Wyndham Q2 2021 Earnings Report
Key Takeaways
Wyndham Hotels & Resorts reported a strong second quarter in 2021, marked by a significant increase in net income and adjusted EBITDA compared to the previous year. The company saw substantial growth in RevPAR and fee-related revenues, driven by increased travel demand and effective management of its franchise business model. Wyndham also increased its quarterly dividend by 50% and provided a positive full-year 2021 outlook.
Diluted earnings per share was $0.73, compared to a diluted loss per share of $1.86 in Q2 2020.
Net income was $68 million, compared to a net loss of $174 million in Q2 2020.
Global RevPAR increased 110% compared to Q2 2020 but declined 17% compared to Q2 2019 in constant currency.
The Board of Directors authorized a 50% increase in the quarterly cash dividend to $0.24 per share.
Wyndham
Wyndham
Wyndham Revenue by Segment
Forward Guidance
The Company provided the following outlook for full-year 2021:
Positive Outlook
- Fee-related and other revenues of $1.16 billion to $1.19 billion.
- Adjusted net income of $244 million to $254 million.
- Adjusted EBITDA of $525 million to $535 million.
- Adjusted diluted EPS of $2.60 to $2.70, based on an adjusted diluted share count of 94.0 million that excludes any future share repurchases.
- Rooms growth of 1% to 2%.
Challenges Ahead
- A RevPAR increase of approximately 40% versus 2020, or a decline of approximately 16% compared to 2019.
- Free cash conversion from Adjusted EBITDA of approximately 55%.
- Outlook assumes continued recovery in travel demand in the second half of 2021.
- The Company is providing certain financial metrics only on a non-GAAP basis because, without unreasonable efforts, it is unable to predict with reasonable certainty the occurrence or amount of all of the adjustments or other potential adjustments that may arise in the future during the forward-looking period, which can be dependent on future events that may not be reliably predicted.
- Based on past reported results, where one or more of these items have been applicable, such excluded items could be material, individually or in the aggregate, to the reported results.
Revenue & Expenses
Visualization of income flow from segment revenue to net income