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].

Group 1 - Wyndham Hotels (WH) is expected to report quarterly earnings of $1.16 per share, reflecting a year-over-year increase of 2.7% [1] - Revenues are projected to be $387.31 million, which represents a 5.5% increase from the same quarter last year [1] - There has been a downward revision of 0.2% in the consensus EPS estimate over the past 30 days, indicating a reappraisal by analysts [1] Group 2 - Analysts predict 'Net revenues- Fee-related and other revenues- Royalties and franchise fees' will reach $149.55 million, indicating a change of +3.9% from the prior year [4] - 'Net revenues- Fee-related and other revenues- Marketing, reservation and loyalty' are forecasted to be $159.96 million, reflecting a +6.6% change year-over-year [4] - The average prediction for 'Net revenues- Fee-related and other revenues- License and other fees' is $33.32 million, showing a +7.5% increase from the previous year [5] Group 3 - The total number of rooms is projected to reach 919,612, up from 884,900 a year ago [6] - The consensus for 'Total RevPAR' is estimated at $45.57, slightly down from $45.99 in the previous year [6] - Over the past month, Wyndham shares have gained +8.2%, outperforming the Zacks S&P 500 composite's +5.9% change [6]

Group 1: Economic Overview - The U.S. economy is experiencing a broader structural shift characterized by persistent deflationary pressures, declining energy demand, and a deteriorating labor market [1][7][11] - Consumer discretionary spending is slowing down, indicating a significant impact on industries such as travel, hospitality, and leisure [1][5][11] Group 2: Consumer Spending and Price Trends - The Consumer Price Index (CPI) report for June shows a notable weakness in discretionary spending categories, with hotel and motel prices decreasing by 3.7% [2][3] - The Producer Price Index (PPI) data indicates a rare deflationary trend, with a net change of -0.1% over four months, and core PPI showing a decline for the first time since June 2020 [2][3] Group 3: Energy Demand Insights - Energy usage data confirms a decline in consumer activity, with gasoline consumption dropping to an average of 8.49 million barrels per day, significantly lower than previous years [4] - Overall oil demand is also reflecting this weakness, with total oil supply averaging around 20.1 million barrels per day, slightly above 2022 levels but below 2023 and 2024 [4] Group 4: Corporate Responses and Market Sentiment - Major hotel chains like Hilton and Wyndham have adjusted their revenue growth forecasts due to slowing consumer travel spending, attributing this to economic uncertainty [5][6] - Airlines such as Delta and Southwest have retracted their financial forecasts for 2025, reflecting a cautious outlook on consumer behavior [5][6] Group 5: Labor Market Challenges - The labor market is showing signs of deterioration, with the unemployment rate rising to 4.2% and non-farm employment growth slowing to an average of 120,000 per month [7][8] - Real disposable income growth is stagnating, with a reported annualized growth rate of 0.8% in Q2 2025, impacting consumer spending on non-essential items [7][8] Group 6: Market Discrepancies - The U.S. stock market has reached historical highs despite the underlying economic data indicating persistent consumer weakness, suggesting a disconnect between market sentiment and economic reality [9] - The optimism surrounding a potential rebound in consumer spending post-trade uncertainty may be misplaced, as structural issues in the economy are likely to persist [9][10] Group 7: Implications for Policy and Business Strategy - Policymakers may need to reconsider their stance on interest rates in light of the deflationary trends in discretionary sectors, potentially requiring more accommodative measures to stimulate demand [10] - Companies in the hospitality and airline sectors may need to adapt to prolonged periods of weak demand, possibly implementing cost-cutting measures that could further impact consumer confidence [10][11]