WH

- Interested in Wyndham Hotels & Resorts? Here are five stocks we like better. - Strong U.S. performance drove the quarter: Domestic RevPAR rose 6%, supported by higher occupancy, rates, business travel and leisure demand. Adjusted EBITDA increased 5% and adjusted diluted EPS rose 9% year over year. - Wyndham's growth pipeline reached a record: The company opened more than 18,000 rooms, while its pipeline expanded to approximately 264,000 rooms across nearly 70 countries. Management is prioritizing higher-fee properties and removing lower-quality rooms, even as China remains a weak international market. - Wyndham raised its 2026 outlook and continued returning capital: The company now expects $740 million to $745 million in adjusted EBITDA and $4.84 to $4.92 in adjusted diluted EPS. It repurchased $91 million of shares and paid $32 million in dividends during the quarter, while increasing its buyback authorization by $400 million. - MarketBeat Week in Review – 07/27- 07/31 Wyndham Hotels & Resorts (NYSE:WH) reported third-quarter results marked by stronger-than-expected U.S. revenue per available room growth, higher franchise fee revenue and an increased full-year outlook for several financial measures. Chief Executive Officer Geoff Ballotti said comparable adjusted EBITDA rose 5% from a year earlier and adjusted diluted earnings per share increased 9%. U.S. RevPAR grew 6%, while the company's system expanded 4% excluding Revo-related rooms. Ballotti also said the company generated nearly $270 million of free cash flow through the first nine months of 2026 and returned more than $290 million to shareholders. → Aurora Rejects Curaleaf's Higher Bid, But the Takeover Fight Isn't Over - Whirlpool's Report May Show How Frozen the Housing Market Really Is Ballotti provided an update on his treatment for multiple myeloma, saying doctors were pleased with his progress and that he was seeing "exceptional clinical results." Global RevPAR increased 2% in constant currency during the quarter, representing a nearly 400-basis-point sequential improvement. Domestic RevPAR rose 6%, exceeding Wyndham's expectations for the second half of the year. The World Cup contributed about 10 basis points to U.S. RevPAR growth, according to Ballotti. → Could Quantinuum's Breakthrough Make Its Sell-Off a Bargain? - 3 Sectors That Look Most Vulnerable Ahead of May 15 Occupancy rose by about 300 basis points, while average daily rate increased approximately 280 basis points. Ballotti attributed the gains to everyday business travel and broad-based leisure demand, saying middle-income consumer travel demand remained resilient despite higher gasoline prices. Texas, California and Florida, which collectively represent about one-quarter of Wyndham's U.S. rooms, delivered combined RevPAR growth of 8% in the quarter. The company also cited gains in Iowa, Illinois, Ohio and Indiana, where it said hotels are benefiting from demand associated with transportation, manufacturing, artificial intelligence, data center and industrial projects. → IonQ's Bold Expansion Could Leave Shareholders Paying the Price During the question-and-answer session, Ballotti said Wyndham had more than 7% additional business booked for the following 60 days compared with the prior year. He also said booking windows, cancellation rates, average drive distances and lengths of stay had improved. Chief Financial Officer Amit Sripathi said weekday performance exceeded weekend performance by 150 basis points, while both occupancy and average daily rate were strong. International RevPAR declined 3% year over year in constant currency, but this was a nearly 400-basis-point sequential improvement. Canada RevPAR grew 7%, Southeast Asia and the Pacific increased 5%, Latin America rose 2% and Europe, the Middle East and Africa increased 2%. Wyndham cited improved conditions in Germany and stabilization in the Middle East, where RevPAR improved from a 45% decline in the second quarter to a 13% decline in the third quarter. Ballotti said the company's pipeline in the Middle East remained strong, with more than two dozen hotels in development and five recently executed contracts in Saudi Arabia and the United Arab Emirates. China remained a headwind, with RevPAR down 10% as softer travel demand weighed on Tier 2 cities. However, Ballotti said Wyndham hotels in China held average daily rates flat from the prior year. He added that Wyndham's China direct-franchising and overall franchising systems continued to generate double-digit net room growth. Wyndham opened more than 18,000 rooms in the quarter, 3% more than a year earlier. Its pipeline grew for the 25th consecutive quarter to roughly 264,000 rooms in nearly 70 countries. The pipeline carries an estimated FeePAR premium of about 30% domestically and internationally. The company said it is increasingly emphasizing higher-fee hotels and terminating lower-quality rooms. U.S. openings during the quarter had a FeePAR premium of more than 45% relative to terminations, while international openings had a premium of nearly 40%. Sripathi said Wyndham narrowed its 2026 net room growth outlook, excluding Revo, to about 4% from a prior range of 4% to 4.5%. The change reflects the removal of substandard rooms and a shift toward higher-value opportunities, he said. The company expects most Revo-related rooms to leave the system before year-end, with approximately 5,000 to 6,000 expected to remain. Management said lower hotel transaction volumes and subdued new construction affected domestic net room growth. Ballotti said economy and midscale transaction volumes fell more than 30% during the quarter, but the company expects pent-up conversion demand to emerge as transaction activity normalizes. Wyndham said ancillary revenue increased 10% year to date, supported by expanded partnerships, technology initiatives and the refreshed Wyndham Rewards credit card portfolio. Wyndham Rewards membership rose 10% to approximately 129 million members, and members accounted for more than half of domestic check-ins. The company also highlighted its artificial intelligence initiatives. Wyndham Connect, its guest-engagement platform, was deployed at more than 5,100 hotels and generated tens of millions of dollars in year-to-date upsell opportunities for participating franchisees. Wyndham AI Concierge was operating at more than 1,700 hotels, up 17% sequentially, while Wyndham Gateway was live at more than 1,100 hotels. For the quarter, Wyndham reported $410 million in net revenue, up 7% year over year, and $207 million in adjusted EBITDA. Adjusted diluted EPS was $1.43. Free cash flow totaled $100 million during the quarter and $269 million year to date. The company repurchased $91 million of shares in the third quarter and paid $32 million in dividends. Year to date, it repurchased 2.5 million shares for $196 million. Wyndham ended the quarter with nearly $1 billion of total liquidity and a net leverage ratio of 3.6 times. Its board added $400 million to the share repurchase authorization during the quarter. - Global RevPAR growth is now expected to be 0.5% to 1%. - Net revenue is projected at $1.48 billion to $1.5 billion. - Adjusted EBITDA is expected to be $740 million to $745 million. - Adjusted net income is projected at $363 million to $369 million. - Adjusted diluted EPS is expected to be $4.84 to $4.92, based on 74.9 million diluted shares. Sripathi said the revised forecast assumes fourth-quarter U.S. RevPAR performance remains consistent with third-quarter levels and international markets continue to improve. The company maintained its expectation that full-year free cash flow will convert at roughly 55% to 60% of adjusted EBITDA. Wyndham Hotels & Resorts, Inc is a global hotel franchising company that operates an asset-light lodging business. Rather than owning and managing most of its hotels, the company licenses its brands and provides franchisees with support in areas such as marketing, reservations, technology, training and operational standards. Its portfolio includes a range of economy, midscale and upscale hotel brands, including Super 8, Days Inn, Ramada, La Quinta, Microtel, Baymont, Wingate, AmericInn, Wyndham, Wyndham Garden, Registry Collection Hotels and ECHO Suites Extended Stay by Wyndham. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "What Wyndham Hotels & Resorts (WH) Said on Its Q3 Earnings Call" was originally published by MarketBeat. View MarketBeat's top stocks for October 2026.

Wyndham's third quarter results met Wall Street's revenue expectations, but the market response was negative, with shares declining following the release. Management attributed the quarter's performance to robust U.S. travel demand, particularly from middle-income and business travelers, as well as gains in ancillary revenues from loyalty and credit card programs. CEO Geoffrey Ballotti highlighted the outperformance of domestic RevPAR, noting, "Our brands are performing, especially from a market share standpoint, and overall satisfaction scores are at their highest since going public." Operating margin, however, came under pressure due to the timing of variable costs and the lapping of one-time variable cost reductions. Is now the time to buy WH? Find out in our full research report (it's free). - Revenue: $410 million vs analyst estimates of $410.2 million (7.3% year-on-year growth, in line) - Adjusted EPS: $1.43 vs analyst estimates of $1.32 (8.5% beat) - Adjusted EBITDA: $207 million vs analyst estimates of $199.2 million (50.5% margin, 3.9% beat) - The company reconfirmed its revenue guidance for the full year of $1.49 billion at the midpoint - Management raised its full-year Adjusted EPS guidance to $4.88 at the midpoint, a 2.3% increase - EBITDA guidance for the full year is $742.5 million at the midpoint, in line with analyst expectations - Operating Margin: 42%, down from 46.6% in the same quarter last year - RevPAR: $51.13 at quarter end, up 2.2% year on year - Market Capitalization: $5.57 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. - Brandt Montour (Barclays): Asked about the underlying drivers of U.S. travel strength and the sustainability into next year. CEO Geoffrey Ballotti emphasized resilient consumer demand, longer stays, and booking window improvements, stating that the company is seeing positive momentum for the remainder of the year and into 2027. - Steven Pizzella (Deutsche Bank): Inquired about the acceleration in royalty and franchise fee growth. CFO Amit Sripathi explained that fees are expected to stay in line with historical algorithms, driven by RevPAR and ongoing portfolio upgrades. - Shaun Kelley (Bank of America): Questioned the impact of AI-powered booking channels and agent integrations. Ballotti described early but promising adoption by new autonomous agents and highlighted the potential for direct booking growth and reduced third-party costs. - Patrick Scholes (Truist Securities): Asked about increased terminations in the economy segment and future room growth. Ballotti confirmed the focus on removing substandard hotels to improve quality, while Sripathi reiterated no change in the selective use of key money for high-return development. - Elizabeth Dove (Goldman Sachs): Sought clarification on the impact of infrastructure investments on RevPAR. Ballotti said infrastructure demand is "absolutely accelerating" and cited double-digit growth in key project markets, giving confidence in multiyear demand tailwinds. Our team will be closely watching (1) the pace of U.S. infrastructure and manufacturing-driven demand and its effect on both occupancy and rate; (2) the adoption and measurable ROI of Wyndham's AI-enabled tools to boost franchisee economics; and (3) signs of stabilization or recovery in key international markets, especially China. Execution on portfolio quality upgrades and ancillary revenue initiatives will also be important for sustaining growth. Wyndham currently trades at $76.15, down from $78.36 just before the earnings. Is there an opportunity in the stock? The answer lies in our full research report (it's free for active Edge members). ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies. Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.

