Wyndham Hotels Reports $289M Net Income, 1% Revenue Growth for Fiscal Year 2024

Wyndham Hotels & Resorts, Inc. reported a net income of $289 million for the fiscal year ending December 31, 2024, maintaining the same level as the previous year. The company’s total revenues increased by 1% to $1.408 billion, driven primarily by a $23 million rise in royalty and franchise fees due to net room growth and higher royalty rates. However, the company faced a decline in cost reimbursement revenues, which fell to $4 million from $13 million in 2023, reflecting a significant drop in pass-through revenues associated with the global franchisee conference. Operating income decreased slightly by 2% to $495 million, while adjusted EBITDA rose by 6% to $767 million, indicating improved operational efficiency.

In terms of operational metrics, Wyndham's portfolio expanded to 9,286 properties with approximately 903,000 rooms, marking a 4% increase in total rooms compared to the previous year. The company’s global revenue per available room (RevPAR) remained stable at $42.91, with a slight decline in the U.S. RevPAR to $50.37. The average royalty rate increased to 3.95%, reflecting a 6 basis point improvement year-over-year. The company also reported a retention rate of 95.7% for its franchise properties, indicating strong franchisee loyalty.

Strategically, Wyndham is focused on expanding its development pipeline, which now includes approximately 2,100 properties and 252,000 rooms across 66 countries. This represents a 5% year-over-year increase, with 70% of the pipeline in midscale and above segments. The company aims to grow its direct franchising system by 3.6% to 4.6% in 2025 and is investing in enhancing franchisee profitability through operational efficiencies and digital innovations. Additionally, Wyndham's loyalty program, Wyndham Rewards, has grown to approximately 114 million members, contributing to over 37% of check-ins at affiliated hotels globally.

Looking ahead, Wyndham anticipates continued growth despite potential economic challenges, including inflation and rising interest rates. The company maintains a strong liquidity position of approximately $765 million and is committed to returning capital to shareholders through dividends and share repurchases. In 2024, Wyndham declared cash dividends totaling $123 million and repurchased approximately 4.1 million shares for $308 million. The company’s strategic focus on enhancing its brand portfolio and expanding its global footprint positions it well for future growth in the competitive hospitality market.