NYSE$WH

Wyndham Hotels & Resorts Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Wyndham's Q2 2023 results reflected solid global RevPAR growth and strategic pipeline expansion.

Wyndham Hotels & Resorts reported a solid second quarter in 2023, marked by a 7% growth in global RevPAR and a 4% increase in system-wide rooms. The development pipeline expanded by 10% year-over-year, and the company successfully refinanced its Term Loan B Facility. The Board of Directors approved a $400 million increase in share repurchase authorization.

  • Global RevPAR increased by 7% compared to Q2 2022 in constant currency.
  • System-wide rooms grew by 4% year-over-year.
  • The development pipeline expanded by 10% year-over-year.
  • Share repurchase authorization increased by $400 million.

Headline financials

Total Revenue

$362M

Previous: $386M-6.2%
EPS (adj)

$0.93

Previous: $1.07-13.1%
Global RevPAR

$46.47

Previous: $44.28+4.9%
Global Rooms

851.5K

Previous: 818.9K+4.0%
U.S. RevPAR

$55.26

Previous: $55.57-0.6%
International RevPAR

$34.44

Previous: $27.46+25.4%
Capital Expenditures

-$18M

Previous: -$18M+0.0%
Free Cash Flow

$52M

Previous: $74M-29.7%
Net Income

$70M

Previous: $92M-23.9%
Operating Income

$123M

Previous: $145M-15.2%
Gross Profit

$123M

Previous: $145M-15.2%
Cash & Equivalents

$63M

Previous: $400M-84.3%
Total Assets

$4.06B

Previous: $4.25B-4.6%
Stock-Based Comp

$9M

Previous: $9M+0.0%

Revenue & EPS history

Wyndham · Revenue · Quarterly

$362M

Q2 2023-6.2%vs Q2 2022
Beat estimate in 6 of 15 quarters(40%)
ActualEstimate

Revenue by segment

Wyndham · $362M total across 1 segment · Q2 2023

  • Hotel Franchising
    $362M+8.1%

Forward guidance

The Company is refining its outlook as follows:

Tailwinds

  • Year-over-year rooms growth: 2 - 4%
  • Year-over-year global RevPAR growth: 4 - 6%
  • Fee-related and other revenues: $1.38 - $1.41 billion
  • Adjusted EBITDA: $654 - $664 million
  • Free cash flow conversion rate: 50 - 55%

Headwinds

  • Reduction in adjusted net income represents an increase in interest expense due, in part, to the refinancing of the Company's Term Loan B.
  • Adjusted net income: $336 - $348 million
  • Adjusted diluted EPS: $3.92 - $4.06
  • Year-over-year growth rates are not comparable due to the sale of the Company's owned hotels and the exit of its select-service management business, both of which occurred during 2022, as well as the variability in its marketing funds
  • The Company's expectations for full-year 2023 marketing funds contribution to adjusted EBITDA is unchanged at $10 million.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

+0.7%

Avg return

Earnings day

+0.9%

Avg return

5 days after

-1.0%

Avg return

30 days after

46%

17 / 37 earnings

Positive

+8.8%

Q3 2018

Best reaction

-5.5%

Q3 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-3.1%-4.4%-4.5%
Q4 2025+5.6%+5.1%-5.0%
Q3 2025-5.5%-10.0%-9.5%
Q2 2025-1.0%-2.6%-3.3%
Q1 2025+0.1%-2.2%-3.0%
Q4 2024-1.6%+2.1%-17.5%
Q3 2024+8.0%+7.1%+16.0%
Q2 2024+3.4%+4.1%+4.8%
Q1 2024+5.4%+3.9%-1.6%
Q4 2023+1.2%+0.1%-0.3%
Q3 2023-2.5%-3.4%+5.3%
Q2 2023+2.0%+5.0%-1.2%
Q1 2023-1.5%+2.0%+3.9%
Q4 2022-2.0%-2.2%-15.9%
Q3 2022+4.4%+7.9%+3.0%
Q2 2022-1.8%-1.6%-1.0%
Q1 2022-1.0%-1.4%-11.8%
Q4 2021+4.5%+1.6%-1.7%
Q3 2021+5.7%+4.3%+0.8%
Q2 2021+3.7%+0.4%+3.9%
Q1 2021-0.1%-2.1%+0.9%
Q4 2020-2.6%-3.7%+10.6%
Q3 2020-2.2%+0.6%+21.1%
Q2 2020-1.5%-5.1%+13.6%
Q1 2020+6.5%+20.3%+37.6%
Q4 2016-1.6%-2.3%-34.7%
Q4 2019-1.6%-2.3%-34.7%
Q3 2019+0.7%+3.1%+9.7%
Q2 2019-4.7%-2.8%-16.2%
Q1 2019+2.5%+2.4%-2.8%
Q4 2018-0.3%+1.3%+0.1%
Q3 2017+8.8%+9.2%+10.7%
Q3 2018+8.8%+9.2%+10.7%
Q2 2017+0.2%-7.4%-8.9%
Q2 2018-2.0%+0.4%-3.1%
Q1 2018-3.8%-1.7%-6.7%
Q4 2017-3.8%-1.7%-6.7%
Q1 2017

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