Firm Raises Full-Yr 2022 Outlook
Board Will increase Share Repurchase Authorization by $400 Million
Firm Grows System-Vast Rooms by 4% and Improvement Pipeline by 10%

PARSIPPANY, N.J., Oct. 25, 2022 /PRNewswire/ — Wyndham Accommodations & Resorts (NYSE: WH) in the present day introduced outcomes for the three months ended September 30, 2022. Highlights embrace:

• World RevPAR grew 12% in comparison with third quarter 2021 in fixed forex.
• U.S. RevPAR grew 2% in comparison with third quarter 2021 and represents 110% of 2019 ranges.
• System-wide rooms grew 4% year-over-year, together with 1% of progress within the U.S. and 9% of progress internationally.
• Improvement pipeline grew 10% year-over-year to 212,000 rooms and U.S. improvement signings elevated 82%, together with 48 new building initiatives for the Firm’s new extended-stay model, bringing the overall quantity to 120 since launch in March.
• Resort Franchising section revenues grew 9% year-over-year.
• Diluted earnings per share of $1.13 and adjusted diluted earnings per share of $1.21; internet earnings of $101 million and adjusted internet earnings of $108 million.
• Adjusted EBITDA of $191 million.
• Yr-to-date internet money supplied by working actions of $349 million and free money stream of $321 million.
• Returned $161 million to shareholders by way of $132 million of share repurchases and a quarterly money dividend of $0.32 per share.

“With our manufacturers delivering report U.S. RevPAR and our world improvement groups driving internet unit progress in direction of the highest finish of our preliminary steering, we’re elevating our full-year 2022 outlook. Regardless of the broader macro-economic local weather, we’re assured within the continued resiliency of our franchise mannequin as we proceed to put money into the enterprise and generate substantial shareholder returns,” stated Geoffrey A. Ballotti, president and chief government officer. “This quarter, we grew our improvement pipeline by 10%, surpassed our full-year improvement aim for our new extended-stay model and accomplished the acquisition of our 23^rd model – Vienna Home. We stay dedicated to a disciplined capital allocation technique that may ship excellent worth to our shareholders, company, franchisees and workforce members in any surroundings.”

Payment-related and different revenues was $375 million in comparison with $377 million in third quarter 2021, which included $34 million from the Firm’s select-service administration enterprise and owned inns – each of which had been exited within the first half of this yr. On a comparable foundation, fee-related and different revenues elevated 9% year-over-year reflecting world fixed forex RevPAR progress of 12% and better license charges.

The Firm generated internet earnings of $101 million, or $1.13 per diluted share, in comparison with $103 million, or $1.09 per diluted share, in third quarter 2021. The decline in internet earnings was primarily as a result of exit of the

Firm’s select-service administration enterprise and owned inns, partially offset by larger adjusted EBITDA within the Firm’s resort franchising section. Adjusted EBITDA was $191 million in comparison with $194 million in third quarter 2021, which included a $10 million contribution from the Firm’s select-service administration enterprise and owned inns – each of which had been exited within the first half of this yr. On a comparable foundation, adjusted EBITDA elevated 4% year-over-year reflecting larger fee-related and different revenues, partially offset by a 600 foundation level unfavorable timing affect from the advertising fund.

Full reconciliations of GAAP outcomes to the Firm’s non-GAAP adjusted measures for all reported durations seem within the tables to this press launch.

System Dimension

The Firm’s world system grew 4%, reflecting 1% progress within the U.S. and 9% progress internationally. As anticipated, these will increase included sturdy progress in each the upper RevPAR midscale and above segments within the U.S. and the direct franchising enterprise in China, which grew 6% and eight%, respectively, in addition to 80 foundation factors of progress globally and 200 foundation factors internationally from the acquisition of the Vienna Home model.

RevPAR

Third quarter world RevPAR grew by 12% in fixed forex in comparison with 2021 because the U.S. grew 2% and worldwide grew 46%. World RevPAR was 111% of 2019 ranges in fixed forex, with the U.S. at 110% and worldwide at 117%. The will increase in comparison with each 2021 and 2019 had been pushed primarily by stronger pricing energy.

