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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.

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1.b. Last Insights on WH

Wyndham Hotels & Resorts' recent performance was negatively impacted by weak Q3 sales, prompting the company to cut its full-year outlook. The hospitality company reported lower-than-expected revenue, despite beating earnings estimates with $1.46 per share. A potential legal issue emerged with a Capital Link investigation, which could involve up to $50 million in damages related to securities, franchise-law, and usury violations. Additionally, the company faces soft U.S. demand, mirroring weak industry-wide RevPAR trends.

1.c. Company Highlights

2. Wyndham Hotels' Q3 2025 Earnings: Resilient Performance Amidst Macro Challenges

Wyndham Hotels & Resorts reported a revenue decline of 3% year-over-year to $382 million, primarily due to a 5% decrease in global RevPAR. However, the company's adjusted EBITDA remained flat at $213 million, and adjusted diluted EPS increased by 1% to $1.46, beating analyst estimates of $1.42. The company's fee-related and other revenues declined, but ancillary fee streams increased by 18%, driven by growth in credit card revenue and replatforming efforts.

Publication Date: Oct -26

📋 Highlights
  • Strong Room Growth & Pipeline Expansion:: Achieved 21% increase in room openings and 4% global pipeline growth to 257,000 rooms and nearly 2,200 hotels.
  • Ancillary Revenue & Shareholder Returns:: Ancillary fees rose 18%, with $260M adjusted free cash flow and $320M returned to shareholders year-to-date.
  • Infrastructure Spending Tailwind:: $1.2T in U.S. infrastructure spending projected to drive $3B in revenue over multiple years.
  • Data Center Market Impact:: Data centers contributed 500–600 bps of RevPAR growth, with 150+ planned centers identified for future deals.

Operational Highlights

The company achieved significant operational milestones, including a 21% increase in room openings, 24% more deals signed, and a 4% growth in its global pipeline to 257,000 rooms and nearly 2,200 hotels. Wyndham's mid-scale brands drove 160 basis points of RevPAR index, led by weekday growth of 180 basis points. The company's growth strategy focuses on higher FeePAR brands and geographies, expanding direct franchising, and adding hotels with stronger long-term economics.

Growth Prospects and Initiatives

Wyndham is optimistic about its growth prospects, citing a strong lineup of events, including America 250 and the FIFA World Cup, which are expected to drive demand. The company's new Wyndham Rewards Insider program has the potential to deliver long-term fee growth and increased engagement. Additionally, Wyndham's AI-powered customer service agents are driving direct bookings and saving franchisees on labor costs, with 300 basis points of increased direct contribution for 600 of its 8,300 hotels.

Valuation and Outlook

With a P/E Ratio of 16.9 and an EV/EBITDA of 13.42, Wyndham's valuation appears reasonable considering its growth prospects. Analysts estimate revenue growth at 5.9% for next year, and the company's adjusted free cash flow yield is 5.15%. Wyndham's return on equity (ROE) is 56.76%, indicating strong profitability. The company's guidance for full-year fee-related and other revenues is between $1.43 billion and $1.45 billion, and adjusted EBITDA is projected to be between $715 million and $725 million.

Management's Strategy and Confidence

Wyndham's CEO, Geoffrey Ballotti, stated that the company is focused on executing its plan, maintaining cost discipline, and delivering strong ancillary revenue growth. The company is confident about its net unit growth outlook, with 70% of rooms in mid-scale and above segments. Wyndham's growth strategy is expected to drive long-term value, and the company is optimistic about its prospects, citing a strong pipeline and growth initiatives.

3. NewsRoom

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Jersey Mike's Appoints Michele Allen as Chief Financial Officer

Dec -02

Source: prnewswire.com

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Creative Planning Trims Holdings in Wyndham Hotels & Resorts $WH

Dec -02

Source: defenseworld.net

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Baymont by Wyndham Makes Asia Pacific Debut in Kunming, China

Nov -25

Source: prnewswire.com

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Wyndham Hotels & Resorts Appoints Alexandra A. Jung to Board of Directors

Nov -17

Source: prnewswire.com

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Insider Selling: Wyndham Hotels & Resorts (NYSE:WH) General Counsel Sells $2,606,919.14 in Stock

Nov -17

Source: defenseworld.net

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WYNDHAM HOTELS & RESORTS DECLARES QUARTERLY CASH DIVIDEND

Nov -13

Source: prnewswire.com

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Wyndham Rewards Teams Up with Beverly D'Angelo to Upgrade Everyone--Yes, Everyone--this Holiday Season

Nov -12

Source: prnewswire.com

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WYNDHAM HOTELS & RESORTS ANNOUNCES CFO TRANSITION

Nov -04

Source: prnewswire.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

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

72.12$

Current Price

72.12$

Potential

-0.00%

Expected Cash-Flows