This article first appeared on GuruFocus. - Net Revenues: $410 million, up 7% year-over-year, driven by higher royalty and franchise fees, increased ancillary revenues, and revenue from two owned hotels. - Adjusted EBITDA: $207 million, up 5% on a comparable basis. - Adjusted Diluted EPS: $1.43, up 9% on a comparable basis. - Free Cash Flow: $100 million in Q3; $269 million year-to-date; full-year conversion expected at ~55%60% of adjusted EBITDA. - Global RevPAR: Up 2% in constant currency, a ~400 basis point sequential improvement. - US RevPAR: Up 6% year-over-year, including ~10 basis points favorable impact from the World Cup; occupancy up ~300 basis points and ADR up ~280 basis points. - International RevPAR: Down 3% year-over-year in constant currency, a ~400 basis point sequential improvement; China down 10%. - System Growth: Grew 4% excluding Revo; opened over 18,000 rooms (3% more than prior-year Q3). - Development Pipeline: Record ~264,000 rooms across nearly 70 countries, growing for the 25th consecutive quarter; ~30% FEEPAR premium. - Ancillary Revenues: Up 10% year-to-date, driven by higher credit card and partnership fees; full-year growth expected in low double digits. - Development Advance Spend: $18 million in Q3. - Shareholder Returns: $123 million returned in Q3 ($91 million share repurchases, up 30% year-over-year, plus $32 million dividends); over $290 million returned year-to-date; Board increased repurchase authorization by $400 million. - Liquidity & Leverage: Nearly $1 billion total liquidity; net leverage ratio of 3.6x, near midpoint of target range. - Full-Year Revenue Outlook: $1.48 billion to $1.5 billion (bottom end raised by $5 million). - Full-Year Adjusted EBITDA Outlook: $740 million to $745 million (bottom end raised by $5 million). - Full-Year Adjusted Diluted EPS Outlook: $4.84 to $4.92, based on 74.9 million diluted shares. - Full-Year Adjusted Net Income Outlook: $363 million to $369 million. - Full-Year Global RevPAR Outlook: Raised to 0.5% to 1% (up 50 basis points from prior low end). - Full-Year Net Room Growth Outlook: Narrowed to approximately 4% excluding Revo (from 4%4.5%). - Warning! GuruFocus has detected 6 Warning Signs with WH. - Is WH fairly valued? Test your thesis with our free DCF calculator. Release Date: October 22, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. - US RevPAR grew 6% year-over-year, a nearly 400 basis point sequential improvement, driven by broad-based demand and pricing power. - Global RevPAR increased 2% in constant currency, with international markets showing recovery, including Canada up 7% and EMEA up 2%. - System grew 4% excluding Revo, with record openings of over 18,000 rooms in Q3 and a pipeline of approximately 264,000 rooms, marking 25 consecutive quarters of growth. - Comparable adjusted EBITDA and EPS grew 5% and 9%, respectively, with free cash flow of $269 million year-to-date and over $290 million returned to shareholders. - Technological investments, such as Wyndham Connect and AI Concierge, are driving incremental revenue and cost savings for franchisees, with AI Concierge handling over 3 million calls year-to-date. - International RevPAR declined 3% year-over-year in constant currency, with China RevPAR down 10% due to softer travel demand in Tier 2 cities. - Net room growth outlook narrowed to approximately 4% from 4%-4.5% excluding Revo, due to termination of substandard quality rooms. - US net room growth remains subdued, impacted by a slowdown in buy-sell transactions and rising interest rates, with transaction volumes down over 30% in economy and mid-scale segments. - Middle East RevPAR declined 13% year-over-year, although improving from a 45% decline in Q2, with ongoing geopolitical uncertainty. - Royalty rate expansion year-to-date was down approximately 2 basis points, below the long-term average of 5 basis points growth, partly due to Revo-related noise. Q: Brandt Montour (Barclays) asked what is driving the sequential step-up in US RevPAR and how to think about the underlying run rate given calendar noise and hurricane comps. A: CEO Geoffrey Ballotti attributed the strength to broad-based demand, noting weekdays outperformed weekends by 150 basis points, with both occupancy and ADR contributing roughly equally. He cited over 7% more business on the books for the next 60 days versus last year, improving cancellation rates, lengthening drive distances and length of stay, and resilient middle-income consumers. CFO Amit Sripathi added that the momentum supports a return to the 20-year select-service RevPAR CAGR of 2.5% to 3% into 2027. Q: Shaun Kelley (Bank of America) asked how agentic AI bookings work, whether agents access inventory directly, what incentives drive direct booking, and whether traffic is moving the needle. A: Ballotti said it is extremely early with low traffic, but Wyndham is providing inventory directly to agents through brand websites, MCP engines and voice channels, with AI agents interacting with Wyndham Connect just as a guest would. He said Wyndham Rewards is the differentiator versus OTAs, envisioning a future where members instruct autonomous agents to prioritize the loyalty program in search criteria, which could drive direct traffic to franchisees. Q: Lizzie Dove (Goldman Sachs) asked how the data center, manufacturing and infrastructure investment cycle could create a multiyear demand tailwind and whether it can be quantified. A: Ballotti said the trend is accelerating, with GSO booking 16% more revenue in Q3 than last year, up from 12% in Q2. Infrastructure business was placed into nearly 6,000 hotels this year, oil and gas room night production rose 350 basis points, and roughly 1,000 hotels near about 350 data centers saw a couple hundred basis points of RevPAR growth. With nearly 80% of the infrastructure bill yet to be deployed, he expects a durable tailwind into 2027 and the 2030s. Q: Patrick Scholes (Truist) asked whether elevated economy-segment terminations will continue into 2027 and whether the key money strategy has changed. A: Ballotti said Wyndham remains focused on terminating substandard quality rooms, noting Howard Johnson's overall satisfaction rose 800 basis points and Super 8 rose 600 basis points, with both brands posting the strongest RevPAR index gains. He expressed confidence in returning to 96% domestic retention from 93% at spin-off. Sripathi confirmed no change to the key money strategy or the $110 million full-year outlook, with key money used selectively for high-FEEPAR growth meeting hurdle rates. Q: Dan Politzer (JPMorgan) asked how much of the US net unit growth slowdown stems from substandard terminations versus new brand competition or the macro construction environment. A: Ballotti pointed to a more than 30% decline in economy and midscale buy-sell transactions to historic lows, driven by rising interest rates widening the bid-ask spread, plus muted new construction. Sripathi noted less than 1% of the system has switched to new competitor brands over three years, a declining trend. Both expect transaction-driven conversions to resume as rate expectations stabilize, restoring US net room growth. Q: Steven Pizzella (Deutsche Bank) asked what drove royalty and franchise fee growth above the algorithm and how fee growth should trend going forward. A: Sripathi credited strong RevPAR momentum and the lapping of Revo noise and franchise fee timing, noting royalty and franchise fees grew 6% with comparable adjusted EBITDA up 5%. He expects Q4 royalty and franchise fees and comparable adjusted EBITDA to be consistent with Q3 and back in line with the algorithm, with the marketing fund expected to break even for the full year despite about $7 million of underspend entering Q4. Q: David Katz (Jefferies) asked for the most important development of the quarter and how franchisee engagement with AI initiatives can be measured. A: Ballotti highlighted domestic RevPAR outperformance and record year-over-year gains in guest satisfaction and quality scores, with Super 8 Net Promoter Score up 800 basis points and Days Inn up 900 basis points. He noted 75% of hotels had customer service fees waived last month due to higher quality, and said franchisees are excited about Wyndham Connect at over 5,100 hotels and Wyndham AI Concierge, which has answered over 3 million calls year-to-date at 1,700 hotels. Q: Stephen Grambling (Morgan Stanley) asked whether AI is lowering customer acquisition costs and how to rank the benefits of direct booking mix, lower third-party commissions and improved conversion. A: Ballotti said AI interactions through brand websites, MCP servers and voice channels are less costly, and Wyndham AI Concierge delivers a 15% rate lift plus occupancy and rate index gains and labor savings for franchisees. He said generative engine optimization may prove far less expensive than SEO, though it is too early to determine, and that AI distribution economics will shape every brand and OTA in coming years. Q: Michael Bellisario (Baird) asked about US franchisee sentiment amid higher rates, development and conversion activity, and the health of European franchisees including Middle East impacts and France exposure. A: Ballotti said France has very limited impact given few hotels there, and the Middle East is improving from down 45% in Q2 to down 13% in Q3 with a strong pipeline of over two dozen hotels and five new contracts signed in Saudi Arabia and the UAE. Domestically, openings are tracking last year's record despite rising rates and fewer buy-sell transactions, with 2% net room growth in midscale and upper midscale. Q: Meredith Jensen (HSBC) asked about China's macro headwinds versus strong net unit growth and what is driving franchisee investment decisions there. A: Ballotti said China RevPAR fell 10% with a heavier Tier 2 city weighting that underperformed the industry by about 500 basis points, though hotels held rate flat. He cited positive PPI and CPI turning points, hotelier confidence at a seven-quarter high, and record conversions up over 20%. Two-thirds of contracts signed were new construction, and the pivot from master license to direct franchise agreements at three times the royalty rate supports international royalty rate growth For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Image source: The Motley Fool. Oct. 22, 2026 - Senior Vice President Financial Planning and Analysis and investor relations - Matt Capuzzi - Chief Executive Officer - Geoffrey A. Ballotti - Chief Financial Officer - Amit Sripathi Operator: If you need assistance at any time, please press 0, and a member of our team will be happy to help you. Please standby, your meeting is about to begin. Welcome to the Wyndham Hotels and Resorts. Third Quarter 26 Earnings Conference Call. At this time, participants have been placed on a listen-only mode. And the floor will be open for your questions following the presentation. Lastly, if you should require operator assistance, please press 0. I would now like to turn the call over to Matt Capuzzi, Senior Vice President Financial Planning and Analysis and investor relations. Matt Capuzzi: Thank you, operator. Good morning, and thank you for joining us. With me today are Geoff Ballotti, our CEO and Amit Sripathi, our CFO. Before we get started, I want to remind you that our remarks today will contain forward looking statements. These statements are subject to risk factors that may cause our actual results to differ materially from those expressed or implied. These risk factors are discussed in detail in our most recent annual report on Form 10-Ks filed with the Securities and Exchange Commission and any subsequent reports filed with the SEC. We will also be referring to a number of non GAAP measures. Corresponding GAAP measures and a reconciliation of non GAAP measures to GAAP metrics are provided in our earnings release and investor presentation which are available on our Investor Relations website at investor.wyndhamhotels.com. We are providing certain measures discussing future impact on a non GAAP basis only because without unreasonable efforts, we are unable to provide the comparable GAAP metric. Addition, last evening, we posted an investor presentation containing supplemental information on our Investor Relations website. We may continue to provide supplemental information on our website and on our social media channels in the future. Accordingly, we encourage investors to monitor our website, and our social media channels in addition to our press releases, filings submitted with the SEC and any public conference calls or webcasts. With that, I will turn the call over to Jeff. Geoffrey A. Ballotti: Thanks, Matt, and good morning, everyone. We appreciate you joining us today, and many thanks to those of you who have reached out over the past few months. My treatment for multiple myeloma is going as well as I could have hoped. The doctors are happy with my progress, and I am seeing exceptional clinical results. I feel great. My energy's high, and our leadership team has never been more focused on execution and driving shareholder value. And on that note, our Q3 results reflect yet another successful quarter executing against our long term growth strategies. We reported strong earnings with comparable-basis adjusted EBITDA and EPS growth of 59%, respectively. US RevPAR grew 6% and we grew our system by 4% excluding REVO. On a year to date basis, our resilient, highly cash generative business has produced nearly $270 million of free cash flow, we have returned over $290 million to our shareholders. In addition, last month, our board increased our share repurchase authorization by 400 million demonstrating continued confidence in our ability to generate significant cash flow and its commitment to continued shareholder returns. Global RevPAR increased 2% in constant currency and nearly 400 basis point improvement sequentially driven primarily by domestic RevPAR which also improved nearly 400 basis points sequentially to up 6% year over year. This 6% growth was well ahead of our second half growth expectations, and included a favorable impact of approximately 10 basis points from the World Cup. Consistent with historical trends, travel demand for our middle income consumers remained strong despite elevated gas prices. RevPAR growth was fueled by stronger demand with occupancy increasing approximately 300 basis points driven by everyday business travel, and broad based leisure demand. Importantly, our franchisees also experienced continued pricing power with ADR in increasing approximately 280 basis points. Combined strength in demand and pricing created meaningful revenue and margin improvements for our small business owners. We saw sustained growth across nearly all regions, including our 3 largest states, Texas, California, and Florida, representing approximately 1 quarter of our US room count. Which together improved roughly 400 basis points sequentially to up 8% RevPAR growth in Q3. We continued to see strong performance across our Midwest and industrial states with significant growth in Iowa, up 16%. Illinois, up 15%, Ohio, up 10%, and Indiana up 9%, highlighting a portfolio well positioned to benefit from increasing infrastructure related demand, with nearly 80% of the infrastructure bill yet to be deployed. Higher midweek demand is driving much of this strength especially at hotels and markets near major transportation, manufacturing, AI, data center, and industrial projects. As these investments continue to ramp up, they are creating a durable growth tailwind for our franchisees. October month to date U.S. RevPAR has remained relatively consistent with third-quarter results, reinforcing our confidence in underlying demand trends as we close out 2026. International RevPAR continued to recover, declining 3% year over year in constant currency in the third quarter an improvement of nearly 400 basis points sequentially. Canada RevPAR increased 7%, supported by sustained pricing power and improving domestic demand. Southeast Asia and Pacific Rim RevPar increased 5% led by Korea, Thailand, and Indonesia. Latin America RevPAR rose 2%, improving 900 basis points sequentially, driven by Mexico. EMEA RevPAR grew 2% year over year, driven by strong performance in Turkey, India, and Spain. This growth represents an 800 basis point