PARSIPPANY, NJ—Wyndham Hotels & Resorts has reported results for the three months and year ended Dec. 31, 2019. The company reported a revenue increase of 10% for the full year.
“We finished 2019 with another solid quarter, capping off a year in which we delivered rooms growth, earnings growth and free cash flow that were in line with our expectations despite headwinds from a soft RevPAR environment. We achieved these results through consistent execution, careful expense management and disciplined capital allocation,” said Geoffrey A. Ballotti, CEO. “As we enter 2020, we are confident in the strength and resilience of our business and remain focused on executing every day to deliver exceptional value for our hotel owners, hotel guests and shareholders.”
Among the highlights:
- Diluted earnings per share for the quarter increased 58% to $0.68 and was unchanged for the full-year at $1.62; adjusted diluted EPS grew 40% to $0.81 for the quarter and 21% to $3.28 for the full-year.
- Net income increased 49% to $64 million for the quarter, and decreased 3% to $157 million for the full-year; adjusted net income increased 35% to $77 million for the quarter, and 17% to $317 million for the full-year.
- Adjusted EBITDA increased 22% to $153 million for the quarter, and 21% to $613 million for the full-year.
- System-wide rooms grew 3% year-over-year, including U.S. rooms growth of 1% and international rooms growth of 6%.
- The company’s development pipeline grew 7% year-over-year to 193,000 rooms.
- U.S. RevPAR declined 3% compared to the prior-year quarter, and international RevPAR remained unchanged compared to the prior-year quarter in constant currency.
- More than $100 million was returned to shareholders in the quarter, through share repurchases and dividends, bringing it to more than $350 million for the full-year 2019.
Revenues decreased 7% to $492 million, compared to $527 million in the fourth quarter of 2018. The decline reflects lower pass-through cost-reimbursement revenues, which are inconsequential to adjusted EBITDA, in the company’s hotel management business. Excluding cost reimbursements, revenue grew 2% reflecting growth in royalties and franchise fees, higher license fees, and an increase in marketing, reservation and loyalty fees, partially offset by lower other revenues.
Revenues increased 10% to $2,053 million, compared to $1,868 million in 2018. Results reflect $267 million of incremental revenues from La Quinta and $115 million of lower cost-reimbursement revenues in the company’s hotel management business, which have no impact on adjusted EBITDA. Excluding the impact of these items, revenues increased 3% primarily due to higher license fees, an increase in marketing, reservation and loyalty fees and higher other revenues, partially offset by a $20 million reduction to revenues related to the company’s agreement with CorePoint Lodging.
As of Dec. 31, 2019, the company’s hotel system consisted of approximately 9,300 properties and more than 831,000 rooms, a 3% year-over-year increase. The company’s development pipeline consisted of 1,500 hotels and approximately 193,000 rooms, a 7% year-over-year room increase or 2% sequentially. Approximately 57% of the company’s development pipeline is international and 70% is new-construction.
