In its fourth-quarter and full-year 2025 earnings report, Wyndham Hotels & Resorts revealed its global development pipeline reached a record 259,000 rooms as of Dec. 31, 2025. Systemwide rooms grew 4% year-over-year (YOY).
“Our teams around the world opened a record 72,000 rooms, delivered 4% global net room growth and grew our global development pipeline to a record 259,000 rooms,” said Geoff Ballotti, president/CEO. “Despite continued negative U.S. RevPAR pressure, we grew full-year comparable-basis adjusted EBITDA and adjusted EPS in 2025 by 4% and 6%, respectively, generated adjusted free cash flow of more than $430 million and returned nearly $400 million to shareholders. As demand trends improve and RevPAR stabilizes, we remain confident in our long-term strategy while creating compounding value for franchisees, guests and shareholders.”
Highlights include:
- Awarded 870 development contracts globally in 2025, an increase of 18% YOY and an all-time high.
- Development pipeline grew 3% YOY and 1% sequentially to a record 259,000 rooms.
- Ancillary revenues increased 15% on a full-year basis—achieving an all-time high.
- Full-year 2025 diluted EPS decreased 31% to $2.50 from $3.61 primarily reflecting non-cash impairment and other-related charges; however, adjusted diluted EPS increased 6% to $4.58, or approximately 6% on a comparable basis.
- Full-year 2025 net income decreased 33% to $193 million from $289 million, primarily reflecting non-cash impairment and other-related charges; however, adjusted net income increased 2% to $353 million, or approximately 2% on a comparable basis.
- Full-year 2025 adjusted EBITDA increased 3% to $718 million, or 4% on a comparable basis – in line with the company’s expectations.
- Net cash provided by operating activities of $367 million and adjusted free cash flow of $433 million.
Reporting methodology
Beginning in the second quarter of 2025, the company revised its reporting methodology to exclude the impact of all rooms under the Super 8 China master license agreement from its reported system size, RevPAR and royalty rate, and corresponding growth metrics. The company’s financial results will continue to reflect fees due from the Super 8 master licensee in China, which contributed approximately $2 million to the company’s full-year 2025 consolidated adjusted EBITDA.
System size and development
The company’s global system grew 4%, including 1% growth in the U.S. and 7% growth in the higher RevPAR EMEA and Latin America regions.
As of Dec. 31, 2025, the company’s global development pipeline increased 3% vs. the prior year to a record-high level of approximately 2,200 hotels and 259,000 rooms. Key highlights include:
- 3% pipeline growth in both the U.S. and internationally
- Approximately 70% of the pipeline is in the midscale and above segments, which grew 3% YOY
- Approximately 17% of the pipeline is in the extended-stay segment
- Approximately 42% of the pipeline is in the U.S.
- Approximately 77% of the pipeline is new construction and approximately 36% of these projects have broken ground; rooms under construction grew 3% YOY
RevPAR
- Fourth-quarter global RevPAR decreased 6% in constant currency compared to 2024, reflecting declines of 8% in the U.S. and 1% internationally.
- In the U.S., fourth-quarter results included approximately 140 basis points of unfavorable hurricane impacts; excluding which, RevPAR declined approximately 610 basis points YOY reflecting a 360 basis-point reduction in occupancy and a 250 basis-point decline in ADR. Softer results in Florida, Texas and California were partially offset by continued strength across the Midwest.
- Internationally, constant-currency growth of 7% in EMEA and 6% in Latin America, each reflected both improved demand and pricing power, while growth of 1% in Canada was driven by pricing power, partially offset by lower demand. The growth in those regions was more than offset by softness in Asia-Pacific, including China, where RevPAR declined 10%.
- For the full-year, global RevPAR decreased 3% in constant currency compared to 2024, in line with the company’s outlook, reflecting a 4% decline in the U.S. and flat growth internationally. U.S. results reflected a 270 basis-point reduction in occupancy and a 120 basis-point decline in ADR.
