Financial Data and Key Metrics Changes - The company reported a 5% growth in comparable adjusted EBITDA and an 11% increase in EPS despite a challenging RevPAR environment [6][24] - Adjusted free cash flow reached approximately $170 million year to date, with nearly $220 million returned to shareholders [7][25] - Fee-related and other revenues increased by $31 million year over year, primarily due to higher royalties and franchise fees [23] Business Line Data and Key Metrics Changes - The company experienced a nearly 20% increase in ancillary fee streams [6] - Over 16,000 rooms were opened in Q2, bringing year-to-date new additions to over 30,000 rooms, a record for the first half of the year [12] - Contract signings increased by 40% compared to the prior year, contributing to a 5% growth in the global development pipeline [12][47] Market Data and Key Metrics Changes - Global RevPAR declined by 3% in constant currency, with international RevPAR growing by 1% [16] - EMEA RevPAR grew by 7%, while Latin America and the Caribbean saw an 18% increase driven by strong ADR [17] - U.S. RevPAR declined by 4%, with a normalized decline of approximately 2.3% [18] Company Strategy and Development Direction - The company is focusing on developing higher fee par brands and expanding direct franchising in regions previously reliant on master license agreements [16] - The development pipeline reached a record 255,000 rooms, with a significant increase in contract signings and openings [12][47] - The company aims to enhance long-term earnings potential by focusing on high-quality, fee-generating properties [16] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing economic volatility due to higher interest rates and inflation, particularly affecting economy and mid-scale guests [19] - The company remains optimistic about RevPAR growth returning to historical levels, supported by low supply levels [38] - The outlook for net room growth has been raised to 4% to 4.6%, reflecting confidence in development activity [26][47] Other Important Information - The company launched several new technology-driven tools to enhance guest engagement and operational efficiency [9][10] - Franchisee satisfaction was reported to be higher than in any past conference, indicating strong confidence in future business prospects [11] - The company is committed to disciplined capital allocation, with $550 million available for deployment this year [25][120] Q&A Session Summary Question: Insights on RevPAR trends - Management noted that RevPAR was down 2.3% normalized in Q2, with ongoing softness in leisure-focused markets but strength in industrial states [32][33] Question: Net unit growth expectations - The company expressed optimism about net room growth, with expectations raised to 4% to 4.6% for the year, driven by strong development activity [47][96] Question: Impact of Super 8 master licensee situation - Management confirmed a shift towards direct franchising, with significant growth in this area since the spin-off [50][52] Question: Ancillary revenue growth - Ancillary revenues grew by 19% in Q2, driven by the co-branded credit card program, with expectations for continued momentum [60][61] Question: Key money environment - The company reported a consistent environment for key money, with successful penetration in the midscale and above segments [66][67] Question: Echo Suites brand growth - Management highlighted strong growth in the Echo Suites pipeline, with a focus on both new construction and one-off deals [74][75] Question: Q4 RevPAR expectations - Management indicated that Q4 would face tougher comparisons due to elevated demand last year from hurricane-related relief efforts [117]

Financial Data and Key Metrics Changes - The company reported a 5% increase in comparable adjusted EBITDA and an 11% increase in EPS despite a challenging RevPAR environment [5][20] - Adjusted free cash flow was approximately $88 million for the quarter and $168 million year-to-date, with a conversion rate from adjusted EBITDA of about 50% [22][23] - The company returned nearly $220 million to shareholders year-to-date, including $77 million in share repurchases and $32 million in dividends during the second quarter [6][23] Business Line Data and Key Metrics Changes - Ancillary fee streams increased by nearly 20%, contributing to the overall revenue growth [5][20] - The company opened over 16,000 rooms in Q2, bringing year-to-date new additions to over 30,000 rooms, a record for the first half of the year [11] - Contract signings increased by 40% compared to the prior year, driving a 5% growth in the global development pipeline to a record 255,000 rooms [11][12] Market Data and Key Metrics Changes - Global RevPAR declined by 3% in constant currency, with U.S. RevPAR down 4% and international RevPAR growing by 1% [15][16] - EMEA RevPAR grew by 7%, while Latin America and the Caribbean saw an 18% increase driven by strong ADR [15] - In China, net rooms grew by 16%, but the company faced challenges with its Super 8 master licensee, leading to a revision in reporting metrics [13][19] Company Strategy and Development Direction - The company is focusing on developing higher fee par brands and expanding direct franchising in regions previously reliant on master license agreements [14] - The strategy includes enhancing the royalty rate, which increased by six basis points domestically and 13 basis points internationally [14] - The company aims to maintain a disciplined capital allocation strategy while investing in long-term value creation [26] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing economic volatility due to higher interest rates and inflation, particularly affecting economy and mid-scale guests [17] - The company expects full-year constant currency global RevPAR growth to range between down 2% to up 1% [24] - Management expressed optimism about consumer sentiment and travel intent, with expectations for RevPAR to return to a long-term growth rate of 2% to 3% [36][89] Other Important Information - The company launched several new technology-driven tools to enhance guest engagement and operational efficiency [7][8] - Franchisee satisfaction was reported to be higher than in any past conference, reflecting confidence in future business prospects [10] - The company has a strong balance sheet with approximately $580 million in total liquidity and a net leverage ratio of 3.5x [23] Q&A Session Summary Question: Insights on RevPAR trends - Management noted that Q2 RevPAR was down 2.3% normalized, with continued softness in leisure-focused markets but strength in industrial states [31][32] Question: Net unit growth expectations - Management indicated that net room growth expectations have remained consistent, with an increase in the low end of the guidance to 4% to 4.6% [47][48] Question: Impact of Super 8 master licensee issues - Management confirmed a shift towards direct franchising in China, with significant growth in the direct franchising business [50][51] Question: Ancillary revenue growth - Management highlighted a 19% increase in ancillary revenues, driven by the co-branded credit card program [56][57] Question: Key money environment - Management stated that the key money environment remains consistent, with no significant changes anticipated [61][62] Question: Retention rates and pipeline status - Management reported a rolling twelve-month retention rate of 95.8% and no significant fallouts in the pipeline [106][107]

Core Insights - Wyndham Hotels & Resorts emphasizes a franchisee-first approach, focusing on long-term success through tailored solutions and support [1] Technology Initiatives - The launch of Wyndham Connect PLUS enhances guest engagement with AI-driven features for booking and inquiries, available for pilot by qualified franchisees at no cost until year-end [2] - Wyndham Gateway introduces a centralized guest Wi-Fi portal, creating new revenue streams through Wi-Fi upsell opportunities while simplifying loyalty enrollment [3] - Wyndham Marketplace and Wyndham PriceIQ streamline sourcing for hotel owners, enabling easier access to brand-approved products at negotiated rates [4] Insurance Solutions - A partnership with HUB International provides franchisees with affordable, high-quality insurance options, ensuring compliance and cost reduction [5] Rewards Program Enhancements - Wyndham Rewards® expands benefits with Wyndham Rewards Experiences, allowing members to bid on exclusive events and experiences [6] - A new partnership with Applebee's enables members to earn points on mobile orders with free hotel delivery [7] - Changes in reimbursement for free night stay redemptions will incorporate guest satisfaction scores, enhancing the rewards program's appeal [8] Marketing Strategy - A new marketing campaign, "Where There's a Wyndham, There's a Way," aims to unify the brand and capture demand across various media platforms [10] Company Overview - Wyndham is the largest hotel franchising company globally, with approximately 9,300 hotels in over 95 countries and a strong presence in the economy and midscale segments [13] - The company has invested nearly $350 million in technology since going public in 2018, enhancing sales, marketing, and operational support [11]