sequential improvement which reflects a substantial recovery in Germany, where performance improved 1.1 thousand basis points sequentially. Coupled with RevPAR stabilization in the Middle East, where RevPAR improved from down 45% in Q2 to down 13% in Q3. Strength across these international markets was offset by China, where RevPAR declined 10% as softer travel demand, most notably in tier 2 cities, continues to pressure performance. On the development front, Wyndham's owner first value proposition continues to drive strong openings and net room growth. We opened over 18 thousand rooms in the quarter, or 3% more than we opened in the third quarter, of last year. Our development pipeline grew for the 20 fifth consecutive quarter to a record of 264 thousand rooms across nearly 70 countries, with a fee par premium of approximately 30% both domestically and internationally. Reflecting our strategy of adding hotels in higher chain scales, and in geographies and markets with stronger long term economics. We are increasingly focused on adding higher fee par hotels that strengthen system quality and strategic positioning while increasing revenue potential that supports long term fee and adjusted EBITDA growth. The termination of substandard rooms, which accounted for the majority of our rooms leaving the system this quarter, creates an opportunity to secure franchise agreements for higher quality hotels in attractive markets. In the third quarter, US room openings carried a PPAR premium of more than 45% over terminations, while international openings carried a premium of nearly 40%. In The United States, conversion openings included the Hyatt Centric Nashville hotel in the heart of Music City, and the Blennerhassett, a 1.89 thousand landmark boutique hotel in downtown Parkersburg, West Virginia, Both proud new members of our rapidly growing trademark collection by Wyndham. Since introducing Dazzler Select, 1 year ago, we converted the Bighorn Lodge last month in historic downtown Moab, Utah in the heart of Red Rock country. it is our 14th Dazzler Select, opening, validating demand for our latest brand extension and our distribution network. Along with our ability to bring more high quality independent economy hotels into the Wyndham global system. New construction openings this quarter included the La Quinta Roanoke, Virginia the La Quinta Shonto, Arizona the La Quinta, Tracy, California and the Microtel by Wyndham, Nephi, Utah, in the Topaz Mountain Range. We also opened 3 new construction eco suites which USA Today readers recently named the number 1 extended stay hotel brand in the United States, including our 20 third Echo Suites by Wyndham, in Middleburg outside of Jacksonville, Florida. EMEA net room growth was 13% excluding Revo. And notable new construction openings included the Ramada Encore Cochin. Our first Ramada Angkor in Kerala, India. And a trip by Wyndham in the Netherlands, a newly renovated beachfront property in The Hague, Conversion activity was also strong in EMEA, highlighted by over a dozen new hotel additions, including the Wyndham residences Piraeus Marina in Athens, overlooking the superyacht Zea Marina on the Aegean Sea, Latin America and The Caribbean also delivered 13% net room growth. Notable new construction openings included the Wyndham Garden Ian Paolo, further strengthening our presence in 1 of Brazil's largest urban markets. In over 2 dozen conversion openings, including the Wyndham Garden Resort along the Belize City Riverside featuring fine dining, a casino, pools, and fitness facilities. In Southeast Asia, in the Pacific Rim, net room growth reached 10% for the second consecutive quarter. Notable new construction openings included the luxurious Orion Kuala Lumpur, our first registry collection hotel in Malaysia, located in the heart of KL's premier shopping dining, nightlife, and entertainment district. In China, our direct and overall franchising system also again delivered double digit net room growth. We opened 16.2 thousand directly franchised hotels nearly triple the size, or a 17% compounded annual growth rate since 2019. Conversion openings included the Wingate by Wyndham, Foo Room, our 20th Wingate in Greater China, and the La Quinta Lixui, our 9th La Quinta now open in China, and our 12th in Asia Pacific since introducing La Quinta in this part of the world. Ancillary revenues have increased 10% year to date. Growth has been supported by expanded strategic partnerships ongoing technology innovations, and the continued adoption of our refreshed and award winning suite of Wyndham Rewards credit cards. Our Wyndham Rewards earner card has been named the number 1 travel and hotel credit card in The USA today 10 best Reader's Choice Awards for the 9th consecutive year. And our card portfolio has gotten even better. With our new earner premier card, our very first premium card whose success is driven by its ability to easily offset $395 annual fee 30 thousand guaranteed annual anniversary points over $400 in everyday lifestyle statement credits, complimentary Wyndham rewards insider membership, top tier diamond status, and a 25% discount on award stays. Wyndham Rewards is central to ancillary revenue growth, with members contributing more than 1 out of every 2 domestic check ins. Global enrollments grew 10% year over year, bringing total membership to approximately 129 million members. As our membership grows, we remain focused on creating new ways for members to engage. To access differentiated travel experiences, and benefit from a program consistently ranked as the number 1 loyalty program in the industry by the readers of both USA TODAY and US News and World Report. Through Wyndham Rewards experiences, members are increasingly redeeming points for memorable events and behind the scenes access. These offerings are especially effective at attracting younger more affluent travelers who book earlier. Who stay longer, and who engage with us more intently through this program. This experiential focus also continues to shape the evolution of our brand portfolio. And earlier this month, we announced the expansion of our partnership with Travel and Leisure to bring Sports Illustrated resorts into the hotel sector. Together, we see an opportunity to create immersive year round destinations in college towns and major urban markets featuring distinctive programming, premier sporting events, and unique guest experiences. For Wyndham reward members, these properties will provide access to new sports focused destinations new travel experiences. Supported by our loyalty distribution and marketing platforms we believe Sports Illustrated Resorts will become a differentiated and a attractive offering among our growing affiliate base of aspirational hotels that further deepens member engagement and expands our reach across high growth segments. Beyond expanding our brands and loyalty ecosystem, we continue to invest in technology that helps franchisees grow revenue. Lower costs, and improve the guest experience. Wyndham Connect, our Wyndham-trained LLM powered guest engagement platform, is now deployed at more than 5.1 thousand hotels and has generated tens of millions of dollars in year to date up opportunities for participating franchisees. Wyndham.AI Concierge our AI-powered voice platform, is autonomously handling calls at more than 1.7 thousand hotels worldwide today, up 17% sequentially. The platform is answering tens of thousands of previously missed calls and services guest immediately with no hold times. Additionally, Wyndham.AI Concierge converts reservation requests that an average daily rate that is 15% above hotel book rates. Generating meaningful incremental revenue and driving over 500 basis points of increased direct contribution for franchisees as former lost calls are captured before migrating to third party channels. And finally, Wyndham Gateway, our new guest Wi Fi portal that is standardizing the login experience in providing franchisees with revenue generating upsell opportunities is also ramping, and it is now live at more than 1.1 thousand hotels up 35% sequentially. Wyndham Gateway has become 1 of our most effective new member enrollment channels for Wyndham Rewards, providing valuable first party guest insights that help drive repeat business while importantly creating new local advertising and ancillary revenue opportunities for franchisees. The investments we have made over the years in our technology stack. That moved us off of multiple legacy central platforms onto 1 that consolidated dozens of property management systems onto 2 have optimized and accelerated our AI readiness via a 100% cloud-based, fully optimized infrastructure across best in class partners like Oracle, AWS, like Salesforce, Adobe, like Canary Technologies, This investment has allowed us to deploy AI at scale across all guest touch points. And establish ourselves as a leader within our industry and within the AI space. As booking behavior continues to evolve. Google AI Mode is now live alongside our apps and chat and Claude, supporting end to end direct booking including payment without ever leaving the LLM conversation. We are also now bookable on Muse, on Instinct, and on OpenAI's newly launched Dots as we continue to enhance agentic booking flows that drive increased direct contribution and help hotels lower costs and increase revenue. These technology investments exemplify how we are turning innovation into stronger hotel level economics with franchisee profitability and engagement remaining our top priority. In recent years, we have introduced owner focused reimbursement and incentive programs that reward hotels for strong guest satisfaction. And strong quality scores. These include performance, base reductions, and guest response fees, enhanced Wyndham reward, reimbursement opportunities, and loyalty fee incentives tied directly to the guest experience. Combined with industry leading and cost effective technology, These programs are lowering the total cost of ownership. Improving hotel level economics and further differentiating Wyndham's owner first value proposition for our franchisees. Looking ahead, we are very encouraged by the accelerating rev recovery across both our domestic and our international markets. Our teams are well positioned to build on this momentum through the scale of our network, our award winning loyalty program, our industry leading technology platform, and our presence in markets benefiting from continued infrastructure and industrial investment. And as always, we thank our team members around the world for their dedication and their commitment to our franchisees and guests the very foundation of our success. And with that, Amit will now walk us through our financial highlights and full year outlook. Amit? Amit Sripathi: Thanks, Jeff, and good morning, everyone. I will begin my remarks today with a detailed review of our third quarter financial performance followed by an update on our cash flows, balance sheet and outlook. Before I begin, let me remind everyone that the comparability of our financial results continues to be impacted by the timing of our marketing fund spend. In the third quarter of this year, marketing fund revenues exceeded expenses by $1 million while revenues exceeded expenses by $18 million in the third quarter of last year. To enhance transparency, and provide a better understanding of the results of our ongoing operations, I will be highlighting our results on a comparable basis which neutralizes the marketing fund impact. In the third quarter, we generated $410 million of net revenues and $207 million of adjusted EBITDA. Net revenues increased 7% year over year primarily due to higher royalty and franchise fees. Increased ancillary revenues and revenue from our 2 owned hotels. Importantly, royalty and franchise fees grew in line with the underlying revenue drivers of our business. On a year to date basis, ancillary revenues grew 10% driven by higher credit card and partnership fees. We expect full-year ancillary revenue growth of low double digits supported by accelerating fourth quarter performance as the impact from our credit card program refresh and our new premier earner card continues to ramp and drive increased member engagement. Adjusted EBITDA increased 5% on a comparable basis,. Primarily reflecting higher revenues partially offset by the timing of variable costs and the lapping of 1 time variable cost reductions made during third quarter of 25. Adjusted diluted EPS for the quarter was $1.43, a 9% increase on a comparable basis reflecting growth in comparable-basis adjusted EBITDA and the benefit of share repurchase activity. Free cash flow was $100 million in the third quarter and $269 million year to date. We continue to expect full year free cash flow to convert at approximately 55 to 60% of adjusted EBITDA. At our current trading levels, our free cash flow yield of over 7% continues to lead the lodging sector. Development advanced spend totaled $18 million in the third quarter, reflecting our consistent and disciplined approach to investing in higher fee for hotels that enhance the quality of our portfolio and drive long term adjusted EBITDA growth. We continue to see strong demand for our brands year to date openings up 3% year over year and our pipeline up 4%, excluding Rebo. Historically, hotels with development advances have entered our system at a fee par premium of approximately 40% relative to our system average. We returned $123 million to our shareholders in the third quarter through $91 million of share repurchases which increased 30% year over year and $32 million of common dividends. In the third quarter, we opportunistically repurchased nearly twice the number of shares as we did in the second quarter. Year to date, we have repurchased 2.5 million shares for $196 million. We ended the quarter with nearly $1 billion in total liquidity, and our net leverage ratio of 3.6x remained near the midpoint of our target range. Now turning to outlook. As Jeff mentioned, Third Quarter U. S. RevPAR growth of 6% exceeded our second half expectations. Based on our Q3 performance, we have increased our global RevPAR outlook to 0.5% to 1% or up 50 basis points from the previous low end of our range. Our revised outlook assumes Q4 U. S. Performance is consistent with Q3 as well as continued improvement internationally. We have narrowed our outlook for net room growth from 4% to 4.5% excluding Revo to approximately 4%. Reflecting the termination of substandard quality rooms and accelerating mix shift of our portfolio towards higher value opportunities. While this approach modestly impacts net room growth in 2026, it aims to improve the overall quality of our system and support stronger royalty generation and long term economic value. As previewed on last quarter's earnings call, we expect the majority of REVO related rooms to terminate before year end. Net revenues are now expected to be $1.48 billion to $1.5 billion, increasing the bottom end of the range by $5 million. Adjusted EBITDA is now expected to be $740 million to $745 million, raising the bottom end of the range by $5 million reflecting the flow through of strong U. S. RevPAR performance in the third quarter and the continuation of those trends through the remainder of 2026. Our expectation for the marketing fund to breakeven on a full-year basis remains unchanged. Adjusted net income is projected to be $363 million to $369 million, and adjusted diluted EPS is projected at $4.84 to $4.92, which is based on a diluted share count of 74.9 million shares And as usual, does not assume future share repurchase activity or incremental interest expense from any potential new borrowings. There are no changes to our outlook for development advance spend or free cash flow conversion. In closing, our third quarter results underscore the continued strength of our asset light business model and accelerating momentum in U. S. Select service RevPAR trends. Our royalties and franchise fees increased year over year in line with our algo. We delivered comparable basis growth in adjusted EBITDA and adjusted EPS and we maintain a strong balance sheet and disciplined leverage profile. Additionally, we continue to balance targeted investments in high return development opportunities and meaningful