Wyndham's Q1 2025 Earnings: Unpacking Conflicting Insights on Net Room Growth and RevPAR Outlook

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Revenue and EBITDA Growth:
- Wyndham Hotels & Resorts reported adjusted EBITDA growth of 9% on a comparable basis for Q1 2025.
- The growth was supported by a 15% increase in royalty fees and franchise fees, driven by system growth of 4% and royalty rate improvements.

System Expansion and Pipeline:
- The company grew its global system by 4% and increased its pipeline by 5% to a record 2,143 hotels.
- The expansion was driven by the opening of 15,000 rooms, a 13% increase from the previous year, and strong deal signings.

Regional Performance Variability:
- International RevPAR grew in all regions except China, with notable increases in Latin America by 25% and EMEA by 6%.
- In the U.S., RevPAR grew by 2%, impacted by softened consumer sentiment and a decline in demand in February and March.

Ancillary Revenue and Strategic Initiatives:
- Ancillary revenues contributed significantly to the overall growth, with higher credit card and partnership fees.
- This was facilitated by new strategic initiatives such as a new debit card launch and partnerships like that with Carnival Cruise Lines.