Wyndham Hotels & Resorts(US:WH)2025-04-30 21:19Wyndham Hotels & Resorts Business Model and Performance - Wyndham Hotels & Resorts operates with an asset-light, highly scalable, and fully franchised model[6], with over 99% of their hotels being franchised[7] - The company boasts high operating leverage, achieving an Adjusted EBITDA Margin of 83% in FY 2024[8] - Wyndham generates strong, recurring free cash flow, converting approximately 57% of Adjusted EBITDA into Adjusted Free Cash Flow in 2024, equating to $397 million from an Adjusted EBITDA of $694 million[10] - The company has returned approximately $2.5 billion of capital to shareholders since its spin-off, representing about 42% of its market capitalization at the time of the spin-off, including $109 million in Q1 2025[40] Growth and Pipeline - Wyndham's global system size has shown consistent net room growth, with a 4% increase year-over-year as of January 1, 2025[30] - The company's global pipeline has expanded to approximately 254,000 rooms across approximately 2,140 hotels as of March 31, 2025, marking the 19th consecutive quarter of sequential growth[33] - The global pipeline is composed of 77% new construction and 23% conversions[33] 2025 Outlook and Priorities - The company projects system-wide room growth between 3.6% and 4.6% in 2025[46] - Wyndham anticipates Adjusted EBITDA growth of 5-7% on a comparable basis in 2025, projecting an Adjusted EBITDA between $730 million and $745 million[49] - The company expects to return approximately $130 million to shareholders through dividends in 2025[49]