Core Insights - Wyndham Hotels & Resorts emphasizes a franchisee-first approach, focusing on long-term success through tailored solutions and support [1] Technology Initiatives - The launch of Wyndham Connect PLUS enhances guest engagement with AI-driven features for booking and inquiries, available for pilot by qualified franchisees at no cost until year-end [2] - Wyndham Gateway introduces a centralized guest Wi-Fi portal, creating new revenue streams through Wi-Fi upsell opportunities while simplifying loyalty enrollment [3] - Wyndham Marketplace and Wyndham PriceIQ streamline sourcing for hotel owners, enabling easier access to brand-approved products at negotiated rates [4] Insurance Solutions - A partnership with HUB International provides franchisees with affordable, high-quality insurance options, ensuring compliance and cost reduction [5] Rewards Program Enhancements - Wyndham Rewards® expands benefits with Wyndham Rewards Experiences, allowing members to bid on exclusive events and experiences [6] - A new partnership with Applebee's enables members to earn points on mobile orders with free hotel delivery [7] - Changes in reimbursement for free night stay redemptions will incorporate guest satisfaction scores, enhancing the rewards program's appeal [8] Marketing Strategy - A new marketing campaign, "Where There's a Wyndham, There's a Way," aims to unify the brand and capture demand across various media platforms [10] Company Overview - Wyndham is the largest hotel franchising company globally, with approximately 9,300 hotels in over 95 countries and a strong presence in the economy and midscale segments [13] - The company has invested nearly $350 million in technology since going public in 2018, enhancing sales, marketing, and operational support [11]

Core Insights - Wyndham Rewards is enhancing its offerings by providing members with new dining perks and exclusive access to popular events and festivals [1][2][4] - The program aims to improve member experiences by allowing them to convert points into unique experiences through auctions and fixed-point rewards [3][6] - Wyndham Rewards has been recognized as the 1 hotel rewards program by U.S. News & World Report and USA Today, reflecting its commitment to continuous improvement [5][8] Dining and Experiences - Wyndham Rewards members will soon earn points for mobile To Go orders at over 1,500 Applebee's restaurants, with free delivery included [4][11] - The program features over 150 new experiences, including VIP tickets to sold-out events and unique activities like riding on a Zamboni during a New York Rangers game [9][10] Membership Benefits - Members earn a guaranteed 1,000 points with every qualified stay and can redeem free nights starting at just 7,500 points [10] - The program has expanded its offerings, including the introduction of a co-brand debit card and enhanced points redemption options [6]

Core Viewpoint - Wyndham Hotels & Resorts, Inc. has signed an exclusive development agreement with Le Park Concord Company to expand its Super 8 brand in Saudi Arabia, planning to open 100 hotels over the next 10 years, reflecting a long-term focus on accessible and sustainable hospitality growth in the region [1][4]. Group 1: Expansion Plans - The agreement aims to address the growing need for affordable lodging in Saudi Arabia, which recorded 30 million international visitors in 2024, a 9.5% increase from the previous year, with expectations to reach 150 million annually by the end of the decade [2][3]. - The first Super 8 hotel is expected to open in 2026, with locations planned in Riyadh, Jeddah, Makkah, Madinah, and Al Khobar, focusing on modular construction methods and eco-conscious features [4]. Group 2: Company Growth Metrics - In the first quarter of 2025, Wyndham opened over 15,000 rooms globally, marking a 13% year-over-year growth, with a total of 907,200 rooms as of March 31, 2025, up 4% from the previous year [6]. - The global development pipeline consisted of nearly 2,140 hotels and approximately 254,000 rooms, showcasing a record high level and a 5% year-over-year increase, with about 58% of the pipeline being international [7]. Group 3: Market Performance - Shares of Wyndham Hotels have lost 20.8% in the past three months, compared to a 15.3% decline in the Zacks Hotels and Motels industry, indicating underperformance despite ongoing expansion initiatives likely to foster future growth [9].

Core Insights - The partnership between Wyndham Hotels & Resorts and Le Park Concord aims to introduce the Super 8 brand to Saudi Arabia, addressing the growing demand for affordable lodging as tourism increases under Vision 2030 [2][3][5] Company Overview - Wyndham Hotels & Resorts is the world's largest hotel franchising company, with approximately 9,300 hotels across over 95 countries, focusing on the economy and midscale segments [9] - Le Park Concord is a rapidly growing hospitality group in Saudi Arabia, managing 13 hotels and planning to expand to over 100 properties by 2030 [10] Market Demand - Saudi Arabia welcomed 30 million international tourists in 2024, a 9.5% increase from the previous year, with expectations to reach 150 million annually by the end of the decade [3] - The economy and midscale hotel segments are underrepresented in Saudi Arabia, with only 6% of the hotel pipeline in these categories, indicating a significant supply gap that Super 8 is positioned to fill [5][6] Strategic Development - The first Super 8 hotel is expected to open in 2026, with future locations planned along major highways and in key urban areas such as Riyadh, Jeddah, and Makkah [4] - Properties will feature smart modular construction and eco-conscious designs, aligning with the focus on efficiency and sustainability [4] Competitive Advantage - The partnership combines local insights from Le Park Concord with Wyndham's international standards and the benefits of the Wyndham Rewards loyalty program, which has over 115 million members [6]

