Wyndham Hotels & Resorts Reports Q4 and Full-Year 2025 Results

PARSIPPANY, New Jersey—Wyndham Hotels & Resorts reported its fourth-quarter and full-year 2025 results.

Key Highlights

Highlights include:

• System-wide rooms grew 4 percent year-over-year.
• Awarded 870 development contracts globally in 2025, an increase of 18 percent year-over-year and an all-time high.
• Development pipeline grew 3 percent year-over-year and 1 percent sequentially to a record 259,000 rooms.
• Ancillary revenues increased 15 percent on a full-year basis, marking an all-time high.
• Full-year 2025 diluted EPS decreased 31 percent to $2.50 from $61 primarily reflecting non-cash impairment and other-related charges; however, adjusted diluted EPS increased 6 percent to $4.58, or approximately 6 percent on a comparable basis.
• Full-year 2025 net income decreased 33 percent to $193 million from $289 million, primarily reflecting non-cash impairment and other-related charges; however, adjusted net income increased 2 percent to $353 million, or approximately 2 percent on a comparable basis.
• Full-year 2025 adjusted EBITDA increased 3 percent to $718 million, or 4 percent on a comparable basis, in line with the company’s expectations.
• Net cash provided by operating activities of $367 million and adjusted free cash flow of $433
• Returned $393 million to shareholders for the full-year through $266 million of share repurchases and quarterly cash dividends of $41 per share.
• The Board of Directors recently authorized a 5 percent increase in the quarterly cash dividend to $0.43 per share, beginning with the dividend expected to be declared in the first quarter of 2026.

“Our teams around the world opened a record 72,000 rooms, delivered 4 percent global net room growth, and grew our global development pipeline to a record 259,000 rooms,” said Geoff Ballotti, president and chief executive officer. “Despite continued negative U.S. RevPAR pressure, we grew full-year comparable-basis adjusted EBITDA and adjusted EPS in 2025 by 4 percent and 6 percent, respectively, generated adjusted free cash flow of more than $430 million, and returned nearly $400 million to shareholders. As demand trends improve and RevPAR stabilizes, we remain confident in our long-term strategy while creating compounding value for franchisees, guests, and shareholders.”

System Size and Development

The company’s global system grew 4 percent, including 1 percent growth in the U.S. and 7 percent growth in the Company’s higher RevPAR EMEA and Latin America regions.

As of December 31, 2025, the company’s global development pipeline increased 3 percent vs. the prior year to a record-high level of approximately 2,200 hotels and 259,000 rooms. Key highlights include:

• 3 percent pipeline growth in both the U.S. and internationally
• Approximately 70 percent of the pipeline is in the midscale and above segments, which grew 3 percent year-over-year
• Approximately 17 percent of the pipeline is in the extended-stay segment
• Approximately 42 percent of the pipeline is in the U.S.
• Approximately 77 percent of the pipeline is new construction, and approximately 36 percent of these projects have broken ground; rooms under construction grew 3 percent year-over-year

RevPAR

Fourth quarter global RevPAR decreased 6 percent in constant currency compared to 2024, reflecting declines of 8 percent in the U.S. and 1 percent internationally.

In the U.S., fourth-quarter results included approximately 140 basis points of unfavorable hurricane impacts; excluding which, RevPAR declined approximately 610 basis points year-over-year, reflecting a 360 basis-point reduction in occupancy and a 250 basis-point decline in ADR. Softer results in Florida, Texas, and California were partially offset by continued strength across the Midwest.

Internationally, constant currency growth of 7 percent in EMEA and 6 percent in Latin America, each reflected both improved demand and pricing power, while growth of 1 percent in Canada was driven by pricing power, partially offset by lower demand. The growth in those regions was more than offset by softness in Asia Pacific, including China, where RevPAR declined 10 percent.

For the full-year, global RevPAR decreased 3 percent in constant currency compared to 2024, in line with the company’s outlook, reflecting a 4 percent decline in the U.S. and flat growth internationally. U.S. results reflected a 270 basis-point reduction in occupancy and a 120 basis-point decline in ADR.

