Wyndham Hotels & Resorts announced its financial results for the second quarter ending June 30, 2025. The company reported a 4% year-over-year growth in system-wide rooms and awarded 229 development contracts globally, marking a 40% increase from the previous year. The development pipeline saw a sequential growth of 1% and an annual growth of 5%, reaching a record high of approximately 255,000 rooms.
The company’s ancillary revenues rose by 19% compared to the second quarter of 2024. Diluted earnings per share increased by 6% to $13, while adjusted diluted EPS grew by 18% to $1.33. Net income rose by 1% to $87 million, with adjusted net income increasing by 13% to $103 million.
Geoff Ballotti, President and CEO, stated: “We delivered another solid quarter growing our global system by 4%, expanding our development pipeline by 5%, increasing our ancillary revenues by 19%, and continuing to execute our strategy focused on higher FeePAR segments and markets.”
Wyndham revised its international reporting basis due to violations identified in its Super 8 master license agreement in China. This revision excludes approximately 67,300 rooms under this agreement from reported metrics but continues reflecting fees from the licensee.
Globally, Wyndham’s system grew by including notable growth in midscale and above segments in both U.S. and international markets. RevPAR decreased globally by 3% compared to last year but showed regional variations with declines in the U.S., offset partially by increases internationally.
Operating results indicated fee-related revenues grew to $397 million, supported by higher royalties and franchise fees. Adjusted EBITDA was up by 10%, driven primarily by increased ancillary revenues despite higher operating expenses related to credit card program growth.
The company repurchased shares worth $77 million during the quarter and paid dividends amounting to $32 million or $0.41 per share.
For full-year projections, Wyndham has raised its adjusted diluted EPS outlook due to share repurchase activities while maintaining expectations for marketing fund revenue alignment with expenses throughout the year.
A conference call is scheduled for July 24, where further details will be discussed with investors.
