Wyndham Hotels & Resorts, Inc. · NYSE:WH
Wyndham Hotels & Resorts — Q3 2021 Earnings Presentation
39 slides from Wyndham Hotels & Resorts's earnings presentation, Oct 28, 2021
Slide 1: Cancun, Mexico
Cancun, Mexico
Slide 2: Introduction to Wyndham Hotels & Resorts
Introduction to Wyndham Hotels & Resorts Largest Leading Asset-light Primarily hotel franchisor economy & midscale business model leisure-focused by hotels brands in attractive with significant cash “drive to” portfolio worldwide select-service space generation capabilities of hotels 9,000 803,000 9
Slide 3: Select-Service Has Recovered
Select-Service Has Recovered U.S. Economy RevPAR U.S. Midscale RevPAR exceeded 2019 levels exceeded 2019 levels for 6 consecutive months, for the past 17 weeks, +14% in Q3 +4% in Q3 Website visits and Franchisee Call volumes U.S. system grows booking volumes ; collection rates f a consistently above
Slide 4: Strong RevPAR Growth Across the U.S.
Strong REVPAR Growth Across the U.S. OCTOBER MTD WH REVPAR GROWTH LEVELS RevPAR Growth Scales HE >10% [i 0% to 10% LB -10% to 0% [BB 10% to -20% HB <-20% WYNDHAM 4 | Note: October month-to-date includes occupancy levels through October 16", HOTELS @ RESORTS
Slide 5: Wyndham Hotels & Resorts
WYNDHAM HOTELS 6 RESORTS
Slide 6: Third Quarter 2021 Performance Recap
Third Quarter 2021 Performance Recap $194M ©®$14IM_ kK +600 bps Adjusted EBITDA; Free cash flow; Margin expansion +1% vs, 2019 @ +4% vs, 2019 vs. 2019 © ie) {> +7% Y) +4% U.S. RevPAR ; ti ve. 2019 crown global additions +4% 7) >95% r oO g {e) Growth in global pipeline Retention rate ®: 70 bps year-o
Slide 7: ADR trend chart
$64.95 $56.14 $55.80 $56.08 $58.78 $51.88 $50.22 $55.67 $54.87 $48.47 $47.07 $52.40 $47.52 $46.29 $40.05 $42.86 $33.11 $38.06 $28.96 $24.69
Slide 8: Pricing Power Returns Faster than 2008 Recession
Pricing Power Returns Faster than 2008 Recession WH U.S. OCCUPANCY AND ADR GROWTH GREAT FINANCIAL CRISIS (2008) COVID-19 o% 4 YEARS oo Wy me 15 MONTHS 0% a 0% (10%) (4%) (20%) (30%) (8%) (40%) (12%) (50%) Ql Qs Ql Qs Ql Q3 Ql Q3 Ql Q3 Ql Q2 Q3 a4 Ql Q2 Q3 'O7 'O7 ‘08 ‘08 ‘09 ‘09 10 10 a mW '20 '20 '
Slide 9: Thursday and Sunday Nights Driving Longer Long Weekends
Thursday and Sunday Nights Driving Longer “Long Weekends” al 2021 RevPAR vs 2019 16% © N 9 Qz 12% 11% Oct MTD 83 3% Zz (3%) (24%) a) Weekend (Fri/Sat) Extended Weekend (Sun/Thu) 9 | Note: October month-to-date includes data through October 16""
Slide 10: WH Select-Service Brands Continue to Outperform Higher-end Chainscales
WH Select-Service Brands Continue to Outperform Higher-end Chainscales MONTHLY U.S. REVPAR CHANGE VS. 2019 12% 12% 9% (35%) (23%) (30%) Economy/Midscale Advantage (68%) (65%) @ WH Select-service brands lf STR Higher-end chainscale brands ©) (89%) Jan’20 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Ja
Slide 11: Net Room Growth Tracking in Line with Expectations
n Net Room Growth Tracking in Line with Expectations THIRD QUARTER 2021 RETENTION TRENDING Oa EVER i ORIN! NOTABLE ADDITIONS ABOVE 95% IN-LINE WITH 2019 Conversion Wyndham Fort Smith Arkansas 9 Wyndham Detroit Michigan pehicredinetoe Q3 Microtel Kunming City Center (China) Ramada Dubai Barsha (UAE)
Slide 12: La Quinta Inn & Suites by Wyndham San Antonio
La Quinta tnn-&Suites by WyadhanmSamAntenio & Suit , i r {2 San-Antoni ited-States diana: 5 < J eee HOTELS & RESORTS
Slide 13: La Quinta Inn & Suites by Wyndham Locust Grove
