Skip to content
Search

Latest Stories

Wyndham's income dips, pipeline grows after failed takeover bid

RevPAR rose 1 percent from 2023, with a 5 percent U.S. decline and 14 percent global growth

Wyndham's income dips, pipeline grows after failed takeover bid

WYNDHAM HOTELS & RESORTS reported a net income of $16 million for the first quarter ending March 31, down from $67 million in the same period of 2023. The decrease primarily resulted from transaction-related expenses due to an unsuccessful hostile takeover attempt by Choice Hotels International, Wyndham said in a statement.

The company’s global development pipeline rose 8 percent to reach a record 243,000 rooms and nearly 2,000 hotels, the statement added. The company opened 13,000 rooms, showing a 27 percent year-over-year increase. This achievement signifies the 15th consecutive quarter of sequential pipeline growth.


“We’re thrilled to announce another strong quarter of progress in our executions, openings, franchisee retention and net room growth around the world,” said Geoff Ballotti, Wyndham’s president and CEO. “Increased interest from hotel owners in our brands has propelled our development pipeline to a record 243,000 rooms, marking an impressive 8 percent increase. Our strong balance sheet and cash flow generation capabilities provide significant opportunity to continue to enhance returns to our shareholders over both the short and long-term, as evidenced by our board of directors’ approval of a $400 million increase in our share repurchase authorization.”

The company entered the upscale extended stay segment through a deal with WaterWalk Extended Stay by Wyndham.

Other key highlights include:

  •  Improved global retention rate by 30 basis points year-over-year on an LTM-basis to 95.6 percent.
  •  Secured 171 contracts for legacy brands, reflecting an 8 percent increase year-over-year.
  •  Returned $89 million to shareholders through $57 million of share repurchases and quarterly cash dividends of $0.38 per share.
  •  Increased share repurchase authorization by $400 million.

RevPAR trends 

Wyndham's global system expanded by 4 percent, with 1 percent growth in the U.S. and 8 percent growth internationally, the company said. These figures align with expectations, driven by robust growth in the higher RevPAR midscale and above segments in the U.S. and a 3 percent increase in the direct franchising business in China, along with 13 percent growth.

RevPAR increased by 1 percent in constant currency compared to 2023, driven by a 5 percent decrease in the U.S. and a 14 percent international growth. The company faced its toughest year-over-year comparisons in the U.S. during the first quarter, resulting in a 440 basis points decline in occupancy and a 50 basis points decrease in ADR.

Wyndham saw year-over-year RevPAR growth in all other regions globally, primarily due to sustained pricing strength, with ADR increasing by 12 percent and occupancy rising by 2 percent, the statement said.

Revenues sink 

Wyndham’s $51 million decline in net income YOY in the first quarter is mainly due to transaction-related expenses resulting from the unsuccessful hostile takeover attempt by Choice Hotels, the company said. Other factors included an impairment charge primarily related to development advance notes and higher interest expenses.

Adjusted EBITDA was $141 million compared to $147 million in Q1 2023. Excluding a $10 million impact from marketing fund variability, adjusted EBITDA grew 3 percent, reflecting improved expense timing.

Diluted earnings per share decreased to $0.19 from $0.77 in Q1 2023, driven by lower net income, partially offset by share repurchase benefits. Adjusted diluted EPS was $0.78 compared to $0.86 in the first quarter of 2023, with a $0.09 per share impact from expected marketing fund variability. Adjusted diluted EPS increased 1 percent year-over-year, with EBITDA growth and share repurchase benefits offset by higher interest expenses.

Wyndham’s fee-related and other revenues totaled $304 million, down from $308 million in the first quarter of 2023. This decline was attributed to a $5 million decrease in royalty and franchise fees, partly offset by an 8 percent increase in ancillary revenue streams.

The decrease in royalties and franchise fees was primarily influenced by the decline in U.S. RevPAR and the comparison with the company's highest quarter of other franchise fees, partially offset by global net room growth and increased international RevPAR.

Marketing fund expenses exceeded revenues by $14 million in the first quarter of 2024, in line with expectations, compared to $4 million in Q1 2023. The company anticipates balancing marketing fund revenues and expenses for the full-year 2024.

2024 outlook:

  • YOY rooms growth: 3 percent-4 percent
  • YOY global RevPAR growth: 2 percent-3 percent
  • Fee-related and other revenues: $1.43 billion-$1.46 billion
  • Adjusted EBITDA: $690 million-$700 million
  • Adjusted net income: $341 million-$351 million
  • Adjusted diluted EPS: $4.18-$4.30

Hilton Worldwide Holdings posted a $268 million net income in the first quarter of this year, with a 2 percent increase in system-wide comparable RevPAR compared to the first quarter of 2023. The company's fee-based model and strong development efforts fueled performance, showing steady progress in signings, starts, and openings, indicating a robust pipeline.

More for you

Mark Hoplamazian and Greg Friedman at Hunter Hotel Conference 2025

Hyatt's Hoplamazian, Peachtree's Friedman to speak at Hunter

What Will Mark Hoplamazian Share at Hunter 2025?