shareholder returns through stock buybacks. Our increased outlook for RevPAR adjusted EBITDA and EPS reflects our expectation for continued strength in the U.S. And further recovery in international regions. And we remain confident in our ability to drive sustainable long term value for our shareholders. With that, Jeff and I would be happy to answer your questions. Operator: Operator? The floor is now open for your questions. Remove yourself from the queue by pressing *2. We ask that you limit yourself to 1 question. Thank you. Our first question comes from Brandt Montour with Barclays. Please go ahead. Your line is open. Brandt Montour: Good morning, everybody, and thanks for taking the question. I wanted to start with the domestic U. S. Strength. Maybe you could talk a little bit, Jeff, on what is really driving that sequential step up, whether it is more business travel or more leisure that you are seeing? And then there is a lot of calendar noise and uneven comparisons when you look at last year third quarter, fourth quarter, or even the year before that, with the hurricane comps. And so I wanted you to maybe scrub that for us in terms of what the underlying U. S. Run rate growth is here in the back half? And what the implications are for that? And how we should think about 2027 based on that? Geoffrey A. Ballotti: Sure. Thanks, Brent, for the question. And there is a lot of calendar noise. Hanukkah, Christmas, New Year's, but it is all positive. Our days of the week shifts that should help, we believe, and many of you have been reporting more leisure versus last year for the remainder of the quarter. And looking ahead, well, the and for the remainder of the quarter of course, comps continue to get easier as you know. Our 3Q comp was down 5%. Our 4Q last year, we are comping against is down 8%. And so we are feeling, we are feeling good about the comps We are feeling good about the noise in the calendar shifts. For the remainder of the year. And looking ahead to 2027, really all of our leading indicators which we look at daily remain just so strong. I mean if we look at the economy demand, over the last 8 weeks, it is outperformed the industry by 50 basis points as we had talked about on the last call, we were starting to see, we are seeing it. Our booking windows have improved from June into July, from July into August into September. And our booking pace, while it is short term, has not been stronger since coming out of COVID. We have now over 7% more business on the books for the next 60 days versus the same time last year. Cancellation rates, they continue to improve average drive distance continues to go up from the second quarter to the third quarter and it should continue to as airfares as we all know are running 30% ahead for Thanksgiving, 25% they are saying for Christmas. People are driving and our lengths of stay continue to lengthen. We think that the second half tax refunds, we talked about this on the last call, are unlocking increased discretionary spending. And our middle income consumers, they remain financially resilient and we think fundamentally healthy. And that is driven by. And we see no change to that, going into next year, strong employment, strong wage growth. Which is supporting increased leisure spending. And the banks reporting last week, they all talked about travel spend, growing. Especially that drive to leisure. And all of the research that is out there, MMGY's fall travel edition, just came out. And it confirms the same. Travel demand is bouncing back this fall. And consumers are becoming more strategic about when they and what they consider is worth paying. For and with rising costs, pushing more consumers to travel domestically versus in. Internationally, we see, the con. Continued truism is that vacations for these consumers have remained this quarter, next quarter, into next year a priority. And so we are feeling really good on the leisure side. And of course, on the business side for us, GBTA just came out in its September survey last week. Saying that business confidence is at its highest level since October 2024, with a continued focus on cost and justification. And there is no better business travel justification than that blue collar essential infrastructure related frontline travel that we cater to. So for the remainder of the year, we are feeling good. And looking ahead into 2027 all the trends are positive. Amit Sripathi: Yes. And, Brent, if I could just put some numbers around your question on weekday business versus leisure. Weekdays really, you know, we saw strength in both Weekdays were ahead by 150 basis points over weekends. So it is broad based demand strength. And both ADR and occupancy strong about equally. So that kind of gives us confidence about not only into Q4, continuation of the trends, but really the momentum into 2027 to return to kind of, like, you know, that select service CAGR we have seen over the last 20 years, of 2.5% to 3% RevPAR growth? Geoffrey A. Ballotti: that is a great point, Amit. I mean the ADR opportunity ahead, for our economy and our mid scale, franchisees They have a ton of room to grow rate. The ADR differential right now between the chain scales has never been higher and it just presents a huge opportunity for these franchisees to recover that lost ground as we are starting to see. So we are very bullish about, being able to continue to recover demand, more importantly, pick up rate. Great point, Amit. Thank you. Operator: We will move on now to Steven Pizzella with Deutsche Bank. Please go ahead. Steven Pizzella: Hey, good morning and thank you for taking our question. On fees, the royalty and franchise fees accelerated nicely in the quarter. Growing north of 6%, which was above the implied algorithm. Can you unpack the drivers of that strength and how we should think about the fee growth relative to the algorithm moving forward? Amit Sripathi: Steven, good morning, and thanks for the question. Jeff touched on the RevPAR strength and that was really a momentum we had throughout the year, exceeding expectations. And as we talked about when we gave our outlook at the beginning of the year and the other quarter as well as in the last quarter, we really we had some noise from Revo and the lapping of that as well as some timing of franchise fees. And we said our expectation was that we would kind of be back in line with algo starting in the back half of the year. And so we were really pleased to see that happen. As you noted, royalty and franchise fees were up 6%. Comparable adjusted EBITDA was up 5%. And as we look ahead to your question about, yes, we expect to be back in line with algo. You look at our full year guidance, what that implies for Q4 is also royalty and franchise fees kind of consistent with growth with Q3 and same thing with comparable adjusted EBITDA. So we expect that to continue into Q4 and beyond. And the only thing in terms of the puts and takes in Q4 is marketing fund We obviously are going in with about $7 million of underspend into Q4. And our expectation is we will end up at breakeven for the full year. So right in line, all the drivers should be, we expect, will be in line with ALGO. Thank you. Operator: We will move on now to Shaun Kelley with Bank of America. Your line is open. Analyst: Hey, good morning, everyone. And Jeff, glad to hear about the health update and best wishes in the continued recovery there. So from you guys, I would love to just touch on some of the comments you made around AI actually. In the prepared remarks, talked a little bit about you are now live in Google AI Mode, some of your integrations with the LLMs. But I specifically wanted to ask about agents. You talked about some integrations or you are bookable through Muse and Instinct. I am wondering if you could tell us a little bit more about how that actually works, just specifically you know, our agents able to see your inventory you know, through some sort of direct connection? Are they going through the front door? And then, I think, strategically, what incentives are you providing to kinda get agents to make sure that they book direct, do not go through an o OTA channel? I think this is a big debate in the industry. And then And lastly, if you could talk at all about just traffic we are seeing from these channels. Are these starting to move the needle at all? I know it is extremely early, but the types of adoption curves we are hearing out there are significant. Thanks. Geoffrey A. Ballotti: It is extremely early. Thanks, Sean, for the wishes and yes, it is, it is low traffic, but it is a great question. I mean, it is it is this morning's Skift headline, meta citing travel as a top use case and listening to their call last night. So MetaMuse, Instinct AI, OpenAI Dots, We now have a new type of guest, and these are new. Autonomous, agents as you referred to, who we are built to service. And we are excited about this. And we are embracing it. We are embracing these agents through our brand websites, through our MCP engines. Which we can do with very little investment given that technology forward best in class foundation that Scott R. Strickland and his team have put in place. We are providing our inventory your question, directly to these agents. As they query and they come in, to our CRS via brand web, via our MCI, or via our voice channels on the brand web queries, they are acting just like a guest would on voice queries, they are, they are. They are talking to our Wyndham Connect agents that we have talked a lot about who are interacting with these Muse agents or these Instinct agents or these dot agents, who wanna talk to our hotels. Just like a guest might wanna talk to a hotel, front desk agent for any special request if you think about it that way. So, the team is working with various AI labs We are we are making these bookings faster and easier for these agents. And to the last part of your question, in terms of incentives, with Wyndham rewards becoming our differentiator from the OTAs, given the personalized data, the context that we can provide, the third party simply cannot. We envision a future in which these new autonomous agents are explicitly instructed by our guests and especially by our Wyndham reward members to use our hotel loyalty program as preferences as a prerequisite in their search criteria. So we think it is a big deal, and we think it could really help us grow. When it comes to driving direct, traffic to our franchisees as the other tools that we opined in our prepared remarks are already doing. Thank you. Operator: We will move on now. To Michael Bellisario with Baird. Michael Bellisario: Thanks. Good morning, everyone. Jeff, I want to focus on franchisee feedback and what you are hearing from particularly your U. S. Partners. Any feedback on sort of higher rates weighing on sentiment? Any change in development starts and conversion activity there? And then similarly in Europe, what is health of the franchisee there? Any lingering Middle East impacts? And then just can you quantify France for us just in terms of system wide earnings in your pipeline? Thank you. Geoffrey A. Ballotti: Yeah. A lot in there. France is a very limited impact for us. We have very few hotels. As, as I think you know in France right now. So that is, that has not been and will not be an impact for us going forward. The Middle East, you know, fluid situation, but really no disruption to opportunities and business continuity. It remains intact across the portfolio. it is still negative, as we said in the script, but certainly improving. We are down 45% in Q2, down 13% in Q3. And our teams there on the ground, they are expecting gradual stability. We are not assuming any further escalation, but our hotels and in the KSA and in Dubai across the, UAE, Abu Dhabi, Bahrain, Qatar, they are all. They have all seen, obviously, some improvement with a pickup from some inbound group travel from China, some military personnel. And I think most importantly, from a development standpoint, the pipeline's strong. We have over 2 dozen hotels in our development pipeline in The Middle East and we have recently executed 5 new contracts. Across Saudi Arabia and The UAE. And all of those projects are still moving forward. In terms of the US we are feeling very good about our franchisees are our attention and internationally picked up sequentially. About 20 bps internationally, 20 bps domestically. And, you know, so far, we have opened a record of over 50 thousand rooms globally. 4% more than last year, excluding REVO. International opens have been really strong and should continue to be so. I mean, we are we have been ramping actually and accelerating. We are 10% up year to date. Accelerated to 24% more opens in Q3. Than last year. And domestically, I mean, we had a record year of domestic openings last year. Q1 was a record Q2 was a record, both record quarters. We have opened, I think it is about 19 thousand rooms year to date versus last year. We were about I think, 20 thousand rooms. So we are tracking we are tracking, we are tracking the last year's record. Despite the rising interest rates and a significant drop in buy sell transactions which slowed us down in the economy segment. But we are obviously very pleased with the 2% net room growth in the mid scale, upper mid scale. Segments. And, yeah, we are looking forward to a strong Q4 and a good 2027. Thank you. Operator: We will move on now to David Katz with Jefferies. Your line is open. Please go ahead. David Katz: Good morning, everybody. Thanks for taking my question. Good to hear from you, Jeff, and the update. Look, I think there is a lot in the quarter And so I would love, Jeff, for you to just pull out for us what you think is really the most important development. I know I have asked this question in the past, but I always value your perspective on, you know, what. what is your favorite part? Right, out of you know, the whole report? And, frankly, just following on the AI stuff, know, to the degree that you can help us measure statistically, franchisees that are you know, either engaging or you know, is actually signing up based on those initiatives, which obviously are industry leading and those would help. Very much. Geoffrey A. Ballotti: Sure. David, I would say the most, favorite part for all of us, in the quarter was looking at the outperformance of our domestic RevPAR which we have been waiting for, talking a lot about, and really how well I think, what was exciting for us was how well our brands are performing, especially from a market share standpoint. And an overall satisfaction standpoint. I mean, the quality this past quarter and really throughout the whole year, we have seen our strongest year over year gains in our overall satisfaction and our quality scores since going public. And that is just huge for us. Our economy brands are seeing some of the highest net promoter score growth improvement year over year that we have ever seen. Super 8 up 800 basis points Days Inn up 900 basis points. We are seeing huge gains in our overall satisfaction which was up over 400 basis points and net promoter scores up 600 basis points. So these brands are resonating with our consumers. Our Medallia OSR Index, which is our overall social review index we look at every month comparing our overall social review scores to our peer competitors is running well over fair share and it continues to grow. And that is just a great testament to our franchisees, obviously, in terms of their engagement with our teams. And importantly to our directors of franchise operations who do not always receive the credit that they deserve. Relationships in this franchise world matter, and there is no more important relationship that franchisees have than their relationship with their director of franchise operation. It is consistently ranked at the very top of what owners value the most And these directors of franchise operations, they are out there traveling all the time. it is nonstop. They do over 10 thousand site visits annually. And we survey after every visit to each franchisee, how was your visit? Not all of them respond, but many of them do. And they are running a 98.9% overall satisfaction score. Which, that is year to date, which just blows me away. And what franchisees tell me all the time, is how