WYNDHAM HOTELS & RESORTS REPORTS SECOND QUARTER 2022 RESULTS

Company Raises Full-Year 2022 Outlook and Grows Global Development Pipeline by 9% to a Record 208,000 Rooms

PARSIPPANY, N.J., July 26, 2022 /PRNewswire/ -- Wyndham Hotels & Resorts WH today announced results for the three months ended June 30, 2022.  Highlights include:

  • Global RevPAR grew 23% compared to second quarter 2021 in constant currency.
  • System-wide rooms grew 3% year-over-year, including 2% of growth in the U.S. and 4% of growth internationally.
  • Hotel Franchising segment revenues grew 18% year-over-year.
  • Diluted earnings per share of $1.00 and adjusted diluted earnings per share of $1.07.
  • Net income of $92 million and adjusted net income of $99 million.
  • Adjusted EBITDA of $175 million.
  • Year-to-date net cash provided by operating activities of $242 million and free cash flow of $224 million.
  • Domestic development signings increased 77%, including 22 new construction projects for the Company's new extended-stay brand, bringing the total number to 72 since launch in March.
  • Completed the sale of the Wyndham Grand Rio Mar Resort.
  • Returned $171 million to shareholders through $142 million of share repurchases and a quarterly cash dividend of $0.32 per share.
  • Company raises full-year 2022 outlook.

"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 Geoffrey A. Ballotti, president and chief executive officer.  "Our business experienced another strong quarter performing above both last year and 2019 as international recovery accelerated and our development teams grew our pipeline to a record level.  Our second quarter results once again demonstrated the strength and durability of our business model and we are well on track to deliver on our 2022 commitments."

Fee-related and other revenues increased 10% year-over-year to $354 million as the impact from the increase of global RevPAR and higher license fees were partially offset by a $21 million impact from the sale of the Company's owned hotels and the exit of its select-service management business.

The Company generated net income of $92 million, or $1.00 per diluted share, an increase of $24 million, or $0.27 per diluted share, reflecting higher adjusted EBITDA, lower depreciation and amortization expense due to the sale of the Company's owned hotels and lower expenses associated with the early extinguishment of debt.  Adjusted EBITDA increased $7 million, or 4%, versus 2021 to $175 million reflecting the revenue growth, which was partially offset by an $8 million impact from the sale of the Company's owned hotels and the exit of its select-service management business as well as a $2 million unfavorable timing impact from the marketing fund.

Full reconciliations of GAAP results to the Company's non-GAAP adjusted measures for all reported periods appear in the tables to this press release.

System Size



June 30,
2022


June 30,
2021


YOY
Change (bps)

United States


492,400


484,800


160

International


326,500


313,200


420

Global


818,900


798,000


260


The Company's global system grew 3%, reflecting 2% growth in the U.S. and 4% growth internationally.  As expected, these increases included strong growth in both the higher RevPAR midscale and above segments in the U.S. and the direct franchising business in China, which grew 7% and 12%, respectively.  The Company remains solidly on track with its goal of achieving a retention rate above 95% and its net room growth outlook of 2 to 4% for the full year 2022.

RevPAR



Second

Quarter 2022


YOY
Constant
Currency 
% Change


Constant
Currency %
Change

vs. 2019

United States


$           55.57


15 %


9 %

International


27.46


59


(6)

Global


44.28


23


3








Second quarter RevPAR grew 23% globally in constant currency, including 15% growth in the U.S. and 59% growth internationally.  The increase is approximately 80% driven by stronger pricing power and 20% driven by higher occupancy levels.

Business Segment Discussion


Revenue


Adjusted EBITDA


Second
Quarter
2022


Second
Quarter
2021


%
Change


Second
Quarter
2022


Second
Quarter
2021


%
Change

Hotel Franchising

$       335


$       283


18 %


$       185


$       166


11 %

Hotel Management

51


123


(59)


6


16


(63)

Corporate and Other




(16)


(14)


(14)

Total Company

$       386


$       406


(5)


$       175


$       168


4


Hotel Franchising revenues increased 18% year-over-year to $335 million primarily due to the global RevPAR increase and higher license and other fees.  Hotel Franchising adjusted EBITDA increased 11% to $185 million reflecting the growth in revenues, partially offset by a 340 basis point unfavorable timing impact from the marketing fund.

Hotel Management revenues decreased 59% year-over-year to $51 million, including a $53 million decrease in cost-reimbursement revenues, which have no impact on adjusted EBITDA.  Absent cost-reimbursements, Hotel Management revenues decreased $19 million, or 50%, to $19 million due to the sale of the Company's owned hotels and the exit of its select-service management business.  Hotel Management adjusted EBITDA decreased $10 million year-over-year reflecting the same.

