Wyndham Hotels & Resorts, Inc. functions internationally as a prominent hotel franchisor. Its business activities are primarily structured around two segments: Hotel ...
Wyndham Hotels & Resorts, Inc. (NYSE: WH) is one of the world's largest hotel franchising companies, headquartered in Parsippany, New Jersey. Founded in 1981 in Dallas, Texas, by Trammell Crow, Wyndham has grown through strategic acquisitions and franchising to become a dominant player in the hospitality industry. The company operates ...Wyndham Hotels & Resorts, Inc. (NYSE: WH) is one of the world's largest hotel franchising companies, headquartered in Parsippany, New Jersey. Founded in 1981 in Dallas, Texas, by Trammell Crow, Wyndham has grown through strategic acquisitions and franchising to become a dominant player in the hospitality industry. The company operates through two primary segments: Hotel Franchising and Hotel Management. Hotel Franchising licenses its diverse portfolio of brands to independent property owners, providing services such as brand standards, marketing, reservation systems, and training. Hotel Management offers comprehensive management services for full-service and limited-service hotels. Wyndham's brand portfolio includes well-known names such as Super 8, Days Inn, Travelodge, Microtel, Howard Johnson, La Quinta, Ramada, Baymont, AmericInn, Wingate, Wyndham Alltra, Wyndham Garden, Ramada Encore, Hawthorn, Registry Collection, Trademark Collection, TRYP, Dazzler, Esplendor, Wyndham Grand, Dolce, and Wyndham. As of 2024, the company has approximately 9,286 hotels and over 819,000 rooms worldwide, making it the world's largest hotel franchisor by property count. Wyndham's business model is asset-light, with a focus on franchising rather than owning properties, which allows for stable revenue streams from royalty fees, marketing fees, and other services. The company also operates Wyndham Rewards, an award-winning loyalty program that enhances customer retention and drives direct bookings. Financially, Wyndham has shown resilience, with a market capitalization of around $5.5 billion, a price-to-earnings ratio of approximately 26.7, and a dividend yield of about 2.3%. The company's financial metrics indicate strong operating margins (EBITDA margin of 34.9%) and a solid return on equity of 42.1%. However, it carries significant debt, with a debt-to-equity ratio of 5.57, reflecting its leveraged acquisition strategy. Under the leadership of President and CEO Geoffrey A. Ballotti, who has over 35 years of industry experience, Wyndham continues to expand its global footprint and enhance its brand offerings. The company has a workforce of approximately 2,000 employees, leveraging a franchise model that supports thousands of independently owned hotels. Wyndham's long-term strategy focuses on international growth, especially in emerging markets, and enhancing its loyalty program to drive direct bookings. With a commitment to innovation and guest satisfaction, Wyndham remains a key player in the travel and hospitality sector.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$1.4B
+1.5%
+14.7%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$193.0M
-33.2%
+67.2%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+58.9%
-41.1%
+115.2%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+28.4%
-19.2%
+25.4%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
+13.5%
-34.2%
+45.8%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$321.0M
+33.2%
+120.0%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
+22.5%
+31.2%
+91.8%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
653.2%
+72.2%
-34.2%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
0.71x
-28.7%
+196.4%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator : Welcome to the Wyndham Hotels & Resorts Second Quarter 2026 Earnings Conference Call. [Operator Instructions] I would now like to turn the call over to Matt Capuzzi, Senior Vice President, Financial Planning and Analysis and Investor Relations.
Matt Capuzzi : Thank you, operator. Good morning, and thank you for joining us. With me today are Geoff Ballotti, our CEO; and Amit Sripathi, our CFO. Before we get started, I want to remind you that our remarks today will contain forward-looking statements. These statements are subject to risk factors that may cause our actual results to differ materially from those expressed or implied. These risk factors are discussed in detail in our most recent annual report on Form 10-K filed with the Securities and Exchange Commission and any subsequent reports filed with the SEC. We will also be referring to a number of non-GAAP measures. Corresponding GAAP measures and a reconciliation of non-GAAP measures to GAAP metrics are provided in our earnings release and our investor presentation, which are available on our Investor Relations website at investor.wyndhamhotels.com. We are providing certain measures discussing future impact on a non-GAAP basis only because without unreasonable efforts, we are unable to provide the comparable GAAP metric. In addition, last evening, we posted an investor presentation containing supplemental information on our Investor Relations website. We may continue to provide supplemental information on our website and on our social media channels in the future. Accordingly, we encourage investors to monitor our website and our social media channels in addition to our press releases, filings submitted with the SEC and any public conference calls or webcasts. With that, I will turn the call over to Geoff. Geoff?
Geoffrey Ballotti : Thanks, Matt. Good morning, everyone, and thanks for joining us today. I'd like to start off by thanking those of you on the call who have reached out to me to wish me well during my treatment for multiple myeloma. I'm getting great care. I'm staying busy with work, and I'm very optimistic about the treatment path ahead. And I can't tell you how much your words of encouragement have meant to me. So thank you for that. We're very pleased to report another strong quarter where we opened a record of nearly 18,000 rooms, 7% more rooms than we opened last year. We drove sequential net room growth, both domestically and internationally, and we expanded our development pipeline to a record of approximately 261,000 rooms with a FeePAR premium approximately 30% higher than our existing domestic and international systems. U.S. RevPAR grew 2%, 120 basis points ahead of our expectations. And on a comparable basis, we grew adjusted EBITDA and adjusted EPS each by 3%. Year-to-date, our resilient, highly cash-generative business has produced approximately $169 million of free cash flow, and we've returned over $170 million to our shareholders. While global …