Wyndham Hotels & Resorts, for the three months ended Sept. 30, reported that its development pipeline grew 4% YOY and 1% sequentially to a record 257,000 rooms. Third-quarter global RevPAR decreased 5% in constant currency compared to 2024, reflecting declines of 5% in the U.S. and 2% internationally.
“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, president/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—all while expanding our portfolio with high-quality, FeePAR-accretive hotels. 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 well into 2026 and beyond.”
Third-quarter highlights:
- Systemwide rooms grew 4% YOY.
- Awarded 204 development contracts globally, an increase of 24% YOY.
- Ancillary revenues increased 18% compared to third-quarter 2024 and 14% on a year-to-date basis.
- Diluted earnings per share (EPS) increased 5% YOY to $1.36; adjusted diluted EPS grew 5% to $1.46, or increased 1% on a comparable basis.
- Net income increased 3% YOY to $105 million; adjusted net income increased 2% to $112 million, or decreased 2% on a comparable basis.
- Adjusted EBITDA increased 2% YOY to $213 million, or remained flat on a comparable basis.
System size and development
Wyndham’s global system grew 4% including 2% growth in the higher RevPAR midscale and above segments in the U.S. and 7% growth in the higher RevPAR EMEA and Latin America regions.
On Sept. 30, the company’s pipeline consisted of approximately 2,180 hotels and 257,000 rooms, representing another record-high level and a 4% YOY increase. Key highlights include:
- Awarded 204 new contracts, an increase of 24% YOY.
- 4% pipeline growth in the U.S. and 4% growth internationally
- Approximately 70% of the pipeline is in the midscale and above segments, which grew 4% YOY
- Approximately 17% of the pipeline is in the extended-stay segment
- Approximately 58% of the pipeline is international
- Approximately 75% of the pipeline is new construction and approximately 36% of these projects have broken ground; rooms under construction grew 3% YOY
RevPAR
Third-quarter global RevPAR decreased 5% in constant currency compared to 2024, reflecting declines of 5% in the U.S. and 2% internationally.
In the U.S., RevPAR performance reflected a 300 basis-point reduction in occupancy and a 200 basis-point decline in ADR. Softer results in Texas, Florida and California were partially offset by continued strength across the Midwest.
Internationally, the decrease was primarily driven by Asia-Pacific, including China where RevPAR declined 10%, and Latin America, where RevPAR declined 5%. This was partially offset by 4% growth in the EMEA region and 8% growth in Canada, both primarily reflecting pricing power.
Q3 operating results
The comparability of Wyndham’s third-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 $382 million compared to $394 million in third=quarter 2024, reflecting a 5% decline in RevPAR and lower other franchise fees, partially offset by an 18% increase in ancillary revenue, royalty rate expansion both domestically and internationally and global net room growth of 4%.
The company generated net income of $105 million compared to $102 million in third-quarter 2024, primarily due to higher adjusted EBITDA, partially offset by higher interest expense.
Adjusted net income was $112 million compared to $110 million in third-quarter 2024.
Adjusted EBITDA grew 2% to $213 million compared to $208 million in third-quarter 2024. This increase included a $6 million favorable impact from marketing fund variability, excluding which adjusted EBITDA remained flat on a comparable basis as 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—were more than offset by cost containment measures, including both operational efficiencies and one-time variable reductions.
Full-year 2025 outlook
The company is updating its full-year outlook as follows:
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- YOY rooms growth between 4% and 4.6% (same as prior outlook)
- YOY global RevPAR growth decrease between 3% and 2%
- Fee-related and other revenues between $1.43 billion and $1.45 billion
- Adjusted EBITDA between $715 million and $725 million
- Adjusted net income between $347 million and $358 million
