WYNDHAM HOTELS & RESORTS opened a record 15,000 rooms globally in the first quarter, up 13 percent year over year, according to its quarterly earnings call. Its development pipeline grew to a record 254,000 rooms.
The global hotel system grew 4 percent, driven by higher RevPAR in U.S. midscale and above segments, and a combined 6 percent growth across Europe, the Middle East, Africa and Latin America, Wyndham said in a statement.
“We delivered a solid start to the year with strong system growth, record first-quarter openings, and continued expansion across every region,” said Geoff Ballotti, Wyndham’s president and CEO. “While the macro environment remains uncertain, we’re focused on what we can control—investing in growth, executing with discipline, and supporting our franchisees. Our asset-light, franchise-only model has consistently outperformed during downturns and positions us well to deliver long-term value for shareholders through all economic cycles.”
Wyndham signed 181 new development contracts globally in the first quarter, up 6 percent year over year. Of the pipeline, 70 percent is in midscale and above segments, 58 percent is international, and 77 percent involves new construction, 35 percent of which is already underway.
Global RevPAR rose 2 percent in constant currency, with a 2 percent gain in the U.S. and 3 percent growth internationally. Fee-related and other revenues rose 4 percent to $316 million, up from $304 million a year earlier. Net income jumped to $61 million from $16 million in the first quarter of 2024, driven by lower transaction-related expenses and no impairment or restructuring costs.
Adjusted net income rose 5 percent to $67 million, while adjusted EBITDA increased 3 percent to $145 million. Excluding an $8 million impact from marketing fund variability, adjusted EBITDA was up 9 percent on a comparable basis, reflecting stronger revenue and margin gains.
Diluted earnings per share surged to $0.78 from $0.19 in the first quarter of 2024, driven by higher income and share repurchases. Adjusted diluted EPS rose 10 percent to $0.86, up about 20 percent year over year excluding marketing fund impacts.
The company returned $109 million to shareholders through $76 million in share repurchases and $33 million in dividends ($0.41 per share). The company’s balance sheet remains strong, with $59 million in net cash from operations, $80 million in free cash flow, and $637 million in total liquidity. Net debt leverage was 3.5 times, within the target range.
Meanwhile, Wyndham slightly revised its 2025 outlook, reflecting a softer RevPAR environment due to weaker-than-expected performance in March and April. While the company remains optimistic about a market rebound, it is prepared for continued demand pressure in the months ahead.
With strong first-quarter performance, ongoing expansion in key regions and a healthy financial position, Wyndham is well-positioned for continued growth in 2025, the statement said.
Wyndham saw strong growth in India in 2024, doubling its portfolio since 2018 to 70 hotels, with RevPAR rising 10.5 percent last year.
