Wyndham cuts RevPAR guidance amid record openings

PARSIPPANY, New Jersey — While Wyndham Hotels & Resorts opened a first quarter record 14,800 rooms, representing 13% a year-over-year increase, it also cut 2025 guidance more than expected.

At the same time, Wyndham adjusted its full-year 2025 RevPAR guidance from +2-3% to -2% to +1%. The company said the updated range “reflects a variety of potential outcomes for the remainder of the year, from a more optimistic scenario in which the softness seen in March and April proves to be temporary, to a more cautious view that contemplates persistent pressure on demand throughout the remainder of the year.”

The company made slight downward adjustments to its other 2025 guidance but didn’t change its year-over-year rooms growth estimate of 3.6% to 4.6%.

For the first quarter, Wyndham said global RevPAR grew 2% in constant currency YOY, reflecting 2% growth in the U.S. and 3% internationally. In the U.S., RevPAR growth included 100 basis points of benefit from hurricanes and the timing of the Easter holiday. Excluding those factors, Wyndham’s U.S. RevPAR grew 60 bps YOY.

Wyndham said that, internationally, RevPAR growth was strongest in the EMEA (+6% YOY) and Latin America (+25% YOY). The company said demand remained steady in China, but RevPAR declined 8% YOY.

“We delivered a solid start to the year with strong system growth, record first-quarter openings and continued expansion across every region,” said Wyndham President and CEO Geoff Ballotti. “While the macro environment remains uncertain, we’re staying focused on what we can control — investing in high-quality growth, executing with discipline and supporting our franchisees. Our asset-light, franchise-only business model has consistently outperformed during economic downturns and positions us well to deliver long-term value for our shareholders through all phases of any economic cycle.”

Through Q1, system-wide net rooms growth was 4%, including 1% growth in the U.S. and 7% growth internationally. Wyndham’s global pipeline included approximately 2,140 hotels and 254,000 rooms, which included 5% growth in the U.S. and 4% internationally. The company said approximately 70% of the pipeline is in the midscale and above segments, with 17% in extended-stay and 58% internationally. Approximately 77% of the pipeline is new construction, with 35% of those projects already having broken ground.

In the first quarter, Wyndham awarded 181 development contracts globally, an increase of 6% YOY.

Other Q1 highlights

• Fee-related and other revenues increased 4% YOY
• Net income of $61 million compared to $16 million in the Q124; adjusted net income increased 5% YOY to $67 million
• Adjusted EBITDA increased 3% year-over-year to $145 million, or 9% on a comparable basis
• Fee-related and other revenues grew 4% to $316 million, which reflects higher royalties and franchise fees and higher ancillary revenues
• Wyndham returned $109 million to shareholders through $76 million of share repurchases and quarterly cash dividends of $0.41 per share

What analysts said

Analyst Michael Bellisario of R.W. Baird said the first quarter results matched expectations but the 2025 guidance was “cut a bit more than expected, which could pressure [Wyndham] shares near-term.”

“Global RevPAR growth was +2%, which was below our +3% estimate on slower U.S. trends, particularly in March,” he said. “Earnings – adjusted for greater marketing/reservation/loyalty over-spend during the quarter – were in line with Baird/Street expectations. In our view, the bigger focus will be the full-year guidance reduction, which was a bit bigger than expected. Adjusted EBITDA estimates likely will come down ~1% for 2025E.”

Analyst Patrick Scholes of Truist Securities said Wyndham’s earnings were a miss partly driven by marketing fund variability.

“RevPAR guidance being lowered is not a surprise at this moment. Similar to Hilton, we believe the low-end of guidance is the more likely scenario. We are also not surprised to see net rooms growth guidance maintained, though we believe pressure will show up in 2026/2027,” he said. “Importantly for [Wyndham], declines in RevPAR are relatively less impactful to EBITDA due to its pure asset-lite franchise model.”