great their DFO is, citing their responsiveness, their professionalism, their willingness to listen to, That just results in franchisees being more engaged than ever today. I mean, over 6 thousand of ours, 75% of our hotels had their customer service fees waived last month. To higher quality, because they are. They are engaged. So that is that is, for me, passionate about that and very excited about that. When it when it comes to these franchisees in terms of what they are most excited about to the last part, of your question, it is really the achievements that they are starting to see with just massive rollouts of these tools. I mean, our Wyndham Connect tool now to think that we are over 5.1 thousand of our hotels, how these franchisees are making extra room revenue and extra ancillary revenue that it is just. it is amazing how easy it is for them as they embrace it, how excited they become. As they embrace it. And it is allowing these upscale franchisees to drive, as we said in Matt's deck, $102 thousand $103 thousand of increased annual revenues. But even for small franchisees, they are generating anywhere between gosh, at the low end, $500 to more like $2,000 per month. that is a big, big deal, especially has been in this environment, which up until now, we have not seen the rate growth that we are getting. And so that is obviously making it a lot better. But it is a really big deal, that delights them and I could go on and on with the other tools. I mean, the Wyndham AI concierge is just huge. it is really early days. 1.7 thousand hotels enrolled on it. And when you think that on average, over 25% of inbound calls are dropped by these franchisees because they cannot get to them in time And we have now AI agents with this tool preventing that from happening. These AI agents on Wyndham.AI Concierge, they have answered over 3 million calls year to date. And that is driving increased direct contribution. Because we are capturing all those calls. Yielding zero drop calls that might otherwise migrate to an OTA. A lot of exciting stuff going on and that was that was a long answer to your question. Thank you. Operator: We will move on now to Patrick Scholes with Truist Securities. Your line is open. Analyst: Jeff, very happy to hear that your treatment is going well. My question, you had briefly mentioned about increased terminations, I think it was in the economy segment. Is that something that you see impacting or continuing into 2027? Or would that alter at all, you know, your multiyear net room growth targets? And then follow-up or related to that, any changes related to key money strategy. Thank you. Geoffrey A. Ballotti: Okay. I will let, Amit take the key money. No. No changes. I mean, we talked about this, on the last call. You know, we do have domestic, substandard quality terms in the economy. We have been focused on that. And we are focused on it, obviously. Whenever the, the OSAT score or the, the RevPAR, the market share drops below. And when we look at, you know, where we have had year to date throughout the year, some of the biggest, deletions, if you will, of substandard terminations in brands like Howard Johnson, and even Super 8. Those 2 brands in the economy space, have seen some of the highest OSAT improvements year to date of any of our brands. Howard Johnson overall satisfaction is up 800 basis points in the quarter over last quarter, and that is been growing. As we have been focused on it. Super 8 is up 600 basis points and they have also seen the most significant year over year RevPAR index gains. So we will continue to be focused on that. Our economy brands domestically lead the industry from a retention standpoint. it is something we are very focused on. We want to Obviously, to continue that. We lead by about 100 basis points. And that again is our continued focus our DFO's focus, our operations team's focus on quality. And we are confident that we can get back to that 96% domestic retention, which we have moved it to before from the 93s which is where we were at spin. And Amit, maybe you will talk about the back part of this question. Amit Sripathi: Yeah. Hey, good morning, Patrick. Regarding key money strategy, really no changes to our outlook in terms of $110 million for the full year. And as far as the sentiment itself, look, key money has always been a tool we selectively use to prioritize investing in high quality growth and when returns, you know, meet or exceed our hurdle rates. And we continue to. You know, you look at the sites that we are bringing in with key money, and they come in at attractive fee par premiums. And but the priority is always, like our teams, as Jeff touched on, lead with the value proposition of our segment leading brands, our loyalty program, and all of the tech initiatives and the AI initiatives that we have, invested in to promote franchisee health. So really no changes to our key money strategy or outlook. It remains the tool. We have ample balance sheet capacity. And within the year, as well as outlook for $110 million we have to deploy that. Thank you. Operator: We will move on now to Stephen Grambling with Morgan Stanley. Your line is open. Stephen Grambling: I want to go back to the agentic AI question and perhaps consumer use of LLMs in general. You mentioned the upsell opportunity We have also heard from some hotel owners that there is been some material declines in top of funnel costs from search already. Are you seeing benefits to customer acquisition cost that you can quantify at this point? And then as you think about the you know, the magnitude and cadence of variance. How would you rank improved mix of direct bookings versus lowering third party commission rates versus lowering the cost of direct bookings or simply just improving conversion across all channels. Thanks. Geoffrey A. Ballotti: Yeah. it is the million dollar question. And I think, first and foremost, Steven, sort of laid that out on page 3 of the IP. How we think about it, we always think about it from our own value proposition. First, we think about our franchisees, and we think about the benefits that we could drive to them as opposed to driving to our marketing fund. I mean, if we could increase their direct bookings, if we could. To drive increased direct revenues, and we could lower their operating costs, which we are doing with these tools, it is a home run. To the first part of your question, in terms of distribution cost declines, they do have significant potential. The AI interactions are all going through our brand websites. Or our MCP servers. Or our voice channels, which whether it is talked about a little while ago in the last question, Wyndham Connect AI agent answering a Muse AI agent. Those are obviously less costly for us. And the ADR lift from Wyndham AI concierge has huge potential. For all the reasons I mentioned on the last question as we roll this out way beyond the 1.7 thousand hotels, are subscribed to it today. I mean, that is driving occupancy index gains, rate index gains. Because the AI agent is delivering a 15% in rate. RPI gains, and labor savings obviously, back to the lens we look at this through, for our franchisees. And on the LLM search equation, it is still really early days as I said earlier. GEO may well prove to be for us and for our marketing fund, a whole lot less expensive than SEO. that is still to be determined. It is a great question. I mean, as AI transactions ramp, you have got Meta's muse out there, again, headline, building in right now a small commission. But it is the space to watch, and it will shape the economics of AI for every brand and every OTA. The coming years. Again, our focus on our strategy is to make our availability, our rates our inventory the most readable the most actionable data source for the LLMs. If we could offer a direct booking path that an AI agent can execute on easily. Then we capture that guest. Thank you. Operator: We will move on now to Daniel Politzer. With JPMorgan. Your line is open. Daniel Politzer: Hey, good morning, everyone, and thanks for the question. And Jeff, it is great to hear from you. I have a follow-up on the domestic net unit growth and maybe ask from a different angle. Mean, much of the kind of pivot here or kind of evolving landscape do you attribute to kind of reducing or terminating some of those standard hotels versus competition from new brands coming into the segment or maybe just kind of a change in the macro or construction environment? Is there any kind of detail you could give on the conversation with developers? And maybe any early thoughts on getting back to positive net unit growth there in the coming years? Thanks. Geoffrey A. Ballotti: Yes. Sure. We achieved, as we have said all along, by increasing our gross adds to where it is been before around 6% and reducing those terms to 4%, which is where they have been before, before flattening out this year with the unexpected buy sell transaction slowdown. I would say that because of rising interest rates was 1 of the biggest impacts that we saw this year. Interest rates, as we all know, which were expected to fall in the second half of the year. We think it temporarily widened that bid ask spread on buy sell transactions, which are so important to our conversion engine. With transactions in our segments falling over 30% in both the economy and the mid scale segments select service segments this quarter to historic all time lows And on top of that, subdued industry new construction activity So you take transaction volumes, you take industry new construction being muted. it is really building pent up transaction demand for when those transaction driven conversions pick back up in our segments in the quarters ahead. As we saw in late 24, and into 2025. We are very confident that as economy buy sell transactions resume, US net room growth will pick back up as it has before in the past. Amit Sripathi: Yeah. And, Daniel, the only thing I would add to that is, I mean, to your question around new competitors versus just a slowdown in transaction volume like or determination of what really had an impact. Listen, I think we have talked about this before on the competitor side, brand launches, the new brand, the first of the new brands kind of launched in 2023 and a couple of follow through since then. You look at that 3 year period, really less than 1% of our system has switched over to those brands. And you look at it in terms of year over year, that is been a declining trend. Really, what we are looking at, what Jeff talked about, in the terms of the transaction volume, it is not just about the higher interest rates. it is kind of like the shift in expectations, right? You entered the year thinking you are going to have rate cuts. And then midway through the year, you ended up with rate hikes and expectations for more rate hikes. So and so rate hikes in itself, we have seen this before, right? That in itself does not really cause it. And, of course, we want lowers better, but it is more the stability. I think the market's just looking for. They wanna understand it is gonna normalize and then transaction activity is going to pick back up. We have seen this multiple times throughout the cycle. So we feel good about our setup. We feel good about our, you know, segment leading brands or loyalty program and all the technology. So, you know, we are expecting kind of U. S. To be back in sequential growth, really make up for and all we are we were just lapping some very outsized terms in the beginning of the year. that is kind of had an impact this year. Geoffrey A. Ballotti: And you also asked Dany about developer sentiment, which I forgot to address. Looking at my notes. I mean, it remains really positive given the strong long term fundamentals. I mean, historically low supply less than 2% with when you think about the U.S. Active pipeline supply down 8% year over year. Out at the lodging conference, many owners were up on stage talking about industry fundamentals being the best they have seen in a decade. And that is showing up for us with our institutional developers with record openings, executions, and pipeline growth. I mean, the market is so undersupplied with new, quality, affordable select service accommodations to serve the lodging demand from the public and private investment across the U.S. So, as Amit said, we are confident. Thank you. Operator: We will move on now to Benjamin Chaikin with Mizuho. Your line is open. Please go ahead. Benjamin Chaiken: Hey, good morning. The algo fee growth relationship was very impressive in 3Q as you touched on. But specifically, I would love to touch on how you are thinking about royalty rate expansion, I guess, in 4Q, but also longer term. I think 2Q net of REVO there was theoretically around 100 basis points of contribution to the algo from royalty rate expansion. Think 3Q was maybe more flattish ex Revo. Just curious how you think about royalty rate expansion and the moving parts both in 3Q, 4Q, but more importantly, longer term? Thanks. Amit Sripathi: Hey, Benjamin. Good morning. Thanks for the question. Look, our royalty rate, kind of our expectations within the algo is 5 basis points of growth, both domestically and internationally, kind of on the long term. And that is not necessarily 5 basis points every single year, but you look at it on a multiyear period, we expect it to be 5 basis points on average. And we have seen U.S. royalty rate in increased 10 basis points in 2024, 7 basis points in 2025. it is down approximately 2 basis points year to date in 2026. But again, you look at it across the 3 year period, the average is approximately 5 basis points, in line with our objective. So individual years may vary, but the multiyear target is unchanged. And same thing as you mentioned, there were some REVO related noise which we stripped out and disclosed kind of adjusting for that. We did see royalty rate growth there. And it is really a testament to both expansion in our way into higher chain scale segments as well as the mid scale and plus above strategies, so both domestically and internationally, and obviously bearing fruit as we have seen, you look at kind of like a 3 year average on the royalty rates. Thank you. Operator: We will move on now to Alex Brignall with Rothschild and Company. Your line is open. Alex Brignall: Thank you very much for taking the questions and great to hear from you, Jeff. Just 1 on U. S. Net unit growth. Obviously, it continues to be relatively subdued. But the commentary you have made on signings is very encouraging. I wonder if you could just run us through the cadence of how that progresses in the next quarters and years and how the RevPAR performance of, maybe perhaps most of all, the relative RevPAR performance of the low and high end segments might affect that Thank you. Amit Sripathi: Yes. Hey. Hey, Alex. Good morning. I think since you asked about kind of what is the outlook, I will take the question. I think in terms of sequential growth, U. S. Obviously, we saw pipeline growth both domestically and in the U.S. And pipeline is really the reflection of the execution sentiment And so we are pleased to see continued growth, 25 consecutive quarters of global pipeline growth. And then U. S, we saw again year over year growth. As far as the RevPAR sentiment, listen. Obviously, we were coming back. We were in an environment last year where we saw sequential declines in RevPAR growth every year. So, obviously, having the opposite of that and kind of getting up to above the 20 year select service average 2.5 percent to 3% is a positive, and that is kind of what Jeff was touching on earlier about the owner sentiment. So I think our expectation is to see sequential growth in the U.S. Continued to get to that 4% globally. And early to talk about 2027 in terms of RevPAR outlook, but our expectation is that this momentum continues and then translating that into net unit growth, transaction volume should pick back up. As I said, really, the market's just looking for stability. And as we see that, we should see some continued improvement. Thank you. Operator: We will move on now to Ian Zaffino with Oppenheimer. Your line is open. Please go ahead. Ian Zaffino: Hi, great. Thank you for taking my call. And Jeff, glad to hear everything's going well on the health