MARK HOPLAMAZIAN, PRESIDENT and CEO of Hyatt Hotels Corp., will join Greg Friedman, managing principal and CEO of Peachtree Group, for a fireside chat at the Hunter Hotel Investment Conference on March 19. Hunter introduced this format last year with Anthony Capuano, CEO of Marriott International, as the featured guest.

In “A Conversation with Mark Hoplamazian,” he will share insights on his hospitality career, leadership approach, Hyatt's market position, company outlook and industry developments, Hunter said in a statement.

Keep ReadingShow less
Ritesh Agarwal speaking at Mumbai Tech Week 2025, sharing his washroom-cleaning leadership

"I still clean washrooms" – OYO founder Agarwal

How Ritesh Agarwal Leads OYO with Hands-On Work in 2025

RITESH AGARWAL, FOUNDER and CEO of OYO, revealed that he still cleans hotel washrooms as part of his leadership approach, setting an example for his team, according to India’s Economic Times daily. He was speaking at the second edition of Mumbai Tech Week on March 1.

Agarwal, 31, who founded OYO in 2012 and grew it into a global hospitality firm with more than 1 million rooms in 80 countries, was responding to a question on overcoming fear of failure.

Keep ReadingShow less
ઇલિનોઇસ માનવ તસ્કરી વિરોધી બિલ પસાર કર્યું

ઇલિનોઇસ માનવ તસ્કરી વિરોધી બિલ પસાર કર્યું

ઇલિનોઇસ સેનેટની સ્થાનિક સરકાર સમિતિએ SB 1422ને મંજૂરી આપી, કર્મચારીઓની તાલીમ ફરજિયાત કરીને માનવ તસ્કરી સામે લડવાના હોટલ ઉદ્યોગના પ્રયાસોને મજબૂત બનાવ્યા. કાયદો સ્થાનિક સરકાર અને કાયદાના અમલીકરણને અનુપાલન પર દેખરેખ રાખવા અને ઉલ્લંઘન માટે દંડ ફટકારવાને મંજૂરી આપે છે.

ઇલિનોઇસ હોટેલ એન્ડ લોજિંગ એસોસિએશન સહિતના ઉદ્યોગ સંગઠનોએ સેન. માઇક હેલ્પિન (ડી-રોક આઇલેન્ડ) દ્વારા રજૂ કરાયેલા બિલની પ્રશંસા કરી હતી, જે હવે સંપૂર્ણ સેનેટ દ્વારા મતની રાહ જોઈ રહ્યું છે.

Keep ReadingShow less
યુએસ એર ટ્રાવેલ વર્લ્ડ કપ અને ઓલિમ્પિક્સ માટે તૈયાર નહીઃ યુએસટીએ

યુએસ એર ટ્રાવેલ વર્લ્ડ કપ અને ઓલિમ્પિક્સ માટે તૈયાર નહીઃ યુએસટીએ

યુ.એસ. ટ્રાવેલ એસોસિએશનના સીમલેસ એન્ડ સિક્યોર ટ્રાવેલ કમિશન અનુસાર, 2026 વર્લ્ડ કપ અને 2028 લોસ એન્જલસ ઓલિમ્પિક્સની હવાઈ મુસાફરીની માંગ માટે યુ.એસ. એર ટ્રાવેલની જરા પણ તૈયારીઓ નથી. તાત્કાલિક પગલાં ન લેવાયા તો જૂની સિસ્ટમ વિઝા, જરીપુરાણું માળખું અને અપૂરતી સુરક્ષા ટેકનિક અંગેની ચિંતાઓ વચ્ચે વધતા મુલાકાતીઓને પહોંચી વળવામાં રીતસરની સંઘર્ષ કરતી હશે.

USTA-કમિશ્ડ રિપોર્ટમાં અંદાજ છે કે 2026 વર્લ્ડ કપ, 2028 ઓલિમ્પિક્સ અને પેરાલિમ્પિક્સ, 2025 રાયડર કપ અને યુએસના 250માં જન્મદિવસની ઉજવણી 40 મિલિયન મુલાકાતીઓ આવી શકે છે અને આર્થિક પ્રવૃત્તિમાં $95 બિલિયન જનરેટ કરી શકે છે.

Keep ReadingShow less
US air travel challenges for 2026 World Cup and 2028 Olympics

USTA: U.S. air travel unprepared for World Cup, Olympics

US Air Travel Faces Challenges for 2026 World Cup, 2028 Olympics

THE U.S. IS unprepared for the air travel demands of the 2026 World Cup and 2028 Los Angeles Olympics, according to the U.S. Travel Association’s Commission on Seamless and Secure Travel. Without immediate action, the outdated system will struggle with increased visitors amid concerns over visas, aging infrastructure and inadequate security technology.

The USTA-commissioned report estimates the 2026 World Cup, 2028 Olympics and Paralympics, 2025 Ryder Cup and the U.S.’s 250th birthday celebrations could draw 40 million visitors and generate $95 billion in economic activity.

Keep ReadingShow less