Core Viewpoint - The demand outlook for Wyndham Hotels & Resorts has become less attractive, leading to a downgrade in rating to hold [1] Group 1: Investment Philosophy - The company adopts a fundamentals-based approach to value investing, focusing on long-term durability and affordability rather than just low multiples [1] - There is a belief that successful companies can be risky investments if overvalued, emphasizing the importance of valuation [1] - The company is particularly interested in firms with steady long-term growth, no cyclicality, and strong balance sheets [1] Group 2: Market Conditions - The current market conditions suggest that the development runway for certain companies may diminish the immediate importance of price [1]

Core Insights - The partnership between Wyndham and Ovolo aims to capitalize on the growing consumer demand for experiential travel, which is valued at $1 trillion globally, particularly among younger travelers like Gen Z [1][2] Company Overview - Wyndham Hotels & Resorts is the world's largest hotel franchising company, with approximately 8,300 hotels across around 100 countries, catering primarily to the economy and midscale segments [12] - Ovolo is recognized as a pioneer in the lifestyle hotel movement in the Asia Pacific, focusing on a culture-led brand that disrupts traditional hotel experiences [2] Partnership Details - The collaboration will integrate five existing Ovolo hotels into Wyndham's global portfolio, enhancing Wyndham's upscale presence in the Asia Pacific region [2] - The five Ovolo hotels, located in Sydney, Brisbane, Canberra, Melbourne, and Hong Kong, will add over 450 rooms to Wyndham's offerings and will be incorporated into Wyndham's sales, marketing, and distribution platforms [2][3] Hotel Features - Each Ovolo hotel embodies a service ethos of FUN (fabulous, unconventional, never boring), featuring bold designs, immersive art, and unique experiences [4] - Specific hotels include: - **Ovolo Central**: A 41-room boutique hotel in Hong Kong's central district, emphasizing modern amenities and natural light [4] - **Ovolo Nishi**: An 85-room hotel in Canberra known for its unique design and vintage pieces [5] - **Ovolo South Yarra**: A 123-room hotel in Melbourne that combines contemporary conveniences with mid-century flair [6] - **Ovolo The Valley**: A 103-room hotel in Brisbane celebrating art and music culture [7] - **Ovolo Woolloomooloo**: A 100-room waterfront hotel in Sydney with modern essentials and stunning views [9] Loyalty Program Integration - The Ovolo hotels will participate in the Wyndham Rewards® loyalty program, providing approximately 120 million enrolled members access to Ovolo's unique hospitality experiences [3] Growth Strategy - Wyndham's growth in the Asia Pacific is supported by the Wyndham Advantage, which includes nearly $350 million in technology investments since 2018, enhancing owners' access to advanced property management systems and a top-rated hotel rewards program [10]

