Wyndham Hotels & Resorts, Inc. · NYSE:WH
Wyndham Hotels & Resorts — Q1 2025 Earnings Presentation
36 slides from Wyndham Hotels & Resorts's earnings presentation, Apr 30, 2025
Slide 1: Investor Presentation
Investor Presentation April 30, 2025 Wyndham Grand Phnom Penh Capital Phnom Penh, Cambodia Opened March 2025
Slide 2: Introduction to Wyndham Hotels & Resorts
Introduction to Wyndham Hotels & Resorts Asset-light Leading brands Primarily Largest business model in the resilient leisure-focused, hotel franchisor generating select-service “drive to” portfolio worldwide(a) significant free cash segment of hotels flow ~9,300 ~907,000 ~254,000 95+ Hotels Current
Slide 3: Why WH Performs When The Cycle Softens
Why WH Performs When The Cycle Softens 1 Asset Light & Highly Cash Generative Proven Playbook of Leveraging Conversions to Drive Resilient 2 Growth Drive Growth Business Model Amidst Ancillary Fee Growth Largely Independent of 3 RevPAR Performance Uncertainty RevPAR Outperformance Driven By Durable
Slide 4: High-Margin, Low-Risk Model Delivers Strong and Steady Free Cash Flow
High-Margin, Low-Risk Model Delivers Strong and Steady Free Cash Flow Asset-Light Model Fully Franchised, Delivers High Generates Strong, Highly Scalable Model Operating Leverage Recurring Free Cash Flow >99% FY 2024 Adjusted EBITDA Margin (in millions) ~57% of Adj EBITDA >99% converted to Adj FCF 9
Slide 5: Select-Service Hotels Historically Outperform Full-Service Hotels in Economic Downturns
Select-Service Hotels Historically Outperform Full-Service Hotels in Economic Downturns SELECT-SERVICE RevPAR GROWTH ADVANTAGES Global Limited reliance on corporate Sept 11(a) Financial Crisis(b) COVID-19(c) business travel or group business, which is often cut in downturns Serves essential fron
Slide 6: Proven Playbook of Leveraging Conversions to Drive Growth
Proven Playbook of Leveraging Conversions to Drive Growth Global Organic System Ability to Pivot Robust Growth During GFC to Conversions Addressable Market Global System Size Conversion Activity as a U.S. Hotels(d) Percent of Total Room Openings Economy, Midscale and Upper Midscale 24,000 3% 568,000
Slide 7: Ancillary Fee Growth Largely Independent of RevPAR Performance
Ancillary Fee Growth Largely Independent of RevPAR Performance Contractual revenue sources offer stability regardless of travel demand GROWTH POISED TO MEANINGFULLY ACCELERATE RESILIENT GROWTH DRIVERS Mid-teens Co-branded credit card generates growth revenue from all cardholder spend including eve
Slide 8: WH Investment Thesis
WH Investment Thesis ASSET-LIGHT, HIGHLY-RESILIENT, FEE-BASED FRANCHISE BUSINESS MODEL GENERATING HIGH MARGINS AND PRODIGIOUS FREE CASH FLOW Wyndham Alltra Punta Cana All Inclusive Punta Cana, Dominican Republic 8 Opened March 2025
Slide 9: Q1 2025 Performance Recap
Q1 2025 Performance Recap Wyndham International Drive Avanti Resort & Conference Center Orlando, Florida 9 Opened February 2025
Slide 10: First Quarter 2025 Performance Recap
First Quarter 2025 Performance Recap +2% +4% Global RevPAR Net room vs. 2024(a) growth YOY +6% +5% New deals Global pipeline signed YOY growth YOY +9% $80M $109M Adjusted EBITDA Free cash flow(c) Capital returned to comparable-basis shareholders growth vs. 2024(b) 10
Slide 11: Continued Openings Momentum Drives Strong Net Room Growth and FeePAR Expansion
Continued Openings Momentum Drives Strong Net Room Growth and FeePAR Expansion RECORD GROSS CONSISTENT NET ROOM FEEPAR OPENINGS GROWTH EXPANSION Q1 Global Openings Year-over-Year U.S. 14,800 13,100 4% +4% +4% 4% 4% Midscale+ FeePAR System Expansion 10,300 Growth International +6% +5% EMEA/LATAM FeeP
Slide 12: Pipeline Expanded to Another All-Time High
Pipeline Expanded to Another All-Time High TOTAL PIPELINE @ 3/31/2025 GLOBAL COMPOSITION SEGMENT MIX +7% Pipeline as a YOY midscale+ ~254K ~2,140 % of current 14% 22% growth portfolio: Global rooms Global hotels 42% 16% 28% 58% International 70% Economy Economy Brands Brands 78% 19th consecutive qua
