Wyndham Hotels & Resorts, for the three months ended March 31, reported that it opened a first-quarter record 15,000 rooms globally for a 13% year-over-year increase. The company’s development pipeline grew to a record 254,000 rooms.
“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, president/CEO. “While the macro environment remains uncertain, we’re staying focused on what we can control—investing in high-quality growth, executing with discipline and supporting our franchisees. Our asset-light, franchise-only business model has consistently outperformed during economic downturns and positions us well to deliver long-term value for our shareholders through all phases of any economic cycle.”
Highlights include:
- Systemwide rooms grew 4% YOY.
- Awarded 181 development contracts globally, an increase of 6% YOY.
- Global RevPAR grew 2% in constant currency.
- Fee-related and other revenues increased 4% YOY.
- Diluted earnings per share of $0.78 compared to $0.19 in the prior-year quarter and adjusted diluted EPS grew 10% YOY to $0.86, or 20%, on a comparable basis.
- Net income of $61 million compared to $16 million in the prior-year quarter; adjusted net income increased 5% YOY to $67 million, or 14% on a comparable basis.
- Adjusted EBITDA increased 3% YOY to $145 million, or 9% on a comparable basis.
System size and development
Wyndham’s global system grew 4%. These results included 4% growth in the higher RevPAR midscale and above segments in the U.S., as well as strong growth in the higher RevPAR EMEA and Latin America regions, which grew a combined 6%. The company remains on track to achieve its net room growth outlook of 3.6% to 4.6% for the full-year 2025.
On March 31, the company’s global development pipeline consisted of approximately 2,140 hotels and 254,000 rooms, representing another record-high level and a 5% YOY increase. Key highlights include:
- 5% growth in the U.S. and 4% internationally
- 19th consecutive quarter of sequential pipeline growth
- Approximately 70% of the pipeline is in the midscale and above segments, which grew 7% YOY
- Approximately 17% of the pipeline is in the extended-stay segment
- Approximately 58% of the pipeline is international
- Approximately 77% of the pipeline is new construction and approximately 35% of these projects have broken ground
- During the first quarter, the company awarded 181 new contracts, an increase of 6% YOY.
RevPAR
First-quarter global RevPAR increased 2% in constant currency compared to 2024, reflecting 2% growth in the U.S. and 3% growth internationally.
In the U.S., RevPAR growth includes 100 basis points of benefit from hurricanes and the timing of the Easter holiday. Excluding those factors, the company’s U.S. RevPAR grew 60 basis points YOY as pricing strength was partially offset by softer demand with the pullback more pronounced during March.
Internationally, RevPAR growth was also driven by pricing power. The company continued to see strong performance in its EMEA and Latin America regions, with YOY growth of 6% and 25%, respectively, reflecting robust pricing power, partially offset by modest occupancy declines. In China, demand remained steady but RevPAR declined 8% YOY reflecting continued pricing pressure.
First-quarter operating results
Fee-related and other revenues grew 4% to $316 million compared to $304 million in first–quarter 2024, which reflects higher royalties and franchise fees and higher ancillary revenues.
The company generated net income of $61 million compared to $16 million in first-quarter 2024. The increase primarily reflects lower transaction-related expenses in connection with defending an unsuccessful hostile takeover attempt. Other items primarily include the absence of impairment and restructuring costs recorded in first-quarter 2024, partially offset by higher interest expense. Adjusted net income grew 5% to $67 million compared to $64 million in first-quarter 2024.
Adjusted EBITDA grew 3% to $145 million compared to $141 million in first-quarter 2024. This increase included an $8 million unfavorable impact from marketing fund variability, excluding which adjusted EBITDA grew 9% on a comparable basis, primarily reflecting higher fee-related revenues and margin expansion.
Diluted earnings per share was $0.78 compared to $0.19 in first-quarter 2024. This increase reflects higher net income and the benefit of a lower share count due to share repurchase activity.
Adjusted diluted EPS grew 10% to $0.86 compared to $0.78 in first-quarter 2024. This increase included an unfavorable impact of $0.07 per share related to marketing fund variability (after estimated taxes). On a comparable basis, adjusted diluted EPS increased approximately 20% YOY, reflecting comparable adjusted EBITDA growth, lower depreciation and amortization and the benefit of share repurchase activity, partially offset by higher interest expense.
During first-quarter 2025, the company’s marketing fund expenses exceeded revenues by $22 million; while in first-quarter 2024, the marketing fund expenses exceeded revenues by $14 million, resulting in $8 million of marketing fund variability.
Full-year 2025 outlook
The company adjusted its outlook to reflect a softer-than-expected RevPAR environment.
- YOY global RevPAR growth is now expected to be between -2% to 1%
- Fee-related and other revenues has been updated to between $1.45 billion and $1.49 billion
- Adjusted EBITDA has been changed to between $730 million to $745 million
- Adjusted net income has been adjusted to between $358 million and $372 million
