PARSIPPANY, New Jersey—Wyndham Hotels & Resorts announced its first quarter 2025 results. Highlights include:
- Global openings of 15,000 rooms increased 13 percent year-over-year, a record first quarter.
- System-wide rooms grew 4 percent year-over-year.
- Awarded 181 development contracts globally, an increase of 6 percent year-over-year.
- Development pipeline grew 1 percent sequentially and 5 percent year-over-year to a record 254,000 rooms.
- Global RevPAR grew 2 percent in constant currency.
- Fee-related and other revenues increased 4 percent year-over-year.
- Diluted earnings per share of $78 compared to $0.19 in the prior-year quarter, and adjusted diluted EPS grew 10 percent year-over-year to $0.86, or 20 percent on a comparable basis.
- Net income of $61 million compared to $16 million in the prior-year quarter; adjusted net income increased 5 percent year-over-year to $67 million, or 14 percent on a comparable basis.
- Adjusted EBITDA increased 3 percent year-over-year to $145 million, or 9 percent on a comparable basis.
- Returned $109 million to shareholders through $76 million of share repurchases and quarterly cash dividends of $0.41 per share.
“We delivered a solid start to the year with strong system growth, record first-quarter openings and continued expansion across every region,” said Geoff Ballotti, president and chief executive officer. “While the macro environment remains uncertain, we’re staying focused on what we can control — investing in high-quality growth, executing with discipline and supporting our franchisees. Our asset-light, franchise-only business model has consistently outperformed during economic downturns and positions us well to deliver long-term value for our shareholders through all phases of any economic cycle.”
System Size and Development
The company’s global system grew 4 percent. These results included 4 percent growth in the higher RevPAR midscale and above segments in the U.S., as well as strong growth in the company’s higher RevPAR EMEA and Latin America regions, which grew a combined 6 percent. The company remains on track to achieve its net room growth outlook of 3.6 percent to 4.6 percent for the full year 2025.
On March 31, 2025, the company’s global development pipeline consisted of approximately 2,140 hotels and 254,000 rooms, representing another record-high level and a 5 percent year-over-year increase. Key highlights include:
- 5 percent growth in the U.S. and 4 percent internationally
- 19th consecutive quarter of sequential pipeline growth
- Approximately 70 percent of the pipeline is in the midscale and above segments, which grew 7 percent year-over-year
- Approximately 17 percent of the pipeline is in the extended stay segment
- Approximately 58 percent of the pipeline is international
- Approximately 77 percent of the pipeline is new construction, and approximately 35 percent of these projects have broken ground
- During the first quarter of 2025, the company awarded 181 new contracts, an increase of 6 percent year-over-year.
RevPAR
First quarter global RevPAR increased 2 percent in constant currency compared to 2024, reflecting 2 percent growth in the U.S. and 3 percent growth internationally.
In the U.S., RevPAR growth includes 100 basis points of benefit from hurricanes and the timing of the Easter holiday. Excluding those factors, the company’s U.S. RevPAR grew 60 basis points year-over-year as pricing strength was partially offset by softer demand with the pullback more pronounced during March.
Internationally, RevPAR growth was also driven by pricing power. The company continued to see strong performance in its EMEA and Latin America regions, with year-over-year growth of 6 percent and 25 percent, respectively, reflecting robust pricing power, partially offset by modest occupancy declines. In China, demand remained steady but RevPAR declined 8 percent year-over-year, reflecting continued pricing pressure.
First Quarter Operating Results
The comparability of the company’s first quarter results is impacted by marketing fund variability. The company’s reported results and comparable-basis results (adjusted to neutralize these impacts) are presented below to enhance transparency and provide a better understanding of the results of the company’s ongoing operations.
Fee-related and other revenues grew 4 percent to $316 million compared to $304 million in the first quarter of 2024, which reflects higher royalties and franchise fees and higher ancillary revenues.
The company generated net income of $61 million compared to $16 million in the first quarter of 2024. The increase primarily reflects lower transaction-related expenses in connection with defending an unsuccessful hostile takeover attempt. Other items primarily include the absence of impairment and restructuring costs recorded in the first quarter of 2024, partially offset by higher interest expense. Adjusted net income grew 5 percent to $67 million compared to $64 million in the first quarter of 2024.
Adjusted EBITDA grew 3 percent to $145 million compared to $141 million in the first quarter of 2024. This increase included an $8 million unfavorable impact from marketing fund variability, excluding which adjusted EBITDA grew 9 percent on a comparable basis, primarily reflecting higher fee-related revenues and margin expansion.
Diluted earnings per share was $78 compared to $0.19 in the first quarter of 2024. This increase reflects higher net income and the benefit of a lower share count due to share repurchase activity.
Adjusted diluted EPS grew 10 percent to $0.86 compared to $0.78 in the first quarter of 2024. This increase included an unfavorable impact of $0.07 per share related to marketing fund variability (after estimated taxes). On a comparable basis, adjusted diluted EPS increased approximately 20 percent year-over-year, reflecting comparable adjusted EBITDA growth, lower depreciation and amortization, and the benefit of share repurchase activity, partially offset by higher interest expense.
During the first quarter of 2025, the company’s marketing fund expenses exceeded revenues by $22 million; while in the first quarter of 2024, the company’s marketing fund expenses exceeded revenues by $14 million, resulting in $8 million of marketing fund variability.
Balance Sheet and Liquidity
The company generated $59 million of net cash provided by operating activities and $80 million of free cash flow in the first quarter of 2025. The company ended the quarter with a cash balance of $48 million and approximately $637 million in total liquidity.
The company’s net debt leverage ratio was 3.5 times at March 31, 2025, at the midpoint of the company’s 3 to 4 times stated target range and in line with expectations.
Share Repurchases and Dividends
During the first quarter, the company repurchased approximately 797,000 shares of its common stock for $76 million.
The company paid common stock dividends of $33 million, or $0.41 per share, during the first quarter of 2025.
Full-Year 2025 Outlook
The company is refining its outlook to reflect a softer-than-expected RevPAR environment. The updated range reflects a variety of potential outcomes for the remainder of the year, from a more optimistic scenario in which the softness seen in March and April proves to be temporary, to a more cautious view that contemplates persistent pressure on demand throughout the remainder of the year.
The company continues to expect marketing fund revenues to approximate expenses during full-year 2025, though seasonality of spend will affect the quarterly comparisons throughout the year.
