Download PDF

1. Company Snapshot

1.a. Company Description

Wyndham Hotels & Resorts, Inc.operates as a hotel franchisor worldwide.It operates through Hotel Franchising and Hotel Management segments.


The Hotel Franchising segment licenses its lodging brands and provides related services to third-party hotel owners and others.The Hotel Management segment provides hotel management services for full-service and limited-service hotels.It is also involved in the reward loyalty program business.


The company's hotel brand portfolios include Super 8, Days Inn, Travelodge, Microtel, Howard Johnson, La Quinta, Ramada, Baymont, AmericInn, Wingate, Wyndham Alltra, Wyndham Garden, Ramada Encore, Hawthorn, Registry Collection, Trademark Collection, TRYP, Dazzler, Esplendor, Wyndham Grand, Dolce, and Wyndham.As of August 9, 2022, it operated a portfolio of 22 hotel brands with approximately 9,000 hotels with approximately 8,19,000 rooms in approximately 95 countries.The company was incorporated in 2017 and is headquartered in Parsippany, New Jersey.

Show Full description

1.b. Last Insights on WH

Breaking News: Wyndham Hotels & Resorts, Inc. reported Q4 earnings of $0.93 per share, surpassing estimates of $0.89 per share. This is a decrease from $1.04 per share in the same quarter last year. The company's asset-light model delivers strong EBITDA margins and free cash flow, supporting dividend growth. Wyndham is reaffirmed as a Buy, driven by robust global room growth and a record development pipeline. The recommendation is given by an analyst, citing cash flow strength and diversified brand portfolio as mitigating factors for risks.

1.c. Company Highlights

2. Wyndham Hotels & Resorts' 2025 Earnings: A Strong Performance Amidst Challenges

Wyndham Hotels & Resorts reported a mixed financial performance for 2025, with full-year comparable adjusted EBITDA and adjusted EPS growing 4% and 6% respectively. The company's adjusted diluted EPS for the fourth quarter was $0.93, down 4% on a comparable basis, but beating analyst estimates of $0.89. Fee-related and other revenues for the full year were $1.43 billion, and adjusted EBITDA was $718 million. The company's adjusted free cash flow conversion rate was 60%, generating $433 million in adjusted free cash flow for the full year.

Publication Date: Feb -22

📋 Highlights
  • 2025 Performance Growth:: Achieved 4% net room growth, 4% comparable adjusted EBITDA growth, and 6% adjusted EPS growth, with $1.43B in fee-related revenues and $718M adjusted EBITDA.
  • Development Momentum:: Opened 72,000 rooms and signed 870 deals, expanding the global pipeline to 260,000 rooms (+3%) and over 2,200 hotels.
  • Shareholder Returns:: Returned $393M to shareholders (5% of market cap) via $266M share repurchases and $127M dividends, with a 5% dividend hike to $0.43/share.
  • Revo Insolvency Impact:: Recorded $160M noncash charges from Revo Hospitality’s insolvency, removing Revo-related revenue from 2026 outlooks.

Revenue Growth and Ancillary Fee Streams

The company's ancillary fee streams increased 15% in 2025, driven by its U.S. toll brand card, debit product, and co-brand card in Canada. Wyndham expects low to mid-teens growth in ancillary fees in 2026. The company's AI initiatives with partners like Claude and ChatGPT have nominal costs and have the potential to drive direct bookings, increase revenue, and provide economic platforms for franchisees.

Global RevPAR and Net Room Growth

Fourth-quarter global RevPAR declined 6% in constant currency, with domestic RevPAR down 6% and international RevPAR down 1%. Despite this, the company reported net room growth of 4% and signed 870 deals, increasing its global development pipeline by 3% to nearly 260,000 rooms and over 2,200 hotels. The company's net rooms growth is driven by affiliate deals, such as Chata, which provide access to upscale vacation experiences.

Outlook and Valuation

For 2026, the company expects full-year global net room growth of 4-4.5%, with global RevPAR expected to finish between up 0.5 point to down 1.5 points. Analysts estimate next year's revenue growth at 5.2%. With a P/E Ratio of 33.05 and an EV/EBITDA of 19.42, the market is pricing in a certain level of growth. The company's Dividend Yield is 1.95%, and the Free Cash Flow Yield is 4.62%, indicating a relatively attractive return for investors.

Challenges and Opportunities

The company recorded noncash charges of $160 million related to the insolvency filings of a large European franchisee, Revo Hospitality Group. However, Wyndham's underwriting standards for higher-fee deals have not changed, and it will continue to invest in business growth. The company is excited about the acceleration of its economy and mid-scale brands, expecting it to continue, and sees opportunities for growth in China as the country recovers.

