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Wyndham Hotels & Resorts(WH) - 2024 Q4 - Annual Results

Financial Performance - Fourth quarter diluted EPS rose 80% to 1.08,whileadjusteddilutedEPSgrew141.08, while adjusted diluted EPS grew 14% to 1.04, reflecting higher net income and share repurchase activity[2] - Full-year 2024 adjusted EBITDA increased by 5% to 694million,withacomparablegrowthof7694 million, with a comparable growth of 7% when excluding marketing fund variability[15] - The company reported a net income of 289 million for 2024, consistent with the previous year, despite higher transaction-related expenses[15] - Net revenues for the year ended December 31, 2024, were 1,408million,a0.81,408 million, a 0.8% increase from 1,397 million in 2023[30] - Basic earnings per share for the year ended December 31, 2024, were 3.64,upfrom3.64, up from 3.43 in 2023[30] - Adjusted EBITDA for the full year 2024 was 767million,anincreasefrom767 million, an increase from 727 million in 2023[32] - The company reported operating income of 495millionfortheyearendedDecember31,2024,comparedto495 million for the year ended December 31, 2024, compared to 503 million in 2023[30] - Adjusted net income for Q4 2024 was 82million,comparedto82 million, compared to 75 million in Q4 2023, reflecting a 9.3% increase[52] Revenue Per Available Room (RevPAR) - Global RevPAR increased by 5% in Q4 2024 compared to Q4 2023, with a full-year growth of 2% year-over-year in constant currency[2] - The U.S. RevPAR grew 5% in Q4 2024, with a sequential improvement of 620 basis points from Q3 2024[7] - Global RevPAR for the full year 2024 was 42.91,adecreaseof0.442.91, a decrease of 0.4% compared to 2023[46] - The company expects 2025 global RevPAR growth of 2% to 3%[19] - The company anticipates a year-over-year growth of 2% to 3% in global RevPAR for 2025[54] Room Growth and Development - The company opened a record 68,700 rooms globally in 2024, representing a 4% year-over-year growth, including nearly 28,000 rooms in the U.S.[2] - The development pipeline reached a record 252,000 rooms, growing 5% year-over-year, with approximately 70% in midscale and above segments[5] - The global room count increased by 31,200 rooms, reaching 903,000 as of December 31, 2024, representing a 4% growth year-over-year[41] - The number of rooms is expected to grow by 3.6% to 4.6% in 2025[54] - The company added 68,700 rooms globally in 2024, with 4% growth in both the United States and international markets[41] Shareholder Returns - The company returned 430 million to shareholders in 2024 through share repurchases and dividends, with an 8% increase in quarterly cash dividend to 0.41persharestartingQ12025[18]CashFlowandAssetsFreecashflowfortheyearendedDecember31,2024,was0.41 per share starting Q1 2025[18] Cash Flow and Assets - Free cash flow for the year ended December 31, 2024, was 350 million, compared to 411millionin2023[35]Cashandcashequivalentsincreasedto411 million in 2023[35] - Cash and cash equivalents increased to 113 million as of December 31, 2024, from 66millionin2023[37]Thecompanyscashandcashequivalentsincreasedto66 million in 2023[37] - The company’s cash and cash equivalents increased to 103 million as of December 31, 2024, compared to 66millionin2023[38]Totalassetsincreasedto66 million in 2023[38] - Total assets increased to 4,223 million as of December 31, 2024, from 4,033millionin2023[37]DebtandFinancialObligationsTotaldebtroseto4,033 million in 2023[37] Debt and Financial Obligations - Total debt rose to 2,463 million as of December 31, 2024, up from 2,201millionin2023[37]TotaloutstandingdebtasofDecember31,2024,was2,201 million in 2023[37] - Total outstanding debt as of December 31, 2024, was 2.463 billion, with a weighted average interest rate of 4.8%[38] - Net debt as of December 31, 2024, was 2.360billion,resultinginanetdebtleverageratioof3.4x[38]Thecompanyincurred2.360 billion, resulting in a net debt leverage ratio of 3.4x[38] - The company incurred 47 million in payments related to hostile takeover defense during the year[34] Future Outlook - The company expects adjusted EBITDA for 2025 to be in the range of 745millionto745 million to 755 million[54] - Projected adjusted diluted EPS for 2025 is estimated to be between 4.66and4.66 and 4.78[54] - The company plans to allocate approximately 40to40 to 45 million for capital expenditures in 2025[54] - The company plans to continue expanding its market presence and investing in new technologies to enhance operational efficiency[48]