Slide 13: Broad-Based U.S. RevPAR Softness Took Hold In March
Broad-Based U.S. RevPAR Softness Took Hold In March Demand Softness Emerged in February . . . and Intensified with Rate Declines in March WH U.S. RevPAR Performance Monthly Year-Over-Year, Normalized(a) 3.9% Jan Feb 2.3% 2.2% 2.2% 1.6% Mar 0.0% (0.9%) (2.1%) (2.9%) Occupancy ADR RevPAR 13 (a) Normal
Slide 14: Maximizing Capital Allocation For All Stakeholders
Maximizing Capital Allocation For All Stakeholders MAINTAIN STRONG RETURN EXCESS CAPITAL BALANCE SHEET INVEST IN BUSINESS TO SHAREHOLDERS $637 million of liquidity Strategic deployment of capital to accelerate Targeting mid-30s dividend payout ratio growth in higher RevPAR, midscale+ hotels Total le
Slide 15: Expanding Globally in Key Markets
ECHO Suites Richmond West TRYP by Wyndham Ciudad Guzmán Hawthorn Extended Stay by Wyndham Days Hotel by Wyndham Shantou Jinping Richmond, Virginia, USA Guzmán, Mexico Alpine, Wyoming, USA Shantou, China Opened January 2025 Opened February 2025 Opened March 2025 Opened January 2025 Expanding Globally
Slide 16: 2025 Focus
2025 Focus BUILDING BLOCKS IN PLACE TO MAXIMIZE NEAR-TERM GROWTH Ramada by Wyndham Duesseldorf Ratingen Dusseldorf, Germany 16 Opened December 2024
Slide 17: 2025 Key Priorities
2025 Key Priorities Grow system-wide rooms Continue to establish a market-leading position 3.6% to 4.6% in the extended stay segment Continued investment in brands Capture ancillary revenue growth opportunities, targeting high FeePAR additions including credit card products and strategic marketing p
Slide 18: Resilient Model Delivering EBITDA Growth and Shareholder Returns Despite Economic Headwinds
Resilient Model Delivering EBITDA Growth and Shareholder Returns Despite Economic Headwinds 2025 Adjusted EBITDA Outlook Enhancing Shareholder Value (in millions) Free Cash Flow Conversion 5-7% ~57% Comparable Basis Growth(b) $730 - $745 Additional Leverage Capacity $694 Dividends ~$130 million Up t
Slide 19: System Projected to Increase 3.6% to 4.6%
System Projected to Increase 3.6% to 4.6% GLOBAL ADDITIONS GLOBAL RETENTION RATE 2024 68,700 2024 95.7% 2025E ~8% Gross Openings 2025E Retention Rate >95.7% 19
Slide 20: RevPAR Outlook Recalibrated Amid Evolving Macro Environment
RevPAR Outlook Recalibrated Amid Evolving Macro Environment REVPAR OUTLOOK BASIS FOR OUTLOOK FY 2025 RevPAR Growth High end of range assumes RevPAR Constant Currency growth largely in line with our original outlook for the remaining nine months of 2025, or +1% +2% +2% Low end of range assumes Re
Slide 21: 2025 Planning – Sensitivities
2025 Planning – Sensitivities Driver-Based Non-RevPAR vs. 2024 Ancillary vs. 2024 Adjusted EBITDA Sensitivities (millions) Royalties & Franchise Fees Marketing, Reservation & License Other Loyalty Fees Fees Revenues U.S. International RevPAR & NRG ~$3.4 ~$0.9 Funds are expected to (1 point) Margin o
Slide 22: Appendix
Appendix La Quinta Inn & Suites by Wyndham La Habra, California, USA 22 Opened February 2025
Slide 23: Leading the Industry with Best-in-Class Profitability and Superior Returns
APPENDIX Leading the Industry with Best-in-Class Profitability and Superior Returns WH business operates at WH leads lodging C-Corps best-in-industry margins in capital return Adj. EBITDA Margin(a) Total Five-Year Capital Return 83% as % of Market Cap(b) 75% 71% 71% 30% 25% 25% 24% 24% 51% 22% 33% W
Slide 24: Compelling Value Proposition for Franchisees
APPENDIX Compelling Value Proposition for Franchisees . . . Industry-leading central reservation World’s largest hotel franchisor systems deliver ~$8 out of every $10 leverages pricing power to deliver to U.S. franchisees on-property cost savings for franchisees Industry’s #1 hotel loyalty program w
Slide 25: That Continues to Deliver Strong Returns