Development

The Company awarded 187 new contracts this quarter compared to 154 in the second quarter 2021.  On June 30, 2022, the Company's global development pipeline consisted of approximately 1,600 hotels and approximately 208,000 rooms, of which approximately 80% is in the midscale and above segments (nearly 70% in the U.S.).  The pipeline grew 9% year-over-year, including 17% domestically and 5% internationally. Approximately 62% of the Company's development pipeline is international and 78% is new construction, of which approximately 36% has broken ground.

Sale of Owned Hotel

On May 24, 2022, the Company completed the sale of the Wyndham Grand Rio Mar Resort in Puerto Rico for gross proceeds of approximately $62 million. There was no gain or loss on the sale as the proceeds approximated adjusted net book value.  The Company entered into a 20-year franchise agreement with the buyer.

Cash and Liquidity

The Company generated $242 million of net cash provided by operating activities year-to-date and $224 million of free cash flow. The Company ended the quarter with a cash balance of $400 million and approximately $1.1 billion in total liquidity.

Share Repurchases and Dividends

During the second quarter, the Company repurchased approximately 1.9 million shares of its common stock for $142 million.  The Company also paid common stock dividends of $29 million, or $0.32 per share, in the second quarter.

Full-Year 2022 Outlook

The Company is increasing its outlook as follows to reflect future projections related to the Company's license fees from Travel & Leisure based on their full-year 2022 Gross VOI Sales outlook provided on April 28, 2022 as well as the impact of second quarter share repurchase activity:



Updated Outlook


Prior Outlook

Year-over-year rooms growth


2% - 4%


2% - 4%

Year-over-year global RevPAR growth


12% - 16%


12% - 16%

Fee-related and other revenues


$1.29 - $1.32 billion


$1.28 - $1.31 billion

Adjusted EBITDA


$611 - $631 million


$605 - $625 million

Adjusted net income


$323 - $334 million


$317 - $329 million

Adjusted diluted EPS


$3.51 - $3.63


$3.39 - $3.51

Free cash flow conversion rate  (a)


~55%


~55%






(a)

Represents the percentage of adjusted EBITDA that is expected to produce free cash flow.

More detailed projections are available in Table 8 of this press release.  The Company is providing certain financial metrics only on a non-GAAP basis because, without unreasonable efforts, it is unable to predict with reasonable certainty the occurrence or amount of all of the adjustments or other potential adjustments that may arise in the future during the forward-looking period, which can be dependent on future events that may not be reliably predicted. Based on past reported results, where one or more of these items have been applicable, such excluded items could be material, individually or in the aggregate, to the reported results.

Conference Call Information

Wyndham Hotels will hold a conference call with investors to discuss the Company's results and outlook on Wednesday, July 27, 2022 at 8:30 a.m. ET.  Listeners can access the webcast live through the Company's website at https://investor.wyndhamhotels.com.  The conference call may also be accessed by dialing 888 632-3382 and providing the passcode "Wyndham".  Listeners are urged to call at least five minutes prior to the scheduled start time.  An archive of this webcast will be available on the website beginning at noon ET on July 27, 2022.  A telephone replay will be available for approximately ten days beginning at noon ET on July 27, 2022 at 800 925-9942.

Presentation of Financial Information

Financial information discussed in this press release includes non-GAAP measures, which include or exclude certain items. These non-GAAP measures differ from reported GAAP results and are intended to illustrate what management believes are relevant period-over-period comparisons and are helpful to investors as an additional tool for further understanding and assessing the Company's ongoing operating performance.  The Company uses these measures internally to assess its operating performance, both absolutely and in comparison to other companies, and to make day to day operating decisions, including in the evaluation of selected compensation decisions. Exclusion of items in the Company's non-GAAP presentation should not be considered an inference that these items are unusual, infrequent or non-recurring. Full reconciliations of GAAP results to the comparable non-GAAP measures for the reported periods appear in the financial tables section of this press release.

About Wyndham Hotels & Resorts

Wyndham Hotels & Resorts WH is the world's largest hotel franchising company by the number of properties, with approximately 9,000 hotels across over 95 countries on six continents.  Through its network of approximately 819,000 rooms appealing to the everyday traveler, Wyndham commands a leading presence in the economy and midscale segments of the lodging industry.  The Company operates a portfolio of 22 hotel brands, including Super 8®, Days Inn®, Ramada®, Microtel®, La Quinta®, Baymont®, Wingate®, AmericInn®, Hawthorn Suites®, Trademark Collection® and Wyndham®.  The Company's award-winning Wyndham Rewards loyalty program offers over 95 million enrolled members the opportunity to redeem points at thousands of hotels, vacation club resorts and vacation rentals globally.  For more information, visit www.wyndhamhotels.com.  The Company may use its website as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD.  Disclosures of this nature will be included on the Company's website in the Investors section, which can currently be accessed at www.investor.wyndhamhotels.com.  Accordingly, investors should monitor this section of the Company's website in addition to following the Company's press releases, filings submitted with the Securities and Exchange Commission and any public conference calls or webcasts.

Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of the federal securities laws, including statements related to the Company's current views and expectations with respect to its future performance and operations, including revenues, earnings, cash flow and other financial and operating measures, share repurchases and dividends, restructuring charges and statements related to the coronavirus pandemic ("COVID-19"). Forward-looking statements include those that convey management's expectations as to the future based on plans, estimates and projections at the time the Company makes the statements and may be identified by words such as "will," "expect," "believe," "plan," "anticipate," "intend," "goal," "future," "outlook," "guidance," "target," "objective," "estimate," "projection" and similar words or expressions, including the negative version of such words and expressions. Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release.

Factors that could cause actual results to differ materially from those in the forward-looking statements include, without limitation, general economic conditions; the continuation or worsening of the effects from COVID-19, its scope, duration, resurgence and impact on the Company's business operations, financial results, cash flows and liquidity, as well as the impact on the Company's franchisees and property owners, guests and team members, the hospitality industry and overall demand for travel; the success of the Company's mitigation efforts in response to COVID-19; the Company's performance during the recovery from COVID-19 and any resurgence or mutations of the virus; various actions governments, businesses and individuals continue to take in response to the pandemic, including stay-in-place directives (including, for instance, quarantine and isolation guidelines and mandates), safety mitigation guidance, as well as the timing, availability and adoption rates of vaccinations, booster shots and other treatments for COVID-19; concerns with or threats of other pandemics, contagious diseases or health epidemics, including the effects of COVID-19; the performance of the financial and credit markets; the economic environment for the hospitality industry; operating risks associated with the hotel franchising and management businesses; the Company's relationships with franchisees and property owners; the impact of war, terrorist activity, political instability or political strife; risks related to restructuring or strategic initiatives; the Company's ability to satisfy obligations and agreements under its outstanding indebtedness, including the payment of principal and interest and compliance with the covenants thereunder; risks related to the Company's ability to obtain financing and the terms of such financing, including access to liquidity and capital; and the Company's ability to make or pay, plans for, and the timing and amount of any future share repurchases and/or dividends, as well as the risks described in the Company's most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission and any subsequent reports filed with the Securities and Exchange Commission. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, subsequent events or otherwise.

Contacts

Investors:

Matt Capuzzi

Senior Vice President, Investor Relations

973 753-6453

ir@wyndham.com

 

Media: 

Maire Griffin                                                 

Senior Vice President, Global Communications  

973 753-6590 

WyndhamHotelsNews@wyndham.com

Table 1

WYNDHAM HOTELS & RESORTS

INCOME STATEMENT

(In millions, except per share data)

(Unaudited)










Three Months Ended
June 30,


Six Months Ended
June 30,


2022


2021


2022


2021

Net revenues








Royalties and franchise fees

$          133


$          122


$          242


$          200

Marketing, reservation and loyalty

145


119


257


204

Management and other fees

16


30


51


50

License and other fees

27


20


46


40

Other

33


30


73


60

Fee-related and other revenues

354


321


669


554

Cost reimbursements

32


85


88


155

Net revenues

386


406


757


709









Expenses








Marketing, reservation and loyalty

133


105


237


198

Operating

28


31


64


58

General and administrative

31


27


59


51

Cost reimbursements

32


85


88


155

Depreciation and amortization

17


24


40


47

Loss/(gain) on asset sales

1



(35)


Separation-related (income)/expenses

(1)


1


(1)


3

Total expenses

241


273


452


512









Operating income

145


133


305


197

Interest expense, net

20


22


39


51

Early extinguishment of debt

2


18


2


18









Income before income taxes

123


93


264


128

Provision for income taxes

31


25


66


35

Net income

$            92


$            68


$          198


$            93









Earnings per share








Basic

$        1.00


$        0.73


$        2.15


$        0.99

Diluted

1.00


0.73


2.13


0.99









Weighted average shares outstanding








Basic

91.6


93.6


92.0


93.5

Diluted

92.1


94.1


92.7


93.9

Table 2

WYNDHAM HOTELS & RESORTS

HISTORICAL REVENUE AND ADJUSTED EBITDA BY SEGMENT




The reportable segments presented below represent our operating segments for which separate financial information is available and is utilized on a regular basis by our chief operating decision maker to assess performance and allocate resources. In identifying our reportable segments, we also consider the nature of services provided by our operating segments. Management evaluates the operating results of each of our reportable segments based upon net revenues and adjusted EBITDA. We believe that adjusted EBITDA is a useful measure of performance for our segments which, when considered with GAAP measures, allows a more complete understanding of our operating performance. We use this measure internally to assess operating performance, both absolutely and in comparison to other companies, and to make day to day operating decisions, including in the evaluation of selected compensation decisions. Our presentation of adjusted EBITDA may not be comparable to similarly-titled measures used by other companies. During the first quarter of 2021, we modified the definition of adjusted EBITDA to exclude the amortization of development advance notes to reflect how our chief operating decision maker reviews operating performance beginning in 2021. We have applied the modified definition of adjusted EBITDA to all periods presented.
