3. NewsRoom

Card image cap

Wyndham Hotels & Resorts (NYSE:WH) Trading Up 7.4% After Better-Than-Expected Earnings

Feb -20

Source: defenseworld.net

Card image cap

Wyndham Hotels & Resorts, Inc. (WH) Q4 2025 Earnings Call Transcript

Feb -19

Source: seekingalpha.com

Card image cap

Wyndham Hotels & Resorts Gets An Upgrade With A View, A Bright One

Feb -19

Source: seekingalpha.com

Card image cap

Compared to Estimates, Wyndham (WH) Q4 Earnings: A Look at Key Metrics

Feb -19

Source: zacks.com

Card image cap

Wyndham Hotels (WH) Q4 Earnings Surpass Estimates

Feb -19

Source: zacks.com

Card image cap

WYNDHAM HOTELS & RESORTS REPORTS FOURTH QUARTER RESULTS

Feb -18

Source: prnewswire.com

Card image cap

Seeking Clues to Wyndham (WH) Q4 Earnings? A Peek Into Wall Street Projections for Key Metrics

Feb -16

Source: zacks.com

Card image cap

Why Wyndham (WH) Could Beat Earnings Estimates Again

Jan -29

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.00%)

6. Segments

Hotel Franchising

Expected Growth: 4%

Wyndham Hotels & Resorts, Inc.'s hotel franchising growth is driven by increasing demand for affordable and mid-scale accommodations, expansion into emerging markets, strategic partnerships, and a strong brand portfolio. Additionally, the company's asset-light business model, cost savings initiatives, and technology investments contribute to its growth momentum.

7. Detailed Products

Franchise Operations

Wyndham Hotels & Resorts, Inc. offers franchise opportunities to independent hotel owners and operators, providing them with access to its global distribution system, loyalty program, and operational support.

Hotel Management

Wyndham Hotels & Resorts, Inc. provides hotel management services to hotel owners, including operational support, revenue management, and marketing services.

Vacation Ownership

Wyndham Hotels & Resorts, Inc. offers vacation ownership opportunities through its Wyndham Destinations brand, allowing customers to purchase the right to use a vacation property for a set period.

Vacation Rentals

Wyndham Hotels & Resorts, Inc. offers a vacation rental platform, allowing customers to book vacation homes, apartments, and condos through its Wyndham Vacation Rentals brand.

Loyalty Program

Wyndham Hotels & Resorts, Inc. offers a loyalty program, Wyndham Rewards, which rewards members with points for staying at Wyndham hotels, redeemable for free nights, flights, and other rewards.

8. Wyndham Hotels & Resorts, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Wyndham Hotels & Resorts, Inc. faces moderate threat from substitutes due to the presence of alternative accommodations such as Airbnb, vacation rentals, and boutique hotels.

Bargaining Power Of Customers

Wyndham Hotels & Resorts, Inc. has a high bargaining power of customers due to the ease of switching to competitors and the availability of online travel agencies.

Bargaining Power Of Suppliers

Wyndham Hotels & Resorts, Inc. has a low bargaining power of suppliers due to the fragmented nature of the hospitality industry and the availability of multiple suppliers.

Threat Of New Entrants

Wyndham Hotels & Resorts, Inc. faces a moderate threat of new entrants due to the high barriers to entry in the hospitality industry, including high capital requirements and regulatory hurdles.

Intensity Of Rivalry

Wyndham Hotels & Resorts, Inc. operates in a highly competitive industry with many established players, leading to a high intensity of rivalry among competitors.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 74.38%
Debt Cost 4.48%
Equity Weight 25.62%
Equity Cost 10.60%
WACC 6.05%
Leverage 290.35%

11. Quality Control: Wyndham Hotels & Resorts, Inc. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Travel + Leisure

A-Score: 6.5/10

Value: 7.6

Growth: 4.7

Quality: 6.0

Yield: 7.0

Momentum: 7.5

Volatility: 6.0

1-Year Total Return ->

View Full Report
Stock-Card
Allison Transmission Holdings

A-Score: 5.3/10

Value: 5.4

Growth: 7.4

Quality: 7.4

Yield: 2.0

Momentum: 2.0

Volatility: 7.7

1-Year Total Return ->

View Full Report
Stock-Card
KB Home

A-Score: 4.9/10

Value: 7.8

Growth: 4.6

Quality: 5.3

Yield: 3.0

Momentum: 2.5

Volatility: 6.0

1-Year Total Return ->

View Full Report
Stock-Card
Wyndham Hotels

A-Score: 4.7/10

Value: 3.1

Growth: 4.9

Quality: 6.9

Yield: 4.0

Momentum: 2.0

Volatility: 7.3

1-Year Total Return ->

View Full Report
Stock-Card
Choice Hotels

A-Score: 4.5/10

Value: 4.0

Growth: 6.3

Quality: 6.5

Yield: 1.0

Momentum: 1.0

Volatility: 8.3

1-Year Total Return ->

View Full Report
Stock-Card
Hyatt Hotels

A-Score: 4.4/10

Value: 3.3

Growth: 7.3

Quality: 2.9

Yield: 0.0

Momentum: 6.0

Volatility: 6.7

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

81.33$

Current Price

81.33$

Potential

-0.00%

Expected Cash-Flows