Wyndham Hotels & Resorts(WH) - 2022 Q4 - Annual Report

Franchise and Hotel Management - The company has over 6,000 franchisees globally, with franchise agreements typically lasting 10 to 20 years, providing significant visibility into future cash flows[32] - The hotel management segment had a decrease of 158 managed hotels in 2022 due to the sale of two owned hotels and exiting the select-service management business[34] - As of December 31, 2022, the company managed 72 full-service hotels primarily in international markets, earning base management fees based on a percentage of total hotel revenue[35] - The company has a diverse franchisee base, with no single franchisee accounting for more than 2% of its hotels, reducing exposure to individual franchisee performance[64] - The company’s mission is to make hotel travel possible for all, with a vision to be the leading provider of select-service hotel brands globally[36] - The hotel industry experiences seasonal revenue fluctuations, with higher revenues typically occurring in the second and third quarters due to increased leisure travel[65] Growth and Innovation - The company aims for net room growth of 2-4% and plans to optimize property revenue through digital innovation and technology solutions[44] Sustainability and Social Responsibility - Wyndham was named to the Dow Jones Sustainability World Index, recognizing its sustainability and environmental practices among the top 10% of the largest 2,500 stocks[59] - The company has donated approximately 170 million Wyndham Rewards points to various non-profit organizations since inception, supporting humanitarian causes[53] - The company is committed to reducing greenhouse gas emissions and achieving its 2025 environmental targets through the Wyndham Green Program[56] Employment and Workforce - The company employs approximately 2,500 individuals, with around 1,100 employees located outside the United States[40] Financial Risk Management - The total outstanding balance of variable-rate borrowings, net of swaps, was $444 million as of December 31, 2022[239] - A hypothetical 10% change in the effective weighted average interest rate on variable-rate borrowings would result in a $2 million increase or decrease in annual long-term debt interest expense[239] - The absolute notional amount of outstanding foreign exchange hedging instruments was $182 million as of December 31, 2022[242] - A hypothetical 10% change in foreign currency exchange rates would have resulted in approximately an $11 million increase or decrease to the fair value of outstanding forward foreign currency exchange contracts[243] - Total net assets in Argentina amounted to $2 million as of December 31, 2022, in a highly inflationary economy[243] - The company uses interest swap contracts and foreign currency forwards to manage interest rate and foreign currency exchange rate risks[237] - The company does not engage in trading or speculative activities in the derivatives markets[238] - The fair values of cash and cash equivalents, trade receivables, and other current liabilities approximate their carrying values due to their short-term nature[240] - The company anticipates ongoing foreign currency exchange rate risk exposure, particularly with the Canadian Dollar, Chinese Yuan, Euro, Brazilian Real, and Argentine Peso[241]