Wyndham Hotels & Resorts (WH) Q4 2025 earnings summary

Executive summary

• Achieved 4% net room growth in 2025, with record 870 deals signed and a global pipeline of nearly 260,000 rooms and over 2,200 hotels.

• Largest global hotel franchisor with 8,300+ hotels and 869,000 rooms across 100 countries, focusing on select-service, asset-light, leisure-driven business model.

• Technology and AI investments enhanced guest experience, owner returns, and operational efficiency, including AI-powered booking and guest engagement platforms.

• Returned $393 million to shareholders in 2025 through $266 million in share repurchases and $127 million in dividends.

• Faced a challenging RevPAR environment, with global RevPAR down 6% in Q4 and U.S. RevPAR down 4% for the year, but saw improvement in early 2026.

Financial highlights

• Adjusted EBITDA for 2025 reached $718 million, up 4% year-over-year on a comparable basis.

• Adjusted diluted EPS for 2025 rose 6% to $4.58; adjusted net income increased 2% to $353 million.

• Net income for 2025 was $193 million, down 33% due to non-cash impairment and other charges.

• Ancillary revenues grew 15% year-over-year to $317 million, driven by co-branded card and license fees.

• Adjusted free cash flow was $433 million, with a 60% conversion rate from Adjusted EBITDA and a 7.5% yield.

Outlook and guidance

• 2026 system-wide room growth targeted at 4.0%-4.5%; Q1 flat sequentially due to 3,000 room terminations, growth resuming in Q2.

• Global RevPAR projected between +0.5% and -1.5%; U.S. RevPAR Q1 expected -3% to -2%, with Q2-Q4 expected to be flat.

• Adjusted EBITDA projected at $730-$745 million (2%-4% growth); adjusted diluted EPS at $4.62-$4.80.

• Free cash flow conversion before development advances expected at 55%-60%.

• Board authorized a 5% increase in quarterly dividend to $0.43 per share for 2026.