Wyndham Hotels & Resorts (WH) Q1 2026 earnings summary

Executive summary

• Achieved 4% net room growth year-over-year, with system-wide rooms reaching 869,300 and a record pipeline of over 2,200 hotels and 259,000 rooms, up 3% year-over-year.

• U.S. RevPAR was flat year-over-year but exceeded expectations by 250 basis points, while international growth offset flat U.S. performance.

• Ancillary revenues grew 21% year-over-year, driven by renewed credit card partnerships and technology initiatives.

• Adjusted EBITDA rose 8% to $156 million, with net income flat at $61 million and adjusted net income up 9% to $73 million.

• Returned $85 million to shareholders through $51 million in share repurchases and $34 million in dividends.

Financial highlights

• Net revenues for Q1 2026 were $327 million, up 3% year-over-year, driven by ancillary revenue growth and system expansion.

• Adjusted EBITDA was $156 million (+8% year-over-year), with an industry-leading margin of 83%.

• Adjusted diluted EPS was $0.96, down 3% on a comparable basis, while basic and diluted EPS increased to $0.80.

• Free cash flow reached $64 million, with $42 million net cash from operating activities.

• Ended the quarter with $1.1 billion in liquidity and a net leverage ratio of 3.5x.

Outlook and guidance

• Reaffirmed full-year global net room growth guidance of 4.0–4.5% and raised global RevPAR outlook to a range of up 1% to down 1%.

• Net revenues expected at $1.47–$1.5 billion; adjusted EBITDA guidance at $730–$745 million.

• Adjusted net income outlook updated to $351–$365 million, with adjusted diluted EPS guidance at $4.62–$4.80.

• Free cash flow conversion rate projected at 55–60%.

• 2026 capital expenditures expected at $40–$45 million; development advance notes investment at $110 million.