Operating results
Fourth quarter
The comparability of the company’s fourth-quarter results is impacted by marketing fund variability. The company’s reported results and comparable-basis results (adjusted to neutralize these impacts) are presented below to enhance transparency and provide a better understanding of the results of the company’s ongoing operations.
- Fee-related and other revenues were $334 million compared to $341 million in the fourth quarter of 2024, reflecting a 5% decline in RevPAR and lower other franchise fees, partially offset by a 19% increase in ancillary revenue and global net room growth of 4%.
- The company generated a net loss of $60 million compared to net income of $85 million in the fourth quarter of 2024, reflecting impairment and other-related costs, lower adjusted EBITDA and higher interest expense. Adjusted net income was $71 million compared to $82 million in the fourth quarter of 2024.
- Adjusted EBITDA decreased 2% to $165 million compared to $168 million in the fourth quarter of 2024. This decrease included a $7 million unfavorable impact from expected marketing fund variability, excluding which adjusted EBITDA grew 2% on a comparable basis. This growth primarily reflects increased ancillary revenues and cost containment measures, including both operational efficiencies and one-time variable reductions, partially offset by lower royalties and franchise fees and elevated costs associated with insurance, litigation defense and employee benefits – all of which are reflective of the broader operating environment.
- The company generated diluted loss per share of $0.80 compared to diluted earnings per share of $1.08 in the fourth quarter of 2024, which primarily reflects lower net income, partially offset by the benefit of a lower share count due to share repurchase activity.
- Adjusted diluted EPS decreased 11% to $0.93 compared to $1.04 in the fourth quarter of 2024. This decrease included an unfavorable impact of $0.07 per share related to marketing fund variability (after estimated taxes). On a comparable basis, adjusted diluted EPS decreased approximately 4% YOY primarily reflecting a higher effective tax rate, as expected, as well as higher interest expense, partially offset by comparable adjusted EBITDA growth and the benefit of share repurchase activity.
Full year
- Fee-related and other revenues grew 2% to $1.43 billion compared to $1.40 billion in full-year 2024, which reflects a 15% increase in ancillary revenues, higher pass-through revenues due to the company’s global franchisee conference and a 4% increase in global net room growth, partially offset by a 3% decline in RevPAR.
- Net income decreased 33% to $193 million compared to $289 million in full-year 2024, reflecting higher impairment and other-related costs, higher interest expense and the absence of a benefit in connection with the reversal of a spin-off related matter, which were partially offset by higher adjusted EBITDA and lower transaction-related expenses in connection with defending an unsuccessful hostile takeover attempt. Adjusted net income was $353 million compared to $347 million in full-year 2024.
- Adjusted EBITDA grew 3% to $718 million compared to $694 million in full-year 2024. This increase included a $2 million unfavorable impact, as expected, from marketing fund variability, excluding which adjusted EBITDA grew 4% on a comparable basis, primarily reflecting higher revenues and cost containment measures, including both operational efficiencies and one-time variable reductions, which were partially offset by lower royalties and franchise fees, along with elevated costs associated with insurance, litigation defense and employee benefits—all of which are reflective of the broader operating environment.
- Diluted earnings per share decreased 31% to $2.50 compared to $3.61 in full-year 2024, which primarily reflects lower net income, partially offset by the benefit of a lower share count due to share repurchase activity.
- Adjusted diluted EPS grew 6% to $4.58 compared to $4.33 in full-year 2024. This increase included an unfavorable impact of $0.02 per share, as expected, related to marketing fund variability (after estimated taxes). On a comparable basis, adjusted diluted EPS increased approximately 6% YOY reflecting comparable adjusted EBITDA growth and the benefit of share repurchase activity, partially offset by higher interest expense.
Outlook
The company provided the following outlook for full-year 2026:
- YOY rooms growth between 4% and 4.5%
- YOY global RevPAR growth between (1.5%) and 0.5%
- Fee-related and other revenues between $1.46 billion and $1.49 billion
- Adjusted EBITDA between $730 million and $745 million
- Adjusted net income between $354 million and $368 million
- Adjusted diluted EPS between $4.62 and $4.80