side. Question would be, just given kind of where the business is and how it is performing versus your expectations, How do you think about capital allocation here? Given the dividend, you have a buyback. Are you more encouraged by kind of what you are seeing here? And would that then mean accelerate the buyback? Or how are you guys thinking about returning the cash to shareholders? Amit Sripathi: Ian. Good morning. Thanks for the question. We have we repurchased approximately 91 million shares in Q3 about 30% more than last year and materially more than the prior quarter. The stock traded at a significant discount to the 52 week average. And we believe it is trading at an unwarranted discount, so we continue to support the stock and we have ample liquidity and balance sheet capacity to do so I think our board's authorization of an additional $400 million share repurchase obviously reflects confidence in the strength of our business and ability to generate a significant amount of free cash flow. So while we do not guide towards what our future share repurchases are, I think we will continue to support the stock as it trades at an unwarranted discount. And barring any attractive deployments into M&A and investments within the business, we have ample free cash flow to deploy it to both dividends as well as repurchases. Operator: Thank you. We will move on now to Lizzie Dove with Goldman Sachs. Your line is open. Elizabeth Dove: Hi, good morning. Thanks for taking the question. And Jeff, great to hear that you are doing well. So there is clearly so much investment going into data centers, manufacturing, broader infrastructure, projects, as you mentioned and gave some great data points earlier and on the slides. I am wondering how are you thinking about the potential for this to create really a multiyear demand tailwind for Wyndham? Is there a way to quantify that impact to total U. S. RevPAR in aggregate? And is this something you think is accelerating as we look to 2027 and beyond? Geoffrey A. Ballotti: Hey, Lizzie. Thanks for the question. Absolutely accelerating. And strengthening. It is it is performing right now. It was up about 6% in line with the rest of North America, but it is no longer the drag. From an acceleration standpoint to my point, than it was during the down quarters and the government slowdowns of last year. We are seeing our teams are out there contracting. They are seeing ongoing highway expansion, They are seeing ongoing, and increasing manufacturer builds big utility grid upgrades and companies that are just continuing to deploy field crews and regional service teams across the country. These teams operate on and these companies operate on strict per diems really anchoring them to our select service brands across the US. Where it is really showing up for us is in terms of what has been booked by our GSO. In Q3, our GSO booked 16% more revenue in Q3 than they did last year. And that was up from booking 12%. I talked about in the last call, more revenue in Q2 than they did in last year. So continued acceleration. And GSO contracted infrastructure on the books which gives us looking into 2027, a lot of confidence, continues to pace well ahead of where we were same time last year. We continue to place infrastructure business into more hotels than we ever have. This quarter, we put it into almost 6 thousand I believe of our hotels this year, which was up quarter over quarter. We are seeing business, from oil and gas room night production that was up 50 basis points. I think I talked about in our remarks versus the rest of the portfolio. And hotels near data centers continue to the first part of your question to see great strength. We have about 350 data centers that we are circling that are around approaching 1 thousand of our hotels in those markets, which is seen a couple of 100 basis points of RevPAR growth this year. I mean, you look at gosh, Arizona, TSMC semiconductor project, remains 1 of our strongest markets and we are seeing hotels servicing this project seeing big double digit increases year over year. In both their revenues, their bookings, their market share. So absolutely it should become a tailwind assuming it continues to pick up as it has over the last 2 quarters. and not be the drag it was last year. So much of it, as we said in the script, has yet to be spent. And this bipartisan Build America Act, we think, should really help, as those funds become authorized. From 2027. Into the 2030s. Thank you. Operator: We will move on now to Meredith Prichard Jensen with HSBC. Your line is open. And Ms. Jensen, please check your mute switch. Your line is now open. Geoffrey A. Ballotti: I know we are running late. Leo, she might have exited the call. Operator: We will move next to Trey Sorry about that. Yes. Meredith Prichard Jensen: Sorry about that. Good morning. I was hoping you might speak a little bit about Mainland China. And obviously facing some headwinds to this day on the macro side. But if you could speak to the strong net unit growth that continues despite that. And you know, what maybe is driving investment decisions for franchisees and sort of any trends you are seeing in development activity there and the types of owners who are entering your system. Thank you. Geoffrey A. Ballotti: Sure. Yeah. If I was to answer the, least favorite part, which David often asks, of the quarter, it was how China RevPAR to your question came in. And as we talked about in the script, we do have a much heavier weight in tier 2 cities, which underperformed the industry. By about 500 basis points, which was not unique to us. The good news is that despite that slowdown, our hotels were able to hold rate flat to prior year, which is a big, big deal. And as our teams look ahead, I mean, they do believe and there is a lot of analysts out there that believe that the deflationary cycle that China has been in is beginning to bottom. I mean, we have seen this year PPI turn positive for the first time in several years. We have seen CPI recently also turn positive. And so there is just so much tailwind potential there in terms of how far occupancy is below where it is been historically. And it was great again to see our hotels hold rate. China is doing a lot to boost consumption. And really optimistic for the long term, as is the industry. I mean, Horwath recently put out a sentiment survey, has hotelier market confidence climbing to a 7 quarter high, breaking out of a prolonged period of pessimism. And, if we look at the pipeline, LNE's reported pipeline in China actually saw a tick up. 3.6 thousand projects saw early planning 4% with construction starts up 7% as hotel conversions hit a record high, rising over 20%. And that is certainly helping us to the back part of your question from a development standpoint. I mean, again, we have got a fantastic team, over there, Joon Aun and Wang are doing just a great job, quarter after quarter. Delivering double digit net room growth for both our direct franchising and our overall China system. 2 thirds of the contracts that we signed were new construction, which was great to see. The other third conversion, but we are also seeing a lot of same year sell and same year opens. To your question in terms of what we are what we are hearing from people that are signing, with us, in the quarter or in the year to open that year is they are looking for that incremental distribution as, as demand has been so soft. And so we are super bullish as our growth has pivoted from master license agreements to direct franchise agreements that at 3x the royalty rate that double digit net room growth is going to really help us continue to grow our international royalty rate And we see no signs of that business slowing down. Operator: Our final question is from Trey Bowers with Wells Fargo. Your line is open. Analyst: Hey, guys. Thanks for sneaking me in. And Jeff, great to hear things are going well. Just 2 quick ones. 1 on-- you have talked to this, but I will ask it quite directly. Is there a chance that domestic net growth next year gets back to that 6% gross with a 4% churn rate against it, so we could see 1 or 2 points of domestic NUG? And then 2, just so I understand the Revo numbers. We started with about 22 thousand rooms. Now it says there is 13 thousand. Are those the delta of 8 thousand or 9 thousand rooms, ones that have run through the deletion counts already? Or are those rooms that have kind of graduated to returning to the system? Thanks so much, guys. Amit Sripathi: Hey, Trey. Good morning. Domestic net unit growth, I think, we have expecting sequential growth in the year. We are obviously lapping outsized terms from the beginning of the year that we kind of expected to make up in our seasonally Q3 and Q4, which are our strongest net unit growth quarters. Obviously, transaction volumes kind of slowed down, which had an impact. So I think looking ahead, we obviously are expecting sequential growth in the in Q4. And then beyond that, we want to kind of get back to see transaction volumes resume, construction starts with, again, not necessarily predicated upon interest rates coming down, but just more stability there, which should give owners confidence. We are seeing that And then so that is really kind of how we think about that on the domestic side. And to your question around revo, we had. We started with about 22 thousand rooms. We have kind of disclosed in the earnings release about 9.1 thousand Rebo rooms left the system. So the 13 thousand that are remaining, our expectation is that of the 23 thousand about 20% to 25% will be retained, call it, 5 thousand-6 thousand-ish rooms. And the Revo insolvency process, it is nearly finalized, but it is still kind of in the putting the finishing touches. So other than the 6 thousand-ish rooms that we expect 5 thousand-6 thousand rooms that we expect to retain, the rest will be leaving the system in Q4. And so whatever that 20% to 25% should be for 2027. Operator: Thank you. Geoffrey A. Ballotti: At this time, I will now turn the meeting back to Geoff Ballotti for closing comments. Well, thanks, Leo, thanks to anyone still on the line. I believe this is a record, I believe, in terms of 75 minutes. We appreciate your questions and your interest in Wyndham and Resorts. We know how busy your days are. Amit, Matt, and I look forward to talking to many of you in the weeks ahead. But in the meantime, have a great weekend, and, happy Halloween next Saturday. Thanks everybody again for, joining us today. Operator: Thank you. This does conclude today's Wyndham Hotels and Resorts. Third Quarter 26 Earnings Conference Call. Please disconnect your line at this time and have a wonderful day. Record duration is gone. 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This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Wyndham Hotels (WH) Q3 2026 Earnings Call Transcript was originally published by The Motley Fool

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. - US RevPAR growth of 6% significantly exceeded second-half expectations, driven by resilient middle-income consumer demand and a 300 basis point increase in occupancy. - Management attributed domestic strength to everyday business travel and broad-based leisure demand, noting that franchisees maintained pricing power with ADR increasing 280 basis points. - Infrastructure-related demand is becoming a durable tailwind, particularly in Midwest and industrial states, with nearly 80% of the US infrastructure bill funds yet to be deployed. - The company is intentionally shifting its portfolio toward higher-value opportunities, with new US openings carrying a 45% fee-per-room (FeePAR) premium over terminated rooms. - International recovery showed sequential improvement of 400 basis points, led by Canada and EMEA, though performance in China remains pressured by soft demand in tier-2 cities. - Technology investments in AI are driving hotel-level economics, with the AI Concierge platform capturing previously missed calls and converting them at rates 15% above standard hotel book rates. - Ancillary revenue grew 10% year-to-date, supported by a refreshed credit card portfolio and the expansion of the Wyndham Rewards program to 129 million members. - Full-year global RevPAR guidance was raised to 0.5%–1.0%, assuming Q4 domestic performance remains consistent with the strong trends observed in Q3. - Net room growth outlook was narrowed to approximately 4% to reflect the strategic termination of substandard rooms and the final exit of the majority of REVO-related rooms by year-end. - Management expects a return to the historical select-service CAGR of 2.5% to 3% RevPAR growth as market conditions stabilize and ADR recovery continues. - Future growth is expected to benefit from 'agentic' booking flows as the company integrates its inventory directly into autonomous AI agents like OpenAI's Dots and Meta's Muse. - The company anticipates that pent-up transaction demand will unlock as the interest rate environment stabilizes, supporting a recovery in the conversion engine for 2027. - The REVO insolvency process is nearly finalized, with approximately 5,000 to 6,000 rooms expected to be retained while the remainder will exit the system in Q4. - Marketing fund timing impacted year-over-year comparability, with a $1 million net benefit in Q3 2026 compared to an $18 million benefit in the prior-year period. - Substandard room terminations in the economy segment, while impacting short-term net room growth, have led to significant improvements in overall guest satisfaction and RevPAR index for brands like Super 8. - Management noted that while China RevPAR declined 10%, the impact was mitigated by the company's pivot toward direct franchising at 3x the royalty rate of legacy master license agreements. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. - Management cited a 7% increase in business on the books for the next 60 days and improving booking windows as key indicators of sustained momentum. - The 'blue-collar essential' infrastructure travel segment is providing a floor for demand that is less sensitive to macro discretionary spending shifts. - Wyndham is providing inventory directly to AI agents to ensure they act as a lower-cost distribution channel compared to traditional OTAs. - The goal is to have Wyndham Rewards preferences serve as a prerequisite in AI search criteria, driving higher direct contribution. - The slowdown in buy-sell transactions (down 30% in the segment) has temporarily hindered the conversion engine due to a widened bid-ask spread. - Management expressed confidence that US net room growth will accelerate once transaction volumes normalize, regardless of the absolute level of interest rates. - The Global Sales Organization (GSO) booked 16% more infrastructure-related revenue in Q3 compared to the prior year. - Hotels located near data centers are seeing RevPAR growth several hundred basis points above the rest of the portfolio.

