Wyndham Hotels Q2 net income beats estimates, raises FY guidance

Overview

• Adjusted EPS and adjusted net income for Q2 beat analyst expectations

• US hotel franchisor's Q2 revenue declined and missed analyst expectations

• Company raised full-year outlook and reported 4% system size and pipeline growth, excluding Revo

Outlook

• Wyndham raises 2026 adjusted diluted EPS outlook to $4.71-$4.83 from $4.62-$4.80

• Company now sees 2026 adjusted net income of $355-$365 mln, up from $351-$365 mln

• Wyndham increases 2026 global RevPAR growth forecast to 0.0%-1.0% from (1.0%)-1.0%

Result Drivers

• REVENUE DECLINE DRIVERS - Q2 revenue fell due to the absence of pass-through revenues from the prior-year franchisee conference, lower other franchise fees, and deferral of fees from Revo, partially offset by higher ancillary revenues and 4% global net rooms growth (ex. Revo)

• U.S. REVPAR GROWTH - U.S. RevPAR rose 2% year-over-year, driven by improved occupancy and average daily rates, with strength in the Midwest, Texas, Florida, and California

• INTERNATIONAL REVPAR DECLINE - International RevPAR dropped 6%, with declines in Latin America, EMEA, and China due to lower U.S. cross-border demand, geopolitical conflict in the Middle East, and deflationary pricing pressure in China

Company press release: ID:nPnbwBd3Ra

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 14 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the hotels, motels cruise lines peer group is "buy"

• Wall Street's median 12-month price target for Wyndham Hotels Resorts Inc is $100.00, about 32.1% above its July 21 closing price of $75.72

• The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 16 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)