La Quinta Inn & Suites by Wyndham Locust Grove 13. Locust Grove, Georgia, United States
Slide 14: Antofagasta, Chile
3 ba - © eyshapiorden Antofagasta WYNDHAM __ Antofagasta, Chile
Slide 15: Liyang and Kunming, China
1 | mn ono aoe ll ql tie 15 Liyang, China | = Si i Ei) = |e = \ eae ae i icrotel by Wyndham Kul unming, China _
Slide 16: Ramada by Wyndham Istanbul Sile and Tbilisi Old City
Ramada by Wyndham Istanbul Sile Ramada by Wyndham Tbilisi Old City 3 WYNDHAM 16 Istanbul, Turkey Tbilisi, Georgia rH RTS
Slide 17: Pipeline Concentrated and Growing Faster in Higher Revenue Generating Segments
Pipeline Concentrated and Growing Faster in Higher Revenue Generating Segments TOTAL PIPELINE @ 9/30/21 COMPOSITION HH New Construction 24% Conversion <— 34% in the Ground Hus. International O55 «— _ +440bps Global growth Growth represents year-over-year. 7 | SEGMENT MIX oR HB Midscale Upscale Globa
Slide 18: Asset-Light, Franchised Model Generates Strong Free Cash Flow
18 Asset-Light, Franchised Model Generates Strong Free Cash Flow ($ Millions) — >60% “Conversion Rate $459 7 a = 7 soa ($49) SE a ib s ($23) YTD ’21 Interest Cash Taxes Development Capital Other Working YTD ’21 Adjusted Expense, net Advance Notes Expenditures Capital Free Cash EBITDA Flow ©) Ce Se a
Slide 19: 2021 Focus: Clear Focus & Priorities to Drive Shareholder Value
© 2021 Foct pe | iH “CLEAR FOCUS & PRIORITIES TO DRIVE SHAREHOLDER VAI lll P| Magic Village Yards, Trademark WYNDHAM 19 Kissimmee, Florida USA HOTELS & RESORTS:
Slide 20: Wyndham Hotels & Resorts
WYNDHAI HOTELS & s
Slide 21: Compelling Value Proposition for Franchisees
Compelling Value Proposition for Franchisees!.y. Wyndham’s industry-leading central reservation systems deliver $7 out of every $10 to US. franchisees Trusted brands with segment-leading consumer awareness and market share Industry’s #1 hotel loyalty program with over 90 million enrolled members Glo
Slide 22: Franchisee Investment Has Historically Delivered Strong Returns
... Phat Has Historically Delivered Strong Returns Cost per room ~$75,000 Loan-to-value ~70% Franchisee Investment $1,575,000 RevPAR $53.00 Revenues $1,355,000 Operating expenses $705,000 Brand fees $115,000 Interest expense $220,000 Hotel EBTDA $315,000 Cash-on-Cash Return of ~20% Data is not brand
Slide 23: Clear Focus & Priorities to Drive Shareholder Value
CLEAR FOCUS & PRIORITIES TO DRIVE SHAREHOLDER VALUE — Wyndham Grand KN Paradise Cam Ranh 23 Cam Ranh, Vietnam
Slide 24: Maximizing Capital Allocation For All Stakeholders
24 Maximizing Capital Allocation For All Stakeholders MAINTAIN STRONG BALANCE SHEET ~$930 million of liquidity Total leverage at 3.7x - within our 3-4x target Significant room under all debt covenants No near-term debt maturities mTerm Loan mUnsecured Notes $1,500 $1,000 $500 2021-2024 2025 2026-202
Slide 25: Ranked #4 in
Ranked #4 in • • • • • • • • • • • • • • • • • • • • • •
Slide 26: Drive Shareholder Value
F Gi Oo DRIVE SHAREHOLD VALUE Americinn by Wyndham Okoboji “a — BK i 26 Okoboji, lowa a ee
Slide 27: Days Inn by Wyndham Bullhead City
Ail: ays Inn by Wyndham Bullhead City 4 WYNDHAM “27 | Builhead City, Arizona, USA HOTELS & RESORTS:
Slide 28: Leisure Guests Power Our Business
REASON 1 Leisure Guests Power Our Business 70% LEISURE FOCUS Leisure Travel 6 9 % “Everyday” 6 Business Travel 27% <——_ All Other -1% Corporate Infrastructure -21% Transient 3% Group Business | 1% WYNDHAM 28 =| All data based on 2019 results. HOTELS @ RESORTS —
