | Total International | 352,000 | 9% | 22% | | Global | 855,400 | 4% | 100% | Regional RevPAR Growth (Constant Currency) & Average Royalty Rate (YoY Change) | Metric | Q3 2025 | Q3 2025 YoY % Change | YTD Sep 30, 2025 | YTD Sep 30, 2025 YoY % Change | | :-------------------------------- | :------ | :------------------- | :--------------- | :-------------------------- | | U.S. RevPAR ($) | $55.07 | (5%) | $50.28 | (3%) | | International RevPAR ($) | $43.11 | (2%) | $38.54 | —% | | Global RevPAR ($) | $50.05 | (5%) | $45.40 | (2%) | | U.S. Average Royalty Rate (%) | 4.8% | +9 bps | 4.8% | +11 bps | | International Average Royalty Rate (%) | 2.6% | +2 bps | 2.6% | +8 bps | | Global Average Royalty Rate (%) | 4.0% | +2 bps | 4.0% | +5 bps | [Historical RevPAR, Royalty Rate and Rooms (Table 6)](index=15&type=section&id=Table%206) This table provides historical quarterly data for global, U.S., and International RevPAR, royalty rates, and room counts under the new reporting basis (excluding Super 8 China) for 2024 and 2025, and previously reported data for comparison Historical RevPAR, Royalty Rate and Rooms (New Reporting Basis) | Metric | Q1 2025 | Q2 2025 | Q3 2025 | Q1 2024 | Q2 2024 | Q3 2024 | | :-------------------- | :------ | :------ | :------ | :------ | :------ | :------ | | Global RevPAR ($) | $38.44 | $47.55 | $50.05 | $38.48 | $49.08 | $52.59 | | U.S. RevPAR ($) | $42.37 | $53.32 | $55.07 | $41.68 | $55.44 | $57.98 | | International RevPAR ($) | $32.81 | $39.45 | $43.11 | $33.53 | $39.40 | $44.52 | | Global Royalty Rate (%) | 4.0% | 4.0% | 4.0% | 3.9% | 4.0% | 4.0% | | U.S. Royalty Rate (%) | 4.8% | 4.7% | 4.8% | 4.6% | 4.7% | 4.7% | | International Royalty Rate (%) | 2.6% | 2.6% | 2.6% | 2.5% | 2.5% | 2.6% | | Global Rooms | 839,900 | 846,700 | 855,400 | 808,000 | 816,300 | 823,200 | | U.S. Rooms | 502,600 | 503,300 | 503,400 | 499,100 | 499,400 | 500,600 | | International Rooms | 337,300 | 343,400 | 352,000 | 308,900 | 316,900 | 322,600 | [Non-GAAP Reconciliations (Table 7)](index=17&type=section&id=Table%207) This table provides detailed reconciliations of GAAP net income to non-GAAP measures such as Adjusted EBITDA, Adjusted Net Income, and Adjusted Diluted EPS for various periods, explaining the adjustments made - **Adjusted EBITDA, adjusted net income, and adjusted diluted EPS** are non-GAAP measures used by management and investors to evaluate operating performance and make day-to-day operating decisions, by adjusting for certain items that may not reflect ongoing performance[48](index=48&type=chunk) Reconciliation of Net Income to Adjusted EBITDA (In millions) | Metric | Q1 2025 | Q2 2025 | Q3 2025 | Q3 2024 | FY 2024 | | :-------------------------------- | :------ | :------ | :------ | :------ | :------ | | Net income | $61 | $87 | $105 | $102 | $289 | | Provision for income taxes | $18 | $29 | $37 | $35 | $79 | | Depreciation and amortization | $15 | $15 | $15 | $17 | $71 | | Interest expense, net | $33 | $34 | $36 | $34 | $124 | | Stock-based compensation | $9 | $8 | $8 | $10 | $41 | | Development advance notes amortization | $7 | $8 | $8 | $6 | $24 | | Adjusted EBITDA | $145 | $195 | $213 | $208 | $694 | Reconciliation of Net Income and Diluted EPS to Adjusted Net Income and Adjusted Diluted EPS (In millions, except per share data) | Metric | Q3 2025 | Q3 2024 | YTD Sep 30, 2025 | YTD Sep 30, 2024 | | :-------------------------------- | :------ | :------ | :--------------- | :--------------- | | Diluted earnings per share | $1.36 | $1.29 | $3.26 | $2.54 | | Net income | $105 | $102 | $253 | $204 | | Total adjustments after tax | $7 | $8 | $30 | $61 | | Adjusted net income | $112 | $110 | $283 | $265 | | Adjusted diluted EPS | $1.46 | $1.39 | $3.64 | $3.29 | [2025 Outlook Details (Table 8)](index=19&type=section&id=Table%208) This table provides a detailed breakdown of the updated full-year 2025 financial outlook, including various revenue, expense, and profitability metrics Full-Year 2025 Detailed Outlook (In millions, except per share data) | Metric | 2025 Outlook | | :-------------------------------- | :-------------------- | | Fee-related and other revenues ($) | $1,425 – $1,445 | | Adjusted EBITDA ($) | $715 – $725 | | Depreciation and amortization expense ($) | $35 – $37 | | Development advance notes amortization expense ($) | $31 – $33 | | Stock-based compensation expense ($) | $42 – $44 | | Interest expense, net ($) | $138 – $140 | | Adjusted income before income taxes ($) | $463 – $477 | | Income tax expense ($) | $116 – $119 | | Adjusted diluted EPS ($) | $4.48 – $4.62 | | Diluted shares | 77.5 | | Capital expenditures ($) | $40 – $45 | | Development advance notes ($) | Approx. $110 | | Adjusted free cash flow conversion rate (%) | ~57% | | Year-over-Year Growth Global RevPAR (constant currency) (%) | (3%) – (2%) | | Number of rooms (%) | 4.0% – 4.6% | | Adjusted net income ($) | $347 – $358 | - Each **1% change in RevPAR** equates to an approximate **$10 million impact** to fee-related and other revenues and **$4 million** to adjusted EBITDA[54](index=54&type=chunk) - The Company expects marketing funds to overspend by approximately **$5 million**, or roughly **$2 million per point**, assuming a global RevPAR decline of **2-3%**, with intent to recover this investment in future periods[54](index=54&type=chunk) [Definitions of Non-GAAP Measures and Key Metrics](index=20&type=section&id=Table%209) This section provides clear definitions for key non-GAAP financial measures and operational metrics used throughout the report [Glossary of Terms](index=20&type=section&id=Glossary%20of%20Terms) This section provides definitions for various non-GAAP financial measures and key operational metrics used throughout the report to ensure clarity and understanding - **Adjusted Net Income** and **Adjusted Diluted EPS**: Net income and diluted EPS excluding specific non-recurring or non-operational items like acquisition-related amortization, restructuring costs, and transaction-related items[57](index=57&type=chunk) - **Adjusted EBITDA**: Net income excluding interest, depreciation, amortization, taxes, stock-based compensation, and other specific adjustments, used as a common performance measure in the industry[58](index=58&type=chunk) - **Free Cash Flow**: Net cash provided by operating activities excluding development advances, less capital expenditures, indicating cash available for investments, debt service, or shareholder returns[62](index=62&type=chunk) - **RevPAR (Revenue per Available Room)**: Calculated by multiplying average occupancy rate by **Average Daily Rate (ADR)**[65](index=65&type=chunk) - **Marketing Fund Variability**: Quarterly timing variances in marketing fund revenues and expenses, which are designed to break even on a full-year basis[64](index=64&type=chunk) - **Rooms**: Number of rooms under franchise/management agreements, excluding Super 8 China master licensee rooms, and properties under affiliation agreements[66](index=66&type=chunk)