First
Quarter


Second
Quarter


Third 
Quarter


Fourth
Quarter


Full Year

Hotel Franchising












Net revenues












2022

$            272


$            335


n/a


n/a


n/a



2021

209


283


$            337


$            270


$         1,099



2020

243


182


236


202


863



2019

269


331


379


300


1,279



Adjusted EBITDA (a)












2022

$            155


$            185


n/a


n/a


n/a



2021

105


166


$            193


$            128


$            592



2020

110


86


119


77


392



2019

115


164


197


153


629













Hotel Management












Net revenues












2022

$              99


$              51


n/a


n/a


n/a



2021

94


123


$            126


$            122


$            466



2020

167


76


101


94


437



2019

197


201


180


190


768



Adjusted EBITDA












2022

$              20


$                6


n/a


n/a


n/a



2021

5


16


$              16


$              19


$              57



2020

17


(4)


2


(1)


13



2019

16


16


13


21


66













Corporate and Other












Net revenues












2022

$               —


$               —


n/a


n/a


n/a



2021



$               —


$               —


$               —



2020







2019

2


1


1


2


6



Adjusted EBITDA












2022

$             (16)


$             (16)


n/a


n/a


n/a



2021

(13)


(14)


$             (15)


$             (16)


$             (59)



2020

(18)


(16)


(18)


(18)


(69)



2019

(18)


(19)


(18)


(19)


(74)

Table 2 (continued)

WYNDHAM HOTELS & RESORTS

HISTORICAL REVENUE AND ADJUSTED EBITDA BY SEGMENT








First
Quarter


Second
Quarter


Third 
Quarter


Fourth
Quarter


Full Year

Total Company












Net revenues












2022

$            371


$            386


n/a


n/a


n/a



2021

303


406


$            463


$            392


$         1,565



2020

410


258


337


296


1,300



2019

468


533


560


492


2,053



Net income/(loss)












2022

$            106


$              92


n/a


n/a


n/a



2021

24


68


$            103


$              48


$            244



2020

22


(174)


27


(7)


(132)



2019

21


26


45


64


157



Adjusted EBITDA (a)












2022

$            159


$            175


n/a


n/a


n/a



2021

97


168


$            194


$            131


$            590



2020

109


66


103


58


336



2019

113


161


192


155


621








NOTE:

Amounts include the results of the Company's Wyndham Grand Bonnet Creek Resort and Wyndham Grand Rio Mar Resort, which were sold in March 2022 and May 2022, respectively, and its select-service management business, which was exited in March 2022.  Amounts may not add across due to rounding. See Table 7 for reconciliations of Total Company non-GAAP measures and Table 9 for definitions.

(a)

Adjusted EBITDA for 2019 and 2020 has been recast to exclude the amortization of development advance notes to be consistent with the presentation adopted in 2021.

Table 3

WYNDHAM HOTELS & RESORTS

CONDENSED CASH FLOWS

(In millions)

(Unaudited)






Six Months Ended
June 30,


2022


2021

Operating activities




Net income

$          198


$            93

Depreciation and amortization

40


47

Loss on early extinguishment of debt

2


18

Trade receivables

(5)


(16)

Accounts payable, accrued expenses and other current liabilities

(5)


6

Deferred revenues

16


11

Payments of development advance notes

(13)


(16)

Other, net

9


37

 Net cash provided by operating activities

242


180

Investing activities




Property and equipment additions

(18)


(17)

Proceeds from asset sales, net (a)

263


Other, net

(1)


(1)

 Net cash provided by/(used in) investing activities

244


(18)

Financing activities




Proceeds from long-term debt, net

400


45

Payments of long-term debt, net

(404)


(566)

Dividends to shareholders

(59)


(30)

Repurchases of common stock

(179)


Other, net

(14)


(1)

 Net cash used in financing activities

(256)


(552)

Effect of changes in exchange rates on cash, cash equivalents and restricted cash

(1)


Net increase/(decrease) in cash, cash equivalents and restricted cash

229


(390)

Cash, cash equivalents and restricted cash, beginning of period

171


493

Cash, cash equivalents and restricted cash, end of period

$          400


$          103








(a)

Includes proceeds of $179 million, net of transaction costs, received from the Company's sales of the Wyndham Grand Bonnet Creek Resort and the Wyndham Grand Rio Mar Resort and $84 million of proceeds from CPLG related to the Company's exit of its select-service management business.