Wyndham Hotels (WH) reported $410 million in revenue for the quarter ended September 2026, representing a year-over-year increase of 7.3%. EPS of $1.43 for the same period compares to $1.46 a year ago. The reported revenue represents a surprise of -0.14% over the Zacks Consensus Estimate of $410.57 million. With the consensus EPS estimate being $1.32, the EPS surprise was +8.33%. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how Wyndham performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: - Total RevPAR: $51.13 compared to the $50.55 average estimate based on four analysts. - Total Rooms: 877,400 versus the three-analyst average estimate of 884,701. - RevPAR - International: $41.79 versus the two-analyst average estimate of $42.36. - RevPAR - United States: $58.35 compared to the $56.48 average estimate based on two analysts. - Rooms - United States: 500,000 compared to the 503,856 average estimate based on two analysts. - Rooms - International: 377,400 compared to the 378,387 average estimate based on two analysts. - Net revenues- Royalties and franchise fees: $156 million versus $157.09 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +6.1% change. - Net revenues- Marketing, reservation and loyalty: $158 million versus the four-analyst average estimate of $156.24 million. The reported number represents a year-over-year change of +6%. - Net revenues- Management and other fees: $8 million versus $2.76 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +300% change. - Net revenues- License and other fees: $36 million compared to the $37.19 million average estimate based on two analysts. The reported number represents a change of +2.9% year over year. - Net revenues- Other: $52 million versus $56.12 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +6.1% change. View all Key Company Metrics for Wyndham here>>> Shares of Wyndham have returned +14% over the past month versus the Zacks S&P 500 composite's +1% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Wyndham Hotels & Resorts (WH) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Wyndham Hotels (WH) came out with quarterly earnings of $1.43 per share, beating the Zacks Consensus Estimate of $1.32 per share. This compares to earnings of $1.46 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +8.33%. A quarter ago, it was expected that this hotel and resort chain would post earnings of $1.42 per share when it actually produced earnings of $1.48, delivering a surprise of +4.23%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Wyndham, which belongs to the Zacks Hotels and Motels industry, posted revenues of $410 million for the quarter ended September 2026, missing the Zacks Consensus Estimate by 0.14%. This compares to year-ago revenues of $382 million. The company has topped consensus revenue estimates just once over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Wyndham shares have added about 2.4% since the beginning of the year versus the S&P 500's gain of 12.7%. While Wyndham has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Wyndham was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.03 on $364.33 million in revenues for the coming quarter and $4.81 on $1.48 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Hotels and Motels is currently in the top 42% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Marriott International (MAR), is yet to report results for the quarter ended September 2026. The results are expected to be released on November 2. This hotel company is expected to post quarterly earnings of $2.84 per share in its upcoming report, which represents a year-over-year change of +15%. The consensus EPS estimate for the quarter has been revised 0.1% lower over the last 30 days to the current level. Marriott International's revenues are expected to be $7.02 billion, up 8.2% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Wyndham Hotels & Resorts (WH) : Free Stock Analysis Report Marriott International, Inc. (MAR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Company Raises Full-Year 2026 RevPAR, Adjusted EBITDA and EPS Outlook Grows System Size by 4% and U.S. RevPAR by 6% PARSIPPANY, N.J., Oct. 21, 2026 /PRNewswire/ -- Wyndham Hotels & Resorts (NYSE: WH) today announced results for the three months ended September 30, 2026. Highlights include: - Global RevPAR grew 2% compared to third quarter 2025 in constant currency, a 4% improvement sequentially. - U.S. RevPAR grew 6% year-over-year, a 4% improvement sequentially. - System-wide rooms grew 4% year-over-year, excluding insolvent Revo Hospitality Group ("Revo") rooms. - Development pipeline grew 4% year-over-year, excluding Revo, to a record of approximately 264,000 rooms, carrying a FeePAR premium of approximately 30% to existing domestic and international systems. - Net income was $99 million and diluted EPS was $1.33. - Adjusted EBITDA was $207 million and adjusted diluted EPS was $1.43. - Net cash provided by operating activities was $93 million and free cash flow was $100 million. - Returned $123 million to shareholders through $91 million of share repurchases, a 30% increase year-over-year, and quarterly cash dividends of $0.43 per share. "Our third quarter results demonstrate our team's continued execution and the strength of Wyndham's asset-light, highly cash-generative business model," said Geoff Ballotti, President and Chief Executive Officer. "We delivered broad-based U.S. RevPAR growth outperforming our initial expectations, as well as market share gains. Additionally, we grew our system and development pipeline each by 4% and increased royalties and franchise fees by 6%, as we continued to invest in industry-leading technology, loyalty and distribution initiatives that support franchisee profitability and customer satisfaction. Our strong balance sheet and cash flow generation capabilities provide significant opportunities to continue enhancing returns to our shareholders over both the short and long-term, as evidenced by our Board of Directors' approval of a $400 million increase in our share repurchase authorization." Operating Results Highlights The comparability of the Company's third quarter results is impacted by marketing fund variability. In the third quarter of 2026, marketing fund revenues exceeded expenses by $1 million, while revenues exceeded expenses by $18 million in the third quarter of last year. 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. | Netrevenues | | Netincome(a) | | Adjusted net income(a) | | Adjusted EBITDA | | Reported diluted EPS(a) | | Adjusted diluted EPS(a) 2025 reported | $ 382 | | $ 105 | | $ 112 | | $ 213 | | $ 1.36 | | $ 1.46 | | | | | | | | | | | 2026 reported | 410 | | 99 | | 107 | | 207 | | 1.33 | | 1.43 Change | 28 | | (6) | | (5) | | (6) | | (0.03) | | (0.03) Less: Marketing fund variability | n/a | | (13) | | (13) | | (17) | | (0.16) | | (0.16) Comparable basis growth | $ 28 | | $ 7 | | $ 8 | | $ 11 | | $ 0.13 | | $ 0.13 | | | | | NOTE: | Growth rates may not recalculate due to rounding; see Table 7 for a reconciliation of non-GAAP metrics and Table 9 for definitions. (a) | Includes estimated tax impact of marketing fund variability. - Net revenues increased 7% to $410 million compared to $382 million in the third quarter of 2025, reflecting RevPAR and global net rooms growth, higher franchise fees, increased ancillary revenues and revenues from the Company's two owned hotels. - Net income decreased 6% to $99 million compared to $105 million in the third quarter of 2025, primarily reflecting lower adjusted EBITDA. On a comparable basis, adjusted net income increased approximately 7% year-over-year primarily reflecting comparable basis adjusted EBITDA growth. - Adjusted EBITDA decreased 3% to $207 million compared to $213 million in the third quarter of 2025. On a comparable basis, adjusted EBITDA increased 5% primarily reflecting higher revenues, partially offset by the timing of variable costs and the lapping of one-time variable cost reductions made during the third quarter of 2025. - Diluted EPS decreased 2% to $1.33 compared to $1.36 in the third quarter of 2025, which reflects lower net income, partially offset with share repurchase activity. - Adjusted diluted EPS decreased 2% to $1.43 compared to $1.46 in the third quarter of 2025. On a comparable basis, adjusted diluted EPS increased approximately 9% year-over-year primarily reflecting a comparable basis increase in adjusted EBITDA and the benefit of share repurchase activity. Full reconciliations of GAAP results to the Company's non-GAAP adjusted measures for all reported periods appear in the tables to this press release. RevPAR | | Third Quarter 2026 | | YOY Constant Currency % Change United States | | $ 58.35 | | 6 % International | | 41.79 | | (3 %) Global | | $ 51.13 | | 2 % In the U.S., RevPAR improved 6% year-over-year and 4% sequentially, reflecting improved occupancy and ADR levels. Performance was broad-based across nearly all regions, highlighting the sustained strength across the Midwest and continued year-over-year and sequential growth in Texas, Florida and California. Internationally, constant currency RevPAR declined 3% year-over-year, yet improved 4% sequentially, including year-over-year growth of 7% in Canada reflecting continued pricing and demand strength, while 5% growth in Southeast Asia and the Pacific Rim was driven by favorable ADR trends. Latin America increased 2% year-over-year and 9% sequentially primarily driven by Mexico, with favorable ADR trends and a resilient urban portfolio. EMEA increased 2% year-over-year driven by strong performance in Turkey, India and Spain and 8% sequentially reflecting recovery in Germany and stabilization across the Middle East. Growth in these regions was offset by China, where RevPAR declined 10% year-over-year as softer travel demand, particularly in Tier 2 cities, continued to pressure performance. System Size and Development | | Rooms | | September 30, 2026 | | September 30, 2025 | | % Change United States | | 500,000 | | 503,400 | | (1 %) International | | 377,400 | | 352,000 | | 7 % Global | | 877,400 | | 855,400 | | 3 % Global ex. Revo | | 864,400 | | 833,200 | | 4 % The Company's global system, excluding Revo, grew 4%. The Company's U.S. system grew 2% in the higher RevPAR midscale and above segments. International growth of 11% year-over-year, excluding Revo, included 12% direct-franchised growth in the Company's Asia Pacific region and 13% growth in the Company's higher RevPAR EMEA and Latin America regions. As of September 30, 2026, the Company's global development pipeline, excluding Revo, increased 4% vs. prior-year to a record-high of approximately 264,000 rooms and over 2,200 hotels. Key highlights of the Company's pipeline include: - 2% growth in the U.S. and 5% growth internationally, excluding Revo - Approximately 69% is in the midscale and above segments - Approximately 17% is in the extended stay segment - Approximately 42% is in the U.S. - Approximately 78% is new construction and approximately 35% of these projects have broken ground; rooms under construction grew 4% year-over-year - Approximately 30% FeePAR premium compared to existing domestic and international systems Balance Sheet and Liquidity The Company generated $93 million of net cash provided by operating activities and $100 million of free cash flow in the third quarter 2026. The Company ended the quarter with a cash balance of $71 million and $988 million in total liquidity. The Company's net debt leverage ratio at September 30, 2026 was 3.6 times, near the midpoint of the Company's 3-to-4 times stated target range and in-line with expectations. Share Repurchases and Dividends During the third quarter, the Company repurchased approximately 1.2 million shares of its common stock for $91 million, a 30% increase year-over-year, at an average price of $73.39 per share, which represented a 5% discount to our 52-week average price. Year-to-date through September 30, the Company repurchased approximately 2.5 million shares of its common stock for $196 million. The Company's Board of Directors recently increased the Company's share repurchase authorization by $400 million. The Company paid common stock dividends of $32 million, or $0.43 per share, during the third quarter 2026. Outlook The Company is updating its full-year outlook as follows: | | Updated Outlook | | Prior Outlook Year-over-year rooms growth (a) | | ~4% | | 4.0% - 4.5% Year-over-year global RevPAR growth (b) | | 0.5% - 1.0% | | 0.0% - 1.0% Net revenues | | $1.48 - $1.50 billion | | $1.48 - $1.50 billion Adjusted EBITDA (c) | | $740 - $745 million | | $735 - $745 million Adjusted net income | | $363 - $369 million | | $355 - $365 million Adjusted diluted EPS | | $4.84 - $4.92 | | $4.71 - $4.83 Free cash flow conversion rate | | 55% - 60% | | 55% - 60% | | | | | (a) | Excludes any room termination impact associated with Revo's ongoing insolvency. (b) | Represents constant currency basis; on a reported basis, which includes foreign currency impacts, would be 0.5% - 1.0%. The Company's updated outlook assumes fourth quarter domestic RevPAR is roughly consistent with third quarter performance. (c) | Includes the effects of the deferral of royalties and franchise fees from Revo and the inclusion of previously disclosed one-time variable cost reductions made in 2025; excluding which comparable basis growth rate would be approximately 6% - 7%. The Company expects marketing fund revenues to roughly equal expenses during full-year 2026 though seasonality of spend will affect the quarterly comparisons throughout the year. More detailed projections are available in Table 8 of this press release. The Company is providing certain financial metrics only on a non-GAAP basis because, without unreasonable efforts, it is unable to predict with reasonable certainty the occurrence or amount of all of the adjustments or other potential adjustments that may arise in the future during the forward-looking period, which can be dependent on future events that may not be reliably predicted. Based on past reported results, where one or more of these items have been applicable, such excluded items could be material, individually or in the aggregate, to the reported results. Conference Call Information Wyndham Hotels will hold a conference call with investors to discuss the Company's results and outlook on Thursday, October 22, 2026 at 8:30 a.m. ET. Listeners can access the webcast live through the Company's website at https://investor.wyndhamhotels.com. The conference call may also be accessed by dialing 800 343-4136 and providing the passcode "Wyndham". Listeners are urged to call at least five minutes prior to the scheduled start time. An archive of this webcast will be available on the website beginning at noon ET on October 22, 2026. A telephone replay will be available for approximately ten days beginning at noon ET on October 22, 2026 at 800 839-4014. Presentation of Financial Information Financial information discussed in this press release includes non-GAAP measures, which include or exclude certain items. These non-GAAP measures differ from reported GAAP results and are intended to illustrate what management believes are relevant period-over-period comparisons and are helpful to investors as an additional tool for further understanding and assessing the Company's ongoing operating performance. The Company uses these measures internally to assess its operating performance, both absolutely and in comparison to other companies, and to make day to day operating decisions, including in the evaluation of selected compensation decisions. Exclusion of items in the Company's non-GAAP presentation should not be considered an inference that these items are unusual, infrequent or non-recurring. Full reconciliations of GAAP results to the comparable non-GAAP measures for the reported periods appear in the financial tables section of this press release. About Wyndham Hotels & Resorts Wyndham Hotels & Resorts (NYSE: WH) is one of the world's largest hotel franchising companies with approximately 8,500 hotels across approximately 100 countries on six continents. Through its network of over 877,000 franchised and affiliated rooms appealing to the everyday traveler, Wyndham commands a leading presence in the economy and midscale segments of the lodging industry. The Company operates a portfolio of 25 hotel brands, including Super 8®, Days Inn®, Ramada®, Microtel®, La Quinta®, Baymont®, Wingate®, AmericInn®, ECHO Suites®, Registry Collection Hotels®, Trademark Collection® and Wyndham®. The Company's award-winning Wyndham Rewards loyalty program offers approximately 129 million enrolled members the opportunity to redeem points at thousands of hotels, vacation club resorts and vacation rentals globally. For more information, visit https://investor.wyndhamhotels.com. The Company may use its website and social media channels as means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD. Disclosures of this nature will be included on the Company's website in the Investors section, which can currently be accessed at https://investor.wyndhamhotels.com or on the Company's social media channels, including the Company's LinkedIn account which can currently be accessed at https://www.linkedin.com/company/wyndhamhotels. Accordingly, investors should monitor this section of the Company's website and the Company's social media channels in addition to following the Company's press releases, filings submitted with the Securities and Exchange Commission and any public conference calls or webcasts. Forward-Looking Statements This press release contains "forward-looking statements" within the