1. Wyndham raised its quarterly dividend by 8% to $0.41 per share. 2. The company reported a 4% growth in net rooms and a 7% EBITDA increase. 3. Global RevPAR increased 5%, with notable growth in higher RevPAR markets. 4. A robust pipeline of 252,000 rooms indicates sustained future growth potential. 5. Wyndham's outlook for 2025 projects solid revenue and EBITDA growth.
The dividend increase and positive growth metrics signal confidence and shareholder value potential, similar to past trends where increased dividends correlated with stock price appreciation.
The financial health and growth prospects outlined in the report have significant implications for WH, directly influencing investor sentiment and stock performance.
The sustained room growth and strong development pipeline ensure ongoing value creation, akin to Wyndham's historical performance during expansion phases.
PARSIPPANY, N.J., Feb. 12, 2025 /PRNewswire/ -- Wyndham Hotels & Resorts (NYSE: WH) today announced results for the three months and year ended December 31, 2024. Highlights include:
"We're proud to report a very strong finish to 2024 with net rooms growth of 4% and comparable adjusted EBITDA growth of 7%. Our team's focus on expanding into higher FeePAR markets, growing our extended-stay footprint and unlocking new ancillary revenue streams underscore the diverse growth opportunities inherent in our asset-light, resilient business model," said Geoff Ballotti, president and chief executive officer. "What excites us most about our future is the developer interest in, and demand for, our brands both here and overseas, reflected in a pipeline that grew another 5% to a record quarter-of-a-million rooms that will open in the coming years with significant FeePAR premiums compared to our existing system. This, when coupled with improving customer demand we're seeing across both our leisure and infrastructure segments, lays a solid foundation for sustained momentum and meaningful value creation for our shareholders, guests, franchisees and team members for many years to come."
| Location | December 31, 2024 | December 31, 2023 | YOY Change (bps) |
|---|---|---|---|
| United States | 501,800 | 497,600 | 80 |
| International | 401,200 | 374,200 | 720 |
| Global | 903,000 | 871,800 | 360 |
The Company's global system grew 4%. Importantly, these results included 4% growth in the higher RevPAR midscale and above segments in the U.S. as well as strong growth in the Company's higher RevPAR EMEA and Latin America regions, which grew a combined 7%. The Company also increased its retention rate by another 10 basis points year-over-year, ending the year at a record 95.7%.
| Quarter | Fourth Quarter 2024 | YOY Constant Currency % Change | Full-Year 2024 | YOY Constant Currency % Change |
|---|---|---|---|---|
| United States | $ 46.41 | 5 % | $ 50.37 | — % |
| International | 32.17 | 6 | 33.59 | 8 |
| Global | 40.01 | 5 | 42.91 | 2 |
Fourth quarter global RevPAR increased 5% in constant currency compared to 2023, reflecting 5% growth in the U.S., which accelerated throughout the quarter, and 6% growth internationally. For the full year, global RevPAR was flat compared to 2023 on a reported basis, in line with the Company's outlook, and grew 2% in constant currency reflecting flat growth in the U.S. and 8% growth internationally.
The Company generated $290 million of net cash provided by operating activities and $397 million of adjusted free cash flow in full-year 2024. The Company ended the quarter with a cash balance of $103 million and approximately $765 million in total liquidity.
For the full-year 2024, the Company returned $430 million to shareholders through share repurchases and quarterly cash dividends.
The Company provided the following outlook for full-year 2025:
Wyndham Hotels & Resorts is the world's largest hotel franchising company by the number of franchised properties, with approximately 9,300 hotels across over 95 countries. For more information, visit Wyndham's Investor Website.