Wyndham Hotels & Resorts Overview - Wyndham Hotels & Resorts is the largest hotel franchisor worldwide, with approximately 8,300 hotels and 847,000 rooms[5] - The company has a significant pipeline of approximately 255,000 rooms[5] - Wyndham's portfolio is primarily leisure-focused, with approximately 70% leisure guest mix[5] - The company boasts a loyalty program with approximately 120 million members[6] Q2 2025 Performance Highlights - Net room growth increased by 4% year-over-year[28] - New deals signed increased significantly by 40% year-over-year[28] - The global pipeline grew by 5% year-over-year[28] - Adjusted EBITDA increased by 5% on a comparable basis[28] - Adjusted free cash flow was $88 million[28] - The company returned $109 million to shareholders[28] Growth and Expansion - The global pipeline consists of approximately 2,150 hotels and 255,000 rooms[32] - Midscale+ brands account for approximately 70% of the global pipeline[32] - The company projects system-wide rooms to increase by 4.0% to 4.6%[47] Financial Outlook and Capital Allocation - The company targets a dividend payout ratio in the mid-30s percentage range[41] - Up to $440 million of available capital is targeted for share repurchases or strategic transactions[41] - The company anticipates adjusted EBITDA between $730 million and $745 million[50]

Financial Data and Key Metrics Changes - Adjusted EBITDA grew 9% on a comparable basis and adjusted EPS increased 20% [6][24] - Global RevPAR grew 2% in constant currency, with U.S. RevPAR starting strong but softening in February and March [7][9] - Free cash flow was $80 million, converting from adjusted EBITDA at approximately 55% [24] Business Line Data and Key Metrics Changes - Fee related and other revenues increased by $12 million year over year, driven by a 9% increase in royalties and franchise fees [23] - Ancillary revenue growth was primarily driven by higher credit card and partnership fees [23][19] - The company opened 15,000 rooms, a 13% increase from the previous year, and signed 6% more deals than a year ago [15][17] Market Data and Key Metrics Changes - International RevPAR grew in all regions except China, with Latin America seeing a 25% increase [8] - EMEA RevPAR rose 6%, while Southeast Asia and the Pacific Rim posted 8% growth [8] - In China, RevPAR declined 8% year over year due to pricing pressure [8] Company Strategy and Development Direction - The company focuses on growing its system and supporting franchisees, with a record first quarter for room additions [14][20] - The strategy includes prioritizing development in higher fee par geographies and expanding direct franchising [18] - The company aims to capture trade down demand from both leisure and business travelers seeking value [12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the summer travel months despite current uncertainties [10][40] - The outlook for full year constant currency global RevPAR is revised to range between down 2% to up 1% [25][26] - Management highlighted the resilience of their business model, which is asset-light and designed to perform through economic cycles [29] Other Important Information - The company returned nearly $110 million to shareholders through share repurchases and dividends [7][24] - Wyndham was named one of the world's most ethical companies for the third straight year [20] Q&A Session Summary Question: Changes in U.S. RevPAR outlook - Management noted that normalized April demand improved, with RevPAR running about a full point ahead of the prior year [38][39] - They expect leisure transient demand to pick up into the summer months, with pricing holding firm [40][41] Question: Long-term outlook and sensitivities - Management confirmed that the long-term growth algorithm remains intact, with net room growth expected to continue [50][52] Question: Development backdrop and conversion business - Management expressed confidence in the development pipeline, with a significant increase in new construction openings [60][62] Question: Trends in infrastructure and macro impact - Management noted a slight slowdown in infrastructure demand but expects continued growth driven by federal allocations [102][106] Question: Ancillary revenue growth expectations - Management continues to expect low teen growth for ancillary revenues, driven by contract-based income [96][97]