Wyndham's 2024 Q4 Earnings Call: Contradictions in Net Room Growth and Royalty Rate Expectations

These are the key contradictions discussed in Wyndham Hotels & Resorts, Inc.'s latest 2024Q4 earnings call, specifically including: Net Room Growth Strategy and Royalty Rate Improvements:



Room Growth and Brand Performance:
- Wyndham Hotels & Resorts reported a 4% increase in net room growth and 69,000 new rooms opened in 2024, the highest number in the company's history.
- The growth was driven by a strong performance of brands like ECHO Suites, Hawthorn Suites, and WaterWalk, which represent nearly one-third of the domestic development pipeline.

RevPAR Growth and Infrastructure Demand:
- Domestic RevPAR grew by 5.3%, with a 140 basis point contribution from hurricane impacts. Excluding the hurricane effects, RevPAR improved by 3.9%.
- The improvement was due to strong weekday performance driven by infrastructure-related demand, with more than 2,200 major infrastructure projects started, benefiting franchisees in over 80% of Wyndham-branded hotel locations.

International Expansion and FeePAR Improvements:
- International net rooms grew by 2% sequentially and 7% year-on-year, with significant activity in EMEA and Latin America.
- The growth was supported by a focus on converting and building higher-quality hotels, resulting in a 40% higher average FeePAR for new agreements in China.

Ancillary Revenue and Loyalty Program:
- Wyndham saw strong growth in ancillary revenues, with the Wyndham Rewards loyalty program reaching 114 million members globally, up 8% year-over-year.
- This growth was driven by the expansion of co-branded credit card programs and new debit card partnerships, contributing significantly to ancillary fee growth.