PARSIPPANY, New Jersey—Wyndham Hotels & Resorts announced its first-quarter 2026 results. Highlights include:
- System-wide rooms grew 4 percent year-over-year.
- Awarded development contracts in the U.S. increased 8 percent year-over-year.
- Development pipeline grew 3 percent year-over-year to a record of over 259,000 rooms and over 2,200 hotels.
- U.S. RevPAR was flat year-over-year, 250 basis points ahead of the midpoint of expectations.
- Ancillary revenues increased 21 percent year-over-year.
- Net income remained flat year-over-year at $61 million; adjusted net income increased 9 percent year-over-year to $73 million, or 6 percent lower on a comparable basis.
- Diluted earnings per share grew 3 percent to $0.80 from $0.78 in the prior-year quarter, and adjusted diluted EPS grew 12 percent year-over-year to $0.96, or 3 percent lower on a comparable basis.
- Adjusted EBITDA increased 8 percent year-over-year to $156 million, or 1 percent lower on a comparable basis.
- Net cash provided by operating activities of $42 million and free cash flow of $64 million.
- Returned $85 million to shareholders through $51 million of share repurchases and quarterly cash dividends of $0.43 per share.
- Issued $650 million aggregate principal amount of 5.625 percent senior unsecured notes, due 2033, the net proceeds of which were primarily used to fully repay then-outstanding revolver and term loan A borrowings.
Statement From Leadership
“We delivered a strong start to the year, highlighted by record-level first-quarter openings and a continued expansion of our development pipeline,” said Geoff Ballotti, president and chief executive officer. “As U.S. RevPAR in our economy and midscale segments continues to recover ahead of expectations, we approach the peak leisure summer season with increasing optimism. We’ve never been more confident in our ability to drive sustained long-term value creation for franchisees, guests, and shareholders by adding high-quality, FeePAR-accretive hotels to our portfolio, growing ancillary revenues, and scaling AI to further differentiate our industry-leading technology platform.”
System Size and Development
The company’s global system grew 4 percent, including flat growth in the U.S., which includes the impact from the loss of legacy affiliated rooms, 12 percent direct-franchised growth in the Company’s Asia Pacific region, and 9 percent growth in the Company’s higher RevPAR EMEA and Latin America regions.
As of March 31, 2026, the company’s global development pipeline increased 3 percent vs. prior-year to a record-high level of over 259,000 rooms and over 2,200 hotels. Key highlights include:
- 3 percent pipeline growth in the U.S. and 2 percent growth internationally
- Approximately 70 percent of the pipeline is in the midscale and above segments
- Approximately 17 percent of the pipeline is in the extended-stay segment
- Approximately 43 percent of the pipeline is in the U.S.
- Approximately 77 percent of the pipeline is new construction, and approximately 35 percent of these projects have broken ground; rooms under construction grew 3 percent year-over-year
RevPAR
First quarter global RevPAR decreased 1 percent in constant currency compared to 2025, reflecting flat performance in the United States and a 1 percent decline internationally.
In the United States, the year-over-year comparison was impacted by approximately 40 basis points of unfavorable hurricane impacts related to the first quarter of 2025; excluding which, RevPAR increased over 600 basis points sequentially and approximately 10 basis points year-over-year, reflecting stabilized occupancy and ADR levels. Continued strength across the Midwest and growth in Texas was partially offset by performance in Florida and California, which both improved sequentially yet declined year-over-year.
Internationally, constant currency growth of 8 percent in Canada reflected significant pricing power and continued demand growth, while growth of 5 percent in Southeast Asia and the Pacific Rim and 1 percent in EMEA each primarily reflected improved demand. The growth in those regions was more than offset by softness in China, where RevPAR improved over 500 basis points sequentially, yet declined 5 percent year-over-year, and Latin America, which declined 4 percent year-over-year primarily due to lower U.S. cross-border demand in Mexico.
Operating Results
The comparability of the company’s first-quarter results is impacted by marketing fund variability. The company’s reported results and comparable-basis results (adjusted to neutralize these impacts) are presented below to enhance transparency and provide a better understanding of the results of the company’s ongoing operations.
- Net revenues grew 3 percent to $327 million compared to $316 million in the first quarter of 2025, reflecting a 21 percent increase in ancillary revenues and global net room growth of 4 percent, partially offset by lower other franchise fees and the deferral of fees from Revo Hospitality Group (“Revo”).
- Net income remained flat at $61 million compared to the first quarter of 2025, primarily reflecting higher adjusted EBITDA offset by restructuring and other-related costs, as well as transaction-related costs resulting from the Company’s issuance of 5.625 percent senior unsecured notes. Adjusted net income grew 9 percent to $73 million compared to $67 million in the first quarter of 2025.
- Adjusted EBITDA increased 8 percent to $156 million compared to $145 million in the first quarter of 2025. This increase included a $13 million favorable impact from marketing fund variability, excluding which adjusted EBITDA declined 1 percent on a comparable basis. This decline primarily reflects lower royalties and franchise fees and the absence of one-time cost reductions, partially offset by increased ancillary revenues.
- Diluted EPS grew 3 percent to $0.80 compared to $0.78 in the first quarter of 2025, which primarily reflects the benefit of a lower share count due to share repurchase activity.
- Adjusted diluted EPS increased 12 percent to $0.96 compared to $0.86 in the first quarter of 2025. This increase included a favorable impact of $0.13 per share related to marketing fund variability (after estimated taxes). On a comparable basis, adjusted diluted EPS decreased approximately 3 percent year-over-year, primarily reflecting a comparable basis decline in adjusted EBITDA, a marginally higher effective tax rate, and increased interest expense, partially offset by the benefit of share repurchase activity.
Balance Sheet and Liquidity
The company generated $42 million of net cash provided by operating activities and $64 million of free cash flow in the first quarter of 2026. The company ended the quarter with a cash balance of $79 million and $1.1 billion in total liquidity, which includes the effect of the February 2026 issuance of $650 million aggregate principal amount of senior unsecured notes bearing interest at 5.625 percent. The net proceeds from the issuance were primarily used to fully repay the then-outstanding revolver and term loan A borrowings.
The company’s net debt leverage ratio was 3.5 times at March 31, 2026, at the midpoint of the company’s 3 to 4 times stated target range and in line with expectations.