Free Cash Flow:








We define free cash flow to be net cash provided by operating activities less property and equipment additions, which we also refer to as capital expenditures. We believe free cash flow to be a useful operating performance measure to us and investors to evaluate the ability of our operations to generate cash for uses other than capital expenditures and, after debt service and other obligations, our ability to grow our business through acquisitions and investments, as well as our ability to return cash to shareholders through dividends and share repurchases. Free cash flow is not necessarily a representation of how we will use excess cash. A limitation of using free cash flow versus the GAAP measure of net cash provided by operating activities as a means for evaluating Wyndham Hotels is that free cash flow does not represent the total cash movement for the period as detailed in the condensed consolidated statement of cash flows.








Three Months Ended
June 30,


Six Months Ended
June 30,


2022


2021


2022


2021

Net cash provided by operating activities

$          107


$          116


$          242


$          180

Less: Property and equipment additions

(8)


(12)


(18)


(17)

Free cash flow

$            99


$          104


$          224


$          163

Table 4

WYNDHAM HOTELS & RESORTS

BALANCE SHEET SUMMARY AND DEBT

(In millions)

(Unaudited)






As of

June 30, 2022


As of

December 31, 2021

Assets




Cash and cash equivalents

$                                 400


$                                 171

Trade receivables, net

255


246

Assets held for sale


154

Property and equipment, net

103


106

Goodwill and intangible assets, net

3,097


3,200

Other current and non-current assets

395


392

Total assets

$                             4,250


$                             4,269





Liabilities and stockholders' equity




Total debt

$                             2,078


$                             2,084

Other current liabilities

377


376

Deferred income tax liabilities

346


366

Other non-current liabilities

353


354

Total liabilities

3,154


3,180

Total stockholders' equity

1,096


1,089

Total liabilities and stockholders' equity

$                             4,250


$                             4,269





Our outstanding debt was as follows:





As of

June 30, 2022


As of

December 31, 2021

$750 million revolving credit facility (due April 2027) (a)

$                                   —


$                                   —

Term loan A (due April 2027) (a)

399


Term loan B (due May 2025) (a)

1,138


1,541

4.375% senior unsecured notes (due August 2028)

494


493

Finance leases

47


50

Total debt

2,078


2,084

Cash and cash equivalents

400


171

Net debt

$                             1,678


$                             1,913



Our outstanding debt as of June 30, 2022 matures as follows:



Amount

Within 1 year

$                                   10

Between 1 and 2 years

26

Between 2 and 3 years

1,167

Between 3 and 4 years

36

Between 4 and 5 years

328

Thereafter

511

Total

$                             2,078








(a)

In April 2022, the Company amended its credit agreement, which extended the maturity of the revolving credit facility from May 2023 to April 2027 and issued a new $400 million term loan A, which also matures in April 2027.  The proceeds from the new term loan were used to pay down a portion of the existing term loan B, which matures in May 2025.

Table 5

WYNDHAM HOTELS & RESORTS

REVENUE DRIVERS












Six Months Ended June 30,




2022


2021


Change


% Change



Beginning Room Count (January 1)










United States

490,600


487,300


3,300


1 %



International

319,500


308,600


10,900


4



Global

810,100


795,900


14,200


2













Additions










United States

13,100


8,100


5,000


62



International

12,700


9,300


3,400


37



Global

25,800


17,400


8,400


48













Deletions










United States

(11,300)


(10,600)


(700)


(7)



International

(5,700)


(4,700)


(1,000)


(21)



Global

(17,000)


(15,300)


(1,700)


(11)













Ending Room Count (June 30)










United States

492,400


484,800


7,600


2



International

326,500


313,200


13,300


4



Global

818,900


798,000


20,900


3 %














As of June 30,


FY 2019
Royalty
Contribution (a)


2022


2021


Change


% Change


System Size










United States










Economy

238,500


247,500


(9,000)


(4 %)



Midscale and Upper Midscale

235,400


219,600


15,800


7



Upscale and Above

18,500


17,700


800


5



Total United States

492,400


484,800


7,600


2 %


86 %











International










Greater China 

156,800


148,600


8,200


6 %


3

Rest of Asia Pacific

29,200


28,300


900


3


1

Europe, the Middle East and Africa

67,900


66,700


1,200


2


4

Canada

39,100


39,600


(500)


(1)


5

Latin America

33,500


30,000


3,500


12


1

Total International

326,500


313,200


13,300


4 %


14











Global

818,900


798,000


20,900


3 %


100 %




(a)

FY 2019 provided to illustrate pre-pandemic results.

