Summary:
- Wyndham’s global RevPAR fell 5 percent in the third quarter.
- Net income rose 3 percent year over year to $105 million.
- Development pipeline grew 4 percent year over year to 257,000 rooms.
WYNDHAM HOTELS & RESORTS reported a 5 percent decline in global RevPAR in the third quarter, with U.S. RevPAR down 5 percent and international RevPAR down 2 percent. Net income rose 3 percent year over year to $105 million and adjusted net income was $112 million.
The company’s development pipeline grew 4 percent year over year and 1 percent sequentially to 257,000 rooms, Wyndham said in a statement.
"Our third quarter results once again demonstrate the resilience of our business model and the consistent execution of our teams around the world," said Geoff Ballotti, Wyndham's president and CEO. "Amid a challenging macro backdrop, we delivered record year-to-date organic room openings, grew our global pipeline to another all-time high and achieved double-digit growth in ancillary revenues. As we continue to focus development on our strongest brands and markets, advance the industry's leading technology and loyalty platforms, and drive meaningful returns to shareholders, we're positioning Wyndham for sustained growth and value creation into 2026 and beyond."
Wyndham’s global system grew 4 percent year over year, including 2 percent growth in midscale and above segments in the U.S. and 7 percent in EMEA and Latin America. The development pipeline included 2,180 hotels and 257,000 rooms as of Sept. 30. The company awarded 204 new contracts globally, a 24 percent increase, with pipeline growth of 4 percent in both the U.S. and internationally. About 70 percent of the pipeline is in midscale and above segments and extended-stay projects account for 17 percent of planned rooms.
International projects make up 58 percent of the pipeline and new construction accounts for 75 percent of developments, with 36 percent already under construction, the statement said. Rooms under construction increased 3 percent year over year.
Global RevPAR fell 5 percent in constant currency in the third quarter. In the U.S., the decrease reflected a 300 basis-point drop in occupancy and a 200 basis-point decline in average daily rate, with declines in Texas, Florida and California partly offset by gains in the Midwest. Internationally, the decline was led by Asia-Pacific, including a 10 percent drop in China and a 5 percent decrease in Latin America. Increases in EMEA, up 4 percent and Canada, up 8 percent, partly offset the declines.
Fee-related and other revenues totaled $382 million, down from $394 million a year earlier, reflecting lower franchise fees and the RevPAR decline, partly offset by an 18 percent increase in ancillary revenue, higher royalty rates and 4 percent global net room growth, Wyndham said.
Adjusted EBITDA rose 2 percent to $213 million from $208 million, including a $6 million impact from marketing fund variability; excluding this, adjusted EBITDA was flat on a comparable basis. Lower royalties and franchise fees, along with higher costs for insurance, litigation and employee benefits, were offset by operational efficiencies and one-time cost reductions.
The company projected rooms growth of 4 percent to 4.6 percent for full year 2025, a global RevPAR decline of 2 percent to 3 percent, fee-related and other revenues of $1.43 billion to $1.45 billion, adjusted EBITDA of $715 million to $725 million and adjusted net income of $347 million to $358 million.
Wyndham’s development pipeline reached 2,150 hotels and 255,000 rooms in the second quarter, up 5 percent year over year and 1 percent from the previous quarter.
