- **Revenue Resilience**: Global pipeline expanded 4% to 257,000 rooms, with 21% room openings growth and 24% more deals signed. U.S. midscale system grew 200bps, driven by new constructions.
- **AI-Driven Efficiency**: Wyndham AI handled 0.5M interactions, reducing handle time by 25% and improving direct booking conversion. Only 7% of hotels use this tech, with rapid adoption expected.
- **Ancillary Growth**: 18% Q3 ancillary fee growth from credit card (11% new accounts, 7% spend growth) and new subscription program offering 30% savings.
- **Financial Outlook**: Full-year RevPAR down 3-2%, adjusted EBITDA $715-725M (down $15-20M), and free cash flow conversion target 45-50%.
- **Strategic Moves**: Launched Dazzler Select in U.S., partnered with Ovolo Group for upscale hotels, and introduced Wyndham Rewards Insider subscription program.

**【CEO Summary Section】**
- **Resilient Growth**: Q3 saw 21% increase in room openings, 24% more deals signed, and a 4% expansion of the global pipeline to 257,000 rooms. U.S. midscale and above system grew by 200 basis points, driven by new constructions like ECHO Suites in Reno and Sterling.
- **New Brand Expansion**: Launched Dazzler Select by Wyndham in the U.S., targeting economy hotels with flexible franchising. Internationally, added 88 direct franchise hotels in India and 50 in the pipeline, and partnered with Ovolo Group to bring 4 upscale hotels into the system.
- **AI Innovation**: Wyndham AI agents handled 0.5 million customer interactions, reducing handle time by 25% and improving direct booking conversion. Only 7% of hotels are using this technology, with rapid adoption expected.
- **Ancillary Revenue Growth**: Ancillary fees rose 18% Q3, driven by Wyndham Rewards co-branded credit card (11% new accounts, 7% spend growth) and the new Wyndham Rewards Insider subscription program offering 30% savings and exclusive benefits.

**【CFO Financial Commentary】**
- **Financial Performance**: Fee-related and other revenues were $382 million, down 3% YoY due to 5% RevPAR decline. Adjusted EBITDA was flat YoY at $213 million, supported by 18% ancillary revenue growth and a 40% FeePAR premium on new openings. Adjusted free cash flow was $97 million Q3, $265 million YTD.
- **Outlook Update**: Full-year global RevPAR expected to decline 3-2% (Q3: -5%), with Q4 RevPAR down 7-4%. Fee-related revenues revised to $1.43-1.45 billion, down $20-40 million from prior guidance. Adjusted EBITDA now $715-725 million, down $15-20 million. Free cash flow conversion target remains 45-50%.
- **Balance Sheet**: $540 million liquidity, net leverage 3.5x. Refinanced $1 billion revolver with 30% capacity increase and 35bp rate reduction.

**【Q&A Highlights】**
- **RevPAR Trends**: U.S. economy/midscale segments underperform due to Sunbelt overindexing, while EMEA and Latin America grew 4% and 4%, respectively. Q4 RevPAR expected to match Q3 softness, with 100-300bps reduction from prior outlook.
- **AI Impact**: Wyndham AI reduces front desk workload, drives ancillary revenues (e.g., early check-ins, in-room upgrades), and improves direct booking conversion by 300bps. Franchisees with AI adoption see significant cost savings and revenue growth.
- **Marketing Fund Management**: Q3 marketing fund overspend $18 million vs. $12 million last year, but 100% recovery expected over 1-2 years. Investments in Wyndham Insider and digital platform updates viewed as strategic long-term benefits.
- **Competition with STRs**: Focus on reputation, online reviews, and AI-driven guest engagement to differentiate from short-term rentals. Wyndham Connect and AI agents enhance guest trust and booking convenience.

Wyndham Hotels & Resorts (WH)-23 Oct 25-2025 Q3 Earnings call transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

WH

WH fundamentals

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