Wyndham Hotels & Resorts, Inc. · NYSE:WH
Wyndham Hotels & Resorts — Q2 2025 Earnings Presentation
41 slides from Wyndham Hotels & Resorts's earnings presentation, Jul 24, 2025
Slide 1: Antigua, Opened June
Antigua, Opened Jun
Slide 2: Introduction to Wyndham Hotels & Resorts
2 Introduction to Wyndham Hotels & Resorts Leading brands in the resilient select-service segment Largest hotel franchisor worldwide -8,300° Hotels Current Rooms 25 ~120M Brands Loyalty Members Data is approximated as of June 30, 2025. (@) Largest hotel franchi umber of franchised hotels, | (b) Excl
Slide 3: Owner-First Focus
Owner-First Focus 6,000+ registered owners and sourcing partners Designed to boost revenues, lower costs, and enhance guest service & operations First-ever Hotel Owner Trends Report unveiled: 90%+ express optimism about the next 5 years Al-Driven Tools to Streamline Operations & Drive Revenue Wyndha
Slide 4: Laying the Tech Foundation & Harnessing AI
Laying the Tech Foundation & Harnessing Al Leading Partners Built on a Modern Foundatio dy by Design, with In Incremental Bookings, Higher ADR, Lower Operating Costs Industry Leading Al & Technology Partnerships 4 Cost Variable Model 1st major hotel company to adopt cloud-based solution, giving elas
Slide 5: Building the Future of Travel with Innovative Technology
Building the Future of Travel with Innovative Technology Delivering Value for Owners and Elevating Guest Experience ENGAGEMENT WYNDHAM MOMENTUM ADVANTAGE Wyndham Connect Usage =» Wyndham Connect monetizes upsell requests, including early check-in/late check- out, room upgrades and dining. Received >
Slide 6: ECHO Suites Extended Stay by Wyndham
ECHOSUITES EXTENDED STAY BY WYNDHAM
Slide 7: Q2 2025 Performance
OZ 2A025 Performa nce ae F ar | DS AARP gs i ay 1 an me i <A VR es ee Ae ee af Seertane eee} Hits ae iti
Slide 8: Second Quarter 2025 Performance Recap
Second Quarter 2025 Performance Recap +4% (3%) Net room Global RevPAR growth YOY vs. 2024 +40% +5% New deals. Global pipeline signed YOY growth YOY +5% $88M $109M Adjusted EBITDA Adjusted Capital returned to palletes free cash flow shareholders
Slide 9: Continued Openings Momentum Drives Consistent Organic Net Room Growth and FeePAR Expansion
Continued Openings Momentum Drives Consistent Organic Net Room Growth and FeePAR Expansion RECORD GROSS OPENINGS YTD Global Organic Openings CONSISTENT NET ROOM GROWTH Year-over-Year 30,500 29,500 4% 4% 4% 26,000 1H’ 23 1H’ 24 1H’ 25 6/30/23 6/30/24 6/30/25 FEEPAR EXPANSION US. +3% Midscale+ System
Slide 10: Pipeline Expanded to Another All-Time High
10 Pipeline Expanded to Another All-Time High TOTAL PIPELINE @ 6/30/2025 ~255K ~2,150 Global rooms. Global hotels 20‘ consecutive quarter of sequential growth YOY Growth Global +5% U.S. +6% Sequential Growth Global +80 bps U.S. +100 bps Covers ~68 countries, including 12 without pre-existing WH pres
Slide 11: Second Quarter U.S. RevPAR Improved Sequentially Versus March
n Second Quarter U.S. RevPAR Improved Sequentially Versus March Normalized RevPAR Greenshoots in Midwest Improved 60 bps from March and Industrial Markets WH U.S. RevPAR Performance WH U.S. RevPAR Performance Year-over-Year, Normalized Year-over-Year, Normalized 11% 19 79% yo 5.6% (2.3%) 3.9% 3.8% 3
Slide 12: Maximizing Capital Allocation For All Stakeholders
Maximizing Capital Allocation For All Stakeholders MAINTAIN STRONG BALANCE SHEET ~$580 million of liquidity Total leverage remains at the midpoint of 3-4x stated range Weighted average maturity of 5 years ~25% of debt is variable-rate Significant room under all debt covenants mTerm Loan A mTerm Loan
Slide 13: Expanding Globally in Key Markets
[|_| | = La Quintal}nn & Suites by Wyndham Olive Branch; Mississippi, USA Opened April2025 Wyndlia Serene St. Paul Mersin, Turkey Opened May 2025 Salta, Argentina Opened June 2025 Ta Wyndham Soleil Danang Danang, Vietnam Opened June 2025 Mierotelinn & Sultes‘by WYndham NeWark, NewYork, USA Opened. J
