- Wyndham reported record development momentum and stable earnings in Q1.
- U.S. RevPAR was flat, occupancy and ADR improve.
- Net income was $61 million, unchanged YoY.
WYNDHAM HOTELS & RESORTS reported record development momentum and stable earnings in the first quarter as global RevPAR declined. System-wide rooms rose 4 percent year over year and its pipeline reached a record level.
The pipeline rose 3 percent year over year to more than 259,000 rooms across more than 2,200 hotels, Wyndham said in a statement. U.S. development contracts awarded increased 8 percent, while system growth included 12 percent expansion in Asia Pacific and 9 percent growth across EMEA and Latin America.
“We delivered a strong start to the year, highlighted by record-level first-quarter openings and a continued expansion of our development pipeline,” said Geoff Ballotti, Wyndham’s president and CEO. “As U.S. RevPAR in our economy and midscale segments continues to recover ahead of expectations, we approach the peak leisure summer season with increasing optimism. We’ve never been more confident in our ability to drive sustained long-term value creation for franchisees, guests and shareholders by adding high-quality, FeePAR-accretive hotels to our portfolio, growing ancillary revenues and scaling AI to further differentiate our industry-leading technology platform.”
In March, Wyndham named Amit Sripathi CFO, succeeding Kurt Albert.
System expansion remained central to the company’s strategy, with about 77 percent of the development pipeline tied to new construction and about 35 percent under construction, the statement said. About 70 percent of the pipeline is in midscale and above segments, while extended stay accounts for 17 percent. About 43 percent of pipeline rooms are in the U.S.
Wyndham reported net income of $61 million, unchanged from the prior year, while adjusted net income rose 9 percent to $73 million, the company said. Adjusted EBITDA increased 8 percent year over year to $156 million, while on a comparable basis it was down 1 percent after adjustments. Ancillary revenues rose 21 percent year over year, supporting diversification beyond room revenues.
RevPAR globally declined 1 percent in constant currency, reflecting flat U.S. performance and a 1 percent decline internationally, the statement said. U.S. RevPAR was flat overall, with underlying improvement in occupancy and ADR after excluding prior-year hurricane impacts.
International RevPAR trends were mixed, with gains in Canada and Southeast Asia offset by weakness in China and Latin America. Canada delivered 8 percent growth driven by pricing, while Southeast Asia and EMEA posted gains. China declined 5 percent year over year despite sequential improvement, and Latin America fell 4 percent due to weaker cross-border demand from the U.S.
Wyndham expanded its Dolce by Wyndham portfolio in the U.S. with three openings, joining three existing U.S. properties and several international properties.
