Wyndham Hotels & Resorts, for the three months ended June 30, reported a record development pipeline of approximately 261,000 rooms, while U.S. RevPAR grew 2% year-over-year.
Highlights include:
- Systemwide rooms grew 4% year-over-year (YOY), excluding the insolvent Revo Hospitality Group rooms.
- Development pipeline grew 4% YOY, excluding Revo rooms, carrying a FeePAR premium of approximately 30% to existing domestic and international systems.
- Net income increased 17% YOY to $102 million; adjusted net income increased 8% YOY to $111 million, or flat on a comparable basis.
- Diluted EPS grew 20% to $1.36 and adjusted diluted EPS grew 11% YOY to $1.48, or 3% higher on a comparable basis.
- Adjusted EBITDA increased 9% YOY to $212 million, or 3% higher on a comparable basis.
- Net cash provided by operating activities increased 30% to $91 million and adjusted free cash flow increased 19% to $105 million.
“Our solid second-quarter results reflect the continued strength of Wyndham’s asset-light, fee-based business, bolstered by system expansion, higher ancillary revenues and accelerating U.S. RevPAR growth that exceeded our expectations—delivering comparable-basis adjusted EBITDA growth of 3%,” said Geoff Ballotti, president/CEO. “Record second-quarter openings focused on higher FeePAR hotels in the midscale and above segments demonstrate franchisees’ continued confidence in our brands and Wyndham’s compelling ‘Owner First’ value proposition. As domestic RevPAR trends, net rooms growth, global pipeline development and ancillary revenue streams continue to strengthen, we remain confident in our ability to deliver sustainable long-term growth and create meaningful value for our shareholders, franchisees and guests.”
System size and development
During the preparation of its year-end 2025 financial statements, Wyndham learned that Revo, a large European franchisee, had filed for insolvency proceedings under self-administration for most of its operating entities. The company removed all Revo-related revenue recognition from its 2026 outlook and reported results given the uncertainty on expected outcomes and collectability. In addition, the company’s 2026 net room growth outlook also excluded any impact associated with Revo’s ongoing insolvency and, as such, the company’s global net room growth metrics are also presented excluding Revo-related rooms.
The company’s global system, excluding Revo, grew 4%. Its U.S. system grew 10 basis points sequentially and was flat YOY. International growth of 10% YOY, excluding Revo, included 12% direct-franchised growth in the company’s Asia-Pacific region and 11% growth in the higher RevPAR EMEA and Latin America regions.
As of June 30, the company’s global development pipeline increased 4% vs. the prior year, excluding Revo, to a record-high of approximately 261,000 rooms and more than 2,200 hotels.
Key highlights of the pipeline include:
- 2% growth in the U.S. and 5% growth internationally, excluding Revo
- Approximately 69% is in the midscale and above segments
- Approximately 17% is in the extended-stay segment
- Approximately 42% is in the U.S.
- Approximately 78% is new construction and approximately 35% of these projects have broken ground; rooms under construction grew 4% YOY
- Approximately 30% FeePAR premium compared to existing domestic and international systems
RevPAR
Second-quarter global RevPAR decreased 1% in constant currency compared to 2025, reflecting 2% growth in the U.S. and a 6% decline internationally.
In the U.S., RevPAR improved 2% both YOY and sequentially, reflecting improved occupancy and ADR levels. Overall, U.S. RevPAR results were primarily driven by continued strength across the Midwest and both sequential and YOY growth in Texas, Florida and California.
Internationally, constant currency growth of 2% in Canada reflected sustained pricing power, while growth of 5% in Southeast Asia and the Pacific Rim primarily reflected improved demand.
Growth in those regions was more than offset in Latin America, which declined 7% YOY primarily due to lower U.S. cross-border demand in Mexico; EMEA, which declined 6% YOY largely driven by the geopolitical conflict in the Middle East as well as softness in the performance of Revo hotels in its insolvency; and China, which declined by 5% YOY primarily due to continued deflationary pricing pressure.
Operating Results
Net revenues declined 6% to $375 million compared to $397 million in the second quarter of 2025, reflecting the absence of pass-through revenues due to the company’s global franchisee conference in May 2025. In addition, the decline reflected lower other franchise fees and the deferral of fees from Revo, which was partially offset by higher ancillary revenues, EBITDA-neutral revenues from the two Revo hotels the company took possession of and global net rooms growth, excluding Revo, of 4%.
Net income increased 17% to $102 million compared to $87 million in the second quarter of 2025, primarily reflecting higher adjusted EBITDA and lower restructuring and other-related costs, partially offset by increased interest expense. Adjusted net income grew 8% to $111 million compared to $103 million in the second quarter of 2025.
Adjusted EBITDA increased 9% to $212 million compared to $195 million in the second quarter of 2025. This increase included a $11 million favorable impact from marketing fund variability, excluding which adjusted EBITDA increased 3% on a comparable basis, primarily reflecting lower general and administrative expenses driven largely by insurance recoveries, the timing of variable costs and higher ancillary revenues, partially offset by a decline in other franchise fees and the deferral of fees from Revo.
Outlook
- The company is updating its full-year outlook as follows:
- Year-over-year rooms growth between 4% and 4.5%
- Year-over-year global RevPAR growth flat to 1%
- Net revenues between $1.48 billion and $1.50 billion
