Wyndham Hotels & Resorts Reports Q4 and Full-Year 2024 Results

PARSIPPANY, New Jersey—Wyndham Hotels & Resorts announced results for the three months and year ended December 31, 2024. Highlights include:

• Global RevPAR grew 5 percent compared to fourth quarter 2023 in constant currency, a 400 basis point improvement sequentially; full-year global RevPAR grew 2 percent year-over-year in constant currency.
• U.S. RevPAR grew 5 percent compared to fourth quarter 2023, a 600 basis point improvement sequentially; full-year U.S. RevPAR was flat.
• System-wide rooms grew 4 percent year-over-year.
• Opened a record 68,700 rooms globally, representing 4 percent year-over-year growth, including nearly 28,000 in the United States, which also grew 4 percent year-over-year.
• Global retention rate reaches record level at 95.7 percent.
• Development pipeline grew 2 percent sequentially and 5 percent year-over-year to a record 252,000 rooms.
• Fourth quarter diluted earnings per share increased 80 percent to $1.08 and adjusted diluted EPS grew 14 percent to $1.04, or approximately 18 percent on a comparable basis; full-year 2024 diluted earnings per share increased 6 percent to $3.61 and adjusted diluted EPS grew 8 percent to $4.33, or approximately 10 percent on a comparable basis.
• Fourth quarter net income increased 70 percent to $85 million and adjusted net income increased 9 percent to $82 million, or approximately 13 percent on a comparable basis; full-year 2024 net income was $289 million, or flat year-over-year, and adjusted net income increased 2 percent to $347 million, or approximately 4 percent on a comparable basis.
• Fourth quarter adjusted EBITDA increased 9 percent to $168 million, or approximately 12 percent on a comparable basis; full-year 2024 adjusted EBITDA increased 5 percent to $694 million, or approximately 7 percent on a comparable basis.
• Returned $430 million to shareholders for the full-year through $308 million of share repurchases and quarterly cash dividends of $0.38 per share.
• Board of Directors recently authorized an 8 percent increase in the quarterly cash dividend to $0.41 per share beginning with the dividend expected to be declared in the first quarter 2025.

“We’re proud to report a very strong finish to 2024 with net rooms growth of 4 percent and comparable adjusted EBITDA growth of 7 percent. Our team’s focus on expanding into higher FeePAR markets, growing our extended-stay footprint, and unlocking new ancillary revenue streams underscore the diverse growth opportunities inherent in our asset-light, resilient business model,” said Geoff Ballotti, president and CEO, Wyndham. “What excites us most about our future is the developer interest in, and demand for, our brands both here and overseas, reflected in a pipeline that grew another 5 percent to a record quarter-of-a-million rooms that will open in the coming years with significant FeePAR premiums compared to our existing system. This, when coupled with improving customer demand we’re seeing across both our leisure and infrastructure segments, lays a solid foundation for sustained momentum and meaningful value creation for our shareholders, guests, franchisees, and team members for many years to come.”

System Size and Development

The company’s global system grew 4 percent. Importantly, these results included 4 percent growth in the higher RevPAR midscale and above segments in the United States as well as strong growth in the company’s higher RevPAR EMEA and Latin America regions, which grew a combined 7 percent. The company also increased its retention rate by another 10 basis points year-over-year, ending the year at a record 95.7 percent.

On Dec. 31, 2024, the company’s global development pipeline consisted of approximately 2,100 hotels and 252,000 rooms, representing another record-high level and a 5 percent year-over-year increase. Key highlights include:

• 7 percent growth in the United States and 4 percent internationally
• 18th consecutive quarter of sequential pipeline growth
• Approximately 70 percent of the pipeline is in the midscale and above segments, which grew 5 percent year-over-year
• Approximately 17 percent of the pipeline is in the extended-stay segment
• Approximately 58 percent of the pipeline is international
• Approximately 78 percent of the pipeline is new construction and approximately 35 percent of these projects have broken ground

RevPAR

Fourth quarter global RevPAR increased 5 percent in constant currency compared to 2023, reflecting 5 percent growth in the United States, which accelerated throughout the quarter, and 6 percent growth internationally. For the full year, global RevPAR was flat compared to 2023 on a reported basis, in line with the company’s outlook, and grew 2 percent in constant currency reflecting flat growth in the United States and 8 percent growth internationally.

In the United States, fourth quarter results included 140 basis points of favorable hurricane impacts; excluding which, RevPAR grew 4 percent year-over-year reflecting strength in both weekday business bookings and weekend leisure demand. Overall, U.S. RevPAR improved 620 basis points sequentially from the third quarter, or 480 basis points excluding hurricane impacts.

