WYNDHAM HOTELS & RESORTS, INC. Q2 FY2025 earnings call

• Global system growth of 4% and sequential net room growth across all regions. • Comparable adjusted EBITDA grew 5% and EPS grew 11%. • Ancillary fee streams increased nearly 20%. • Unveiled new technology-driven tools like Wyndham Gateway and Wyndham Connect PLUS. • Wyndham Global Conference registered over 6,000 owners and strategic sourcing partners, with franchisee satisfaction high. • Released first-annual Hotel Owner Trends Report showing owners confident in the industry's resilience and growth prospects. • Opened over 16,000 rooms in Q2, with contract signings up 40% and global development pipeline at a record 255,000 rooms.

Global system growth was 4%, with comparable adjusted EBITDA growing 5% and EPS growing 11% despite a challenging RevPAR environment. Ancillary fee streams increased nearly 20%. U.S. and international royalty rates expanded. Domestically, midscale and above brands grew 3% with new construction openings and strong conversion activity. Internationally, net rooms increased 8%, with EMEA growing net rooms by 5% and developing a record pipeline of 255,000 rooms. Q2 opened over 16,000 rooms, with contract signings up 40% year-over-year, driving global development pipeline growth to a record.

• Net room growth outlook revised to 4% to 4.6%, raising the low end by 40 basis points due to excluding the Super 8 China master license portfolio. • EPS outlook raised to $4.60 to $4.78. • Full year constant currency global RevPAR growth expected to range between down 2% to up 1%. • Marketing fund expected to break even on a full year basis, with seasonality expected to have marketing funds underspend by ~$10 million in Q3 and Q4.

• Operational challenges with the Super 8 China master licensee, including violations of the license agreement and potential termination, which led to revising reporting metrics to exclude this portfolio. • Macro environment challenges such as ongoing economic volatility, trade tensions, and inflation affecting RevPAR and market demand.

Q: Meredith Jensen of HSBC asked about $550 million potential for shareholder returns or business development.

A: Michele Allen said $550 million includes ~$110 million for key money, with remaining for share repurchases or strategic transactions, balancing active deal environment with opportunistic share repurchases.