Enterprise Section Dialogue

Resort Franchising revenues elevated 9% year-over-year to $367 million primarily as a result of world RevPAR improve and better license charges. Resort Franchising adjusted EBITDA of $201 million elevated 4% reflecting the expansion in revenues, partially offset by an unfavorable timing affect from the advertising fund, excluding which Resort Franchising adjusted EBITDA would have elevated 12%.

Resort Administration revenues decreased 68% year-over-year to $40 million, together with a $54 million lower in cost-reimbursement revenues, which haven’t any affect on adjusted EBITDA. Absent cost-reimbursements, Resort Administration revenues decreased $32 million, or 80%, and adjusted EBITDA decreased $9 million reflecting the exit of the Firm’s select-service administration enterprise and owned inns.

Throughout the third quarter 2022, the Firm’s advertising fund revenues exceeded bills by $12 million; whereas in third quarter 2021, the Firm’s advertising fund revenues exceeded bills by $19 million.

Improvement

The Firm awarded 214 new contracts this quarter in comparison with 151 within the third quarter 2021. On September 30, 2022, the Firm’s world improvement pipeline consisted of over 1,600 inns and over 212,000 rooms, of which roughly 76% is within the midscale and above segments (61% within the U.S.). The pipeline grew 10% year-over-year – 24% within the U.S. and a pair of% internationally. Roughly 60% of the Firm’s improvement pipeline is worldwide and 80% is new building, of which roughly 36% has damaged floor. The pipeline consists of 120 new contracts awarded for the Firm’s new extended-stay model since its launch in March 2022.

Acquisition of Vienna Home

On September 8, 2022, the Firm accomplished the acquisition of the Vienna Home model, including an upscale and midscale portfolio of over 40 inns and greater than 6,400 rooms to the Firm’s current footprint within the EMEA area. The acquisition worth was $44 million.

Money and Liquidity

The Firm generated year-to-date internet money supplied by working actions of $349 million and free money stream of $321 million. The Firm ended the quarter with a money steadiness of $286 million and roughly $1.0 billion in whole liquidity.

Share Repurchases and Dividends

Throughout the third quarter, the Firm repurchased roughly 2.0 million shares of its frequent inventory for $132 million. In October 2022, the Firm’s Board of Administrators elevated the Firm’s share repurchase authorization by $400 million.

The Firm paid frequent inventory dividends of $29 million, or $0.32 per share.

Full-Yr 2022 Outlook

The Firm is updating its outlook as follows:

Extra detailed projections can be found in Desk 8 of this press launch. The Firm is offering sure monetary metrics solely on a non-GAAP foundation as a result of, with out unreasonable efforts, it’s unable to foretell with affordable certainty the prevalence or quantity of all the changes or different potential changes that will come up sooner or later in the course of the forward-looking interval, which may be depending on future occasions that is probably not reliably predicted. Primarily based on previous reported outcomes, the place a number of of this stuff have been relevant, such excluded gadgets may very well be materials, individually or within the mixture, to the reported outcomes.

Convention Name Info

Wyndham Accommodations will maintain a convention name with traders to debate the Firm’s outcomes and outlook on Wednesday, October 26, 2022 at 8:30 a.m. ET. Listeners can entry the webcast reside by way of the Firm’s web site at https://investor.wyndhamhotels.com. The convention name may additionally be accessed by dialing 800 225-9448 and offering the passcode “Wyndham”. Listeners are urged to name not less than 5 minutes previous to the scheduled begin time. An archive of this webcast will likely be out there on the web site starting at midday ET on October 26, 2022. A phone replay will likely be out there for roughly ten days starting at midday ET on October 26, 2022 at 800 839-4197.

Presentation of Monetary Info

Monetary data mentioned on this press launch consists of non-GAAP measures, which embrace or exclude sure gadgets. These non-GAAP measures differ from reported GAAP outcomes and are supposed for instance what administration believes are related period-over-period comparisons and are useful to traders as a further device for additional understanding and assessing the Firm’s ongoing working efficiency. The Firm makes use of these measures internally to evaluate its working efficiency, each completely and compared to different corporations, and to make everyday working choices, together with within the analysis of chosen compensation choices. Exclusion of things within the Firm’s non-GAAP presentation shouldn’t be thought-about an inference that this stuff are uncommon, rare or non-recurring. Full reconciliations of GAAP outcomes to the comparable non-GAAP measures for the reported durations seem within the monetary tables part of this press launch.

