WYNDHAM HOTELS & RESORTS REPORTS STRONG THIRD QUARTER RESULTS
WYNDHAM HOTELS & RESORTS, INC. (WH) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 WYNDHAM HOTELS & RESORTS REPORTS STRONG THIRD QUARTER RESULTS Company Raises Full-Year 2026 RevPAR, Adjusted EBITDA and EPS Outlook Grows System Size by 4% and U.S. RevPAR by 6% PARSIPPANY, N.J., October 21, 2026 - Wyndham Hotels & Resorts (NYSE: WH) today announced
How this was made
The 30-second read
Why it matters
The earnings release provides fresh data on revenue, earnings, cash flow, and RevPAR growth, which were not publicly known before this filing.
Market read
The strong earnings and revised RevPAR outlook give traders a timely catalyst for WH, with potential price movement in after‑hours trading.
What to watch
The decline in international RevPAR and China market pressure could temper upside.
Wyndham Hotels & Resorts Reports Strong Third Quarter Results; Raises Full-Year 2026 RevPAR, Adjusted EBITDA and EPS Outlook
Third-quarter U.S. RevPAR grew 6%, global RevPAR grew 2% in constant currency, system size excluding Revo grew 4%, and the company raised full-year adjusted EBITDA and adjusted diluted EPS outlook. Reported net income, adjusted EBITDA and adjusted diluted EPS declined year over year, principally amid marketing fund variability.
Actuals vs. the company’s prior outlook
from its previous release| Metric | Guided | Reported | Verdict |
|---|---|---|---|
| Full-year 2026 year-over-year rooms growth | 4.0% - 4.5% | 4% | in line |
| Full-year 2026 year-over-year global RevPAR growth | 0.0% - 1.0% | 2% | above |
| Full-year 2026 net revenues | $1.48 - $1.50 billion | $410 million | n/a |
| Full-year 2026 adjusted EBITDA | $735 - $745 million | $207 million | n/a |
| Full-year 2026 adjusted net income | $355 - $365 million | $107 million | n/a |
| Full-year 2026 adjusted diluted EPS | $4.71 - $4.83 | $1.43 | n/a |
| Full-year 2026 free cash flow conversion rate | 55% - 60% | null | n/a |
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net revenues, three months ended September 30, 2026GAAP | $410M | – | 7% |
| Royalties and franchise fees, three months ended September 30, 2026GAAP | $156M | – | – |
| Marketing, reservation and loyalty revenues, three months ended September 30, 2026GAAP | $158M | – | – |
| Management and other fees, three months ended September 30, 2026GAAP | $8M | – | – |
| License and other fees, three months ended September 30, 2026GAAP | $36M | – | – |
| Other revenues, three months ended September 30, 2026GAAP | $52M | – | – |
| Total expenses, three months ended September 30, 2026GAAP | $238M | – | – |
| Operating income, three months ended September 30, 2026GAAP | $172M | – | – |
| Interest expense, net, three months ended September 30, 2026GAAP | $37M | – | – |
| Income before income taxes, three months ended September 30, 2026GAAP | $135M | – | – |
| Provision for income taxes, three months ended September 30, 2026GAAP | $36M | – | – |
| Net income, three months ended September 30, 2026GAAP | $99M | – | (6%) |
| Diluted EPS, three months ended September 30, 2026GAAP | $1.33 | – | (2%) |
| Basic EPS, three months ended September 30, 2026GAAP | $1.34 | – | – |
| Adjusted net income, three months ended September 30, 2026non-GAAP | $107M | – | – |
| Adjusted EBITDA, three months ended September 30, 2026non-GAAP | $207M | – | (3%) |
| Adjusted diluted EPS, three months ended September 30, 2026non-GAAP | $1.43 | – | (2%) |
| Net cash provided by operating activities, three months ended September 30, 2026GAAP | $93M | – | – |
| Free cash flow, three months ended September 30, 2026non-GAAP | $100M | – | – |
| Adjusted free cash flow, three months ended September 30, 2026non-GAAP | $100M | – | – |
| Global RevPAR, three months ended September 30, 2026other | $51.13 | 4% improvement sequentially | 2% |
| U.S. RevPAR, three months ended September 30, 2026other | $58.35 | 4% improvement sequentially | 6% |
| International RevPAR, three months ended September 30, 2026other | $41.79 | 4% improvement sequentially | (3%) |
| Global rooms, September 30, 2026other | 877,400 | – | 3% |
| Global rooms excluding Revo, September 30, 2026other | 864,400 | – | 4% |
| U.S. rooms, September 30, 2026other | 500,000 | – | (1%) |
| International rooms, September 30, 2026other | 377,400 | – | 7% |
| Net revenues, nine months ended September 30, 2026GAAP | $1.11B | – | – |
| Operating income, nine months ended September 30, 2026GAAP | $460M | – | – |
| Net income, nine months ended September 30, 2026GAAP | $262M | – | – |
