Wyndham Hotels & Resorts reported fourth‑quarter 2025 revenue of $334 million, slightly below the $337.54 million consensus estimate, but posted adjusted earnings per share of $0.93, a $0.04 beat over the $0.89 estimate and a 6% year‑over‑year increase in full‑year adjusted diluted EPS to $4.58.
The company opened a record 72,000 rooms in the quarter, driving a 4% global net room growth, and expanded its development pipeline to a record 259,000 rooms. U.S. RevPAR fell 8% and global RevPAR declined 6% in constant currency, underscoring continued pricing pressure in the U.S. market.
Wyndham’s adjusted EBITDA for Q4 2025 was $165 million, down from the $228 million figure originally reported. The lower number reflects a $160 million non‑cash charge related to the insolvency of Revo Hospitality Group, which also contributed to a 4% decline in Q4 adjusted diluted EPS on a comparable basis. Despite the hit, the company’s cost discipline and operational efficiencies allowed it to offset a $30 million revenue shortfall and maintain profitability.
Revenue fell 2.1% year‑over‑year, missing the consensus estimate by about $3.6 million. The miss was driven by macro‑economic weakness, a decline in demand for legacy properties, and the impact of the Revo charge, which reduced operating income and contributed to the revenue shortfall.
Liquidity remained strong, with total cash and equivalents of $840 million, an increase from the $790 million figure previously cited. The dividend yield, however, fell to between 2.04% and 2.14% from the 2.25% previously reported, reflecting the higher dividend payout of $0.43 per share, a 5% increase from the prior quarter.
Management guided for full‑year 2026 room growth of 4.0%‑4.5% and adjusted EBITDA of $730‑$745 million, consistent with the 2025 outlook. The guidance signals confidence in the company’s development pipeline and cost discipline, while acknowledging the ongoing RevPAR headwinds.
Investors reacted with a mixed view: the EPS beat and record room openings were offset by the revenue miss and cautious 2026 guidance, leading to a tempered market response.
Geoff Ballotti, President and Chief Executive Officer, said, "Despite continued negative U.S. RevPAR pressure, we grew full‑year comparable‑basis adjusted EBITDA and adjusted EPS in 2025 by 4% and 6%, respectively, generated adjusted free cash flow of more than $430 million and returned nearly $400 million to shareholders." Kurt Albert, Interim Chief Financial Officer, noted the impact of the Revo insolvency, "recorded non‑cash charges of $160 million within the operating expenses and impairment lines on our P and L."
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