- Company name
- Wyndham Hotels & Resorts
- Sector
- Hotel franchising
- About
- Wyndham Hotels & Resorts is one of the world's largest hotel franchising companies. It has about 8,500 hotels with more than 877,000 rooms in about 100 countries. Most of its hotels are in the economy and midscale segments. Hotel owners pay it royalties and fees to use its brands, reservation system and loyalty program, and it does not own most of the hotels. At September 30, 2026, it had 500,000 rooms in the United States and 377,400 rooms in other countries. Its headquarters are in Parsippany, New Jersey. Geoff Ballotti is President and CEO.
- Thesis
- The market prices Wyndham for weak demand at economy and midscale hotels and for slow growth in the United States. Its U.S. system shrank 1% in the year to September 30, 2026. International RevPAR fell 3% in constant currency in Q3 2026, and RevPAR in China fell 10%. Revo Hospitality Group, a large European franchisee, entered insolvency, and Wyndham removed all Revo revenue from its 2026 outlook. Net debt leverage is 3.6 times, near the middle of its target of 3 to 4 times. For the gap to close, three things must be true. U.S. RevPAR must keep growing. It rose 6% in Q3 2026, and Wyndham expects Q4 2026 to be near the Q3 level. Global net rooms must grow about 4% in 2026, and the record pipeline of about 264,000 rooms must keep opening. Adjusted EBITDA must reach the 2026 outlook of $740 million to $745 million and grow in 2027. The Q4 2026 report and the 2027 outlook in early 2027 give the next test. If these checks pass, the gap can close over the next four to six quarters. The main reason it may not close is a weaker U.S. economy, which hits economy and midscale hotels first.
- Risks
- Economy and midscale hotels depend on travelers with less money to spend. A weaker U.S. economy can reduce RevPAR, and royalties fall with it.
Franchisees can fail. Revo Hospitality Group, a large European franchisee, entered insolvency, and Wyndham deferred its fees and removed its rooms from the growth figures. More franchisee failures reduce fees and rooms.
International RevPAR fell 3% in constant currency in Q3 2026, mainly because RevPAR in China fell 10%. Conflict in the Middle East and price pressure in China can extend the decline.
Net debt leverage was 3.6 times at September 30, 2026. Higher interest rates increase interest expense, which was $108 million in the first nine months of 2026.
- Balance sheet
- Cash: $71M
Debt: $2.7B
Net debt: $2.7B
Net debt / EBITDA: 3.6× (medium)
Interest cover: 4.3×
Wyndham funds its business with senior notes, term loans and a revolving credit facility. At September 30, 2026, total debt was $2.73 billion: $1.49 billion of term loan B due May 2030, $641 million of 5.625% senior notes due 2033, $498 million of 4.375% senior notes due 2028, $83 million drawn on the revolving credit facility and $14 million of other debt. Cash was $71 million and total liquidity was $988 million. Net debt leverage was 3.6 times, near the middle of the company's target of 3 to 4 times. Interest cover is operating income divided by net interest expense for the first nine months of 2026: $460 million against $108 million. In February 2026, Wyndham issued $650 million of 5.625% senior notes due 2033 and used the money to repay all borrowings under its term loan A and its revolving credit facility.
As of 2026-09-30.
- Checkpoints
- Oct 21, 2026: Q3 2026 earnings: U.S. RevPAR and rooms growth. Passed. Watch: U.S. RevPAR growth near 2% and the 2026 outlook kept or raised pass; a fall in U.S. RevPAR or a lower outlook fails. Outcome: U.S. RevPAR rose 6%, and Wyndham raised its 2026 outlook to adjusted EBITDA of $740 million to $745 million and adjusted diluted EPS of $4.84 to $4.92.
Jan 21, 2027 (estimate): 2026 results and 2027 outlook. Pending. Watch: Net rooms growth of about 4% or more in 2026 and a 2027 outlook for adjusted EBITDA growth pass; lower rooms growth or flat EBITDA guidance fails.
- Recent events
- 2026-10-21: Wyndham reported Q3 2026 results. U.S. RevPAR rose 6%, and global RevPAR rose 2% in constant currency. Global rooms grew 4% without Revo, and the pipeline reached a record of about 264,000 rooms. Net income fell 6% to $99 million and adjusted EBITDA fell 3% to $207 million. Marketing fund timing reduced the comparison, and on a comparable basis adjusted EBITDA rose 5%. Wyndham raised its 2026 outlook to adjusted EBITDA of $740 million to $745 million and adjusted diluted EPS of $4.84 to $4.92. It now expects rooms growth of about 4%.
2026-09-29: The board increased the share buyback authorization by $400 million. The program has no end date.
2026-07-22: Wyndham reported Q2 2026 results. U.S. RevPAR rose 2%, and global rooms grew 4% without Revo. Net income rose 17% to $102 million, adjusted diluted EPS rose 11% to $1.48 and adjusted EBITDA rose 9% to $212 million. Wyndham raised its 2026 outlook to adjusted EBITDA of $735 million to $745 million and adjusted diluted EPS of $4.71 to $4.83.
2026-03-03: Wyndham appointed Amit Sripathi, its Chief Development Officer for North America, as Chief Financial Officer.
2026-02-27: Wyndham completed the sale of $650 million of 5.625% senior notes due 2033. It used the money to repay all borrowings under its term loan A and its revolving credit facility.