PARSIPPANY, N.J. — Wyndham Hotels & Resorts has revealed its third quarter 2022 results, for the three months ended Sept. 30.
Highlights include:
- Global Revenue Per Available Room (RevPAR) grew 12 per cent compared to the third quarter in 2021 in constant currency;
- U.S. RevPAR grew two per cent compared to the third quarter 2021, representing 110 per cent of 2019 levels;
- System-wide rooms grew four per cent year-over-year (YOY), including one per cent of growth in the U.S. and nine per cent of growth internationally;
- The development pipeline grew 10 per cent YOY to 212,000 rooms and U.S. development signing increased 82 per cent, including 48 new construction projects for the company’s new extended-stay brand, bringing the total number to 120 since its launch in March;
- Hotel franchising segment revenues grew nine per cent YOY
- Diluted earnings per share of $1.13 and adjusted diluted earnings per share of $1.21; net income of $101 million and adjusted net income of $108 million;
- Adjusted EBITDA of $191 million;
- Year-to-date net cash provided by operating activities came in at $349 million and free cash flow came in at $321 million;
- And returned $161 million to shareholders through $132 million of share re-purchases and a quarterly cash dividend of $0.32 per share.
For the full-year 2022 outlook, Wyndham Hotels & Resorts is predicting the following:
- YOY global RevPAR growth of 14 to 16 per cent, and global net room growth of roughly four per cent;
- Fee-related and other revenues are expected grow from $1.33 billion to $1.34 billion, an increase from July’s outlook;
- Marketing, reservation and loyalty funds are expected to contribute roughly $20 million to adjusted EBITDA, compared with the company’s previous outlook of $10 million;
- Adjusted EBITDA expectation is projected to grow from $636 million to $644 million;
- Adjusted net income will grow from $349 million to $354 million, compared to the prior outlook;
- Adjusted diluted EPS is expected to grow from $3.84 to $3.89, compared to the prior outlook;
- And there is no change to the company’s prior outlook for free cash flow conversion rate of approximately 55 per cent.
“With our brands delivering record U.S. RevPAR and our global development teams driving net unit growth towards the top end of our initial guidance, we are raising our full-year 2022 outlook. Despite the broader macro-economic climate, we are confident in the continued resiliency of our franchise model as we continue to invest in the business and generate substantial shareholder returns,” says Geoffrey A. Ballotti, president and CEO, Wyndham Hotels & Resorts. “This quarter, we grew our development pipeline by 10 per cent, surpassed our full-year development goal for our new extended-stay brand and completed the acquisition of our 23rd brand – Vienna House. We remain committed to a disciplined capital allocation strategy that will deliver outstanding value to our shareholders, guests, franchisees and team members in any environment.”
