Wyndham Hotels & Resorts reported positive results in Q1, including a record development pipeline and systemwide rooms growth of 4%.
Other highlights include:
- Awarded development contracts in the U.S. increased 8% year-over-year.
- Development pipeline grew 3% year-over-year to a record of more than 259,000 rooms and more than 2,200 hotels.
- U.S. RevPAR was flat year-over-year, 250 basis points ahead of the midpoint of expectations.
- Ancillary revenues increased 21% year-over-year.
- Net income remained flat year-over-year at $61 million; adjusted net income increased 9% year-over-year to $73 million, or 6% lower on a comparable basis.
- Adjusted EBITDA increased 8% year-over-year to $156 million, or 1% lower on a comparable basis.
“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, president/CEO, Wyndham Hotels & Resorts. “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.”
The company’s global system grew 4%, including flat growth in the U.S., which includes the impact from the loss of legacy affiliated rooms, 12% direct-franchised growth in the company’s Asia Pacific region and 9% growth in the company’s higher RevPAR EMEA and Latin America regions.
The global development pipeline increased 3% vs. the prior year to a record-high level of more than 259,000 rooms and over 2,200 hotels. Highlights include:
- 3% pipeline growth in the U.S. and 2% growth internationally
- Approximately 70% of the pipeline is in the midscale and above segments
- Approximately 17% of the pipeline is in the extended stay segment
- Approximately 43% of the pipeline is in the U.S.
- Approximately 77% of the pipeline is new construction and approximately 35% of these projects have broken ground; rooms under construction grew 3% year-over-year
First-quarter global RevPAR decreased 1% in constant currency compared with 2025, reflecting flat performance in the U.S. and a 1% decline internationally.
In the U.S., the year-over-year comparison was impacted by approximately 40 basis points of unfavorable hurricane impacts related to first-quarter 2025; excluding which, RevPAR increased more than 600 basis points sequentially and approximately 10 basis points year-over-year reflecting stabilized occupancy and ADR levels. Continued strength across the Midwest and growth in Texas was partially offset by performance in Florida and California, which both improved sequentially yet declined year-over-year.
Internationally, constant-currency growth of 8% in Canada reflected significant pricing power and continued demand growth, while growth of 5% in Southeast Asia and the Pacific Rim and 1% in EMEA each primarily reflected improved demand. The growth in those regions was more than offset by softness in China where RevPAR improved more than 500 basis points sequentially, yet declined 5% year-over-year, and Latin America, which declined 4% year-over-year primarily due to lower U.S. cross-border demand in Mexico.
Outlook
The company has updated its full-year outlook as follows:
- Year-over-year rooms growth between 4% and 4.5%
- Year-over-year global RevPAR growth between -1% and 1%
- Net revenues between $1.47 billion and $1.5 billion
- Adjusted EBITDA between $730 million and $745 million
- Adjusted net income between $351 million and $365 million
