Wyndham Hotels & Resorts, Inc. (WH) Bundle
A Brief History of Wyndham Hotels & Resorts, Inc.
Wyndham Hotels & Resorts, Inc. has established itself as a leading player in the global hospitality industry, focusing on hotel franchising and management. As of 2024, the company operates a diverse portfolio that includes approximately 9,000 hotels under various brand names across 95 countries.
Financial Performance Overview
For the nine months ended September 30, 2024, Wyndham reported the following financial highlights:
| Metric | 2024 | 2023 | % Change |
|---|---|---|---|
| Net Revenues | $1,067 million | $1,076 million | (1%) |
| Adjusted EBITDA | $527 million | $505 million | 4% |
| Net Income | $204 million | $240 million | (15%) |
| Earnings Per Share (Diluted) | $2.54 | $2.79 | (9%) |
Revenue Breakdown
The company's revenue streams for the nine months ended September 30, 2024, indicated the following:
| Source of Revenue | Amount (in millions) |
|---|---|
| Fee-related and other revenues | $1,063 |
| Cost reimbursement revenues | $4 |
Operating Expenses
Total operating expenses for the nine months ended September 30, 2024, were $701 million, reflecting a 4% increase compared to $677 million in 2023. The increase was driven by:
- $41 million of higher transaction-related expenses due to a failed acquisition attempt.
- $12 million of impairment charges related to development advance notes.
- $11 million of restructuring costs.
Balance Sheet Highlights
As of September 30, 2024, Wyndham's financial position was as follows:
| Metric | Amount (in millions) |
|---|---|
| Total Assets | $4,154 |
| Total Liabilities | $3,571 |
| Total Stockholders' Equity | $583 |
Wyndham's total assets increased by $121 million from December 31, 2023, primarily due to growth in development advance notes and accounts receivable.
Debt and Liquidity
As of September 30, 2024, Wyndham's long-term debt stood at $2,440 million, with a significant portion related to term loans and senior unsecured notes. The company had a revolving credit facility with a total capacity of $750 million, of which $69 million was drawn down.
Development Pipeline
Wyndham's global development pipeline consisted of approximately 2,100 hotels and 248,000 rooms as of September 30, 2024, representing a 5% year-over-year increase. Key highlights include:
- 70% of the pipeline in midscale and above segments.
- 58% of the pipeline is international.
- 79% of the pipeline consists of new constructions, with 35% having broken ground.
Stockholder Returns
In 2024, Wyndham declared cash dividends of $0.38 per share, totaling approximately $93 million for the nine months. Additionally, the company repurchased $285 million worth of its own stock during this period.
Market Position and Future Outlook
Wyndham Hotels & Resorts continues to leverage its extensive portfolio and brand recognition to capture market share in the global hospitality sector. The company's focus on franchising, operational efficiencies, and strategic investments positions it well for future growth.
A Who Owns Wyndham Hotels & Resorts, Inc. (WH)
Ownership Structure
As of 2024, Wyndham Hotels & Resorts, Inc. (WH) operates as a publicly traded company on the New York Stock Exchange (NYSE) under the ticker symbol "WH." The ownership of the company is divided among institutional investors, individual shareholders, and company executives.
Major Shareholders
The following table summarizes the major shareholders of Wyndham Hotels & Resorts, Inc. as of September 30, 2024:
| Shareholder Type | Number of Shares (in millions) | Ownership Percentage |
|---|---|---|
| Institutional Investors | 60.5 | 76.8% |
| Individual Investors | 14.0 | 17.7% |
| Company Executives & Directors | 3.5 | 4.5% |
| Treasury Stock | 2.0 | 2.5% |
Top Institutional Investors
The largest institutional investors in Wyndham Hotels & Resorts include:
| Institution | Shares Owned (in millions) | Ownership Percentage |
|---|---|---|
| The Vanguard Group, Inc. | 10.2 | 12.9% |
| BlackRock, Inc. | 9.5 | 11.9% |
| State Street Corporation | 8.0 | 10.1% |
| Fidelity Investments | 7.3 | 9.1% |
| T. Rowe Price Associates, Inc. | 6.0 | 7.5% |
Executive Ownership
Key executives and their shareholdings are detailed below:
| Executive | Position | Shares Owned (in millions) | Ownership Percentage |
|---|---|---|---|
| Geoff Ballotti | President & CEO | 1.0 | 1.3% |
| David Johnson | CFO | 0.5 | 0.6% |
| Jill McGowan | Chief Marketing Officer | 0.4 | 0.5% |
| Mark Van Winkle | Chief Development Officer | 0.3 | 0.4% |
Stock Performance and Market Capitalization
As of September 30, 2024, Wyndham Hotels & Resorts, Inc. has a market capitalization of approximately $8.2 billion. The stock price has shown fluctuations over the past year, ranging from a low of $60.00 to a high of $85.00 per share.
