Wyndham Hotels & Resorts Reports Slight Revenue Decline, Increased Expenses, and Restructuring Efforts

Wyndham Hotels & Resorts, Inc. reported net revenues of $396 million for the three months ended September 30, 2024, a slight decrease of 1% from $402 million in the same period of 2023. For the nine months ended September 30, 2024, net revenues totaled $1,067 million, down from $1,076 million year-over-year. The decline in revenue was attributed to lower marketing, reservation, and loyalty revenues, as well as reduced cost-reimbursement revenues, partially offset by increased license and ancillary revenues.

Total expenses for the third quarter of 2024 were $225 million, a decrease of 6% from $239 million in the prior year. This reduction contributed to an operating income of $171 million, up 5% from $163 million in Q3 2023. However, for the nine-month period, total expenses rose to $701 million, an increase of 4% compared to $677 million in 2023, primarily due to higher transaction-related expenses and impairment charges.

Net income for the third quarter of 2024 was $102 million, a slight decrease from $103 million in Q3 2023. For the nine months ended September 30, 2024, net income was $204 million, down from $240 million in the same period last year. Basic earnings per share for Q3 2024 increased to $1.30 from $1.22 in 2023, while diluted earnings per share rose to $1.29 from $1.21.

The company’s total assets increased to $4,154 million as of September 30, 2024, up from $4,033 million at the end of 2023. Total liabilities also rose to $3,571 million, primarily due to an increase in long-term debt, which reached $2,440 million. Total stockholders’ equity decreased to $583 million from $746 million at the end of 2023.

Wyndham's global development pipeline consisted of approximately 2,100 hotels and 248,000 rooms, reflecting a 5% year-over-year increase. The company reported a 4% growth in total rooms, with international growth outpacing domestic growth. The global average revenue per available room (RevPAR) for the third quarter was $49.33, a 1% decrease from the previous year, while international RevPAR increased by 1%.

The company incurred restructuring expenses of $11 million for the nine months ended September 30, 2024, affecting 111 employees primarily in the Hotel Franchising segment. Additionally, transaction-related expenses for the same period totaled $46 million, largely due to a failed hostile takeover attempt.

Wyndham declared cash dividends of $0.38 per share for the third quarter, totaling $93 million for the year to date. The company continues to maintain compliance with its financial covenants and has approximately $750 million in liquidity to support its operations and growth initiatives.