About Wyndham Accommodations & Resorts

Wyndham Accommodations & Resorts (NYSE: WH) is the world’s largest resort franchising firm by the variety of properties, with roughly 9,100 inns throughout over 95 nations on six continents. By its community of roughly 836,000 rooms interesting to the on a regular basis traveler, Wyndham instructions a number one presence within the financial system and midscale segments of the lodging trade. The Firm operates a portfolio of 23 resort manufacturers, together with Tremendous 8®, Days Inn®, Ramada®, Microtel®, La Quinta®, Baymont®, Wingate®, AmericInn®, Hawthorn Suites®, Trademark Assortment® and Wyndham®. The Firm’s award-winning Wyndham Rewards loyalty program affords over 97 million enrolled members the chance to redeem factors at 1000’s of inns, trip membership resorts and trip leases globally. For extra data, go to www.wyndhamhotels.com. The Firm could use its web site as a way of revealing materials private data and for complying with its disclosure obligations beneath Regulation FD. Disclosures of this nature will likely be included on the Firm’s web site within the Traders part, which may at present be accessed at www.investor.wyndhamhotels.com. Accordingly, traders ought to monitor this part of the Firm’s web site along with following the Firm’s press releases, filings submitted with the Securities and Change Fee and any public convention calls or webcasts.

Ahead-Trying Statements

This press launch accommodates “forward-looking statements” inside the that means of the federal securities legal guidelines, together with statements associated to the Firm’s present views and expectations with respect to its future efficiency and operations, together with revenues, earnings, money stream and different monetary and working measures, share repurchases and dividends, restructuring prices and statements associated to the coronavirus pandemic (“COVID-19”). Ahead-looking statements embrace people who convey administration’s expectations as to the longer term primarily based on plans, estimates and projections on the time the Firm makes the statements and could also be recognized by phrases equivalent to “will,” “anticipate,” “consider,” “plan,” “anticipate,” “intend,” “aim,” “future,” “outlook,” “steering,” “goal,” “goal,” “estimate,” “projection” and comparable phrases or expressions, together with the unfavourable model of such phrases and expressions. Ahead-looking statements contain recognized and unknown dangers, uncertainties and different components, which can trigger the precise outcomes, efficiency or achievements of the Firm to be materially totally different from any future outcomes, efficiency or achievements expressed or implied by such forward-looking statements. You might be cautioned to not place undue reliance on these forward-looking statements, which communicate solely as of the date of this press launch.

Components that would trigger precise outcomes to vary materially from these within the forward-looking statements embrace, with out limitation, common financial circumstances; the continuation or worsening of the results from COVID-19, its scope, length, resurgence and affect on the Firm’s enterprise operations, monetary outcomes, money flows and liquidity, in addition to the affect on the Firm’s franchisees and property homeowners, company and workforce members, the hospitality trade and total demand for journey; the success of the Firm’s mitigation efforts in response to COVID-19; the Firm’s efficiency in the course of the restoration from COVID-19 and any resurgence or mutations of the virus; varied actions governments, companies and people proceed to absorb response to the pandemic, together with stay-in-place directives (together with, for example, quarantine and isolation tips and mandates), security mitigation steering, in addition to the timing, availability and adoption charges of vaccinations, booster photographs and different therapies for COVID-19; issues with or threats of different pandemics, contagious ailments or well being epidemics, together with the results of COVID-19; the efficiency of the monetary and credit score markets; the financial surroundings for the hospitality trade; working dangers related to the resort franchising and administration companies; the Firm’s relationships with franchisees and property homeowners; the affect of battle, terrorist exercise, political instability or political strife; dangers associated to restructuring or strategic initiatives; the Firm’s capability to fulfill obligations and agreements beneath its excellent indebtedness, together with the cost of principal and curiosity and compliance with the covenants thereunder; dangers associated to the Firm’s capability to acquire financing and the phrases of such financing, together with entry to liquidity and capital; and the Firm’s capability to make or pay, plans for, and the timing and quantity of any future share repurchases and/or dividends, in addition to the dangers described within the Firm’s most up-to-date Annual Report on Type 10-Okay filed with the Securities and Change Fee and any subsequent studies filed with the Securities and Change Fee. The Firm undertakes no obligation to replace or revise any forward-looking statements, whether or not because of new data, subsequent occasions or in any other case.