Table 5 (continued)

WYNDHAM HOTELS & RESORTS

REVENUE DRIVERS








Three Months
Ended

June 30, 2022


Constant Currency

% Change (a)


Three-Year Basis

% Change (b)

Regional RevPAR Growth






United States






Economy

$                         46.58


9 %


13 %

Midscale and Upper Midscale

61.76


17


6

Upscale and Above

108.06


43


(3)

Total United States

$                         55.57


15 %


9 %







International






Greater China

$                         13.20


(27 %)


(32 %)

Rest of Asia Pacific

26.11


28


(21)

Europe, the Middle East and Africa

44.45


223


6

Canada

50.64


104


4

Latin America

34.64


175


33

Total International

$                         27.46


59 %


(6 %)







Global

$                         44.28


23 %


3 %








Three Months Ended June 30,




2022


2021


% Change (c)

Average Royalty Rate






United States

4.6 %


4.6 %


International

2.1 %


2.2 %


(10 bps)

Global

4.0 %


4.2 %


(20 bps)








Six Months
Ended
June 30, 2022


Constant Currency

% Change (a)


Three-Year Basis

% Change (b)

Regional RevPAR Growth






United States






Economy

$                         40.86


17 %


12 %

Midscale and Upper Midscale

54.54


26


3

Upscale and Above

93.88


55


(8)

Total United States

$                         48.87


24 %


7 %







International






Greater China

$                         13.26


(17 %)


(30 %)

Rest of Asia Pacific

24.49


22


(29)

Europe, the Middle East and Africa

37.43


175


(5)

Canada

42.17


85


Latin America

33.61


153


33

Total International

$                         24.73


53 %


(11 %)







Global

$                         39.20


29 %


— %








Six Months Ended June 30,




2022


2021


% Change (c)

Average Royalty Rate






United States

4.6 %


4.6 %


International

2.2 %


2.1 %


10 bps

Global

4.0 %


4.1 %


(10 bps)








(a)

International excludes the impact of currency exchange movements.

(b)

Compares 2022 to 2019; international excludes the impact of currency exchange movements.

(c)

Declines in royalty rates are due to international regions recovering at a faster pace. 

Table 6

WYNDHAM HOTELS & RESORTS

HISTORICAL REVPAR AND ROOMS






First
Quarter


Second
Quarter


Third
Quarter


Fourth
Quarter


Full
Year












Hotel Franchising
























Global RevPAR























2022


$         33.08


$         43.74


n/a


n/a


n/a














2021


$         24.02


$         35.69


$         44.67


$         34.77


$         34.85














2020


$         25.90


$         17.05


$         28.83


$         23.19


$         23.74














2019


$         33.76


$         42.04


$         45.23


$         34.51


$         38.91














U.S. RevPAR
























2022


$         41.01


$         54.70


n/a


n/a


n/a














2021


$         29.68


$         46.99


$         56.38


$         42.45


$         43.95














2020


$         31.43


$         23.19


$         36.06


$         27.28


$         29.50














2019


$         37.69


$         48.65


$         51.93


$         37.96


$         44.09














International RevPAR






















2022


$         21.05


$         26.80


n/a


n/a


n/a














2021


$         15.26


$         18.21


$         26.62


$         23.13


$         20.86














2020


$         17.39


$           7.66


$         17.39


$         16.71


$         14.75














2019


$         27.56


$         31.59


$         34.79


$         29.15


$         30.80














Global Rooms























2022


793,200


799,200


n/a


n/a


n/a














2021


748,700


752,500


758,600


769,400


769,400














2020


769,000


754,700


748,200


746,500


746,500














2019


745,300


751,300


758,400


770,200


770,200














U.S. Rooms
























2022


486,600


487,600


n/a


n/a


n/a














2021


452,500


454,200


458,000


465,100


465,100














2020


463,900


460,200


459,600


452,600


452,600














2019


454,900


457,600


460,100


464,600


464,600














International Rooms






















2022


306,600


311,600


n/a


n/a


n/a














2021


296,200


298,300


300,600


304,300


304,300














2020


305,100


294,500


288,600


293,900


293,900














2019


290,400


293,700


298,300


305,600


305,600




































Hotel Management























Global RevPAR























2022


$         56.55


$         65.13


n/a


n/a


n/a














2021


$         38.17


$         56.08


$         64.63


$         57.57


$         53.81














2020


$         50.00


$         20.67


$         34.34


$         32.91


$         34.67














2019


$         63.25


$         66.67


$         66.65


$         59.19


$         64.01














U.S. RevPAR
























2022


$         69.92


$       135.35


n/a


n/a


n/a














2021


$         42.89


$         67.42


$         78.27


$         66.77


$         63.20














2020


$         54.35


$         23.21


$         39.12


$         34.14


$         37.97














2019


$         65.58


$         71.61


$         70.75


$         60.89


$         67.32














International RevPAR






















2022


$         40.26


$         40.89


n/a


n/a


n/a














2021


$         27.12


$         31.20


$         37.53


$         40.96


$         34.31














2020


$         38.07


$         13.78


$         23.16


$         29.86


$         26.21














2019


$         55.12


$         49.53


$         52.49


$         53.67


$         52.69














Global Rooms























2022


20,100


19,700


n/a


n/a


n/a














2021


48,500


45,500


44,000


40,700


40,700














2020


59,300


58,200


55,800


49,400


49,400














2019


66,800


65,200


63,400


60,800


60,800














U.S. Rooms
























2022


5,300


4,800


n/a


n/a


n/a














2021


33,500


30,600


28,800


25,500


25,500














2020


42,900


41,800


38,100


34,700


34,700














2019


51,700


50,700


49,100


45,600


45,600














International Rooms






















2022


14,800


14,900


n/a


n/a


n/a














2021


15,000


14,900


15,200


15,200


15,200














2020


16,400


16,400


17,700


14,700


14,700














2019


15,100


14,500


14,300


15,200


15,200












Table 6 (continued)

