Wyndham Hotels Q2 Earnings Top Estimates Helped By High Demand - Wyndham Hotels & Resorts (NYSE:WH)

Wyndham Hotels & Resorts Inc WH reported a second-quarter FY22 sales decline of 4.9% year-on-year, to $386 million, beating the consensus of $359.09 million.
Global revenue per available room (RevPAR) climbed 23% Y/Y in constant currency.
System-wide rooms grew 3% Y/Y, with a 2% rise in the U.S. and a 4% increase internationally.
Segment Revenue: Hotel Franchising increased 18% to $335 million, and Hotel Management declined 59% to $51 million.
Total expenses for the quarter fell 11.7% to $241 million.
The operating margin was 37.5%, and operating income for the quarter rose 9% to $145 million.
The company held $400 million in cash and equivalents as of June 30, 2022.
Cash provided by operating activities year-to-date totaled $242 million, and the free cash flow was $224 million.
Adjusted EBITDA increased 4% Y/Y to $175 million.
Adjusted EPS of $1.07 beat the analyst consensus of $0.93.
"We kicked off our high-demand summer season with the strongest Memorial Day we've ever experienced, as guests traveled further, stayed longer, and spent more at our hotels than they did pre-pandemic," said CEO Geoffrey A. Ballotti.
Outlook: Wyndham sees FY22 adjusted EPS of $3.51 - $3.63 (prior view $3.39 - $3.51), against the consensus of $3.55.
It continues to expect FY22 RevPAR growth of 12% - 16% and adjusted EBITDA of $611 million - $631 million (previously $605 million - $625 million).
Price Action: WH shares closed lower by 1.84% at $69.24 on Tuesday.