Internationally, RevPAR strength was driven by ADR growth of 6 percent in constant currency, while occupancy remained flat. The company’s EMEA and Latin America regions saw the largest increases year-over-year in the fourth quarter, collectively growing 15 percent. RevPAR for the company’s China region declined 11 percent in the fourth quarter, driven by a 10 percent decrease in ADR.

Operating Results

Fourth Quarter

• Fee-related and other revenues grew 7 percent to $341 million compared to $320 million in fourth quarter 2023, which reflects higher royalties and franchise fees.
• Net income grew 70 percent to $85 million compared to $50 million in fourth quarter 2023, reflecting higher adjusted EBITDA, as well as a lower effective tax rate and lower foreign currency impact for highly inflationary countries, which were partially offset by higher interest expense.
• Adjusted EBITDA grew 9 percent to $168 million compared to $154 million in fourth quarter 2023. This increase included a $4 million unfavorable impact from expected marketing fund variability, excluding which adjusted EBITDA grew 12 percent on a comparable basis, primarily reflecting higher royalties and franchise fees and margin expansion.
• Diluted earnings per share grew 80 percent to $1.08 compared to $0.60 in fourth quarter 2023, which primarily reflects higher net income and the benefit of a lower share count due to share repurchase activity.
• Adjusted diluted EPS grew 14 percent to $1.04 compared to $0.91 in fourth quarter 2023. This increase included an unfavorable impact of $0.04 per share related to expected marketing fund variability (after estimated taxes). On a comparable basis, adjusted diluted EPS increased approximately 18 percent year-over-year reflecting comparable adjusted EBITDA growth and the benefit of share repurchase activity, partially offset by higher interest expense.
• During fourth quarter 2024, the company’s marketing fund revenues exceeded expenses by $5 million; while in fourth quarter 2023, the company’s marketing fund revenues exceeded expenses by $9 million, resulting in $4 million of marketing fund variability.

Full Year

• Fee-related and other revenues grew 1 percent to $1.40 billion compared to $1.38 billion in full-year 2023, which included $18 million of pass-through revenues associated with the company’s 2023 global franchisee conference, absent which, fee-related and other revenue increased 3 percent. This growth primarily reflects higher royalties, franchise fees, and ancillary revenues.
• The company reported net income of $289 million, consistent with 2023, as higher adjusted EBITDA was offset by higher transaction-related expenses in connection with defending an unsuccessful takeover attempt. Other items include higher interest expense, restructuring costs, and an impairment charge, which were offset by a lower effective tax rate, the absence of foreign currency impacts from highly inflationary countries, and a benefit from the reversal of a spin-off related matter.
• Adjusted EBITDA grew 5 percent to $694 million compared to $659 million in full-year 2023. This increase included a $10 million unfavorable impact, as expected, from marketing fund variability, excluding which adjusted EBITDA grew 7 percent on a comparable basis, primarily reflecting higher royalties and franchise fees, increased ancillary revenues, and margin expansion.
• Diluted earnings per share grew 6 percent to $3.61 compared to $3.41 in full-year 2023, which primarily reflects the benefit of a lower share count due to share repurchase activity.
• Adjusted diluted EPS grew 8 percent to $4.33 compared to $4.01 in full-year 2023. This increase included an unfavorable impact of $0.09 per share, as expected, related to marketing fund variability (after estimated taxes). On a comparable basis, adjusted diluted EPS increased approximately 10 percent year-over-year reflecting comparable adjusted EBITDA growth and the benefit of share repurchase activity, partially offset by higher interest expense.
• During full-year 2024, the company’s marketing fund expenses exceeded revenues by $1 million; while in 2023, the company’s marketing fund revenues exceeded expenses by $9 million, resulting in $10 million of marketing fund variability.

Balance Sheet and Liquidity

The company generated $290 million of net cash provided by operating activities and $397 million of adjusted free cash flow in full-year 2024. The company ended the quarter with a cash balance of $103 million and approximately $765 million in total liquidity.

The company’s net debt leverage ratio was 3.4 times on Dec. 31, 2024, just below the midpoint of the company’s 3 to 4 times stated target range and in line with expectations.

Share Repurchases and Dividends

During the fourth quarter, the company repurchased approximately 0.3 million shares of its common stock for $23 million. For the full-year 2024, the company repurchased approximately 4.1 million shares of its common stock for $308 million.

The company paid common stock dividends of $30 million, or $0.38 per share, during the fourth quarter 2024 for a total of $122 million, or $1.52 per share, for the full-year 2024.

For the full-year 2024, the company returned $430 million to shareholders through share repurchases and quarterly cash dividends.

The company’s Board of Directors authorized an 8 percent increase in the quarterly cash dividend to $0.41 per share, beginning with the dividend expected to be declared in first quarter 2025.