In figuring out adjusted EBITDA, curiosity expense, internet, adjusted earnings earlier than earnings taxes, adjusted internet earnings, adjusted diluted EPS and free money stream conversion charge, we exclude sure gadgets that are in any other case included in figuring out the comparable GAAP monetary measures. We’re offering these measures on a non-GAAP foundation solely as a result of, with out unreasonable efforts, we’re unable to foretell with affordable certainty the prevalence or quantity of all of the changes or different potential changes that will come up sooner or later in the course of the forward-looking interval, which may be depending on future occasions that is probably not reliably predicted. Primarily based on previous reported outcomes, the place a number of of this stuff have been relevant, such excluded gadgets may very well be materials, individually or within the mixture, to the reported outcomes.

Desk 9
WYNDHAM HOTELS & RESORTS
DEFINITIONS

Adjusted Internet Revenue and Adjusted Diluted EPS: Represents internet earnings/(loss) and diluted earnings/(loss) per share excluding acquisition-related amortization, impairment prices, restructuring and associated prices, contract termination prices, transaction-related gadgets (acquisition-, disposition-, or separation-related), (achieve)/loss on asset gross sales and overseas forex impacts of extremely inflationary nations. The Firm calculates the earnings tax impact of the changes utilizing an estimated efficient tax charge relevant to every adjustment.

Adjusted EBITDA: Represents internet earnings/(loss) excluding internet curiosity expense, depreciation and amortization, early extinguishment of debt prices, impairment prices, restructuring and associated prices, contract termination prices, transaction-related gadgets (acquisition-, disposition-, or separation-related), (achieve)/loss on asset gross sales, overseas forex impacts of extremely inflationary nations, stock-based compensation expense, earnings taxes and improvement advance notes amortization. Adjusted EBITDA is a monetary measure that isn’t acknowledged beneath U.S. GAAP and shouldn’t be thought-about as an alternative choice to internet earnings/(loss) or different measures of economic efficiency or liquidity derived in accordance with U.S. GAAP. As well as, the Firm’s definition of adjusted EBITDA is probably not similar to equally titled measures of different corporations.

Throughout the first quarter of 2021, the Firm modified the definition of adjusted EBITDA to exclude the amortization of improvement advance notes to replicate how the Firm’s chief working resolution maker evaluations working efficiency starting in 2021. The Firm has utilized the modified definition of adjusted EBITDA to all durations introduced.

Common Every day Fee (ADR): Represents the typical charge charged for renting a lodging room for someday.

Common Occupancy Fee: Represents the proportion of obtainable rooms occupied in the course of the interval.

Fixed Foreign money: Represents a comparability eliminating the results of overseas change charge fluctuations between durations (overseas forex translation) and the affect attributable to any overseas change associated actions (i.e., hedges, steadiness sheet remeasurements and/or changes).

Free Money Move: See Desk 3 for definition.

Internet Debt Leverage Ratio: Calculated by dividing whole debt much less money and money equivalents by trailing twelve months adjusted EBITDA.

Variety of Rooms: Represents the variety of rooms on the finish of the interval that are (i) both beneath franchise and/or administration agreements or Firm-owned and (ii) properties beneath affiliation agreements for which we obtain a payment for reservation and/or different providers supplied.

RevPAR: Represents income per out there room and is calculated by multiplying common occupancy charge by ADR.

Royalty Fee: Represents the typical royalty charge earned on our franchised properties and is calculated by dividing whole royalties, excluding the affect of amortization of improvement advance notes, by whole room revenues.

SOURCE Wyndham Accommodations & Resorts