| Diluted EPS, nine months ended September 30, 2026GAAP | $3.49 | – | – |
| Adjusted net income, nine months ended September 30, 2026non-GAAP | $291M | – | – |
| Adjusted diluted EPS, nine months ended September 30, 2026non-GAAP | $3.87 | – | – |
| Net cash provided by operating activities, nine months ended September 30, 2026GAAP | $226M | – | – |
| Free cash flow, nine months ended September 30, 2026non-GAAP | $269M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Hotel Franchising, third quarter 2026Net revenues reflected RevPAR and global net rooms growth, higher franchise fees, increased ancillary revenues and revenues from the Company's two owned hotels. | $410M | – | – |
| Corporate, third quarter 2026Adjusted EBITDA was $(22) million. | $— | – | – |
Full-year 2026 updated outlook as of October 21, 2026 outlook
- Revenue$1.48 - $1.50 billion
- Tax rateapproximately 25%
- NoteYear-over-year rooms growth: ~4%
- NoteYear-over-year global RevPAR growth: 0.5% - 1.0%
- NoteAdjusted EBITDA: $740 - $745 million
- NoteDepreciation and amortization expense: $34 - $36 million
- NoteDevelopment advance notes amortization expense: $34 - $36 million
- NoteStock-based compensation expense: $39 - $41 million
- NoteInterest expense, net: $144 - $146 million
- NoteAdjusted income before income taxes: $483 - $492 million
- NoteIncome tax expense: $120 - $123 million
- NoteAdjusted net income: $363 - $369 million
- NoteAdjusted diluted EPS: $4.84 - $4.92
- NoteDiluted shares: 74.9
- NoteCapital expenditures: $40 - 45 million
- NoteDevelopment advance notes: Approx. $110 million
- NoteFree cash flow conversion rate: ~55 - 60%
- NoteComparable basis adjusted EBITDA growth: approximately 6% - 7%
- NoteFourth quarter domestic RevPAR is assumed to be roughly consistent with third quarter performance.
Capital returns
- Repurchased approximately 1.2 million shares of common stock for $91 million during the third quarter.
- Year-to-date through September 30, repurchased approximately 2.5 million shares of common stock for $196 million.
- Paid common stock dividends of $32 million, or $0.43 per share, during the third quarter 2026.
- Board of Directors increased the share repurchase authorization by $400 million.
What drove it
- U.S. RevPAR improved 6% year over year and 4% sequentially, reflecting improved occupancy and ADR levels.
- U.S. performance was broad-based across nearly all regions, with sustained strength in the Midwest and year-over-year and sequential growth in Texas, Florida and California.
- Canada RevPAR grew 7% year over year; Rest of Asia Pacific RevPAR grew 5%; Latin America RevPAR grew 2%; and EMEA RevPAR grew 2%.
- Global system size excluding Revo grew 4%, with international growth of 11% year over year excluding Revo.
- The global development pipeline excluding Revo increased 4% year over year to approximately 264,000 rooms and over 2,200 hotels.
- Royalties and franchise fees increased 6% to $156 million.
Concerns
- International RevPAR declined 3% year over year in constant currency.
- Greater China RevPAR declined 10% year over year as softer travel demand, particularly in Tier 2 cities, continued to pressure performance.
- Reported net income decreased 6%, adjusted EBITDA decreased 3%, and adjusted diluted EPS decreased 2% year over year.
- Third-quarter marketing fund revenues exceeded expenses by $1 million, compared with $18 million in the third quarter of last year.
- The company said comparable-basis adjusted EBITDA growth was partially offset by the timing of variable costs and the lapping of one-time variable cost reductions made during the third quarter of 2025.
- U.S. room count declined 1% year over year.
What to watch
- Whether fourth-quarter domestic RevPAR is roughly consistent with third-quarter performance, as assumed in the updated outlook.
- The trajectory of RevPAR in Greater China and the effect of softer travel demand in Tier 2 cities.
- Marketing fund seasonality, as the company expects marketing fund revenues to roughly equal expenses during full-year 2026 but expects quarterly comparisons to be affected by spend seasonality.
- The continuing insolvency of Revo, including potential room terminations and the deferral of royalties and franchise fees.
- Execution against the approximately 264,000-room development pipeline, including the approximately 35% of new-construction projects that have broken ground.
Balance sheet and cash flow
- Cash and cash equivalents were $71 million as of September 30, 2026.
