Wyndham Hotels & Resorts (WH) Q4 2024 earnings summary

Executive summary

• Achieved record net room growth of 4% in 2024, with 68,700–69,000 rooms opened, the highest annual organic additions in company history, and a global retention rate of 95.7%.

• Largest global hotel franchisor with 9,300 hotels, 25 brands, and 903,000 rooms across 95+ countries, with a 70% leisure guest mix and 90% drive-to destinations.

• Development pipeline reached a record 252,000 rooms, up 5% year-over-year, with strong expansion in midscale, upscale, and extended-stay segments.

• Wyndham Rewards membership reached 114 million, up 8% year-over-year, with increased engagement from younger and higher-income guests.

• Strategic focus on high FeePAR development, digital innovation, and capitalizing on U.S. infrastructure spending.

Financial highlights

• 2024 adjusted EBITDA was $694 million, up 5–7% year-over-year; adjusted free cash flow was $397 million, with a 4.9–5% yield, leading industry peers.

• Adjusted diluted EPS for the year was $4.33, up 10% year-over-year; Q4 adjusted diluted EPS up 14% to $1.04.

• Returned $430 million to shareholders in 2024 through $308 million in share repurchases and $122 million in dividends.

• 16–18 consecutive quarters of net room and pipeline growth; global system grew 3.6–4% in 2024.

• Q4 net income rose 70% to $85 million; full-year net income was $289 million.

Outlook and guidance

• 2025 global net room growth expected at 3.6%–4.6%; global RevPAR projected to grow 2%–3% in constant currency.

• Fee-related and other revenues expected at $1.49–$1.51 billion; adjusted EBITDA guidance of $745–$755 million, up 7%–9% year-over-year.

• Adjusted diluted EPS projected at $4.66–$4.78, up 8%–10%; free cash flow conversion before development advances expected at 57%–60%.

• System-wide retention rate expected above 95.7%.

• Three-year adjusted EBITDA CAGR of approximately 8.5% targeted through 2026.