Wyndham Hotels & Resorts(WH) - 2023 Q4 - Annual Report

Franchise Growth and Operations - Wyndham Hotels & Resorts aims to grow its direct franchising system by 3-4% in 2024, with a target of accelerating to 3-5% annually by 2026[33] - The company operates approximately 9,200 hotels under 24 brands across over 95 countries, making it the world's largest hotel franchising company by number of hotels[30] - Franchise agreements typically last 10 to 20 years, with direct franchisees paying a royalty fee of 4% to 5% of gross room revenue and a marketing fee of 3% to 5%[29] - Wyndham's franchise system is highly diversified, with no single franchisee accounting for more than 2% of its hotels, except for one master franchisor in China[59] - The company is committed to enhancing franchisee profitability by deploying technology solutions that streamline operations and elevate guest experiences[33] Employee and Community Engagement - Wyndham has approximately 2,300 employees as of December 31, 2023, with about 1,200 employees located outside the United States[35] - The company has donated approximately 181 million Wyndham Rewards points to various non-profit organizations since inception[47] Sustainability and Environmental Initiatives - Wyndham was recognized as one of the Net-Zero Leaders by Forbes for 2023, highlighting its commitment to sustainability and reducing greenhouse gas emissions[54] - The Wyndham Green Program helps franchisees reduce operating costs and drive revenue from environmentally conscious travelers[49] - The company continues to evaluate opportunities to increase efficiencies and renewable energy usage as part of its decarbonization plans[52] Financial Risk Management - The total outstanding balance of variable-rate borrowings, net of swaps, was $583 million as of December 31, 2023[248] - 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[248] - The absolute notional amount of outstanding foreign exchange hedging instruments was $153 million as of December 31, 2023[251] - A hypothetical 10% change in foreign currency exchange rates would have resulted in approximately a $1 million increase or decrease to the fair value of outstanding forward foreign currency exchange contracts[251] - The company had total net assets of $1 million in Argentina, which is considered a highly inflationary economy as of December 31, 2023[252] - The total market risk is influenced by various factors including market volatility and liquidity[253] - The company uses interest swap contracts to reduce interest rate risk related to its debt[246] - The company uses foreign currency forwards to manage foreign currency exchange rate risk associated with foreign currency denominated receivables and payables[246] - The company does not engage in trading or speculative activities in the derivatives markets[247] - The fair values of cash and cash equivalents, trade receivables, accounts payable, and accrued expenses approximate their carrying values due to their short-term nature[249]