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WYNDHAM HOTELS & RESORTS REPORTS STRONG FOURTH QUARTER RESULTS WITH RECORD ANNUAL OPENINGS, RETENTION AND SYSTEM GROWTH
WHWyndham Hotels & Resorts(WH) Prnewswire·2025-02-12 21:30

Core Insights - Wyndham Hotels & Resorts reported a strong finish to 2024, with a 4% net rooms growth and a 7% increase in comparable adjusted EBITDA, highlighting the company's focus on expanding into higher FeePAR markets and growing its extended-stay footprint [1][4][5] - The company announced an 8% increase in its quarterly cash dividend to 0.41pershare,effectivefromthefirstquarterof2025,reflectingitscommitmenttoreturningvaluetoshareholders[4][16]FinancialPerformance−Fourthquarterdilutedearningspershareincreasedby800.41 per share, effective from the first quarter of 2025, reflecting its commitment to returning value to shareholders [4][16] Financial Performance - Fourth quarter diluted earnings per share increased by 80% to 1.08, while adjusted diluted EPS grew 14% to 1.04,indicatingstrongprofitability[4][12]−Full−year2024netincomewasreportedat1.04, indicating strong profitability [4][12] - Full-year 2024 net income was reported at 289 million, consistent with the previous year, while adjusted net income increased by 2% to 347million[4][12]−Thecompanygenerated347 million [4][12] - The company generated 290 million in net cash from operating activities and 397millioninadjustedfreecashflowforthefullyear2024[14][29]DevelopmentandGrowth−Theglobaldevelopmentpipelinereachedarecord2,100hotelsand252,000rooms,representinga5397 million in adjusted free cash flow for the full year 2024 [14][29] Development and Growth - The global development pipeline reached a record 2,100 hotels and 252,000 rooms, representing a 5% year-over-year increase [3][4] - The company opened a record 68,700 rooms globally in 2024, achieving a 4% year-over-year growth [4][5] - Approximately 70% of the pipeline is in the midscale and above segments, which grew 5% year-over-year, indicating a strategic focus on higher revenue segments [5][17] Revenue and Market Performance - Global RevPAR grew by 5% in the fourth quarter compared to the previous year, with U.S. RevPAR also increasing by 5% [4][6] - The company reported fee-related and other revenues of 341 million in the fourth quarter, reflecting a 7% increase year-over-year [4][13] - The retention rate improved to a record 95.7%, showcasing the company's ability to maintain its customer base [2][4] Outlook for 2025 - The company provided a 2025 outlook projecting year-over-year rooms growth of 3.6% to 4.6% and global RevPAR growth of 2% to 3% [17][18] - Adjusted EBITDA is expected to be in the range of 745millionto745 million to 755 million, indicating continued operational strength [17][18]