Wyndham misses with bigger RevPAR drop

PARSIPPANY, New Jersey – Reflecting ongoing bifurcation in the hotel business, economy and select brand giant Wyndham Hotels & Resorts struggled in the third quarter, reporting earnings that included a 5% dip in U.S. RevPAR and 2% internationally. Royalties and franchise fees were more than $12 million below Street consensus.

In the U.S., RevPAR performance reflected a 300 basis-point reduction in occupancy and a 200 basis-point decline in ADR. Softer results in Texas, Florida and California were partially offset by continued strength across the Midwest.

Internationally, the decrease was primarily driven by Asia Pacific, including China where RevPAR declined 10%, and Latin America, where RevPAR declined 5%. This was partially offset by 4% growth in the EMEA region and 8% growth in Canada, both primarily reflecting pricing power.

Wyndham also lowered full-year guidance, cutting its RevPAR outlook by 200-400 bps in the U.S., inclusive of an incremental 100 bps FX headwind, and international RevPAR guidance dropped 200-300 bps. Adjusted EBITDA was update to $725 million from $745 million; fee-related and other revenues was adjusted to $1.43-$1.45 from $1.45-$1.49; and adjusted net income was cut to $347-$358 million from $358-$372 million.

At the same time, Wyndham also reported delivering record year-to-date organic room openings, grew global pipeline to another all-time high, and achieved double-digit growth in ancillary revenues.

"Our third quarter results once again demonstrate the resilience of our business model and the consistent execution of our teams around the world," Wyndham President and CEO Geoff Ballotti said in the earnings release. “As we continue to focus development on our strongest brands and markets, advance the industry's leading technology and loyalty platforms and drive meaningful returns to shareholders, we’re positioning Wyndham for sustained growth and value creation well into 2026 and beyond."

Other highlights included: 

• System-wide rooms grew 4% year-over-year.
• Awarded 204 development contracts globally, an increase of 24% year-over-year.
• Development pipeline grew 4% year-over-year and 1% sequentially to a record 257,000 rooms.
• Ancillary revenues increased 18% compared to third quarter 2024 and 14% on a year-to-date basis.
• Diluted earnings per share increased 5% year-over-year to $1.36; adjusted diluted EPS grew 5% to $1.46, or increased 1% on a comparable basis.
• Net income increased 3% year-over-year to $105 million; adjusted net income increased 2% to $112 million, or decreased 2% on a comparable basis.
• Adjusted EBITDA increased 2% year-over-year to $213 million, or remained flat on a comparable basis.
• Returned $101 million to shareholders through $70 million of share repurchases and quarterly cash dividends of $0.41 per share.

Wyndham’s global system grew 4% including 2% growth in the higher RevPAR midscale and above segments in the U.S. and 7% growth in the higher RevPAR EMEA and Latin America regions.

On September 30, 2025, the company’s pipeline consisted of approximately 2,180 hotels and 257,000 rooms, representing another record-high level and a 4% year-over-year increase.

Approximately 70% of the pipeline is in the midscale and above segments, which grew 4% year-over-year; approximately 17% of the pipeline is in the extended-stay segment; approximately 58% of the pipeline is international; approximately 75% of the pipeline is new construction and approximately 36% of these projects have broken ground; rooms under construction grew 3% year-over-year.

Fee-related and other revenues were $382 million compared to $394 million in third quarter 2024, reflecting a 5% decline in RevPAR and lower other franchise fees, partially offset by an 18% increase in ancillary revenue, royalty rate expansion both domestically and internationally and global net room growth of 4%.

The company generated net income of $105 million compared to $102 million in third quarter 2024, primarily due to higher adjusted EBITDA, partially offset by higher interest expense. Adjusted net income was $112 million compared to $110 million in third quarter 2024.

Adjusted EBITDA grew 2% to $213 million compared to $208 million in third quarter 2024. This increase included a $6 million favorable impact from marketing fund variability, excluding which adjusted EBITDA remained flat on a comparable basis as lower royalties and franchise fees, along with elevated costs associated with insurance, litigation defense and employee benefits – all of which are reflective of the broader operating environment – were more than offset by cost containment measures, including both operational efficiencies and one-time variable reductions.

Diluted earnings per share increased 5% to $1.36 compared to $1.29 in third quarter 2024. This increase primarily reflects the benefit of a lower share count due to share repurchase activity.