Recent Financial Overview
For the nine months ended September 30, 2024, Wyndham reported the following financial metrics:
| Metric | Value |
|---|---|
| Total Revenues | $1,067 million |
| Net Income | $204 million |
| Adjusted EBITDA | $527 million |
| Cash Dividends Declared | $93 million |
| Total Assets | $4,154 million |
| Total Liabilities | $3,571 million |
Conclusion
Wyndham Hotels & Resorts, Inc. continues to maintain a strong ownership structure with a significant proportion held by institutional investors, alongside notable executive ownership. The company demonstrates solid financial performance and growth potential in the hospitality sector.
Wyndham Hotels & Resorts, Inc. (WH) Mission Statement
Corporate Mission Statement
The mission of Wyndham Hotels & Resorts, Inc. is to provide exceptional hospitality experiences to all guests while maximizing value for our franchise partners and shareholders. We strive to be the world’s largest and most diverse hotel franchising company, offering a wide range of lodging options to meet the needs of every traveler.
Core Values
- Integrity: We conduct our business with honesty and transparency.
- Excellence: We aim for the highest standards in service and quality.
- Innovation: We embrace change and continuously seek new ways to enhance guest experiences.
- Community: We are committed to being responsible corporate citizens and supporting the communities we serve.
Financial Performance Overview
As of September 30, 2024, Wyndham Hotels & Resorts reported a net income of $102 million for the third quarter, a slight decline from $103 million in the same quarter of 2023. Over the first nine months of 2024, the net income was reported at $204 million, down from $240 million in 2023. The company's total revenues for the third quarter of 2024 were $396 million, marking a 1% decrease from $402 million in 2023.
| Financial Metrics | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Income | $102 million | $103 million | -1% |
| Total Revenues | $396 million | $402 million | -1% |
| Adjusted EBITDA | $208 million | $200 million | 4% |
| Net Revenues (Nine Months) | $1,067 million | $1,076 million | -1% |
| Net Income (Nine Months) | $204 million | $240 million | -15% |
Operational Metrics
Wyndham Hotels & Resorts had a total of 892,600 rooms as of September 30, 2024, an increase of 4% from 858,000 rooms in the prior year. The breakdown of rooms is as follows:
| Rooms by Region | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| United States | 500,600 | 495,700 | 1% |
| International | 392,000 | 362,300 | 8% |
| Total Rooms | 892,600 | 858,000 | 4% |
Revenue per Available Room (RevPAR)
The RevPAR for Wyndham Hotels & Resorts was as follows:
| RevPAR Metrics | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| U.S. RevPAR | $57.98 | $58.46 | -1% |
| International RevPAR | $38.60 | $38.05 | 1% |
| Global RevPAR | $49.33 | $49.71 | -1% |
Market Position
Wyndham continues to expand its market presence, with a global development pipeline consisting of approximately 2,100 hotels and 248,000 rooms, representing a 5% year-over-year increase. Approximately 70% of this pipeline is within the midscale and above segments, highlighting the company’s focus on growth in these lucrative areas.
