Wyndham Hotels & Resorts (NYSE:WH) executives said the company finished what management called a “challenging year” with results that matched the outlook it shared in October, highlighted by record development activity, continued growth in ancillary fee streams, and improving U.S. demand trends early in 2026.
2025 results and development momentum
CEO Geoff Ballotti said Wyndham delivered net room growth of 4% in 2025, alongside comparable adjusted EBITDA growth of 4% and comparable adjusted EPS growth of 6%. He emphasized that the company opened a record 72,000 rooms in 2025, calling it the largest number of organic room additions in company history and 13% higher than the prior year.
During Q&A, Ballotti pointed to development as the “one thing” he was most positive about, citing a steady build in net room additions through the year and noting strength in both conversion activity and new construction openings.
RevPAR pressure in Q4, but “green shoots” in early 2026
Ballotti said fourth-quarter global RevPAR declined 6% in constant currency, with domestic RevPAR down about six points (excluding hurricane impacts in 2024) and international RevPAR down one point. He attributed U.S. weakness primarily to softness in Texas, California, and Florida, which collectively account for roughly one quarter of Wyndham’s U.S. room count and, excluding hurricane impacts, declined 11% in the quarter. The company also cited strength in several Midwest and industrial states, but said that was not enough to offset declines in the largest states.
Still, management said booking windows and cancellation rates improved versus the prior-year quarter. Ballotti also said the RevPAR decline improved to down 4% in January (excluding hurricane impacts) and improved further into February, with leisure and corporate bookings “beginning to pick up” as reflected in backlog.
In response to an analyst question about year-to-date trends, Ballotti said January U.S. RevPAR was down 4% on a normalized basis and that the improvement was “demand-driven.” He also described improved trends in Texas and Florida and continued relative strength in Midwest states. He added that normalized U.S. occupancy improved sequentially through late 2025 into January.
International performance mixed; China remains pressured
Internationally, Ballotti said Wyndham increased net rooms 9% in 2025, including growth of 8% in EMEA, 5% in Latin America and the Caribbean, 11% in Southeast Asia and the Pacific Rim, and 14% in mainland China direct franchising.
On RevPAR, management said EMEA posted fourth-quarter RevPAR growth of 7%, driven by Southern Europe and the Middle East, while Latin America rose 6%. Asia-Pacific lagged, with Southeast Asia and the Pacific Rim down 2% due to weakness in Korea, and China down 10% amid continued ADR declines in what Ballotti described as a deflationary economy.
On China specifically, Ballotti said Wyndham’s direct RevPAR performance was about 400 basis points ahead of the industry versus 2019 levels, while acknowledging continued pressure. He said China ADR improved in the quarter versus earlier in the year and that occupancy remained below 2019. Interim CFO Kurt Albert said the company’s 2026 assumptions call for a much closer-to-flat performance in China compared to 2025.
Ancillary fees, loyalty, and AI initiatives
Management highlighted strong growth in ancillary revenues. Ballotti said ancillary fee streams increased 19% in the fourth quarter and 15% for the full year, slightly ahead of expectations. He cited momentum from partnerships, technology initiatives, and co-branded credit cards.
The company also discussed Wyndham Rewards Insider, an annual subscription program launched in October. Ballotti said paid membership doubled month over month in November and doubled again in December as the program was integrated into booking paths and digital platforms. Albert said co-branded credit card performance was a key driver of ancillary growth in 2025 and reiterated plans to launch Wyndham’s first international co-branded credit card in Canada with Mastercard later in 2026, with both no-fee and premium options.
On technology, Ballotti said Wyndham is accelerating “agentic AI” capabilities, noting the company has nearly 350 AI agents handling millions of guest calls and reservation requests and driving “hundreds of basis points” of additional direct bookings while reducing on-property labor costs for franchisees. He also described efforts to connect Wyndham hotel data directly to large language models to reduce reliance on scraping and improve direct booking experiences, including participation in a Google AI Mode booking experience and a connection to Anthropic’s Claude.
Revo insolvency drives non-cash charges; conservative revenue approach in 2026
A major theme of the call was the insolvency of a large European franchisee, Revo Hospitality Group. Albert said Wyndham began deferring all Revo-related revenues starting in the fourth quarter due to collectibility concerns. He added that the hotels remain in system size, RevPAR, and royalty rate metrics, with fees continuing to accrue, but the company has removed Revo-related revenue recognition from its 2026 outlook until there is more certainty.
Wyndham recorded $160 million of non-cash charges in the fourth quarter tied to Revo, including write-downs of loans, receivables, and development advances, as well as the carrying value of Vienna House and tangible assets. Management said it has engaged advisors to pursue remedies and maximize recovery, while noting it is early in the process.
Financial results, capital returns, and 2026 outlook
Albert said fourth-quarter fee-related and other revenues were $334 million and adjusted EBITDA was $165 million. Adjusted diluted EPS was $0.93 on a comparable basis, down 4%, reflecting a higher effective tax rate and higher interest expense, partially offset by EBITDA growth and share repurchases.
For the full year, Wyndham generated approximately $1.43 billion of fee-related and other revenues and $718 million of adjusted EBITDA. Adjusted diluted EPS was $4.58 on a comparable basis. Adjusted free cash flow was $433 million for 2025, and the company returned $393 million to shareholders through dividends and share repurchases. Albert also said the board authorized a 5% increase to the quarterly cash dividend to $0.43 per share, beginning with the dividend expected to be declared in the first quarter of 2026.
Looking ahead, Wyndham guided to 2026 global net room growth of 4% to 4.5% and global RevPAR of +0.5% to -1.5%. Management said Q1 net rooms will be largely flat sequentially due to the planned termination of about 3,000 legacy affiliated rooms, and U.S. RevPAR in Q1 is expected to range from -3% to -2%. For the full year, the company projected:
- Fee-related and other revenues: $1.46 billion to $1.49 billion
- Adjusted EBITDA: $730 million to $745 million
- Adjusted net income: $354 million to $368 million
- Adjusted diluted EPS: $4.62 to $4.80
Albert added that adjusted EBITDA growth would be higher excluding the return of one-time cost savings and the impact of deferred Revo royalties. He also said the company expects marketing funds to break even for the year, with quarterly timing differences.
About Wyndham Hotels & Resorts (NYSE:WH)
Wyndham Hotels & Resorts, Inc (NYSE: WH) is a leading global hospitality company specializing in hotel franchising and management. Established in 2018 through the spin-off of Wyndham Hotel Group from Wyndham Worldwide, the company focuses on the development, marketing and distribution of hotel brands designed to meet the needs of business and leisure travelers. Its core business model centers on franchising agreements, enabling third-party hotel owners to operate under the Wyndham portfolio while accessing the company’s centralized services and support.
The company’s brand portfolio spans economy, midscale and upper-midscale segments, featuring well-known names such as Wyndham, Ramada, Days Inn, Super 8, Microtel Inn & Suites, and La Quinta by Wyndham.