WYNDHAM HOTELS & RESORTS

HISTORICAL REVPAR AND ROOMS


















First
Quarter


Second
Quarter


Third
Quarter


Fourth
Quarter


Full
Year

Total System













Global RevPAR












2022


$         34.06


$         44.28


n/a


n/a


n/a



2021


$         24.90


$         36.92


$         45.80


$         35.99


$         35.95



2020


$         27.68


$         17.31


$         29.23


$         23.84


$         24.51



2019


$         36.21


$         44.06


$         46.94


$         36.36


$         40.92



U.S. RevPAR













2022


$         42.11


$         55.57


n/a


n/a


n/a



2021


$         30.62


$         48.37


$         57.73


$         43.84


$         45.19



2020


$         33.45


$         23.19


$         36.31


$         27.80


$         30.20



2019


$         40.56


$         50.98


$         53.79


$         40.09


$         46.39



International RevPAR











2022


$         21.95


$         27.46


n/a


n/a


n/a



2021


$         15.83


$         18.84


$         27.15


$         23.99


$         21.52



2020


$         18.45


$           7.96


$         17.72


$         17.37


$         15.35



2019


$         28.92


$         32.47


$         35.63


$         30.29


$         31.85



Global Rooms












2022


813,300


818,900


n/a


n/a


n/a



2021


797,200


798,000


802,600


810,100


810,100



2020


828,300


812,900


804,000


795,900


795,900



2019


812,100


816,600


821,800


831,000


831,000



U.S. Rooms













2022


491,900


492,400


n/a


n/a


n/a



2021


486,000


484,800


486,800


490,600


490,600



2020


506,800


502,000


497,700


487,300


487,300



2019


506,600


508,300


509,200


510,200


510,200



International Rooms












2022


321,400


326,500


n/a


n/a


n/a



2021


311,200


313,200


315,800


319,500


319,500



2020


321,500


310,900


306,300


308,600


308,600



2019


305,500


308,300


312,600


320,800


320,800








NOTE: 

Amounts may not foot due to rounding. Results reflect the reclassification of rooms from the Hotel Management segment to the Hotel Franchising segment related to the CorePoint Lodging asset sales, including approximately 19,000 rooms in first quarter 2022.

Table 7

WYNDHAM HOTELS & RESORTS

NON-GAAP RECONCILIATIONS

(In millions)











The tables below reconcile certain non-GAAP financial measures. The presentation of these adjustments is intended to permit the comparison of particular adjustments as they appear in the income statement in order to assist investors' understanding of the overall impact of such adjustments. We believe that adjusted EBITDA, adjusted net income and adjusted EPS financial measures provide useful information to investors about us and our financial condition and results of operations because these measures are used by our management team to evaluate our operating performance and make day-to-day operating decisions and adjusted EBITDA is frequently used by securities analysts, investors and other interested parties as a common performance measure to compare results or estimate valuations across companies in our industry. These measures also assist our investors in evaluating our ongoing operating performance for the current reporting period and, where provided, over different reporting periods, by adjusting for certain items which may be recurring or non-recurring and which in our view do not necessarily reflect ongoing performance. We also internally use these measures to assess our operating performance, both absolutely and in comparison to other companies, and in evaluating or making selected compensation decisions. These supplemental disclosures are in addition to GAAP reported measures. These non-GAAP reconciliation tables should not be considered a substitute for, nor superior to, financial results and measures determined or calculated in accordance with GAAP.











