Wyndham Hotels & Resorts, Inc. Q4 FY2025 earnings call

• Closed 2025 strongly with net room growth, adjusted EBITDA and EPS growth. - Opened record rooms and signed many deals, growing development pipeline. - Ancillary fees increased. - EcoSuites brand had openings with RevPAR and margins ramping. - Added Dazzler Select conversions. - Selected by Choctaw nation for brand additions. - Wyndham Rewards membership grew 13% in Q4. - AI initiatives driving direct bookings and cost reductions. - Partnerships with Salesforce and others for AI solutions.

In 2025, net room growth was 4%. Full year comparable adjusted EBITDA and adjusted EPS grew 46%. Opened a record 72,000 rooms. Signed 870 deals, increasing global development pipeline by 3% to nearly 260,000 rooms. Ancillary fee streams increased 15%. Adjusted free cash flow was $433,000,000, with $393,000,000 returned to shareholders. Domestically, system growth driven by conversion activity and new construction; EcoSuites brand had 18 openings. Internationally, net rooms increased 9% (EMEA 8%, Latin America and The Caribbean 5%, Southeast Asia and The Pacific Rim 11%, Mainland China 14%). Fourth quarter global RevPAR declined 6% in constant currency, with domestic down ~6% (excluding hurricane impacts) and international down 1%.

• Expect full year global net room growth between 4 - 4.5%. - Project global RevPAR to finish between up 0.5% to down 1.5%. - Fee related and other revenues expected to be $1,460,000,000 to $1,490,000,000. - Adjusted EBITDA expected to be between $730,000,000 and $745,000,000. - Adjusted net income projected to be $354,000,000 to $368,000,000. - Adjusted diluted EPS projected at $4.62 to $4.8. - Free cash flow conversion before development advances expected to range from 55% to 60%.

• Large European franchisee Rivo Hospitality Group filed for insolvency, impacting value of security and expected recovery.

Q: Put a finer point on what's seen year to date in RevPAR, occupancy build, segments and demand.

A: January US RevPAR down 4% normalized, with positive trends in some states. February continues to improve. Occupancy recovered more in economy and mid scale than upper upscale and luxury.

Q: Tie green shoots into guidance.

A: Not directly built into guidance as some may be small/ hard to quantify, but could contribute to higher end of guidance.

Q: Development as favorite part.

A: Net room growth acceleration, record rooms opened, new construction and conversion growth, large number of signings.

Q: Demand question about infrastructure related bookings.

A: Infrastructure performed below leisure in 2025, but expected to pick up and contribute to RevPAR growth.

Q: RevPAR impact from government shutdown.

A: ~50 basis points headwind in fourth quarter, with some easy comp coming up.

Q: Rivo bankruptcy details.

A: Tied to loan investments made earlier, working with advisers, early in proceedings.

Q: AI initiatives costs and benefits.

A: Nominal costs to connect, no transaction costs, driving direct bookings, cost reductions for call centers.

Q: Net rooms growth and affiliate deals.

A: Affiliate deals add aspirational hotels, consistent with past reporting.

Q: AI ranking system and asset differentiation.

A: Data driven approach, personalizing guest experiences, driving direct bookings.

Q: Ancillary fee growth drivers.

A: U.S. co brand card renewal, new products, partnerships, Wyndham Insider.

Q: China market.

A: Brands recovered first, RevPAR in line with industry, ADR improved, development strong.

Q: U.S. rooms growth.

A: Encouraged by pipeline, conversion rooms, economy and mid scale growth.