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

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

Financial Data and Key Metrics Changes - The company reported a 5% increase in comparable adjusted EBITDA and an 11% increase in EPS despite a challenging RevPAR environment [5][20] - Adjusted free cash flow was approximately $88 million for the quarter and $168 million year-to-date, with a conversion rate from adjusted EBITDA of about 50% [22][23] - The company returned nearly $220 million to shareholders year-to-date, including $77 million in share repurchases and $32 million in dividends during the second quarter [6][23] Business Line Data and Key Metrics Changes - Ancillary fee streams increased by nearly 20%, contributing to the overall revenue growth [5][20] - The company opened over 16,000 rooms in Q2, bringing year-to-date new additions to over 30,000 rooms, a record for the first half of the year [11] - Contract signings increased by 40% compared to the prior year, driving a 5% growth in the global development pipeline to a record 255,000 rooms [11][12] Market Data and Key Metrics Changes - Global RevPAR declined by 3% in constant currency, with U.S. RevPAR down 4% and international RevPAR growing by 1% [15][16] - EMEA RevPAR grew by 7%, while Latin America and the Caribbean saw an 18% increase driven by strong ADR [15] - In China, net rooms grew by 16%, but the company faced challenges with its Super 8 master licensee, leading to a revision in reporting metrics [13][19] Company Strategy and Development Direction - The company is focusing on developing higher fee par brands and expanding direct franchising in regions previously reliant on master license agreements [14] - The strategy includes enhancing the royalty rate, which increased by six basis points domestically and 13 basis points internationally [14] - The company aims to maintain a disciplined capital allocation strategy while investing in long-term value creation [26] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing economic volatility due to higher interest rates and inflation, particularly affecting economy and mid-scale guests [17] - The company expects full-year constant currency global RevPAR growth to range between down 2% to up 1% [24] - Management expressed optimism about consumer sentiment and travel intent, with expectations for RevPAR to return to a long-term growth rate of 2% to 3% [36][89] Other Important Information - The company launched several new technology-driven tools to enhance guest engagement and operational efficiency [7][8] - Franchisee satisfaction was reported to be higher than in any past conference, reflecting confidence in future business prospects [10] - The company has a strong balance sheet with approximately $580 million in total liquidity and a net leverage ratio of 3.5x [23] Q&A Session Summary Question: Insights on RevPAR trends - Management noted that Q2 RevPAR was down 2.3% normalized, with continued softness in leisure-focused markets but strength in industrial states [31][32] Question: Net unit growth expectations - Management indicated that net room growth expectations have remained consistent, with an increase in the low end of the guidance to 4% to 4.6% [47][48] Question: Impact of Super 8 master licensee issues - Management confirmed a shift towards direct franchising in China, with significant growth in the direct franchising business [50][51] Question: Ancillary revenue growth - Management highlighted a 19% increase in ancillary revenues, driven by the co-branded credit card program [56][57] Question: Key money environment - Management stated that the key money environment remains consistent, with no significant changes anticipated [61][62] Question: Retention rates and pipeline status - Management reported a rolling twelve-month retention rate of 95.8% and no significant fallouts in the pipeline [106][107]

Wyndham Hotels & Resorts Overview - Wyndham Hotels & Resorts is the largest hotel franchisor worldwide, with approximately 8,300 hotels and 847,000 rooms[5] - The company has a significant pipeline of approximately 255,000 rooms[5] - Wyndham's portfolio is primarily leisure-focused, with approximately 70% leisure guest mix[5] - The company boasts a loyalty program with approximately 120 million members[6] Q2 2025 Performance Highlights - Net room growth increased by 4% year-over-year[28] - New deals signed increased significantly by 40% year-over-year[28] - The global pipeline grew by 5% year-over-year[28] - Adjusted EBITDA increased by 5% on a comparable basis[28] - Adjusted free cash flow was $88 million[28] - The company returned $109 million to shareholders[28] Growth and Expansion - The global pipeline consists of approximately 2,150 hotels and 255,000 rooms[32] - Midscale+ brands account for approximately 70% of the global pipeline[32] - The company projects system-wide rooms to increase by 4.0% to 4.6%[47] Financial Outlook and Capital Allocation - The company targets a dividend payout ratio in the mid-30s percentage range[41] - Up to $440 million of available capital is targeted for share repurchases or strategic transactions[41] - The company anticipates adjusted EBITDA between $730 million and $745 million[50]

Core Insights - Wyndham Hotels & Resorts reported strong Q2 2025 results, with adjusted diluted EPS of $1.33, exceeding analyst expectations of $1.16, and revenue of $397 million, surpassing the estimate of $386.64 million, reflecting growth in global system size and an expanding development pipeline [1][2][5] Financial Performance - Adjusted diluted EPS increased by 18% year-over-year from $1.13 in Q2 2024 [2] - Fee-related and other revenue reached $397 million, an 8.5% increase from $366 million in Q2 2024 [2] - Adjusted EBITDA grew 10% to $195 million compared to $178 million in Q2 2024 [2] - Adjusted net income rose 13.2% to $103 million from $91 million in Q2 2024 [2] - Adjusted free cash flow increased by 27.5% to $88 million from $69 million in Q2 2024 [2] Business Model and Strategy - Wyndham operates as a hotel franchisor, minimizing capital investment through an asset-light model that emphasizes predictable cash flows from franchise fees [3] - The company has a diversified portfolio with 25 hotel brands, targeting higher-value segments and expanding its international footprint [4] Market Trends and Performance Metrics - Global system size expanded by 4% year-over-year to 846,700 rooms, with a record pipeline of 255,000 rooms, 58% of which are outside the U.S. [6] - Global RevPAR fell 3% year-over-year to $47.55, with U.S. RevPAR dropping 4% to $53.32, while international markets saw a 1% increase in RevPAR [7] - Ancillary revenue sources grew by 19% compared to Q2 2024, indicating a shift towards more stable revenue streams [8] Future Outlook - Management raised the full-year 2025 net room growth outlook to 4.0–4.6% and expects adjusted diluted EPS for FY2025 to be between $4.60 and $4.78 [14] - Guidance for global RevPAR remains unchanged, reflecting caution regarding U.S. demand weakness and softness in the Chinese market [14] - The company anticipates "low teens" growth in ancillary fees for 2025, supported by stable contract structures [14]

