Wyndham Hotels & Resorts(WH)2025-02-12 21:31Financial Performance - Fourth quarter diluted EPS rose 80% to $1.08, while adjusted diluted EPS grew 14% to $1.04, reflecting higher net income and share repurchase activity[2] - Full-year 2024 adjusted EBITDA increased by 5% to $694 million, with a comparable growth of 7% when excluding marketing fund variability[15] - The company reported a net income of $289 million for 2024, consistent with the previous year, despite higher transaction-related expenses[15] - Net revenues for the year ended December 31, 2024, were $1,408 million, a 0.8% increase from $1,397 million in 2023[30] - Basic earnings per share for the year ended December 31, 2024, were $3.64, up from $3.43 in 2023[30] - Adjusted EBITDA for the full year 2024 was $767 million, an increase from $727 million in 2023[32] - The company reported operating income of $495 million for the year ended December 31, 2024, compared to $503 million in 2023[30] - Adjusted net income for Q4 2024 was $82 million, compared to $75 million in Q4 2023, reflecting a 9.3% increase[52] Revenue Per Available Room (RevPAR) - Global RevPAR increased by 5% in Q4 2024 compared to Q4 2023, with a full-year growth of 2% year-over-year in constant currency[2] - The U.S. RevPAR grew 5% in Q4 2024, with a sequential improvement of 620 basis points from Q3 2024[7] - Global RevPAR for the full year 2024 was $42.91, a decrease of 0.4% compared to 2023[46] - The company expects 2025 global RevPAR growth of 2% to 3%[19] - The company anticipates a year-over-year growth of 2% to 3% in global RevPAR for 2025[54] Room Growth and Development - The company opened a record 68,700 rooms globally in 2024, representing a 4% year-over-year growth, including nearly 28,000 rooms in the U.S.[2] - The development pipeline reached a record 252,000 rooms, growing 5% year-over-year, with approximately 70% in midscale and above segments[5] - The global room count increased by 31,200 rooms, reaching 903,000 as of December 31, 2024, representing a 4% growth year-over-year[41] - The number of rooms is expected to grow by 3.6% to 4.6% in 2025[54] - The company added 68,700 rooms globally in 2024, with 4% growth in both the United States and international markets[41] Shareholder Returns - The company returned $430 million to shareholders in 2024 through share repurchases and dividends, with an 8% increase in quarterly cash dividend to $0.41 per share starting Q1 2025[18] Cash Flow and Assets - Free cash flow for the year ended December 31, 2024, was $350 million, compared to $411 million in 2023[35] - Cash and cash equivalents increased to $113 million as of December 31, 2024, from $66 million in 2023[37] - The company’s cash and cash equivalents increased to $103 million as of December 31, 2024, compared to $66 million in 2023[38] - Total assets increased to $4,223 million as of December 31, 2024, from $4,033 million in 2023[37] Debt and Financial Obligations - Total debt rose to $2,463 million as of December 31, 2024, up from $2,201 million in 2023[37] - Total outstanding debt as of December 31, 2024, was $2.463 billion, with a weighted average interest rate of 4.8%[38] - Net debt as of December 31, 2024, was $2.360 billion, resulting in a net debt leverage ratio of 3.4x[38] - The company incurred $47 million in payments related to hostile takeover defense during the year[34] Future Outlook - The company expects adjusted EBITDA for 2025 to be in the range of $745 million to $755 million[54] - Projected adjusted diluted EPS for 2025 is estimated to be between $4.66 and $4.78[54] - The company plans to allocate approximately $40 to $45 million for capital expenditures in 2025[54] - The company plans to continue expanding its market presence and investing in new technologies to enhance operational efficiency[48]