Slide 14: Dolce by Wyndham Golf & Spa
=, Dolce by W: eri Golf & ™ 3 14 Siracus 4 WYNDHAM Op: ul 7 : THoTELs 6 RESORTS
Slide 15: 2025 Key Priorities
Slide 16: Resilient Model Delivering EBITDA Growth and Shareholder Returns Despite Economic Headwinds
Resilient Model Delivering EBITDA Growth and Shareholder Returns Despite Economic Headwinds Cin millions) 2024@ 2025 Adjusted EBITDA Outlook 5-7% ~~ Comparable Basis) paecrowth i $730 - $745 Operational 2025E Growth Enhancing Shareholder Value Adjusted Free Cash Flow Conversion ~57% Additional Lever
Slide 17: System Projected to Increase 4.0% to 4.6%
System Projected to Increase 4.0% to 4.6% GLOBAL ADDITIONS GLOBAL RETENTION RATE 2024 68,700 2024 ~96% 2025E ~8% Gross Openings 2025E Retention Rate >96%
Slide 18: RevPAR Outlook Reaffirmed
+1% RevPAR Outlook Reaffirmed REVPAR OUTLOOK BASIS FOR OUTLOOK FY 2025 RevPAR Growth = Q2 global performance in line with full-year outlook Cems CrKenay * With year-to-date global RevPAR decline of (1%), high end of the range implies growth of ~2% and low end implies decline of up to (4%) in second
Slide 19: Why WH Performs When The Cycle Softens
Why WH Performs When The Cycle Softens ] Asset Light & Highly Cash Generative 2 Proven Playbook of Leveraging Conversions to Drive Growth Zz Ancillary Fee Growth Largely Independent of RevPAR Performance 4 RevPAR Outperformance Driven By Durable Demand, Drive-To Footprint and Trade-Down Benefits Day
Slide 20: 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 WYNDHAM mm > QO %, FY 2024 Adjusted Gin millions) _— VYNDHAL sue Sy EBITDA Margin® aH (CHOICE >9
Slide 21: Proven Playbook of Leveraging Conversions to Drive Growth
a Proven Playbook of Leveraging Conversions Global Organic System Growth During GFC Global System Size (3%) 568,000 563,200 550,600 2007 2008 2009 to Drive Growth Ability to Pivot to Conversions Conversion Activity as a Percent of Total Room Openings 89% Standard Level Sept 1 Global COvID 2024 Finan
Slide 22: 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 = Co-branded credit card generates revenue from all cardholder spend including everyday essentials
Slide 23: Select-Service Hotels Historically Outperform Full-Service Hotels in Economic Downturns
23 Select-Service Hotels Historically Outperform Full-Service Hotels in Economic Downturns SELECT-SERVICE RevPAR GROWTH ADVANTAGES ; Global . v Limited reliance on corporate | 1 Financial Crisis COVID-19© business travel or group business, (19%) discretionary budgets v Minimal exposure to internatio
Slide 24: Appendix
Slide 25: Strategic Decision on Super 8 China Master License
APPENDIX Strategic Decision on Super 8 China Master License Impact of notice of default on revenue driver metrics BACKGROUND Following an operational review this quarter, we identified violations of our Super 8 master license agreement in China and issued a notice of default to the master licensee,
Slide 26: 2025 Planning - Sensitivities
APPENDIX 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 LS: International RevPAR & NRG “$3.4 “$0.9 Funds are expected to (point) Ma
Slide 27: Leading the Industry with Best-in-Class Profitability and Superior Returns
27 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 j. in@ Total Five-Year Capital Return ear Adj. EBITDA Margin® as 6 oF Market Capo 1% 30% 25% = 25% — 24% = 24% a9 51% MAN
Slide 28: Compelling Value Proposition for Franchisees
APPENDIX Compelling Value Proposition for Franchisees... Industry-leading central reservation systems deliver ~$8 out of every $10 to U.S. franchisees Industry’s #1 hotel loyalty program with ~120 million members drive > one out of every two U.S. check-ins Global marketing funds and customer data pl
