Wyndham Hotels & Resorts(US:WH)2025-07-23 20:32Financial Performance - Wyndham Hotels & Resorts reported a 4% year-over-year growth in system-wide rooms, reaching a total of 846,700 rooms[6]. - Adjusted EBITDA grew 10% year-over-year to $195 million, with a comparable growth of 5%[15]. - Diluted earnings per share rose 6% year-over-year to $1.13, while adjusted diluted EPS increased 18% to $1.33[3]. - Net revenues for Q2 2025 reached $397 million, a 8.2% increase from $367 million in Q2 2024[30]. - Net income for the first half of 2025 was $149 million, compared to $102 million in the same period of 2024, representing a 46.1% increase[34]. - Free cash flow for Q2 2025 was $81 million, significantly up from $27 million in Q2 2024[35]. - Adjusted EBITDA for Q2 2025 was $195 million, up from $178 million in Q2 2024, indicating a 9.6% growth[32]. - The company reported a diluted earnings per share of $1.13 for Q2 2025, compared to $1.07 in Q2 2024, reflecting a 5.6% increase[30]. - Net income for the second quarter of 2025 was $87 million, compared to $86 million in the same quarter of 2024[53]. - Total adjusted net income for the first half of 2025 reached $171 million, up from $155 million in the first half of 2024[53]. Development and Growth - The company awarded 229 development contracts globally, marking a 40% increase year-over-year[3]. - The development pipeline reached a record 255,000 rooms, reflecting a 5% year-over-year increase[7]. - The company added 30,500 rooms globally in the first half of 2025, a 3% increase compared to the same period in 2024[41]. - The company plans to increase the low-end of its year-over-year rooms growth outlook by 40 basis points, removing the dilutive impact from its Super 8 master licensee in China[54]. Revenue and Expenses - Ancillary revenues increased by 19% compared to the second quarter of 2024, contributing to a total of $397 million in fee-related and other revenues, an 8% increase from the previous year[15]. - Marketing, reservation, and loyalty expenses for Q2 2025 were $162 million, up from $155 million in Q2 2024, indicating increased investment in customer engagement[30]. Cash and Debt Management - The company ended the quarter with a cash balance of $50 million and total liquidity of approximately $580 million[16]. - Cash and cash equivalents decreased to $50 million as of June 30, 2025, from $103 million at the end of 2024[37]. - Total assets as of June 30, 2025, were $4.298 billion, an increase from $4.223 billion as of December 31, 2024[37]. - Total debt increased to $2.577 billion as of June 30, 2025, compared to $2.463 billion at the end of 2024[37]. - As of June 30, 2025, total outstanding debt was $2.577 billion, with a weighted average interest rate of 5.3%[38]. - The net debt leverage ratio increased to 3.5x from 3.4x as of December 31, 2024[38]. - The company’s term loan B of $1.5 billion is due in May 2030, with an interest rate of 5.3%[38]. Future Outlook - The company revised its full-year 2025 adjusted diluted EPS outlook to $4.60 - $4.78, up from the previous range of $4.57 - $4.74[20]. - Adjusted EBITDA for 2025 is projected to be between $730 million and $745 million, reflecting a year-over-year increase[54]. - Adjusted diluted EPS for 2025 is expected to be between $4.60 and $4.78, an increase from $1.90 in the first half of 2025[55]. - The effective tax rate assumed for the 2025 outlook is approximately 25%[55]. - The company anticipates capital expenditures of $40 million to $45 million for 2025[55]. - Adjusted free cash flow conversion rate is expected to be around 57%[55]. Market Performance - Global RevPAR decreased by 3% in constant currency, with a 4% decline in the U.S. and a 1% increase internationally[8]. - Global RevPAR for Q2 2025 was $47.55, a 3% decrease compared to Q2 2024[45]. - International RevPAR for Q2 2025 was $39.45, showing a 1% increase year-over-year[43]. - The company experienced a 4% decline in RevPAR for the economy segment in the United States during Q2 2025[43]. - The average royalty rate for the United States was 4.7% in Q2 2025, up 6 basis points from Q2 2024[43].