Wyndham Q1 2021 Earnings Report
Key Takeaways
Wyndham Hotels & Resorts reported a decline in revenues from $410 million in Q1 2020 to $303 million in Q1 2021. However, net income increased to $24 million, or $0.26 per diluted share, compared to $22 million, or $0.23 per diluted share, in the same period last year. Adjusted EBITDA was $97 million. The company updated its 2021 projections, anticipating net rooms growth of 1% to 2%.
Diluted earnings per share was $0.26, and adjusted diluted earnings per share was $0.36.
Net income was $24 million and adjusted net income was $33 million.
Adjusted EBITDA was $97 million.
Global RevPAR declined 11% compared to first quarter 2020 and 31% compared to first quarter 2019 in constant currency.
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Forward Guidance
The Company is not providing a complete outlook for full-year 2021 given the RevPAR uncertainties ahead; however, the Company is updating the projections provided in February:
Positive Outlook
- Net rooms growth of 1% to 2%, consistent with February's projection.
- Every point of RevPAR change versus 2020 is now expected to generate approximately $2.8 million of adjusted EBITDA change versus 2020 (increased from $2.5 million per point in February).
- License fees are expected to be $70 million reflecting the minimum levels outlined in the underlying agreements, consistent with February's projection.
- Marketing, reservation and loyalty expenses are not expected to exceed marketing, reservation and loyalty revenues, consistent with February's projection.
- The Company does not expect any meaningful special-item cash outlays in 2021, consistent with February's projection.