Slide 29: ... 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 30: "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 IN “DRIVE TO” LOCATIONS Suburban Interstate Small Metro Airport Urban Resorts 30 | See footnotes in Appendix. 34% 27% 87% 97% OF U.S. GUESTS ORIGINATE DOMESTICALLY Latin America | 1% Asia Paci
Slide 31: Our U.S. Guests are Middle-Class and Increasingly Younger Generations That Prioritize Travel
APPENDIX Our U.S. Guests are Middle-Class and Increasingly Younger Generations That Prioritize Travel GEN Y/Z GUESTS U.S. Household Income AS 1 OF TOTAL First Second Third Fourth Fifth Quintile Quintile Quintile Quintile Quintile 3A% $33,000- $62,000- $101,000 - <$33,000 "67000. ~—*101,000_~—«165,00
Slide 32: Leisure Guests Power Our Business, Essential Workers Provide a Durable Base
32 APPENDIX Leisure Guests Power Our Business, Essential Workers Provide a Durable Base ~70% LEISURE FOCUS; ~20% INFRASTRUCTURE 0 I 7: Infrastructure PF 22% Logisti casey ex Corporate 9, Transient | Group Business <1% Represents percentage of U.S. gross room revenues for full-year 2024. _WYNDHAM | H
Slide 33: Infrastructure Tailwinds Support Long-Term Growth Opportunity
33 APPENDIX Infrastructure Tailwinds Support Long-Term Growth Opportunity TAPPING INTO THE U.S. REINDUSTRIALIZATION TREND 22% of WH U.S. bookings derived from infrastructure-related business In 2019, the federal government spent $71 billion on infrastructure; the 2021 Infrastructure Act & 2022 CHIPS
Slide 34: Corporate Responsibility Q2 2025 Highlights
APPENDIX Corporate Responsibility Q2 2025 Highlights Released 2025 Corporate Responsibility Report highlighting accomplishments and progress made in 2024 Recognized by Newsweek as one of the Global Most Loved Workplaces for second consecutive year Franchisees and team members put together 3,000 hygi
Slide 35: Strong and Experienced Leadership Team
35 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 a
Slide 36: Wyndham Family of Brands
APPENDIX Wyndham Family of Brands Wherever people go, Wyndham will be there to welcome them. EXTENDED STAY ECONOMY MIDSCALE UPPER MIDSCALE UPSCALE UPPER UPSCALE ECHOSUITES micROtEL RAMADA WYNDHAM WYNDHAM GRAND ae . HaMnagre chain encore a DAZZLER poLce Nr wiNeatE esplonralot a= WYNDHAM do S07 GARDEN
Slide 37: Footnotes
Page 4 Page 26 RPI growth represents Q225 vs. Q219, system growth represents 6/30/25 vs. 6/30/19 and retention rate improvement represents full-year 2024 vs. full- Does not include potential bad debt impacts from uncollectible accounts, if any, in the event of a distressed environment, which cannot
Slide 38: Adjusted EBITDA and Capital Return Reconciliations
Three Months Ended Three Months Ended Year Ended Year Ended June 30, 2025 June 30, 2024 December 31, 2024 December 31, 2023 Net income $ 87 $ 86 $ 289 $ 289 Provision for income taxes 29 26 79 109 Depreciation and amortization 15 17 71 76 Interest expense, net 34 30 124 102 Extinguishment of debt -
Slide 39: Cash Flow and Adjusted Free Cash Flow Reconciliations
Three Months Ended Year Ended Year Ended June 30, 2025 December 31, 2024 December 31, 2024 Cash Flow: Net cash provided by operating activities $ 290 Net cash provided by operating activities $ 70 $ 290 Divided: Market capitalization at December 31, 2024 $ 8,041 Net cash used in investing activities
Slide 40: Definitions
40 APPENDIX 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, separation-related items, transaction-related Items (
Slide 41: Disclaimer
APPENDIX Disclaimer Disclaimer: This presentation and the information contained herein are solely for informational purposes. The information contained in this presentation, including the forward-looking statements herein, is provided as of the date of this presentation and may change materially in
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