PARSIPPANY, New Jersey—Wyndham Hotels & Resorts introduced its first-quarter 2026 outcomes. Highlights embody:
- System-wide rooms grew 4 % year-over-year.
- Awarded improvement contracts within the U.S. elevated 8 % year-over-year.
- Improvement pipeline grew 3 % year-over-year to a report of over 259,000 rooms and over 2,200 accommodations.
- U.S. RevPAR was flat year-over-year, 250 foundation factors forward of the midpoint of expectations.
- Ancillary revenues elevated 21 % year-over-year.
- Web earnings remained flat year-over-year at $61 million; adjusted web earnings elevated 9 % year-over-year to $73 million, or 6 % decrease on a comparable foundation.
- Diluted earnings per share grew 3 % to $0.80 from $0.78 within the prior-year quarter, and adjusted diluted EPS grew 12 % year-over-year to $0.96, or 3 % decrease on a comparable foundation.
- Adjusted EBITDA elevated 8 % year-over-year to $156 million, or 1 % decrease on a comparable foundation.
- Web money supplied by working actions of $42 million and free money circulate of $64 million.
- Returned $85 million to shareholders by means of $51 million of share repurchases and quarterly money dividends of $0.43 per share.
- Issued $650 million mixture principal quantity of 5.625 % senior unsecured notes, due 2033, the web proceeds of which have been primarily used to totally repay then-outstanding revolver and time period mortgage A borrowings.
Assertion From Management
“We delivered a powerful begin to the yr, highlighted by record-level first-quarter openings and a continued enlargement of our improvement pipeline,” stated Geoff Ballotti, president and chief govt officer. “As U.S. RevPAR in our economic system and midscale segments continues to get better forward of expectations, we method the height leisure summer time season with growing optimism. We’ve by no means been extra assured in our skill to drive sustained long-term worth creation for franchisees, friends, and shareholders by including high-quality, FeePAR-accretive accommodations to our portfolio, rising ancillary revenues, and scaling AI to additional differentiate our industry-leading expertise platform.”
System Dimension and Improvement
The corporate’s international system grew 4 %, together with flat development within the U.S., which incorporates the affect from the lack of legacy affiliated rooms, 12 % direct-franchised development within the Firm’s Asia Pacific area, and 9 % development within the Firm’s increased RevPAR EMEA and Latin America areas.
As of March 31, 2026, the corporate’s international improvement pipeline elevated 3 % vs. prior-year to a record-high degree of over 259,000 rooms and over 2,200 accommodations. Key highlights embody:
- 3 % pipeline development within the U.S. and a pair of % development internationally
- Roughly 70 % of the pipeline is within the midscale and above segments
- Roughly 17 % of the pipeline is within the extended-stay phase
- Roughly 43 % of the pipeline is within the U.S.
- Roughly 77 % of the pipeline is new development, and roughly 35 % of those initiatives have damaged floor; rooms below development grew 3 % year-over-year
RevPAR
First quarter international RevPAR decreased 1 % in fixed foreign money in comparison with 2025, reflecting flat efficiency in america and a 1 % decline internationally.
In america, the year-over-year comparability was impacted by roughly 40 foundation factors of unfavorable hurricane impacts associated to the primary quarter of 2025; excluding which, RevPAR elevated over 600 foundation factors sequentially and roughly 10 foundation factors year-over-year, reflecting stabilized occupancy and ADR ranges. Continued energy throughout the Midwest and development in Texas was partially offset by efficiency in Florida and California, which each improved sequentially but declined year-over-year.
Internationally, fixed foreign money development of 8 % in Canada mirrored vital pricing energy and continued demand development, whereas development of 5 % in Southeast Asia and the Pacific Rim and 1 % in EMEA every primarily mirrored improved demand. The expansion in these areas was greater than offset by softness in China, the place RevPAR improved over 500 foundation factors sequentially, but declined 5 % year-over-year, and Latin America, which declined 4 % year-over-year primarily resulting from decrease U.S. cross-border demand in Mexico.
Working Outcomes
The comparability of the corporate’s first-quarter outcomes is impacted by advertising fund variability. The corporate’s reported outcomes and comparable-basis outcomes (adjusted to neutralize these impacts) are introduced beneath to reinforce transparency and supply a greater understanding of the outcomes of the corporate’s ongoing operations.
- Web revenues grew 3 % to $327 million in comparison with $316 million within the first quarter of 2025, reflecting a 21 % improve in ancillary revenues and international web room development of 4 %, partially offset by decrease different franchise charges and the deferral of charges from Revo Hospitality Group (“Revo”).
- Web earnings remained flat at $61 million in comparison with the primary quarter of 2025, primarily reflecting increased adjusted EBITDA offset by restructuring and other-related prices, in addition to transaction-related prices ensuing from the Firm’s issuance of 5.625 % senior unsecured notes. Adjusted web earnings grew 9 % to $73 million in comparison with $67 million within the first quarter of 2025.
- Adjusted EBITDA elevated 8 % to $156 million in comparison with $145 million within the first quarter of 2025. This improve included a $13 million favorable affect from advertising fund variability, excluding which adjusted EBITDA declined 1 % on a comparable foundation. This decline primarily displays decrease royalties and franchise charges and the absence of one-time value reductions, partially offset by elevated ancillary revenues.
- Diluted EPS grew 3 % to $0.80 in comparison with $0.78 within the first quarter of 2025, which primarily displays the good thing about a decrease share rely resulting from share repurchase exercise.
- Adjusted diluted EPS elevated 12 % to $0.96 in comparison with $0.86 within the first quarter of 2025. This improve included a good affect of $0.13 per share associated to advertising fund variability (after estimated taxes). On a comparable foundation, adjusted diluted EPS decreased roughly 3 % year-over-year, primarily reflecting a comparable foundation decline in adjusted EBITDA, a touch increased efficient tax price, and elevated curiosity expense, partially offset by the good thing about share repurchase exercise.
Steadiness Sheet and Liquidity
The corporate generated $42 million of web money supplied by working actions and $64 million of free money circulate within the first quarter of 2026. The corporate ended the quarter with a money steadiness of $79 million and $1.1 billion in whole liquidity, which incorporates the impact of the February 2026 issuance of $650 million mixture principal quantity of senior unsecured notes bearing curiosity at 5.625 %. The web proceeds from the issuance have been primarily used to totally repay the then-outstanding revolver and time period mortgage A borrowings.
The corporate’s web debt leverage ratio was 3.5 instances at March 31, 2026, on the midpoint of the corporate’s 3 to 4 instances acknowledged goal vary and according to expectations.