Operating Results

Fourth Quarter

The comparability of the company’s fourth-quarter results is impacted by marketing fund variability.  The company’s reported results and comparable-basis results (adjusted to neutralize these impacts) are presented below to enhance transparency and provide a better understanding of the results of the company’s ongoing operations.

• Fee-related and other revenues were $334 million compared to $341 million in the fourth quarter of 2024, reflecting a 5 percent decline in RevPAR and lower other franchise fees, partially offset by a 19 percent increase in ancillary revenue and global net room growth of 4 percent.
• The company generated a net loss of $60 million compared to net income of $85 million in the fourth quarter of 2024, reflecting impairment and other-related costs, lower adjusted EBITDA, and higher interest expense. Adjusted net income was $71 million compared to $82 million in the fourth quarter of 2024.
• Adjusted EBITDA decreased 2 percent to $165 million compared to $168 million in the fourth quarter of 2024. This decrease included a $7 million unfavorable impact from expected marketing fund variability, excluding which adjusted EBITDA grew 2 percent on a comparable basis. This growth primarily reflects increased ancillary revenues and cost containment measures, including both operational efficiencies and one-time variable reductions, partially offset by lower royalties and franchise fees and elevated costs associated with insurance, litigation defense, and employee benefits—all of which are reflective of the broader operating environment.
• The company generated diluted loss per share of $0.80 compared to diluted earnings per share of $1.08 in the fourth quarter of 2024, which primarily reflects lower net income, partially offset by the benefit of a lower share count due to share repurchase activity.
• Adjusted diluted EPS decreased 11 percent to $0.93 compared to $1.04 in the fourth quarter of 2024. This decrease included an unfavorable impact of $07 per share related to marketing fund variability (after estimated taxes). On a comparable basis, adjusted diluted EPS decreased approximately 4 percent year-over-year, primarily reflecting a higher effective tax rate, as expected, as well as higher interest expense, partially offset by comparable adjusted EBITDA growth and the benefit of share repurchase activity.

Full Year

The comparability of the company’s full-year 2025 results is impacted by marketing fund variability. The company’s reported results and comparable-basis results (adjusted to neutralize these impacts) are presented below to enhance transparency and provide a better understanding of the results of the Company’s ongoing operations.

• Fee-related and other revenues grew 2 percent to $1.43 billion compared to $1.40 billion in full-year 2024, which reflects a 15 percent increase in ancillary revenues, higher pass-through revenues due to the company’s global franchisee conference, and a 4 percent increase in global net room growth, partially offset by a 3 percent decline in RevPAR.
• Net income decreased 33 percent to $193 million compared to $289 million in full-year 2024, reflecting higher impairment and other-related costs, higher interest expense, and the absence of a benefit in connection with the reversal of a spin-off related matter, which were partially offset by higher adjusted EBITDA and lower transaction-related expenses in connection with defending an unsuccessful hostile takeover attempt. Adjusted net income was $353 million compared to $347 million in full-year 2024.
• Adjusted EBITDA grew 3 percent to $718 million compared to $694 million in full-year 2024. This increase included a $2 million unfavorable impact, as expected, from marketing fund variability, excluding which adjusted EBITDA grew 4 percent on a comparable basis, primarily reflecting higher revenues and cost containment measures, including both operational efficiencies and one-time variable reductions, which were partially offset by lower royalties and franchise fees, along with elevated costs associated with insurance, litigation defense and employee benefits, which are all reflective of the broader operating environment.
• Diluted earnings per share decreased 31 percent to $2.50 compared to $3.61 in full-year 2024, which primarily reflects lower net income, partially offset by the benefit of a lower share count due to share repurchase activity.
• Adjusted diluted EPS grew 6 percent to $4.58 compared to $4.33 in full-year 2024. This increase included an unfavorable impact of $0.02 per share, as expected, related to marketing fund variability (after estimated taxes). On a comparable basis, adjusted diluted EPS increased approximately 6 percent year-over-year, reflecting comparable adjusted EBITDA growth and the benefit of share repurchase activity, partially offset by higher interest expense.