Wyndham reports record 2024 openings, retention and system growth

Wyndham Hotels & Resorts revealed results for the three months and year ended Dec. 31, 2024, including record openings, retention and growth for the year.

“We’re proud to report a very strong finish to 2024 with net rooms growth of 4% and comparable adjusted EBITDA growth of 7%,” said Geoff Ballotti, president/CEO. “Our team’s focus on expanding into higher FeePAR markets, growing our extended-stay footprint and unlocking new ancillary revenue streams underscore the diverse growth opportunities inherent in our asset-light, resilient business model. What excites us most about our future is the developer interest in and demand for, our brands both here and overseas, reflected in a pipeline that grew another 5% to a record quarter of a million rooms that will open in the coming years with significant FeePAR premiums compared to our existing system. This, when coupled with improving customer demand we’re seeing across both our leisure and infrastructure segments, lays a solid foundation for sustained momentum and meaningful value creation for our shareholders, guests, franchisees and team members for many years to come.”

Highlights include:

Global RevPAR grew 5% compared to fourth quarter 2023 in constant currency, a 400 bps improvement sequentially; full-year global RevPAR grew 2% year-over-year in constant currency.
U.S. RevPAR grew 5% compared to fourth quarter 2023, a 600 bps improvement sequentially; full-year U.S. RevPAR was flat.
Systemwide rooms grew 4% year-over-year.
Opened a record 68,700 rooms globally, representing 4% year-over-year growth, including nearly 28,000 in the U.S., which also grew 4% year-over-year.
Global retention rate reaches record level at 95.7%.
Development pipeline grew 2% sequentially and 5% year-over-year to a record 252,000 rooms.
Fourth-quarter net income increased 70% to $85 million and adjusted net income increased 9% to $82 million, or approximately 13% on a comparable basis; full-year 2024 net income was $289 million, or flat year-over-year, and adjusted net income increased 2% to $347 million, or approximately 4% on a comparable basis.
Fourth-quarter adjusted EBITDA increased 9% to $168 million, or approximately 12% on a comparable basis; full-year 2024 adjusted EBITDA increased 5% to $694 million, or approximately 7% on a comparable basis.

The company’s global system grew 4%. Importantly, these results included 4% growth in the higher RevPAR midscale and above segments in the U.S. as well as strong growth in the company’s higher RevPAR EMEA and Latin America regions, which grew a combined 7%. The company also increased its retention rate by another 10 basis points year-over-year, ending the year at a record 95.7%.

At year-end 2024, the company’s global development pipeline consisted of approximately 2,100 hotels and 252,000 rooms, representing another record-high level and a 5% year-over-year increase. Key highlights include:

7% growth in the U.S. and 4% internationally
18th consecutive quarter of sequential pipeline growth
Approximately 70% of the pipeline is in the midscale and above segments, which grew 5% year-over-year
Approximately 17% of the pipeline is in the extended-stay segment
Approximately 58% of the pipeline is international
Approximately 78% of the pipeline is new construction and approximately 35% of these projects have broken ground

Fourth quarter global RevPAR increased 5% in constant currency compared to 2023, reflecting 5%growth in the U.S., which accelerated throughout the quarter, and 6% growth internationally. For the full year, global RevPAR was flat compared to 2023 on a reported basis, in line with the company’s outlook, and grew 2% in constant currency reflecting flat growth in the U.S. and 8%growth internationally.

In the U.S., fourth quarter results included 140 basis points of favorable hurricane impacts; excluding which, RevPAR grew 4% year-over-year reflecting strength in both weekday business bookings and weekend leisure demand. Overall, U.S. RevPAR improved 620 basis points sequentially from third quarter, or 480 basis points excluding hurricane impacts.

Internationally, RevPAR strength was driven by ADR growth of 6% in constant currency, while occupancy remained flat. The company’s EMEA and Latin America regions saw the largest increases year-over-year in the fourth quarter, collectively growing 15%. RevPAR for the company’s China region declined 11% in the fourth quarter, driven by a 10% decrease in ADR.