NYSE$WH

Wyndham Hotels & Resorts Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Wyndham's Q2 2024 performance showcased resilience with strong adjusted EBITDA growth driven by net room and ancillary fee increases.

Wyndham Hotels & Resorts reported strong second-quarter results, with global RevPAR increasing by 2% in constant currency and system-wide rooms growing by 4% year-over-year. Diluted EPS increased by 30% to $1.07, and adjusted diluted EPS grew by 22% to $1.13. The company raised its full-year 2024 EPS outlook and grew its development pipeline by 7% to a record 245,000 rooms.

  • Global RevPAR grew 2% in constant currency.
  • System-wide rooms grew 4% year-over-year.
  • Development pipeline grew 7% year-over-year to a record 245,000 rooms.
  • Diluted earnings per share increased 30% to $1.07, and adjusted diluted EPS grew 22% to $1.13.

Headline financials

Total Revenue

$367M

Previous: $362M+1.4%
EPS

$1.07

Previous: $0.93+15.1%
Global RevPAR

$49.08

Previous: $46.47+5.6%
Global Rooms

816.3K

Previous: 851.5K-4.1%
U.S. RevPAR

$55.44

Previous: $55.26+0.3%
International RevPAR

$39.40

Previous: $34.44+14.4%
Global Royalty Rate

4.0%

No prior period
U.S. Royalty Rate

4.7%

No prior period
International Royalty Rate

2.5%

No prior period
Capital Expenditures

-$16M

Previous: -$18M+11.1%
Free Cash Flow

$70M

Previous: $52M+34.6%
Net Income

$86M

Previous: $70M+22.9%
Operating Income

$145M

Previous: $123M+17.9%
Gross Profit

$145M

Previous: $123M+17.9%
Cash & Equivalents

$70M

Previous: $63M+11.1%
Total Assets

$4.15B

Previous: $4.06B+2.3%
Stock-Based Comp

$12M

Previous: $9M+33.3%

Revenue & EPS history

Wyndham · Revenue · Quarterly

$367M

Q2 2024+1.4%vs Q2 2023
Beat estimate in 6 of 15 quarters(40%)
ActualEstimate

Revenue by segment

Wyndham · $402M total across 1 segment · Q3 2023

  • Hotel Franchising
    $402M+9.5%

Forward guidance

The Company is refining its outlook as follows: Year-over-year rooms growth 3 - 4%, Year-over-year global RevPAR growth Approximately flat, Fee-related and other revenues $1.41 - $1.43 billion, Adjusted EBITDA $690 - $700 million, Adjusted net income $338 - $348 million, Adjusted diluted EPS $4.20 - $4.32, Adjusted free cash flow conversion rate ~60%

Tailwinds

  • Year-over-year rooms growth 3 - 4%
  • Adjusted EBITDA $690 - $700 million
  • Adjusted net income $338 - $348 million
  • Adjusted diluted EPS $4.20 - $4.32
  • Adjusted free cash flow conversion rate ~60%

Headwinds

  • Year-over-year global RevPAR growth Approximately flat
  • Fee-related and other revenues $1.41 - $1.43 billion
  • The reduction in RevPAR and fee-related and other revenues reflects a more moderated RevPAR acceleration than previously anticipated.
  • The reduction in adjusted net income represents an increase in interest expense due to the upsizing of the Company's term loan B.
  • Year-over-year growth rates for adjusted EBITDA, adjusted net income and adjusted diluted EPS are not comparable due to full-year 2023 marketing fund revenues exceeding expenses by $9 million, which substantially completed the recovery of the $49 million support the Company provided to its owners during COVID.

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 2024

Historical avgQ2 2024

+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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