How did WH's operating profit surge in Q4 2024 despite rising expenses?

Wyndham Hotels & Resorts (WH) experienced a surge in operating profit in Q4 2024 despite rising expenses, primarily due to strategic initiatives and robust revenue growth:

1. Revenue Growth: Wyndham's revenue increased, particularly in international markets, which contributed significantly to the overall profitability. The company reported a 7% increase in adjusted EBITDA and a 10% rise in adjusted EPS for the quarter.
2. Strategic Brand Expansion: Wyndham's strategic brand expansions, such as the launch of the Microtel brand in India, have positioned the company for future growth. These initiatives are expected to add new rooms and enhance the company's market presence.
3. Franchisee Retention: Improved franchisee retention rates have led to better operational efficiency and reduced costs associated with franchisee turnover. This, in turn, has positively impacted the company's profitability.
4. Cost Management: Despite rising expenses, Wyndham's cost management efforts have been effective in controlling the overall cost base. The company's focus on shareholder and franchisee value has led to a strong development pipeline and a record number of new Wyndham Rewards members.

In conclusion, Wyndham's operating profit surge in Q4 2024 can be attributed to a combination of revenue growth, strategic brand expansion, improved franchisee retention, and effective cost management. These factors have collectively contributed to the company's robust financial performance despite rising expenses.