Wyndham Hotels & Resorts, Inc. Q1 FY2026 earnings call

• Strong start to the year with RevPAR improvements and development momentum.
• Development pipeline grew to a record over 259,000 rooms.
• Ancillary revenues grew 21%.
• Delivered $64 million free cash flow and returned $85 million to shareholders.
• AI initiatives driving efficiency, cost savings, and revenue growth.
• Wyndham Rewards experiences platform and partnerships creating unique member experiences.
• Strong presence at AHOA Con 26 with high developer enthusiasm for brands and AI technology.

Net revenues were $327 million, adjusted EBITDA was $156 million. Ancillary revenues increased 21%. Global RevPAR improved 450 basis points sequentially. Domestic RevPAR excluding hurricane impact improved over 600 basis points. International RevPAR was down 1% in constant currency. Canada RevPAR increased 8%. EMEA RevPAR grew 1%. Mexico RevPAR fell. Latin America RevPAR excluding Mexico increased 11%. Asia Pacific RevPAR improved nearly 700 basis points. Net rooms grew 4% globally. Domestic net rooms were flat due to affiliate room exits. International net rooms grew 9%. Ancillary revenues driven by Wyndham Rewards credit card products and strategic partnerships. Wyndham Rewards occupancy contribution was 540 basis points, membership enrollments grew 10%, collective length of stay grew 6%.

• Reaffirmed global net room growth expectation of 4% to 4.5%.
• Raised global REVPAR outlook to range of up 1% to down 1%.
• Net revenues expected to be $1.47 billion to $1.5 billion.
• Adjusted EBITDA outlook range remains $730 million to $745 million.
• Adjusted net income range $351 million to $365 million.
• Adjusted diluted EPS outlook range $4.62 to $4.80.
• Marketing fund expected to break even full year.
• Exercised rights to foreclose on and take ownership of two REVO properties in Europe, expecting $10 million net revenues from them in 2026.

• Impact of marketing fund timing on comparability of financial results.
• Uncertainty related to REVO's ongoing insolvency proceedings and its impact on financials.
• Deflationary environment in China affecting ADR.
• Seasonality and limited visibility into peak leisure summer months impacting REVPAR expectations.

Q: Big picture on demand side, where and when did REVPAR improvement start and how much of April is demand vs easier comps?

A: Began in January, saw improvement in states like Texas, California, Florida, Midwest. April STR shows U.S. economy occupancy up 140 basis points to prior year, Wyndham's economy brands outperforming.

Q: Business travel vs leisure travel, talk more on leisure?

A: Saw improvement in cancellation rates, booking lead times, lengths of stay. Tax refunds have potential to unlock discretionary spending. Expect stronger June, July with FIFA and other events.

Q: How have AI initiatives benefited Wyndham and owners?

A: Driven incremental revenue, increased direct bookings, saved labor costs, improved guest satisfaction. 300 basis points incremental direct contribution, 400 basis points guest satisfaction uptick.

Q: Commentary on China performance?

A: China REVPAR improved 540 basis points, occupancy up 8%, ADR still an issue. Development pipeline growing, direct franchising system growing, royalty rates increasing.

Q: U.S. rooms growth, impact of affiliate rooms?

A: U.S. system pressured by affiliate room exits, but development pipeline strong with new contracts, economy rooms stabilizing.

Q: REVPAR guide and credit card business runway?

A: REVPAR guide considers Q1 outperformance and April momentum. Credit card business has long runway with expansion into other markets and other ancillary initiatives.