Core Insights - Wyndham Hotels reported quarterly earnings of $1.33 per share, exceeding the Zacks Consensus Estimate of $1.16 per share, and showing an increase from $1.13 per share a year ago, resulting in an earnings surprise of +14.66% [1] - The company generated revenues of $397 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 2.50% and up from $367 million year-over-year [2] - Wyndham has consistently surpassed consensus EPS estimates over the last four quarters, achieving this four times [2] Financial Performance - The earnings report indicates a positive trend with a quarterly earnings surprise of +14.66% and a revenue increase of 8.2% year-over-year [1][2] - The current consensus EPS estimate for the upcoming quarter is $1.49, with projected revenues of $410.7 million, and for the current fiscal year, the EPS estimate is $4.67 on revenues of $1.47 billion [7] Market Position - Wyndham shares have underperformed the market, losing about 12.8% since the beginning of the year, while the S&P 500 has gained 7.3% [3] - The Zacks Industry Rank places the Hotels and Motels sector in the bottom 20% of over 250 Zacks industries, indicating potential challenges for stock performance [8] Future Outlook - The sustainability of Wyndham's stock price movement will depend on management's commentary during the earnings call and future earnings expectations [3][4] - The estimate revisions trend for Wyndham was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold), suggesting the stock is expected to perform in line with the market [6]

PARSIPPANY, N.J., July 23, 2025 - Wyndham Hotels & Resorts (NYSE: WH) today announced results for the three months ended June 30, 2025. Highlights include: Exhibit 99.1 WYNDHAM HOTELS & RESORTS REPORTS STRONG SECOND QUARTER RESULTS Company Raises Full-Year 2025 EPS Outlook Grows Development Pipeline by 5% and System Size by 4% "We delivered another solid quarter growing our global system by 4%, expanding our development pipeline by 5%, increasing our ancillary revenues by 19%, and continuing to execute our ...

Core Insights - Wyndham Hotels & Resorts has raised its full-year 2025 adjusted diluted EPS outlook, reflecting strong performance in the second quarter of 2025, with a notable increase in development pipeline and system size [1][18]. Financial Performance - The company reported a 5% increase in comparable adjusted EBITDA and an 11% increase in comparable adjusted EPS for the second quarter of 2025 [1][6]. - Ancillary revenues grew by 19% year-over-year, contributing to a total revenue of $397 million for the second quarter [6][16]. - Net income increased by 1% year-over-year to $87 million, while adjusted net income rose by 13% to $103 million [6][16]. System Growth and Development - Wyndham's global system grew by 4%, with a 5% increase in the development pipeline, totaling approximately 2,150 hotels and 255,000 rooms [1][6]. - The company awarded 229 new development contracts globally, marking a 40% increase year-over-year [6][7]. RevPAR and Market Performance - Global RevPAR decreased by 3% in constant currency, with a 4% decline in the U.S. and a 1% growth internationally [8][10]. - The U.S. RevPAR was reported at $53.32, while international RevPAR stood at $39.45, reflecting varied performance across regions [8][10]. Reporting Adjustments - The company revised its reporting methodology to exclude approximately 67,300 rooms under the Super 8 master license agreement in China, impacting reported system size and growth metrics [2][3]. - The exclusion resulted in a 40 basis points increase in net rooms growth for the first quarter of 2025, now reported at 3.9% [3]. Shareholder Returns - Wyndham returned nearly $110 million to shareholders in the second quarter, including $77 million in share repurchases and dividends of $0.41 per share [1][15][17]. Outlook - The company expects year-over-year rooms growth to be between 4.0% and 4.6%, with adjusted diluted EPS projected to be between $4.60 and $4.78 for the full year 2025 [19][20].