Wyndham Hotels & Resorts (WH) Q2 2026 earnings summary

Executive summary

• Achieved strong Q2 2026 results with 17% net income growth and 9% adjusted EBITDA growth year-over-year, driven by system expansion, higher ancillary revenues, and U.S. RevPAR growth.

• System-wide rooms grew 4% year-over-year (excluding Revo), with a record development pipeline of 261,000 rooms, up 4% year-over-year.

• U.S. RevPAR grew 2% year-over-year, outperforming expectations, while international RevPAR declined 6% due to EMEA, Latin America, and China softness.

• Returned $86 million to shareholders in Q2 via $54 million in share repurchases and $32 million in dividends.

• Net revenues declined 6% year-over-year, primarily due to lower franchise fees, Revo fee deferrals, and absence of prior year conference revenues.

Financial highlights

• Q2 2026 net revenues: $375 million (down 6% year-over-year); adjusted EBITDA: $212 million (up 9%); net income: $102 million (up 17%).

• Adjusted diluted EPS was $1.48 (up 11%); diluted EPS $1.36 (up 20%).

• Adjusted free cash flow was $105 million in Q2 and $169 million year-to-date.

• Adjusted EBITDA margin led the industry at 37%, with a 7.5% adjusted free cash flow yield.

• Net cash from operating activities was $91 million (up 30%); operating income for Q2 was $174 million (up 16%).

Outlook and guidance

• Raised full-year 2026 outlook: rooms growth 4.0%-4.5%, global RevPAR growth 0.0%-1.0%.

• Adjusted EBITDA guidance increased to $735-$745 million; adjusted diluted EPS $4.71-$4.83.

• Free cash flow conversion rate expected at 55%-60%.

• Majority of remaining year-over-year comparable adjusted EBITDA growth expected in Q4.

• Outlook excludes potential impact from Revo insolvency until new franchise agreements are signed.