Wyndham Hotels & Resorts announced a $650 million senior notes offering due 2033, with proceeds earmarked for repaying balances on its term loan A and revolving credit facility, covering related fees, and supporting general corporate purposes.
The notes will be guaranteed by certain domestic restricted subsidiaries that back the company’s credit facilities and existing notes. They will be sold to qualified institutional buyers under a Rule 144A exemption and to non‑U.S. persons in offshore transactions under Regulation S.
Wyndham’s total debt stands at approximately $5.76 billion, while its current ratio of 3.08 indicates ample liquidity to meet short‑term obligations. The new issuance is part of a broader strategy to refinance and optimize the company’s capital structure, following a $1.5 billion upsizing of its Term Loan B Facility in May 2024 and a similar refinancing of its Senior Secured Term Loan B Facility in May 2023.
The company’s asset‑light model—relying on franchising and management agreements rather than direct property ownership—generates consistent fee‑based revenue and requires less capital investment. The new debt will help maintain this model by reducing interest expense and preserving cash flow for future growth initiatives, such as expanding its system‑wide rooms portfolio and focusing on midscale and extended‑stay brands.
Wyndham’s recent financial performance supports the refinancing move. Full‑year 2024 adjusted EBITDA rose 5 % to $694 million, and fourth‑quarter 2024 adjusted EBITDA grew 9 % to $168 million. Fee‑related and other revenues increased 7 % to $341 million in Q4 2024, and the company announced an 8 % increase in its quarterly dividend, signaling confidence in its cash‑generating ability.
By refinancing existing debt at a lower cost and preserving liquidity, Wyndham positions itself to continue investing in growth while maintaining a strong balance sheet. The transaction underscores the company’s disciplined approach to capital management and its commitment to sustaining the asset‑light business model that has driven its long‑term success.
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