Wyndham Hotels & Resorts (WH) Q1 2026 earnings summary

Executive summary

• Achieved 4% net room growth year-over-year, reaching 869,300 rooms, with international growth offsetting flat U.S. performance.

• Development pipeline reached a record 2,200+ hotels and 259,000+ rooms, up 3% year-over-year.

• Asset-light, fee-based franchise model with high margins and strong free cash flow.

• Focused on leisure and "drive to" destinations, with 70% leisure guest mix and 87% of U.S. hotels in drive-to locations.

• Net income for Q1 2026 was $61M; adjusted net income rose 9% to $73M.

Financial highlights

• Q1 2026 Adjusted EBITDA was $156M, up 8% year-over-year; free cash flow reached $64M.

• Net revenues grew 3% year-over-year to $327M, driven by 21% growth in ancillary revenues and 4% global net room growth.

• $85M capital returned to shareholders in Q1 2026 via $51M in share repurchases and $34M in dividends.

• Adjusted EBITDA margin leads industry at 83%; adjusted free cash flow yield at 7.5%.

• Diluted EPS increased 3% to $0.80; adjusted diluted EPS rose 12% to $0.96.

Outlook and guidance

• 2026 Adjusted EBITDA outlook: $730M–$745M, representing 5–7% growth over 2025.

• Free cash flow conversion expected at 55–60%.

• Global system projected to grow 4.0–4.5% in 2026; global RevPAR outlook raised to (1%) to 1% for 2026.

• Net revenues expected at $1.47–$1.50B; adjusted net income forecasted at $351–$365M.

• Adjusted diluted EPS outlook: $4.62–$4.80.