Debt and Liquidity
As of September 30, 2024, Wyndham Hotels & Resorts had total long-term debt of $2.487 billion, with an average interest rate of 5.02%. The company’s liquidity position remains strong, with approximately $681 million available under its revolving credit facility.
| Debt Overview | Amount | Weighted Average Rate |
|---|---|---|
| Revolving Credit Facility | $69 million | 7.17% |
| Term Loan A | $369 million | 7.17% |
| Term Loan B | $1.518 billion | 4.42% |
| Senior Unsecured Notes | $496 million | 4.38% |
| Total Long-Term Debt | $2.487 billion | 5.02% |
Dividend Policy
Wyndham has a consistent dividend policy, having declared cash dividends of $0.38 per share in the first three quarters of 2024, resulting in an aggregate of $93 million in dividends paid to shareholders.
How Wyndham Hotels & Resorts, Inc. (WH) Works
Company Overview
Wyndham Hotels & Resorts, Inc. operates as a hospitality company, primarily focusing on hotel franchising and management. As of September 30, 2024, the company had a total of 892,600 rooms across its global portfolio, which represents a 4% increase from the previous year.
Financial Performance
For the three months ended September 30, 2024, Wyndham reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Net Revenues | $396 million | $402 million | (1%) |
| Net Income | $102 million | $103 million | (1%) |
| Adjusted EBITDA | $208 million | $200 million | 4% |
| Operating Income | $171 million | $163 million | 5% |
| Interest Expense, Net | $34 million | $27 million | 26% |
Revenue Sources
The company generates revenue through various streams, including:
- Royalty and franchise fees
- Management fees
- Marketing, reservation, and loyalty fees
- Cost reimbursement revenues
For the nine months ended September 30, 2024, the revenue breakdown was as follows:
| Revenue Type | Amount (in millions) |
|---|---|
| Fee-related and other revenues | $1,063 |
| Cost reimbursement revenues | $4 |
| Total Net Revenues | $1,067 |
Operational Efficiency
Wyndham has focused on enhancing operational efficiencies, which has contributed to a 4% increase in adjusted EBITDA year-over-year. Total expenses for the three months ended September 30, 2024 were $225 million, down from $239 million in the prior year, reflecting a 6% decrease.
Debt and Financing
As of September 30, 2024, Wyndham's long-term debt stood at $2.487 billion, with the following breakdown:
| Debt Type | Amount (in millions) | Weighted Average Rate |
|---|---|---|
| Revolving Credit Facility | $69 | 7.17% |
| Term Loan A | $369 | 7.17% |
| Term Loan B | $1,518 | 4.42% |
| Senior Unsecured Notes | $496 | 4.38% |
| Finance Leases | $35 | 4.50% |
Market Position and Growth
Wyndham's global development pipeline includes approximately 2,100 hotels and 248,000 rooms, representing a year-over-year increase of 5%. The company has seen a growth of 7% in the U.S. and 3% internationally. Approximately 70% of this pipeline is in the midscale and above segments.
Stock Performance and Dividends
For the nine months ended September 30, 2024, Wyndham repurchased approximately 3.8 million shares at an average price of $75.01, totaling $285 million. The company declared cash dividends of $0.38 per share in the first three quarters of 2024, amounting to an aggregate of $93 million.
Tax and Compliance
Wyndham's effective tax rate for the three months ended September 30, 2024 was 25.5%, compared to 24.3% for the same period in 2023. For the nine months ended September 30, 2024, the effective tax rate was 24.4%.
Conclusion of Financial Overview
As of September 30, 2024, Wyndham's financial condition reflects a total asset value of $4.154 billion and total liabilities of $3.571 billion, leading to total stockholders' equity of $583 million. The company remains focused on strategic growth and operational efficiency to enhance shareholder value.
How Wyndham Hotels & Resorts, Inc. (WH) Makes Money
Revenue Streams
Wyndham Hotels & Resorts, Inc. generates revenue primarily through several key streams:
- Royalties and Franchise Fees: For the three months ended September 30, 2024, royalty and franchise fees amounted to $159 million, compared to $152 million in the same period of 2023. For the nine months ended September 30, 2024, these fees totaled $419 million, up from $415 million in 2023.
