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Jun 30, 2023
Wyndham Q2 2023 Earnings Report
Wyndham's Q2 2023 results reflected solid global RevPAR growth and strategic pipeline expansion.
Key Takeaways
Wyndham Hotels & Resorts reported a solid second quarter in 2023, marked by a 7% growth in global RevPAR and a 4% increase in system-wide rooms. The development pipeline expanded by 10% year-over-year, and the company successfully refinanced its Term Loan B Facility. The Board of Directors approved a $400 million increase in share repurchase authorization.
Global RevPAR increased by 7% compared to Q2 2022 in constant currency.
System-wide rooms grew by 4% year-over-year.
The development pipeline expanded by 10% year-over-year.
Share repurchase authorization increased by $400 million.
Wyndham
Wyndham
Wyndham Revenue by Segment
Revenue by Segment
Hotel Franchising Revenue
CapyFin.com Forward Guidance
The Company is refining its outlook as follows:
Positive Outlook
- Year-over-year rooms growth: 2 - 4%
- Year-over-year global RevPAR growth: 4 - 6%
- Fee-related and other revenues: $1.38 - $1.41 billion
- Adjusted EBITDA: $654 - $664 million
- Free cash flow conversion rate: 50 - 55%
Challenges Ahead
- Reduction in adjusted net income represents an increase in interest expense due, in part, to the refinancing of the Company's Term Loan B.
- Adjusted net income: $336 - $348 million
- Adjusted diluted EPS: $3.92 - $4.06
- Year-over-year growth rates are not comparable due to the sale of the Company's owned hotels and the exit of its select-service management business, both of which occurred during 2022, as well as the variability in its marketing funds
- The Company's expectations for full-year 2023 marketing funds contribution to adjusted EBITDA is unchanged at $10 million.