WYNDHAM HOTELS & RESORTS REPORTS THIRD QUARTER RESULTS

Core Insights - Wyndham Hotels & Resorts reported a 4% year-over-year growth in global system size and development pipeline, achieving record levels in both metrics [1][3][9] - The company experienced a 5% decline in global RevPAR in constant currency, with a notable decrease in the U.S. and international markets [4][5][21] - Ancillary revenues increased by 18% year-over-year, contributing positively to the overall financial performance despite challenges in core revenue streams [9][21] System Size and Development - As of September 30, 2025, the total number of rooms globally reached 855,400, up from 823,200 a year earlier, marking a 4% increase [3] - The development pipeline included approximately 2,180 hotels and 257,000 rooms, also reflecting a 4% year-over-year increase [3][10] - The U.S. system size grew by 0.2% to 503,400 rooms, while international rooms increased by 9% to 352,000 [3] Revenue Performance - Total fee-related and other revenues for Q3 2025 were $382 million, down from $394 million in Q3 2024, primarily due to a 5% decline in RevPAR [21] - Adjusted EBITDA for Q3 2025 increased by 2% to $213 million, while net income rose by 3% to $105 million [9][21] - The diluted earnings per share increased by 5% to $1.36, reflecting a lower share count due to share repurchase activities [21] Market Trends - The U.S. RevPAR decreased by 5% to $55.07, with occupancy down by 300 basis points and ADR down by 200 basis points [4][5] - Internationally, RevPAR declined by 2%, with significant drops in Asia Pacific and Latin America, while EMEA and Canada showed growth [5][33] - The company continues to focus on high-quality, FeePAR-accretive hotels, particularly in the midscale and above segments [1][10] Financial Outlook - The company updated its full-year 2025 outlook, maintaining a rooms growth forecast of 4.0% - 4.6% and adjusting global RevPAR growth expectations to a range of -3% to -2% [15] - Adjusted EBITDA is projected to be between $715 million and $725 million, down from previous estimates [15] - The company expects marketing fund expenses to exceed revenues by approximately $5 million for the full year 2025, indicating a strategic investment for future recovery [16] Balance Sheet and Liquidity - As of September 30, 2025, the company had a cash balance of $70 million and total liquidity of approximately $540 million [12] - The net debt leverage ratio stood at 3.5 times, consistent with the company's target range [12][30] - In October 2025, the company refinanced its $750 million revolving credit facility, increasing capacity to $1 billion and extending maturity to October 2030 [13][30]