Core Insights - Days Inns - Canada is enhancing its partnership with the Canadian Hockey League (CHL) by sponsoring the 2025 Memorial Cup, which will take place in Rimouski, Quebec from May 22 to June 1, 2025 [1] Group 1: Sponsorship Details - The sponsorship includes on-ice logo placement, videoboard commercials, TV timeout activities, spectator giveaways, and an in-venue kiosk at select games [2] - Days Inns has collaborated with experiential marketing agency XMC to create interactive experiences for attendees [2] Group 2: Marketing Strategy - The marketing strategy aims to connect with CHL fans and enhance brand awareness through personalized activations, such as customized hockey cards for attendees [3] - A customized email campaign offering exclusive savings at Days Inns was launched for CHL Insider newsletter subscribers, complemented by digital ads on CHL websites [3] Group 3: Company Overview - Days Inns - Canada operates over 105 independently owned properties with more than 8,515 rooms across the country, participating in the Wyndham Rewards program [5] - Wyndham Hotels & Resorts, the parent company, is the largest hotel franchising company globally, with approximately 8,900 hotels in nearly 95 countries [5] Group 4: About XMC - XMC is an independent agency specializing in sponsorship and experiential marketing, providing strategic counsel and execution for over 30 companies [6] Group 5: About the Canadian Hockey League - The CHL is the largest development hockey league globally, consisting of 51 Canadian and nine American teams, supplying more players to the NHL and U SPORTS than any other league [7]

Financial Performance - Total net revenues for the three months ended March 31, 2025, increased by $11 million, or 4%, compared to the prior-year period, reaching $316 million [109]. - Adjusted EBITDA for the Hotel Franchising segment increased by $3 million, or 2%, compared to the prior-year period, totaling $161 million [113]. - Operating income for the three months ended March 31, 2025, increased by $62 million, or 124%, compared to the prior-year period, reaching $112 million [109]. - Net income for the three months ended March 31, 2025, increased by $45 million, or 281%, compared to the prior-year period, totaling $61 million [111]. - Total expenses decreased by $51 million, or 20%, compared to the prior-year period, primarily due to lower other expenses [109]. Room and Revenue Growth - The total number of rooms grew by 4% year-over-year, with U.S. rooms increasing by 1% and international rooms by 7% [106]. - Global RevPAR for the three months ended March 31, 2025, increased by 2% year-over-year, driven by a 2% increase in the U.S. and a 3% increase internationally [108]. - The average royalty rate for U.S. franchised properties increased by 19 basis points to 4.8%, while the global average royalty rate rose by 16 basis points to 4.0% [106]. Development and Investments - As of March 31, 2025, the global development pipeline included approximately 2,140 hotels and 254,000 rooms, marking a 5% year-over-year increase [114]. - The company invested $7 million in capital expenditures during Q1 2025, primarily for information technology [128]. - Approximately $28 million was deployed in development advance notes during the quarter, with an expected total investment of $110 million for 2025 [129]. Cash Flow and Shareholder Returns - Net cash provided by operating activities decreased by $17 million year-over-year, totaling $59 million for Q1 2025 [125]. - The company repurchased approximately 0.8 million shares at an average price of $95.23, costing $76 million in Q1 2025 [133]. - Cash dividends declared in Q1 2025 amounted to $0.41 per share, totaling $32 million [134]. Debt and Liabilities - Total assets increased by $26 million from December 31, 2024, to March 31, 2025, primarily due to an increase in development advance notes and loan receivables [117]. - Total liabilities rose by $97 million during the same period, mainly due to a $65 million increase in outstanding debt [117]. - As of March 31, 2025, the first-lien leverage ratio was 2.9 times, in compliance with financial covenants [135]. - As of March 31, 2025, the total outstanding balance of variable-rate borrowings, net of swaps, was $620 million [143]. Interest and Tax Rates - Interest expense for the three months ended March 31, 2025, increased by $5 million, or 18%, compared to the prior-year period, primarily due to a higher average interest rate [109]. - The effective tax rate decreased to 22.8% for the three months ended March 31, 2025, from 27.3% in the prior-year period, due to higher tax benefits associated with stock-based compensation [110]. Market Risks - A hypothetical 10% change in the effective weighted average interest rate on variable-rate borrowings would result in a $3 million increase or decrease in annual long-term debt interest expense [143]. - A hypothetical 10% change in foreign currency exchange rates would result in approximately a $10 million increase or decrease to the fair value of outstanding forward foreign currency exchange contracts [147]. - The company anticipates that foreign currency exchange rate risk will remain a market risk exposure for the foreseeable future [145]. - Total market risk is influenced by market volatility and liquidity, with limitations inherent in the sensitivity analyses presented [149].