- Total liquidity was $988 million as of September 30, 2026.
- Total debt was $2,727 million as of September 30, 2026, compared with $2,560 million as of December 31, 2025.
- Net debt was $2,656 million and the net debt leverage ratio was 3.6x as of September 30, 2026.
- Nine-month net cash provided by operating activities was $226 million, compared with $215 million.
- Nine-month property and equipment additions were $(32) million, compared with $(30) million.
- Nine-month dividends to shareholders were $(98) million and repurchases of common stock were $(196) million.
Analysis
Wyndham reported third-quarter net revenues of $410 million, compared with $382 million in the third quarter of 2025. The company attributed the increase to RevPAR and global net rooms growth, higher franchise fees, increased ancillary revenues and revenue from its two owned hotels. Royalties and franchise fees increased to $156 million from $147 million. U.S. RevPAR was $58.35 and grew 6% year over year, while global RevPAR was $51.13 and grew 2% in constant currency.
Demand and pricing trends were stronger in the United States than internationally. Management cited improved U.S. occupancy and ADR, with broad-based regional growth. International RevPAR was $41.79 and declined 3% in constant currency. Canada, Rest of Asia Pacific, Latin America and EMEA posted year-over-year growth, but China RevPAR declined 10% as softer travel demand, particularly in Tier 2 cities, pressured performance.
Reported profitability was below the prior-year quarter. Net income was $99 million versus $105 million, operating income was $172 million versus $178 million, adjusted EBITDA was $207 million versus $213 million, and adjusted diluted EPS was $1.43 versus $1.46. Marketing fund variability affected comparability: revenues exceeded expenses by $1 million in the 2026 quarter, compared with $18 million in the 2025 quarter. On a comparable basis, the company reported adjusted EBITDA growth of 5% and adjusted diluted EPS growth of approximately 9%.
System growth remained centered on international expansion and development. Global rooms excluding Revo reached 864,400, up 4% year over year, despite a 1% decline in total U.S. rooms. The development pipeline excluding Revo rose 4% to approximately 264,000 rooms and over 2,200 hotels. The company said the pipeline carries an approximately 30% FeePAR premium to its existing domestic and international systems.
Cash generation and shareholder returns continued. Third-quarter operating cash flow was $93 million and free cash flow was $100 million. Wyndham repurchased approximately 1.2 million shares for $91 million, paid $32 million of dividends, and increased its repurchase authorization by $400 million. The company ended the quarter with $71 million of cash, $988 million of total liquidity and a 3.6x net debt leverage ratio.
The company maintained its full-year net revenue range of $1.48 - $1.50 billion, raised the lower end of its adjusted EBITDA range to $740 - $745 million from $735 - $745 million, and raised adjusted diluted EPS to $4.84 - $4.92 from $4.71 - $4.83. It also updated global RevPAR growth to 0.5% - 1.0% from 0.0% - 1.0% and expects fourth-quarter domestic RevPAR to be roughly consistent with third-quarter performance.
Management, verbatim
Our third quarter results demonstrate our team's continued execution and the strength of Wyndham’s asset-light, highly cash-generative business model.
Geoff Ballotti, President and Chief Executive Officer
Not in the filing
stated, not guessed- Gross margin was not reported.
- Gross-margin guidance was not reported.
- Operating-expense guidance was not reported.
- A reported third-quarter free cash flow conversion rate was not provided.
- The supplied prior outlook is full-year guidance, while reported actual financial results are for the third quarter; direct comparisons for revenue, adjusted EBITDA, adjusted net income, adjusted diluted EPS and free cash flow conversion are therefore not period-matched.
- No third-quarter actual free cash flow conversion rate was reported.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
The filing is an SEC Form 8‑K announcing Wyndham Hotels & Resorts' third‑quarter 2026 earnings and updated guidance.
Ticker impact
Wyndham Hotels & Resorts reported Q3 2026 results with 2% global RevPAR growth, $410M revenue and $99M net income, updating its full-year outlook.
potential modest upside as the market prices in the solid earnings and updated outlook
The earnings beat on revenue and cash flow, combined with a updated full-year RevPAR outlook, provide fresh positive fundamentals for traders.
Market effects
Hotel and lodging sector may see broader optimism from Wyndham's performance.
U.S. hotel operators could benefit from the 6% U.S. RevPAR growth reported.
International hotel chains may be compared to Wyndham's mixed results across regions.
Counterpoint
If investors had priced in the RevPAR growth already, the stock could face short‑term profit‑taking.
Key entities
- companyWyndham Hotels & Resorts
U.S.-listed hotel operator (NYSE: WH) reporting Q3 2026 results.
