Wyndham Hotels & Resorts announced results for the three months ended June 30, 2024. Highlights include:
- Global RevPAR grew 2% in constant currency.
- System-wide rooms grew 4% year-over-year.
- Opened over 18,000 rooms globally, including over 7,000 in the US, which represented a year-over-year increase of 16%, and the first ECHO Suites Extended Stay by Wyndham.
- Awarded 180 development contracts globally, including 96 contracts in the US, which represented an increase of 33% year-over-year.
- The development pipeline grew 1% sequentially and 7% year-over-year to a record 245,000 rooms.
- Ancillary revenues increased by 6% compared to the second quarter of 2023.
- Diluted earnings per share increased 30%, to $1.07, and adjusted diluted EPS grew 22%, to $1.13, or 12% on a comparable basis
- Net income was $86 million for the second quarter, a 23% increase over the prior-year quarter; adjusted net income was $91 million, a 14% increase over the prior-year quarter.
- Adjusted EBITDA increased 13% compared with the prior-year quarter to $178 million, or 6% on a comparable basis.
- Returned $162 million to shareholders through $131 million of share repurchases and quarterly cash dividends of $0.38 per share.
- Successfully completed the repricing of its Term Loan B Facility, reducing its interest rate by 60 basis points to SOFR plus 1.75%, and upsizing the facility by $400 million.
“The resilience and highly cash-generative nature of our business model was once again on full display this quarter,” said Geoff Ballotti, President and Chief Executive Officer. “Amid a normalising domestic RevPAR environment, we delivered strong adjusted EBITDA driven by net room and ancillary fee growth. We awarded 33% more hotel contracts domestically, which grew our development pipeline to a record 245,000 rooms and drove significant increases in our US, international, and global royalty rates. Year-to-date, we’ve returned over $250 million to shareholders, representing 4% of our beginning market capitalisation this year.”
Internationally, RevPAR for the company’s Latin America, EMEA, and Canada regions collectively increased 15% due to both continued pricing power, with ADR up 13%, and occupancy growth of 2%. RevPAR for the company’s APAC region declined 12%, primarily due to a difficult year-over-year comparison resulting from that region’s COVID recovery timing in the second quarter of 2023. APAC occupancy declined 7% and ADR declined 5%.
