Wyndham Hotels & Resorts (WH) Q4 2025 earnings summary

Executive summary

• Achieved 4% net room growth in 2025, with record 870 development deals signed and a pipeline of nearly 260,000 rooms and over 2,200 hotels, expanding presence in key markets and segments.

• Largest global hotel franchisor with 8,300+ hotels and 869,000 rooms across 100 countries, focusing on select-service, asset-light, leisure-driven business model and significant free cash flow generation.

• Technology and AI investments enhanced guest experience, owner returns, and operational efficiency, including AI-powered booking and guest engagement platforms.

• Returned $393 million to shareholders through dividends and share repurchases, representing 5% of market cap.

• Faced RevPAR declines, especially in key U.S. states, but saw improvement in booking trends and occupancy into early 2026.

Financial highlights

• Adjusted EBITDA for 2025 reached $718 million, up 4% year-over-year on a comparable basis; adjusted EBITDA margin led the industry at 83%.

• Adjusted net income increased 2% to $353 million; adjusted diluted EPS rose 6% to $4.58.

• Net income for 2025 was $193 million, down 33% due to non-cash impairment and other charges.

• Fee-related and other revenues reached $1.43 billion, driven by ancillary revenue and net room growth, offset by a 3% decline in RevPAR.

• Adjusted free cash flow was $433 million for the year, with a 60% conversion rate from Adjusted EBITDA and a 7.5% yield.

Outlook and guidance

• 2026 global net room growth expected at 4%-4.5%; Q1 to be flat sequentially due to known terminations, with growth resuming in Q2.

• Global RevPAR projected between +0.5% and -1.5%; U.S. RevPAR expected -3% to -2% in Q1, then flat for Q2-Q4.

• Adjusted EBITDA projected at $730-$745 million (2%-4% YoY growth); adjusted diluted EPS at $4.62-$4.80.

• Free cash flow conversion before development advances expected at 55%-60%.

• Board authorized a 5% increase in quarterly dividend to $0.43 per share for 2026.