Wyndham touts growth despite RevPAR headwinds

PARSIPPANY, New Jersey — Wyndham Hotels & Resorts reported a fourth-quarter RevPAR decline of 8% year-over-year in the U.S. and 6% globally, countered with systemwide rooms growth of 4% YOY as part of its Q4 earnings.

Wyndham said in the U.S., the Q4 results included approximately 140 basis points of unfavorable hurricane impacts and excluded would have led to a 610 bps RevPAR decline because of a 360 bps reduction in occupancy and a 250 bps decline in ADR. Wyndham said softer results in Florida, Texas and California were partially offset by continued strength across the Midwest.

Internationally, Q4 RevPAR growth was 7% in EMEA and 6% in Latin America and 1% in Canada. However, Wyndham said it saw softness in Asia Pacific, including China, where RevPAR declined 10%.

Full-year RevPAR decreased 3% YOY, which Wyndham said was in line with its growth outlook, reflecting a 4% decline in the U.S. and flat growth internationally.

Analyst Patrick Scholes of Truist Securities said Wyndham’s Q4 earnings were slightly ahead of expectations, while the 2026 guidance was “slightly light.”

“We see Q4 adj. EBITDA 1% ahead of Street expectations ($165M vs. implied guide of $162-$172M and consensus of $163M), driven by a combination of better than expected ‘other revenues’ and lower than anticipated operating expenses. Global RevPAR growth of -6% was towards the lower-end of the implied guide of approximately -7% to -4% and lower than Street expectations for -4.9%,” he said.

Wyndham also announced charges in Q4 due to the insolvency proceedings of its largest European franchisee (Revo Hospitality Group), and Scholes said he expects that topic to be discussed during the company’s earnings call.

“Expect questions on… Revo Hospitality Group,” he said. “Additionally, due to this insolvency, [Wyndham] determined that a portion of its Vienna House trademark and related franchise agreements were impaired…  of note, 2026 earnings guide excludes any potential room termination impact associated with Revo’s ongoing insolvency.”

Analyst Michael Bellisario of R.W. Baird said investors will likely focus on the near-term RevPAR trends and the Revo insolvency (he said Revo operates around 22,000 rooms in Wyndham’s system, which remain open and bookable).

“U.S. RevPAR trends within the lower-end chain scales are improving (but still negative YOY), and we look to the conference call for more commentary on the near-term outlook (and if/when RevPAR will turn the corner),” he said. “ The negative surprise contained in the update is the $15 million financial impact from Revo Hospitality Group's insolvency… we expect most/all of the rooms to remain Wyndham-branded on the back end of restructuring, but near-term fees are impacted, and a significant amount of key money and loans has been written off. Likely some ‘health of the franchisee’ questions to emerge, in our view.”

Growth and pipeline

Wyndham touted its rooms and development growth for its Q4 earnings, with systemwide rooms growth of 4% YOY in the quarter, while the company awarded 870 development contracts globally, an increase of 18% YOY and an all-time high.

Despite continued negative U.S. RevPAR pressure, we grew full-year comparable-basis adjusted EBITDA and adjusted EPS in 2025 by 4% and 6%, respectively... As demand trends improve and RevPAR stabilizes, we remain confident in our long-term strategy while creating compounding value for franchisees, guests and shareholders.

Geoff Ballotti

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The company’s development pipeline is up 3% YOY to a record 259,000 rooms, with approximately 70% of that in the midscale and above segments and approximately 42% in the U.S. Wyndham said approximately 77% of its pipeline and approximately 36% of those projects have already broken ground.

“Our teams around the world opened a record 72,000 rooms, delivered 4% global net room growth and grew our global development pipeline to a record 259,000 rooms,” said Wyndham President and CEO Geoff Ballotti.  “Despite continued negative U.S. RevPAR pressure, we grew full-year comparable-basis adjusted EBITDA and adjusted EPS in 2025 by 4% and 6%, respectively, generated adjusted free cash flow of more than $430 million and returned nearly $400 million to shareholders. As demand trends improve and RevPAR stabilizes, we remain confident in our long-term strategy while creating compounding value for franchisees, guests and shareholders.”

For the full-year, global RevPAR decreased 3% in constant currency compared to 2024, in line with the Company’s outlook, reflecting a 4% decline in the U.S. and flat growth internationally. U.S. results reflected a 270-basis-point reduction in occupancy and a 120-basis-point decline in ADR.

For its full-year 2026 outlook, Wyndham projected RevPAR to be -1.5% to 0.5% YOY, and rooms growth of 4-4.5%.

Other Q4 highlights

• Fee-related and other revenues were down YOY in the fourth quarter, but grew 2% for the year to $1.43 billion, reflecting a 15% increase in ancillary revenues and higher pass-through revenues because of the company’s global franchisee conference.
• Wyndham’s net income decreased 33% to $193 million compared to $289 million in full-year 2024, reflecting higher impairment and other costs (related to the Revo insolvency), however, adjusted diluted EPS increased 6%.
• Full-year 2025 adjusted EBITDA increased 3% to $718 million, which Wyndham said was in line with its expectations.
• The company generated $367 million of net cash provided by operating activities and $433 million of adjusted free cash flow in 2025. Wyndham ended Q4 with a cash balance of $64 million and $840 million in total liquidity.