Wyndham Hotels & Resorts's development pipeline grew 1 percent sequentially and 5 percent year-over-year to a record 255,000 rooms in the second quarter 2025. The pipeline consisted of approximately 2,150 hotels, representing another record-high level.
Other development highlights are:
- Awarded 229 new contracts, an increase of 40 percent year-over-year.
- 6 percent pipeline growth in the U.S. and 4 percent growth internationally
- Approximately 70 percent of the pipeline is in the midscale and above segments, which grew 5 percent year-over-year
- Approximately 17 percent of the pipeline is in the extended stay segment
- Approximately 58 percent of the pipeline is international
- Approximately 76 percent of the pipeline is new construction and approximately 35 percent of these projects have broken ground
“We delivered another solid quarter growing our global system by 4 percent, expanding our development pipeline by 5 percent, increasing our ancillary revenues by 19 percent, and continuing to execute our strategy focused on higher FeePAR segments and markets, which is driving growth in both domestic and international royalty rates,” President and CEO Geoff Ballotti said in a statement. “Record first-half openings and a 40 percent second quarter increase in new contracts awarded reflect strong developer confidence in Wyndham’s powerful, owner-first value proposition. Amid a softer domestic RevPAR environment, we grew comparable adjusted EBITDA by 5 percent and comparable adjusted EPS by 11 percent. We also returned nearly $110 million to shareholders this quarter — continuing to demonstrate the value-creating power of our highly cash-generative, resilient asset-light business model. With consistent development, royalty rate, and ancillary fee growth, we remain very confident in our ability to create long-term value for our shareholders, franchisees, and team members through the enduring appeal of our iconic brands.”
The company's global system grew 4 percent including 3 percent growth in the higher RevPAR midscale and above segments in the U.S. and 5 percent growth in the higher RevPAR EMEA and Latin America regions in the second quarter of 2025.
Second quarter global RevPAR decreased 3 percent in constant currency compared to 2024, reflecting a 4 percent decline in the U.S. and 1 percent growth internationally.
In the U.S., second quarter results included approximately 150 basis points of unfavorable impacts from the timing of the Easter holiday and the 2024 solar eclipse. Excluding these impacts, the company's U.S. RevPAR declined approximately 2.3 percent year-over-year, driven by softer demand, partially offset by a modest increase in pricing.
Internationally, RevPAR results were driven by continued pricing power, offset by a decline in occupancy. The company continued to see strong performance in its EMEA and Latin America regions, with year-over-year growth of 7 percent and 18 percent, respectively, reflecting robust pricing power in both regions. The company's Canada region grew RevPAR by 7 percent reflecting increased room nights from Canadian guests. In China, RevPAR decreased 8 percent year-over-year reflecting a decline in occupancy and continued pricing pressure.
Full-Year 2025 Outlook
The company is increasing its adjusted diluted EPS outlook to reflect the impact of second quarter share repurchase activity and increasing the low-end of its year-over-year rooms growth outlook by 40 basis points to reflect the removal of the dilutive impact from its Super 8 master licensee in China.
The company continues to expect marketing fund revenues to approximate expenses during full-year 2025 though seasonality of spend will affect the quarterly comparisons throughout the year.
Other highlights include:
- System-wide rooms grew 4 percent year-over-year.
- Awarded 229 development contracts globally, an increase of 40 percent year-over-year.
- Development pipeline grew 1 percent sequentially and 5 percent year-over-year to a record 255,000 rooms.
- Ancillary revenues increased 19 percent compared to second quarter 2024 and 13 percent on a year-to date basis.
- Diluted earnings per share increased 6 percent year-over-year to $1.13; adjusted diluted EPS grew 18 percent to $1.33, or 11 percent on a comparable basis.
- Net income increased 1 percent year-over-year to $87 million; adjusted net income increased 13 percent to $103 million, or 7 percent on a comparable basis.
- Adjusted EBITDA increased 10 percent year-over-year to $195 million, or 5 percent on a comparable basis.
- Returned $109 million to shareholders through $77 million of share repurchases and quarterly cash dividends of $0.41 per share.