Wyndham Hotels & Resorts Rewards Shareholders With 8% Dividend Hike

Core Viewpoint - Wyndham Hotels & Resorts, Inc. has announced an 8% increase in its quarterly dividend payout, reflecting the company's commitment to enhancing shareholder returns through the utilization of free cash [1][2]. Dividend Increase Details - The quarterly dividend has been raised to 41 cents per share (or $1.64 annually) from the previous 38 cents (or$1.52 annually) [2]. - The new dividend will be paid on or around March 31, 2025, to shareholders on record as of March 17, 2025 [2]. - Based on the closing price of $104.37 per share, the stock now has a dividend yield of 1.6% [2]. Shareholder Return Focus - The increase in dividends underscores the company's focus on improving shareholder returns, as investors typically favor stocks that generate returns, particularly those with a history of consistent dividend payments [3]. Performance Metrics - Wyndham's shares have increased by 41.2% over the past six months, outperforming the Zacks Hotels and Motels industry's growth of 20.4% [4]. - In the fourth quarter of 2024, global RevPAR (Revenue per Available Room) rose by 5% year over year in constant currency, with a 5% increase in the U.S. and 6% internationally [5]. - The company's retention rate improved by 10 basis points year over year, reaching a record 95.7% by the end of 2024 [5]. Expansion and Strategy - Wyndham is focused on expanding its geographic footprint and product offerings across all segments, leveraging a diversified brand portfolio [6]. - The company opened 68,700 rooms globally in 2024, marking a 4% year-over-year increase, including approximately 28,000 rooms in the U.S. [7]. - As of December 31, 2024, Wyndham's global development pipeline included around 2,100 hotels and 252,000 rooms, indicating a 5% year-over-year growth [7].