- Marketing, Reservation, and Loyalty Fees: These fees were $161 million for the three months ended September 30, 2024, down from $179 million in 2023. For the nine months, they decreased from $445 million in 2023 to $429 million in 2024.
- Management and Other Fees: These remained stable at $3 million for the three months ended September 30, 2024, and totaled $7 million for the nine months, down from $11 million in 2023.
- License and Other Fees: This segment generated $32 million in the third quarter of 2024, compared to $30 million in 2023. For the nine months, it increased from $83 million to $89 million.
- Other Revenues: For the three months ended September 30, 2024, other revenues were $39 million, up from $36 million in 2023, and for the nine months, they rose from $110 million to $119 million.
| Revenue Source | Q3 2024 (in millions) | Q3 2023 (in millions) | YTD 2024 (in millions) | YTD 2023 (in millions) |
|---|---|---|---|---|
| Royalties and Franchise Fees | 159 | 152 | 419 | 415 |
| Marketing, Reservation, and Loyalty Fees | 161 | 179 | 429 | 445 |
| Management and Other Fees | 3 | 3 | 7 | 11 |
| License and Other Fees | 32 | 30 | 89 | 83 |
| Other Revenues | 39 | 36 | 119 | 110 |
Adjusted EBITDA
Wyndham's Adjusted EBITDA for the three months ended September 30, 2024, was $208 million, an increase from $200 million in 2023, representing a 4% growth. For the nine months, Adjusted EBITDA rose to $527 million from $505 million, also reflecting a 4% increase.
| Period | 2024 (in millions) | 2023 (in millions) | % Change |
|---|---|---|---|
| Q3 Adjusted EBITDA | 208 | 200 | 4% |
| YTD Adjusted EBITDA | 527 | 505 | 4% |
Cost Structure
Total expenses for the three months ended September 30, 2024, were $225 million, a decrease of $14 million, or 6%, compared to $239 million in 2023. Major components of expenses included:
- Marketing, Reservation, and Loyalty Expense: $149 million, down from $162 million.
- Operating Expenses: $23 million, slightly down from $24 million.
- General and Administrative Expenses: $30 million, down from $31 million.
| Expense Type | Q3 2024 (in millions) | Q3 2023 (in millions) |
|---|---|---|
| Marketing, Reservation, and Loyalty Expense | 149 | 162 |
| Operating Expenses | 23 | 24 |
| General and Administrative Expenses | 30 | 31 |
Net Income
Net income for the three months ended September 30, 2024, was $102 million, down from $103 million in 2023. For the nine months, net income decreased to $204 million from $240 million in the previous year.
| Period | 2024 (in millions) | 2023 (in millions) |
|---|---|---|
| Q3 Net Income | 102 | 103 |
| YTD Net Income | 204 | 240 |
Development Pipeline
As of September 30, 2024, Wyndham's global development pipeline consisted of approximately 2,100 hotels and 248,000 rooms. This represents a 5% year-over-year increase, with 70% of the pipeline in the midscale and above segments.
| Development Metrics | 2024 |
|---|---|
| Total Hotels in Pipeline | 2,100 |
| Total Rooms in Pipeline | 248,000 |
| Percentage in Midscale and Above Segments | 70% |
| Percentage of Pipeline that is New Construction | 79% |
Debt and Financial Condition
As of September 30, 2024, Wyndham reported a total long-term debt of $2.487 billion, up from $2.201 billion at the end of 2023. The company’s effective interest rates on debt were as follows:
| Debt Type | Amount (in millions) | Weighted Average Rate |
|---|---|---|
| Revolving Credit Facility | 69 | 7.17% |
| Term Loan A | 369 | 7.17% |
| Term Loan B | 1,518 | 4.42% |
| Senior Unsecured Notes | 496 | 4.38% |
The financial health of Wyndham is supported by a significant cash flow generated from operations, which enables it to fund its growth and dividend payments.
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Article updated on 8 Nov 2024
Resources:
- Wyndham Hotels & Resorts, Inc. (WH) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Wyndham Hotels & Resorts, Inc. (WH)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Wyndham Hotels & Resorts, Inc. (WH)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.