Wyndham Q2 2024 Earnings Report
Key Takeaways
Wyndham Hotels & Resorts reported strong second-quarter results, with global RevPAR increasing by 2% in constant currency and system-wide rooms growing by 4% year-over-year. Diluted EPS increased by 30% to $1.07, and adjusted diluted EPS grew by 22% to $1.13. The company raised its full-year 2024 EPS outlook and grew its development pipeline by 7% to a record 245,000 rooms.
Global RevPAR grew 2% in constant currency.
System-wide rooms grew 4% year-over-year.
Development pipeline grew 7% year-over-year to a record 245,000 rooms.
Diluted earnings per share increased 30% to $1.07, and adjusted diluted EPS grew 22% to $1.13.
Wyndham
Wyndham
Wyndham Revenue by Segment
Forward Guidance
The Company is refining its outlook as follows: Year-over-year rooms growth 3 - 4%, Year-over-year global RevPAR growth Approximately flat, Fee-related and other revenues $1.41 - $1.43 billion, Adjusted EBITDA $690 - $700 million, Adjusted net income $338 - $348 million, Adjusted diluted EPS $4.20 - $4.32, Adjusted free cash flow conversion rate ~60%
Positive Outlook
- Year-over-year rooms growth 3 - 4%
- Adjusted EBITDA $690 - $700 million
- Adjusted net income $338 - $348 million
- Adjusted diluted EPS $4.20 - $4.32
- Adjusted free cash flow conversion rate ~60%
Challenges Ahead
- Year-over-year global RevPAR growth Approximately flat
- Fee-related and other revenues $1.41 - $1.43 billion
- The reduction in RevPAR and fee-related and other revenues reflects a more moderated RevPAR acceleration than previously anticipated.
- The reduction in adjusted net income represents an increase in interest expense due to the upsizing of the Company's term loan B.
- Year-over-year growth rates for adjusted EBITDA, adjusted net income and adjusted diluted EPS are not comparable due to full-year 2023 marketing fund revenues exceeding expenses by $9 million, which substantially completed the recovery of the $49 million support the Company provided to its owners during COVID.