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Jun 30
Wyndham Q2 2025 Earnings Report
Wyndham Hotels & Resorts reported strong second quarter results, with growth in system-wide rooms, development pipeline, and ancillary revenues, leading to increased diluted earnings per share and adjusted net income.
Key Takeaways
Wyndham Hotels & Resorts delivered a solid second quarter, marked by a 4% year-over-year growth in global system-wide rooms and a 5% expansion in its development pipeline to a record 255,000 rooms. The company saw a 19% increase in ancillary revenues, contributing to a 1% rise in net income to $87 million and an 18% increase in adjusted diluted EPS to $1.33. Despite a softer domestic RevPAR environment, comparable adjusted EBITDA grew by 5% and comparable adjusted EPS by 11%.
System-wide rooms grew 4% year-over-year, reaching 846,700 rooms globally.
The development pipeline expanded by 5% year-over-year to a record 255,000 rooms, with 229 new contracts awarded.
Net income increased 1% to $87 million, and adjusted diluted EPS grew 18% to $1.33.
The company returned $109 million to shareholders through share repurchases and cash dividends.
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Wyndham Revenue by Segment
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Hotel Franchising Revenue
CapyFin.com Forward Guidance
Wyndham Hotels & Resorts is increasing its full-year 2025 adjusted diluted EPS outlook and raising the low-end of its year-over-year rooms growth outlook, reflecting the impact of second-quarter share repurchases and the revised reporting methodology for its Super 8 master licensee in China.
Positive Outlook
- Adjusted diluted EPS outlook increased to $4.60 - $4.78.
- Year-over-year rooms growth outlook raised to 4.0% - 4.6%.
- Fee-related and other revenues expected to be $1.45 billion - $1.49 billion.
- Adjusted EBITDA projected to be $730 million - $745 million.
- Adjusted free cash flow conversion rate expected to be approximately 57%.
Challenges Ahead
- Global RevPAR growth expected to be between -2% and 1% on a constant currency basis.
- Marketing fund revenues are expected to approximate expenses for the full year, but seasonality will affect quarterly comparisons.
- Outlook excludes the impact of any share repurchases after June 30, 2025.
- The company is unable to predict with reasonable certainty all future adjustments for non-GAAP measures, which could be material.
- A significant pullback in demand beyond current assumptions could lead to actual results falling below estimates.