Reconciliation of Net Income/(Loss) to Adjusted EBITDA:




First
Quarter


Second
Quarter


Third
Quarter


Fourth
Quarter


Full
Year

2022










Net income

$           106


$             92







Provision for income taxes

34


31







Depreciation and amortization

24


17







Interest expense, net

20


20







Early extinguishment of debt (a)


2







Stock-based compensation expense

8


9







Development advance notes amortization (b)

3


3







(Gain)/loss on asset sales (c)

(36)


1







Separation-related (income)/expenses (d)


(1)







Foreign currency impact of highly inflationary countries (e)


1







Adjusted EBITDA

$           159


$           175

















2021










Net income

$             24


$             68


$           103


$             48


$           244

Provision for income taxes

11


25


36


19


91

Depreciation and amortization

24


24


23


25


95

Interest expense, net

28


22


22


22


93

Early extinguishment of debt (a)


18




18

Stock-based compensation expense

5


8


7


8


28

Development advance notes amortization (b)

2


2


3


3


11

Impairments, net (f)




6


6

Separation-related expenses (d)

2


1




3

Foreign currency impact of highly inflationary countries (e)

1





1

Adjusted EBITDA

$             97


$           168


$           194


$           131


$           590











2020










Net income/(loss)

$             22


$          (174)


$             27


$              (7)


$          (132)

Provision for/(benefit from) income taxes

9


(48)


15


(2)


(26)

Depreciation and amortization

25


25


24


24


98

Interest expense, net

25


28


29


30


112

Stock-based compensation expense

4


5


5


5


19

Development advance notes amortization (b)

2


2


2


2


9

Impairments, net (f)


206




206

Restructuring costs (g)

13


16



5


34

Transaction-related expenses, net (h)

8


5




12

Separation-related expenses (d)

1




1


2

Foreign currency impact of highly inflationary countries (e)



1



2

Adjusted EBITDA

$           109


$             66


$           103


$             58


$           336

Table 7 (continued)

WYNDHAM HOTELS & RESORTS

NON-GAAP RECONCILIATIONS

(In millions)












First
Quarter


Second
Quarter


Third
Quarter


Fourth
Quarter


Full
Year

2019










Net income

$             21


$             26


$             45


$             64


$           157

Provision for income taxes

5


10


21


14


50

Depreciation and amortization

29


27


26


28


109

Interest expense, net

24


26


25


25


100

Stock-based compensation expense

3


4


4


4


15

Development advance notes amortization (b)

2


2


2


2


8

Impairment, net (i)


45




45

Contract termination costs (j)


9


34


(1)


42

Restructuring costs (k)




8


8

Transaction-related expenses, net (h)

7


11


12


10


40

Separation-related expenses (d)

21


1




22

Transaction-related item (l)



20



20

Foreign currency impact of highly inflationary countries (e)

1



3


1


5

Adjusted EBITDA

$           113


$           161


$           192


$           155


$           621




NOTE:

Amounts may not add due to rounding.

(a)

Amount in 2022 relates to non-cash charges associated with the Company's extension of its revolving credit facility and the prepayment of $400 million of its term loan B. Amount in 2021 relates to the redemption premium and non-cash expenses associated with the early redemption of the Company's 5.375% senior unsecured notes.

(b)

Represents the non-cash amortization of development advance notes, which is now excluded from adjusted EBITDA to reflect how the Company's chief operating decision maker reviews operating performance.

(c)

Represents (gain)/loss on sales of the Company's owned hotels, the Wyndham Grand Bonnet Creek Resort and Wyndham Grand Rio Mar Resort.

(d)

Represents costs associated with the Company's spin-off from Wyndham Worldwide.

(e)

Relates to the foreign currency impact from hyper-inflation, primarily in Argentina, which is reflected in operating expenses on the income statement.

(f)

2021 represents a non-cash charge to reduce the carrying values of the Company's owned hotels long-lived assets to their fair value in connection with the Company's Board approval of a plan to sell these assets in 2022. 2020 represents a non-cash charge to reduce the carrying values of certain intangible assets to their fair values principally attributable to higher discount rates primarily resulting from increased share price volatility, partially offset by $3 million of cash proceeds from a previously impaired asset.

(g)

Represents charges associated with restructuring initiatives implemented in response to the effects on travel demand as a result of COVID-19.

(h)

Primarily relates to integration costs incurred in connection with the Company's acquisition of La Quinta.

(i)

Represents a non-cash charge associated with the termination of certain hotel-management arrangements.

(j)

Represents costs associated with the termination of certain hotel-management arrangements.

(k)

Represents a charge related to enhancing the Company's organizational efficiency and rationalizing our operations.

(l)

Represents the one-time fee credit related to the Company's agreement with CorePoint Lodging, which is reflected as a reduction to hotel management revenues on the income statement.

Table 7 (continued)

WYNDHAM HOTELS & RESORTS

NON-GAAP RECONCILIATIONS

(In millions, except per share data)









Reconciliation of Net Income and Diluted EPS to Adjusted Net Income and Adjusted Diluted EPS:








Three Months Ended
June 30,


Six Months Ended
June 30,


2022


2021


2022


2021

Diluted earnings per share

$        1.00


$        0.73


$        2.13


$        0.99









Net income

$           92


$           68


$         198


$           93









Adjustments:








Acquisition-related amortization expense (a)

6


9


18


18

Early extinguishment of debt (b)

2


18


2


18

Foreign currency impact of highly inflationary countries

1



2


1

Loss/(gain) on asset sales (c)

1



(35)