Financial Data and Key Metrics Changes - Adjusted EBITDA grew 9% on a comparable basis and adjusted EPS increased 20% [6][24] - Global RevPAR grew 2% in constant currency, with U.S. RevPAR starting strong but softening in February and March [7][9] - Free cash flow was $80 million, converting from adjusted EBITDA at approximately 55% [24] Business Line Data and Key Metrics Changes - Fee-related and other revenues increased by $12 million year over year, driven by a 9% increase in royalties and franchise fees [22] - Ancillary revenue growth was primarily driven by higher credit card and partnership fees [22][19] - The company opened 15,000 rooms, a 13% increase from the previous year, and signed 6% more deals than a year ago [15][17] Market Data and Key Metrics Changes - International RevPAR grew in all regions except China, with Latin America seeing a 25% increase [8] - EMEA RevPAR rose 6%, while Southeast Asia and the Pacific Rim posted 8% growth [8] - In China, RevPAR declined 8% year over year due to pricing pressure [8] Company Strategy and Development Direction - The company focuses on growing its system and supporting franchisees, with a record first quarter for room additions [14][20] - The strategy includes prioritizing development in higher fee par geographies and expanding direct franchising [18] - The company aims to capture trade down demand from both leisure and business travelers seeking value [12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the summer travel months despite recent softness in demand [10][41] - The outlook for full-year constant currency global RevPAR is revised to range between down 2% to up 1% [25][26] - Management remains confident in the long-term growth strategy and the resilience of the business model [29][21] Other Important Information - The company returned nearly $110 million to shareholders through share repurchases and dividends [24] - Wyndham was named one of the world's most ethical companies for the third straight year [20] Q&A Session Summary Question: Can you elaborate on the changes in the U.S. RevPAR outlook? - Management noted that normalized April demand improved, with RevPAR running about a full point ahead of the prior year, indicating potential positive momentum [39][40] Question: What is the long-term outlook for net room growth? - Management reaffirmed a long-term net room growth outlook of 3% to 5%, with a record first quarter for room openings [52][56] Question: How is the company managing development costs amid rising prices? - Management highlighted efforts to shift sourcing and negotiate with suppliers to manage increased costs effectively [67][69] Question: What is the company's strategy regarding key money? - The company is being selective with key money allocations, focusing on high-quality revenue accretive opportunities [78][80] Question: How is the company addressing the recent trends in infrastructure demand? - Management reported a gradual resumption of infrastructure fund disbursements, with expectations of continued growth driven by private investment [106][110]

Financial Data and Key Metrics Changes - Adjusted EBITDA grew 9% on a comparable basis and adjusted EPS increased 20% [6][24] - Global RevPAR grew 2% in constant currency, with U.S. RevPAR starting strong but softening in February and March [7][9] - Free cash flow was $80 million, converting from adjusted EBITDA at approximately 55% [24] Business Line Data and Key Metrics Changes - Fee related and other revenues increased by $12 million year over year, driven by a 9% increase in royalties and franchise fees [23] - Ancillary revenue growth was primarily driven by higher credit card and partnership fees [23][19] - The company opened 15,000 rooms, a 13% increase from the previous year, and signed 6% more deals than a year ago [15][17] Market Data and Key Metrics Changes - International RevPAR grew in all regions except China, with Latin America seeing a 25% increase [8] - EMEA RevPAR rose 6%, while Southeast Asia and the Pacific Rim posted 8% growth [8] - In China, RevPAR declined 8% year over year due to pricing pressure [8] Company Strategy and Development Direction - The company focuses on growing its system and supporting franchisees, with a record first quarter for room additions [14][20] - The strategy includes prioritizing development in higher fee par geographies and expanding direct franchising [18] - The company aims to capture trade down demand from both leisure and business travelers seeking value [12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the summer travel months despite current uncertainties [10][40] - The outlook for full year constant currency global RevPAR is revised to range between down 2% to up 1% [25][26] - Management highlighted the resilience of their business model, which is asset-light and designed to perform through economic cycles [29] Other Important Information - The company returned nearly $110 million to shareholders through share repurchases and dividends [7][24] - Wyndham was named one of the world's most ethical companies for the third straight year [20] Q&A Session Summary Question: Changes in U.S. RevPAR outlook - Management noted that normalized April demand improved, with RevPAR running about a full point ahead of the prior year [38][39] - They expect leisure transient demand to pick up into the summer months, with pricing holding firm [40][41] Question: Long-term outlook and sensitivities - Management confirmed that the long-term growth algorithm remains intact, with net room growth expected to continue [50][52] Question: Development backdrop and conversion business - Management expressed confidence in the development pipeline, with a significant increase in new construction openings [60][62] Question: Trends in infrastructure and macro impact - Management noted a slight slowdown in infrastructure demand but expects continued growth driven by federal allocations [102][106] Question: Ancillary revenue growth expectations - Management continues to expect low teen growth for ancillary revenues, driven by contract-based income [96][97]