APPENDIX . . . That Continues to Deliver Strong Returns Cost per room ~$93,000 Loan-to-value ~70% Franchisee Investment $3,500,000 RevPAR $60.00 Revenues $2,716,000 Operating expenses $815,000 Brand fees $231,000 Interest expense @ 7.25% $585,000 Hotel EBTDA ~$1,100,000 Cash-on-Cash Return up to 31%
Slide 26: "Drive to" Destinations Not Reliant on Costly Air Travel or International Inbounds
APPENDIX “Drive to” Destinations Not Reliant on Costly Air Travel or International Inbounds 87% U.S. HOTELS 97% OF U.S. GUESTS IN “DRIVE TO” LOCATIONS ORIGINATE DOMESTICALLY Suburban 34% U.S. 97% Interstate 27% 87% Europe 1% Small Metro 26% Canada 1% Airport 5% Latin America 1% Urban 5% Resorts 3% A
Slide 27: Our U.S. Guests are Middle-Class and Increasingly Younger Generations
APPENDIX Our U.S. Guests are Middle-Class and Increasingly Younger Generations That Prioritize Travel GEN Y/Z GUESTS U.S. Household Income AS % OF TOTAL First Second Third Fourth Fifth Quintile Quintile Quintile Quintile Quintile 37% $33,000 - $62,000 - $101,000 - <$33,000 >$165,000 62,000 101,000 1
Slide 28: Leisure Guests Power Our Business, Essential Workers Provide a Durable Base
APPENDIX Leisure Guests Power Our Business, Essential Workers Provide a Durable Base ~70% LEISURE FOCUS; ~20% INFRASTRUCTURE Leisure Travel 70% Infrastructure 22% Logistics/ Other 6% Corporate Transient 2% Group Business <1% Represents percentage of U.S. gross room revenues for full-year 2024. 28
Slide 29: Infrastructure Tailwinds Support Long-Term Growth Opportunity
APPENDIX Infrastructure Tailwinds Support Long-Term Growth Opportunity TAPPING INTO THE U.S. STRONG OVERLAP OF WH FOOTPRINT REINDUSTRIALIZATION TREND AND INFRASTRUCTURE SPEND MARKETS 22% of WH U.S. bookings currently derived from infrastructure-related business In 2019, the federal government sp
Slide 30: Corporate Responsibility Q1 2025 Highlights
APPENDIX Corporate Responsibility Q1 2025 Highlights • Recognized by Ethisphere as one of the World’s Most Ethical Companies® for the 5th time for robust ethics, compliance and governance practices • Partnered with the American Red Cross for a special donation campaign in support of the 2025 Souther
Slide 31: Strong and Experienced Leadership Team
APPENDIX Strong and Experienced Leadership Team • Served as President and Chief Executive Officer of • Served as Executive Vice President and Treasurer of Wyndham Hotel Group (2014 – 2018) Wyndham Hotels & Resorts (2018 – 2019) • Served as Chief Executive Officer of Wyndham Destination • Served as S
Slide 32: Wyndham Family of Brands
APPENDIX Wyndham Family of Brands Wherever people go, Wyndham will be there to welcome them. 32 Vienna House brand acquisition also included Vienna House Easy midscale brand.
Slide 33: Footnotes
APPENDIX Page 2 Footnotes Page 23 Data is approximated as of March 31, 2025. Reconciliations of non-GAAP financial measures to the most directly comparable GAAP financial measures can be found in the Appendix. (a) Largest hotel franchisor by number of franchised hotels. (a) Represents adjusted EBITD
Slide 34: Non-GAAP Reconciliations
APPENDIX Non-GAAP Reconciliations The following tables reconcile certain non-GAAP financial measures. The presentation of these adjustments is intended to permit the comparison of particular adjustments as they appear in the income statement in order to assist investors’ understanding of the overall
Slide 35: Non-GAAP Reconciliations
APPENDIX Non-GAAP Reconciliations The following table reconciles certain non-GAAP financial measures. We believe free cash flow to be a useful operating performance measure to us and investors. This measure helps us and investors evaluate our ability to generate cash beyond what is needed to fund ca
Slide 36: Definitions & Disclaimer
APPENDIX Definitions & Disclaimer Adjusted EBITDA: Represents net income excluding net interest expense, depreciation and amortization, early extinguishment of debt charges, impairment charges, restructuring and related charges, contract termination costs, separation-related items, transaction-relat
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