Slide 29: Drive-to Destinations Not Reliant on Air Travel or International Travelers
29 REASON 2 “Drive to” Destinations Not Reliant on Air Travel or International Travelers 87% U.S. HOTELS IN “DRIVE TO” LOCATIONS Suburban 35% Interstate 87% Small Metro Airport Urban Resorts All data based on STR census September 2021. 96% OF U.S. GUESTS ORIGINATE DOMESTICALLY US. 96% Europe |) 1% C
Slide 30: Wyndham Choice IHG Hilton Marriott
Wyndham Choice IHG Hilton Marriott
Slide 31: Significant Growth Opportunity in Large Conversion Market
31 REASON 4 Significant Growth Opportunity in Large Conversion Market UNIQUE VALUE PROPOSITION IN TODAY’S MARKET Our brands outperformed their competition in the U.S. by 220 bps compared to YTD 2019 Our franchisees leverage Wyndham’s purchasing power to significantly lower operating expenses and thi
Slide 32: World's Largest Hotel Franchisor with Minimal Exposure to Asset Risk
REASON 5 World’s Largest Hotel Franchisor with Minimal Exposure to Asset Risk NUMBER OF HOTELS WORLDWIDE PERCENT OF FRANCHISED HOTELS 8,945 Wynchar) i 27% HED Choice SI 100% 7,102 6758 Hic 2524 6,031 HG [NNN 24% Meni ili 7224 Limited exposure to operating costs and capital requirements associated wi
Slide 33: Strong and Experienced Leadership Team
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 Senior Vic
Slide 34: The Wyndham Family of Brands
34 ECONOMY Nn MICROTEL ‘BY WYNDHAM oan aN dloward Johason BY WYNDHAM Travelodge The Wyndham Family of Brands Wherever people go, Wyndham will be there to welcome them. MIDSCALE UPPER MIDSCALE UPSCALE UPPER UPSCALE RAMADA tAQUINTA WYNDHAM Ka WYNDHAM GRAND DAZZLER DOLCE HOTELS AND RESORTS By wYNDHAM A
Slide 35: Reconciliation of 2019 Adjusted EBITDA to 2021 Outlook
APPENDIX Reconciliation of 2019 Adjusted EBITDA to 2021 Outlook RECONCILIATION TO 2019 ($ Millions) 2019 Adjusted EBITDA @ $621 COVID-19 permanent cost savings >) 40 14% RevPAR decline vs. 2019 @ ~$2.9 million per point (35 - 45) Not in the RevPAR per point estimate ©: Marketing, reservation & loyal
Slide 36: Adjusted EBITDA Reconciliation
Three Months Ended Nine Months Ended Three Months Ended Year Ended September 30, 2021 September 30, 2021 September 30, 2019 December 31, 2019 Net income $ 103 $ 195 $ 45 $ 157 Provision for income taxes 36 72 21 50 Depreciation and amortization 23 70 26 109 Interest expense, net 22 73 25 100 Early e
Slide 37: Free Cash Flow Reconciliation
Three Months Ended Nine Months Ended Year Ended September 30, 2021 September 30, 2021 December 31, 2019 Net cash provided by operating activities $ 147 $ 327 $ 100 Less: Property and equipment additions (6) (23) (50) Free cash flow $ 141 $ 304 50 Payments to tax authorities related to the La Quinta
Slide 38: Franchising Margin and Segment Reconciliation
Three Months Ended Three Months Ended Year Ended September 30, 2021 September 30, 2019 December 31, 2019 Hotel Franchising segment revenues $ 337 $ 379 $ 1,279 Hotel Franchising segment adjusted EBITDA 193 197 629 Segment margin 57% 52% 49% Effect of license fees (3%) (5%) (6%) Effect of marketing,
Slide 39: Definitions & Disclaimer
39 APPENDIX Definitions & Disclaimer Definitions: 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, transaction- related items
Wyndham Hotels & Resorts — Q3 2021 Earnings Presentation on 6ix