Wyndham Hotels & Resorts(WH)2025-02-13 19:53Financial Performance - Hotel Franchising adjusted EBITDA for 2024 was 727 million in 2023, reflecting a growth of 5.5%[30] - The company reported a net income of 606 million in 2023, indicating a year-over-year increase of 3.6%[30] Franchise Operations - The company licensed its brands to approximately 6,200 franchisees globally, with franchise agreements typically lasting 10 to 20 years, providing significant visibility into future cash flows[31] - Wyndham Hotels & Resorts operates approximately 9,300 hotels across 25 brands in more than 95 countries, making it the world's largest hotel franchisor by number of franchised properties[32] - The company operates approximately 6,200 franchisees, with one master franchisor in China accounting for 12% of its hotels, while no other franchisee exceeds 2%[66] Growth Strategy - The company aims to grow its direct franchising system by 3.6-4.6% in 2025, targeting high FeePAR growth through attractive RevPAR and royalty rates[36] - Wyndham plans to enhance franchisee profitability by optimizing top-line performance and lowering operating costs through continuous digital innovation[45] Sustainability Initiatives - The company is committed to reducing greenhouse gas emissions and promoting sustainability through its Wyndham Green Program, which includes best practices for energy and water conservation[62] - Wyndham Rewards members have donated over 200 million points to various non-profit organizations, supporting humanitarian causes and providing temporary safe housing for victims of human trafficking[55] Employee Information - As of December 31, 2024, Wyndham had approximately 2,200 employees, with around 1,000 employees located outside the United States[41] Financial Risks - The company has a total outstanding balance of variable-rate borrowings, net of swaps, amounting to 2 million increase or decrease in annual long-term debt interest expense[222] - The company has foreign currency rate exposure, particularly with the Canadian Dollar, Chinese Yuan, Euro, Brazilian Real, British Pound, and Argentine Peso[224] - The absolute notional amount of outstanding foreign exchange hedging instruments was 14 million and $4 million during 2024 and 2023, respectively[226] - The company uses interest swap contracts and foreign currency forwards to manage interest rate and currency exchange rate risks[220] - The fair values of cash and cash equivalents, trade receivables, and accounts payable approximate their carrying values due to their short-term nature[223] - The company assesses its interest rate exposure using sensitivity analysis, indicating potential impacts on earnings and cash flows based on hypothetical interest rate changes[222] Market Trends - The hotel industry experiences seasonal revenue fluctuations, with higher revenues typically occurring in the second and third quarters due to increased leisure travel[67]