Financial Data and Key Metrics Changes - Adjusted EBITDA grew 9% on a comparable basis and adjusted EPS increased 20% [5][21] - Global RevPAR grew 2% in constant currency, with U.S. RevPAR starting strong but softening in February and March [6][8] - Free cash flow was $80 million, converting from adjusted EBITDA at approximately 55% [22] - The company returned nearly $110 million to shareholders through share repurchases and dividends [6][22] Business Line Data and Key Metrics Changes - Fee-related and other revenues increased by $12 million year over year, driven by a 9% increase in royalties and franchise fees [21] - Ancillary revenue growth was primarily driven by higher credit card and partnership fees [21][18] - The company opened 15,000 rooms, a 13% increase from the previous year, and signed 6% more deals than a year ago [14][15] Market Data and Key Metrics Changes - Latin America RevPAR grew by 25% excluding Argentina's hyperinflation, while EMEA RevPAR rose 6% [7] - International RevPAR grew in all regions except China, where it declined by 8% year over year [7] - U.S. RevPAR is expected to decline about 3% for the remainder of the year based on recent trends [24][42] Company Strategy and Development Direction - The company focuses on growing its system and supporting franchisees, with a strategic emphasis on higher fee par hotels [12][17] - The development pipeline reached a record 254,000 rooms, with a significant increase in net room growth across all regions [14][15] - The company is prioritizing development in higher RevPAR markets and is selective about capital deployment [72][73] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the resilience of their business model during economic downturns, citing historical outperformance [10][11] - The outlook for 2025 has been refined to reflect a more cautious view of industry-wide RevPAR performance, with expectations ranging from down 2% to up 1% [24][25] - Management noted that consumer sentiment is currently weighing on leisure occupancy, but there are signs of positive momentum as summer approaches [41][42] Other Important Information - The company was named one of the world's most ethical companies for the third consecutive year [19] - The company continues to invest in technology innovations to enhance service and operational efficiency [109] Q&A Session Summary Question: Can you elaborate on the changes in the U.S. RevPAR outlook? - Management noted that normalized April demand improved, with RevPAR running about a full point ahead of the prior year, indicating potential for a positive summer [35][36] Question: What is the long-term outlook for net room growth? - Management reaffirmed a long-term net room growth outlook of 3% to 5%, with a record first quarter in room openings and strong signings [47][49] Question: How is the company managing development costs amid rising prices? - Management highlighted efforts to shift sourcing closer to home and negotiate with suppliers to mitigate cost increases, particularly in construction materials [61][62] Question: What is the outlook for ancillary revenue growth? - Management continues to expect low teen growth for ancillary revenues, driven by contract-based income and a strong co-branded credit card program [92][94] Question: How is the company addressing infrastructure demand? - Management reported a steady demand for infrastructure-related travel, with expectations for continued growth driven by federal spending on infrastructure projects [100][102]

Financial Performance - Wyndham Hotels reported $316 million in revenue for Q1 2025, a year-over-year increase of 3.6% [1] - The EPS for the same period was $0.86, compared to $0.78 a year ago, reflecting a surprise of +4.88% against the consensus estimate of $0.82 [1] Key Metrics - Total Rooms stood at 907,200, slightly below the estimated 909,030 [4] - Total RevPAR was $36.13, compared to the average estimate of $36.76 [4] - Fee-related and other revenues from royalties and franchise fees were $126 million, exceeding the average estimate of $119.61 million, marking an 8.6% year-over-year increase [4] - Marketing, reservation, and loyalty revenues were $116 million, slightly below the estimate of $121.16 million, showing a year-over-year decrease of 0.9% [4] - Management and other fees were reported at $2 million, in line with the average estimate of $2.20 million, with no year-over-year change [4] - License and other fees reached $27 million, close to the estimate of $27.90 million, reflecting a year-over-year increase of 3.9% [4] - Other fee-related revenues were $45 million, slightly above the estimate of $44.84 million, representing a year-over-year increase of 4.7% [4] Stock Performance - Wyndham's shares have returned -5.4% over the past month, compared to the Zacks S&P 500 composite's -0.2% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]