Company Raises Full-Year 2022 Outlook
Board Increases Share Repurchase Authorization by $400 Million
Company Grows System-Wide Rooms by 4% and Development Pipeline by 10%
PARSIPPANY, N.J., Oct. 27, 2022 — Wyndham Hotels & Resorts (NYSE: WH) today announced results for the three months ended September 30, 2022. Highlights include:
- Global RevPAR grew 12% compared to third quarter 2021 in constant currency.
- U.S. RevPAR grew 2% compared to third quarter 2021 and represents 110% of 2019 levels.
- System-wide rooms grew 4% year-over-year, including 1% of growth in the U.S. and 9% of growth internationally.
- Development pipeline grew 10% year-over-year to 212,000 rooms and U.S. development signings increased 82%, including 48 new construction projects for the Company’s new extended-stay brand, bringing the total number to 120 since launch in March.
- Hotel Franchising segment revenues grew 9% year-over-year.
- Diluted earnings per share of $1.13 and adjusted diluted earnings per share of $1.21; net income of $101 million and adjusted net income of $108 million.
- Adjusted EBITDA of $191 million.
- Year-to-date net cash provided by operating activities of $349 million and free cash flow of $321 million.
- Returned $161 million to shareholders through $132 million of share repurchases and a quarterly cash dividend of $0.32 per share.
“With our brands delivering record U.S. RevPAR and our global development teams driving net unit growth towards the top end of our initial guidance, we are raising our full-year 2022 outlook. Despite the broader macro-economic climate, we are confident in the continued resiliency of our franchise model as we continue to invest in the business and generate substantial shareholder returns,” said Geoffrey A. Ballotti, president and chief executive officer. “This quarter, we grew our development pipeline by 10%, surpassed our full-year development goal for our new extended-stay brand and completed the acquisition of our 23rd brand – Vienna House. We remain committed to a disciplined capital allocation strategy that will deliver outstanding value to our shareholders, guests, franchisees and team members in any environment.”
Fee-related and other revenues was $375 million compared to $377 million in third quarter 2021, which included $34 million from the Company’s select-service management business and owned hotels – both of which were exited in the first half of this year. On a comparable basis, fee-related and other revenues increased 9% year-over-year reflecting global constant currency RevPAR growth of 12% and higher license fees.
The Company generated net income of $101 million, or $1.13 per diluted share, compared to $103 million, or $1.09 per diluted share, in third quarter 2021. The decline in net income was primarily due to the exit of the
Company’s select-service management business and owned hotels, partially offset by higher adjusted EBITDA in the Company’s hotel franchising segment. Adjusted EBITDA was $191 million compared to $194 million in third quarter 2021, which included a $10 million contribution from the Company’s select-service management business and owned hotels – both of which were exited in the first half of this year. On a comparable basis, adjusted EBITDA increased 4% year-over-year reflecting higher fee-related and other revenues, partially offset by a 600 basis point unfavorable timing impact from the marketing fund.