meaning of the federal securities laws, including statements related to Wyndham's current views and expectations with respect to its future performance and operations, including revenues, earnings, cash flow and other financial and operating measures, share repurchases and dividends and restructuring charges. Forward-looking statements are any statements other than statements of historical fact, including those that convey management's expectations as to the future based on plans, estimates and projections at the time Wyndham makes the statements and may be identified by words such as "will," "expect," "believe," "plan," "anticipate," "predict," "intend," "goal," "future," "forward," "remain," "confident," "outlook," "guidance," "target," "objective," "estimate," "projection" and similar words or expressions, including the negative version of such words and expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of Wyndham to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Factors that could cause actual results to differ materially from those in the forward-looking statements include, without limitation, general economic conditions, including inflation, higher interest rates and potential recessionary pressures, which may impact decisions by consumers and businesses to use travel accommodations; global trade disputes, including with China; the performance of the financial and credit markets; the economic environment for the hospitality industry; operating risks associated with the hotel franchising business; Wyndham's relationships with franchisees; the ability of franchisees to pay back loans owed to Wyndham; the impact of prior or any future impairment charges related to the credit Wyndham extends to its franchisees; the impact of war, terrorist activity, political instability or political strife; global or regional health crises or pandemics including the resulting impact on Wyndham's business, operations, financial results, cash flows and liquidity, as well as the impact on its franchisees, guests and team members, the hospitality industry and overall demand for and restrictions on travel; Wyndham's ability to satisfy obligations and agreements under its outstanding indebtedness, including the payment of principal and interest and compliance with the covenants thereunder; risks related to Wyndham's ability to obtain financing and the terms of such financing, including access to liquidity and capital; and Wyndham's ability to make or pay, plans for and the timing and amount of any future share repurchases and/or dividends, as well as the risks described in Wyndham's most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission and any subsequent reports filed with the Securities and Exchange Commission. These risks and uncertainties are not the only ones Wyndham may face and additional risks may arise or become material in the future. Wyndham undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, subsequent events or otherwise, except as required by law. Table 1 WYNDHAM HOTELS & RESORTS INCOME STATEMENT (In millions, except per share data) (Unaudited) | | | | | | | | Three Months Ended September 30, | | Nine Months Ended September 30, | 2026 | | 2025 | | 2026 | | 2025 Net revenues | | | | | | | Royalties and franchise fees | $ 156 | | $ 147 | | $ 409 | | $ 420 Marketing, reservation and loyalty | 158 | | 149 | | 426 | | 431 Management and other fees | 8 | | 2 | | 16 | | 7 License and other fees | 36 | | 35 | | 97 | | 95 Other | 52 | | 49 | | 164 | | 142 Net revenues | 410 | | 382 | | 1,112 | | 1,095 | | | | | | | Expenses | | | | | | | Marketing, reservation and loyalty | 157 | | 131 | | 419 | | 432 Operating | 29 | | 29 | | 79 | | 73 General and administrative | 36 | | 26 | | 95 | | 87 Depreciation and amortization | 14 | | 15 | | 45 | | 46 Restructuring and other-related | 2 | | 2 | | 12 | | 16 Transaction-related | — | | 1 | | 3 | | 2 Separation-related | — | | — | | (1) | | 1 Total expenses | 238 | | 204 | | 652 | | 657 | | | | | | | Operating income | 172 | | 178 | | 460 | | 438 Interest expense, net | 37 | | 36 | | 108 | | 103 | | | | | | | Income before income taxes | 135 | | 142 | | 352 | | 335 Provision for income taxes | 36 | | 37 | | 90 | | 82 Net income | $ 99 | | $ 105 | | $ 262 | | $ 253 | | | | | | | Earnings per share | | | | | | | Basic | $ 1.34 | | $ 1.37 | | $ 3.50 | | $ 3.28 Diluted | 1.33 | | 1.36 | | 3.49 | | 3.26 | | | | | | | Weighted average shares outstanding | | | | | | | Basic | 74.1 | | 76.4 | | 74.8 | | 77.1 Diluted | 74.3 | | 76.9 | | 75.1 | | 77.6 | | | | | NOTE: | As a result of the Company's exit of its U.S. management business, it has not recorded cost reimbursement revenues and expenses to account for U.S. managed employees' payroll costs since full-year 2024. Therefore, the Company is no longer separately disclosing fee-related and other revenues within net revenues for comparative year-over-year purposes in its reported and outlook results. Table 2 WYNDHAM HOTELS & RESORTS HISTORICAL REVENUE AND ADJUSTED EBITDA BY SEGMENT | | | | First Quarter | | Second Quarter | | Third Quarter | | Fourth Quarter | | Full Year Hotel Franchising | | | | | | | | | | Net revenues | | | | | | | | | | 2026 | $ 327 | | $ 375 | | $ 410 | | n/a | | n/a | 2025 | $ 316 | | $ 397 | | $ 382 | | $ 334 | | $ 1,429 | Adjusted EBITDA | | | | | | | | | | 2026 | $ 174 | | $ 225 | | $ 229 | | n/a | | n/a | 2025 | $ 161 | | $ 214 | | $ 228 | | $ 178 | | $ 781 | | | | | | | | | | Corporate | | | | | | | | | | Net revenues | | | | | | | | | | 2026 | $ — | | $ — | | $ — | | n/a | | n/a | 2025 | $ — | | $ — | | $ — | | $ — | | $ — | Adjusted EBITDA | | | | | | | | | | 2026 | $ (18) | | $ (13) | | $ (22) | | n/a | | n/a | 2025 | $ (16) | | $ (19) | | $ (15) | | $ (13) | | $ (63) | | | | | | | | | | Total Company | | | | | | | | | | Net revenues | | | | | | | | | | 2026 | $ 327 | | $ 375 | | $ 410 | | n/a | | n/a | 2025 | $ 316 | | $ 397 | | $ 382 | | $ 334 | | $ 1,429 | Net income/(loss) | | | | | | | | | | 2026 | $ 61 | | $ 102 | | $ 99 | | n/a | | n/a | 2025 | $ 61 | | $ 87 | | $ 105 | | $ (60) | | $ 193 | Adjusted EBITDA | | | | | | | | | | 2026 | $ 156 | | $ 212 | | $ 207 | | n/a | | n/a | 2025 | $ 145 | | $ 195 | | $ 213 | | $ 165 | | $ 718 | | | | | NOTE: | Amounts may not add across due to rounding. See Table 7 for reconciliations of Total Company non-GAAP measures and Table 9 for definitions. Table 3 WYNDHAM HOTELS & RESORTS CONDENSED CASH FLOWS (In millions) (Unaudited) | | | | Nine Months Ended September 30, | 2026 | | 2025 Operating activities | | | Net income | $ 262 | | $ 253 Depreciation and amortization | 45 | | 46 Payments of development advance notes, net | (75) | | (73) Working capital and other, net | (6) | | (11) Net cash provided by operating activities | 226 | | 215 Investing activities | | | Property and equipment additions | (32) | | (30) Loan advances, net | (14) | | (56) Net cash used in investing activities | (46) | | (86) Financing activities | | | Proceeds from long-term debt | 822 | | 350 Payments of long-term debt | (662) | | (189) Dividends to shareholders | (98) | | (96) Repurchases of common stock | (196) | | (223) Other, net | (19) | | (14) Net cash used in financing activities | (153) | | (172) Effect of changes in exchange rates on cash, cash equivalents and restricted cash | (1) | | — Net increase/(decrease) in cash, cash equivalents and restricted cash | 26 | | (43) Cash, cash equivalents and restricted cash, beginning of period | 64 | | 113 Cash, cash equivalents and restricted cash, end of period | $ 90 | | $ 70 Free Cash Flow: | | | | | | | | | | | | | Three Months Ended September 30, | | Nine Months Ended September 30, | 2026 | | 2025 | | 2026 | | 2025 Net cash provided by operating activities | $ 93 | | $ 86 | | $ 226 | | $ 215 Less: Property and equipment additions | (11) | | (11) | | (32) | | (30) Plus: Payments of development advance notes, net | 18 | | 22 | | 75 | | 73 Free cash flow | 100 | | 97 | | 269 | | 258 Plus: Adjusting items (a) | — | | — | | — | | 7 Adjusted free cash flow | $ 100 | | $ 97 | | $ 269 | | $ 265 | | | | | (a) | Represents separation-related net tax payments. Table 4 WYNDHAM HOTELS & RESORTS BALANCE SHEET SUMMARY AND DEBT (In millions) (Unaudited) | | | | | | | | As ofSeptember 30, 2026 | | As ofDecember 31, 2025 Assets | | | | | Cash and cash equivalents | | | $ 71 | | $ 64 Trade receivables, net | | | 336 | | 291 Property and equipment, net | | | 150 | | 104 Goodwill and intangible assets, net | | | 2,996 | | 3,015 Other current and non-current assets | | | 807 | | 708 Total assets | | | $ 4,360 | | $ 4,182 | | | | | Liabilities and stockholders' equity | | | | | Total debt | | | $ 2,727 | | $ 2,560 Other current liabilities | | | 475 | | 462 Deferred income tax liabilities | | | 270 | | 271 Other non-current liabilities | | | 413 | | 421 Total liabilities | | | 3,885 | | 3,714 Total stockholders' equity | | | 475 | | 468 Total liabilities and stockholders' equity | | | $ 4,360 | | $ 4,182 | | | | | The Company's outstanding debt was as follows: | | | | | | Weighted Average Interest Rate (a) | | As ofSeptember 30, 2026 | | As ofDecember 31, 2025 $1.0 billion revolving credit facility (due October 2030) | 4.9 % | | $ 83 | | $ 224 $1.5 billion term loan B (due May 2030) | 5.3 % | | 1,491 | | 1,502 $650 million 5.625% senior unsecured notes (due March 2033) | 5.6 % | | 641 | | — $500 million 4.375% senior unsecured notes (due August 2028) | 4.4 % | | 498 | | 497 $400 million term loan A (due April 2027) | | | — | | 337 Other debt (b) | 2.2 % | | 14 | | — Total debt | 5.2 % | | 2,727 | | 2,560 Cash and cash equivalents | | | 71 | | 64 Net debt | | | $ 2,656 | | $ 2,496 Net debt leverage ratio | | | 3.6x | | 3.5x | | | | | (a) | Represents weighted average interest rates for the third quarter 2026, including the effects of hedging. (b) | Represents mortgages associated with the Company's two owned hotels. The Company's outstanding debt as of September 30, 2026 matures as follows: | | Amount Within 1 year | $ 23 Between 1 and 2 years | 519 Between 2 and 3 years | 15 Between 3 and 4 years | 1,446 Between 4 and 5 years | 83 Thereafter | 641 Total | $ 2,727 Table 5 WYNDHAM HOTELS & RESORTS REVENUE DRIVERS | | | | | | | | | | Nine Months Ended September 30, | | | 2026 | | 2025 | | Change | | % Change | | Beginning Room Count (January 1) | | | | | | | | | United States | 505,100 | | 501,800 | | 3,300 | | 1 % | | International | 363,800 | | 333,900 | | 29,900 | | 9 | | Global | 868,900 | | 835,700 | | 33,200 | | 4 | | | | | | | | | | | Additions | | | | | | | | | United States | 19,400 | | 20,500 | | (1,100) | | (5) | | International | 30,700 | | 28,000 | | 2,700 | | 10 | | Global | 50,100 | | 48,500 | | 1,600 | | 3 | | | | | | | | | | | Deletions | | | | | | | | | United States | (24,500) | | (18,900) | | (5,600) | | (30) | | International (a) | (17,100) | | (9,900) | | (7,200) | | (73) | | Global (a) | (41,600) | | (28,800) | | (12,800) | | (44) | | | | | | | | | | | Ending Room Count (September 30) | | | | | | | | | United States | 500,000 | | 503,400 | | (3,400) | | (1) | | International | 377,400 | | 352,000 | | 25,400 | | 7 | | Global | 877,400 | | 855,400 | | 22,000 | | 3 | | | | | | | | | | | Global ex. Revo | 864,400 | | 833,200 | | 31,200 | | 4 % | | | | | | | | | | | | As of September 30, | | FY 2025 Royalty Contribution | 2026 | | 2025 | | Change | | % Change | System Size | | | | | | | | | United States | | | | | | | | | Economy | 215,500 | | 223,200 | | (7,700) | | (3 %) | | Midscale and Above | 284,500 | | 280,200 | | 4,300 | | 2 | | Total United States | 500,000 | | 503,400 | | (3,400) | | (1 %) | | 77 % | | | | | | | | | International | | | | | | | | | Greater China | 143,700 | | 127,600 | | 16,100 | | 13 % | | 4 Rest of Asia Pacific | 46,300 | | 42,100 | | 4,200 | | 10 | | 2 Europe, the Middle East and Africa | 98,100 | | 97,600 | | 500 | | 1 | | 8 Canada | 38,300 | | 39,500 | | (1,200) | | (3) | | 6 Latin America | 51,000 | | 45,200 | | 5,800 | | 13 | | 3 Total International | 377,400 | | 352,000 | | 25,400 | | 7 % | | 23 | | | | | | | | | Global | 877,400 | | 855,400 | | 22,000 | | 3 % | | 100 % | | | | | | | | | Global ex. Revo | 864,400 | | 833,200 | | 31,200 | | 4 % | | | | | | | NOTE: | Global, International and Greater China rooms exclude all rooms associated with the Company's Super 8 master licensee in China in both periods. (a) | Includes deletions of approximately 9,100 and 1,000 Revo-related rooms during the nine months ended September 30, 2026 and 2025, respectively. Table 5 (continued) WYNDHAM HOTELS & RESORTS REVENUE DRIVERS | | | | | | Three Months EndedSeptember 30, 2026 | | Constant Currency% Change (b) | | Regional RevPAR Growth | | | | | United States | | | | | Economy | $ 48.58 | | 5 % | | Midscale and Upper Midscale | 66.09 | | 6 | | Upscale and Above | 81.88 | | 5 | | Total United States | $ 58.35 | | 6 % | | | | | | | International | | | | | Greater China (a) | $ 17.59 | | (10 %) | | Rest of Asia Pacific | 33.38 | | 5 | | Europe, the Middle East and Africa | 63.38 | | 2 | | Canada | 84.26 | | 7 | | Latin America | 50.02 | | 2 | | Total International (a) | $ 41.79 | | (3 %) | | | | | | | Global (a) | $ 51.13 | | 2 % | | | | | | | | Three Months Ended September 30, | | | 2026 | | 2025 | | % Change (c) Average Royalty Rate | | | | | United States | 4.7 % | | 4.8 % | | (6 bps) International (a) | 2.6 % | | 2.6 % | | 2 bps Global (a) | 4.0 % | | 4.0 % | | (3 bps) | | | | | | Nine Months Ended September 30, 2026 | | Constant Currency% Change (b) | | Regional RevPAR Growth | | | | | United States | | | | | Economy | $ 41.69 | | 2 % | | Midscale and Upper Midscale | 58.99 | | 4 | | Upscale and Above | 84.66 | | (1) | | Total United States | $ 51.73 | | 3 % | | | | | | | International | | | | | Greater China (a) | $ 16.64 | | (7 %) | | Rest of Asia Pacific | 32.78 | | 5 | | Europe, the Middle East and Africa | 54.87 | | (2) | | Canada | 63.47 | | 5 | | Latin America | 52.78 | | (3) | | Total International (a) | $ 37.62 | | (4 %) | | | | | | | Global (a) | $ 45.59 | | — % | | | | | | | | Nine Months Ended September 30, | | | 2026 | | 2025 | | % Change (c) Average Royalty Rate | | | | | United States | 4.8 % | | 4.8 % | | (2 bps) International (a) | 2.5 % | | 2.6 % | | (13 bps) Global (a) | 4.0 % | | 4.0 % | | (7 bps) | | | | | (a) | Excludes the impact from all rooms associated with the Company's Super 8 master licensee in China. Additionally, reflects the impact of the Company's deferral of revenues from Revo, which unfavorably impacted the Company's third quarter international and global average royalty rates by 11 bps and 1 bp, respectively, and year-to-date international and global average royalty rates by 26 bps and 7 bps, respectively. (b) | International and global exclude the impact of currency exchange movements. (c) | Amounts may not recalculate due to rounding. Table 6 WYNDHAM HOTELS & RESORTS HISTORICAL REVPAR, ROYALTY RATE AND ROOMS | | | First Quarter | | Second Quarter | | Third Quarter | | Fourth Quarter | | Full Year Total System | | | | | | | | | | | Global RevPAR | | | | | | | | | | 2026 | | $ 38.53 | | $ 47.01 | | $ 51.13 | | n/a | | n/a | 2025 | | $ 38.44 | | $ 47.55 | | $ 50.05 | | $ 40.36 | | $ 44.12 | U.S. RevPAR | | | | | | | | | | | 2026 | | $ 42.25 | | $ 54.50 | | $ 58.35 | | n/a | | n/a | 2025 | | $ 42.37 | | $ 53.32 | | $ 55.07 | | $ 42.91 | | $ 48.44 | International RevPAR | | | | | | | | | 2026 | | $ 33.69 | | $ 37.31 | | $ 41.79 | | n/a | | n/a | 2025 | | $ 32.81 | | $ 39.45 | | $ 43.11 | | $ 36.96 | | $ 38.13 | Global Royalty Rate | | | | | | | | | | | 2026 | | 3.9 % | | 4.0 % | | 4.0 % | | n/a | | n/a | 2025 | | 4.0 % | | 4.0 % | | 4.0 % | | 3.8 % | | 4.0 % | U.S. Royalty Rate | | | | | | | | | | | 2026 | | 4.8 % | | 4.8 % | | 4.7 % | | n/a | | n/a | 2025 | | 4.8 % | | 4.7 % | | 4.8 % | | 4.7 % | | 4.8 % | International Royalty Rate | | | | | | | | | | | 2026 | | 2.4 % | | 2.4 % | | 2.6 % | | n/a | | n/a | 2025 | | 2.6 % | | 2.6 % | | 2.6 % | | 2.3 % | | 2.5 % | Global Rooms (a) | | | | | | | | | | 2026 | | 869,300 | | 873,400 | | 877,400 | | n/a | | n/a | 2025 | | 839,900 | | 846,700 | | 855,400 | | 868,900 | | 868,900 | U.S. Rooms | | | | | | | | | | | 2026 | | 500,700 | | 501,100 | | 500,000 | | n/a | | n/a | 2025 | | 502,600 | | 503,300 | | 503,400 | | 505,100 | | 505,100 | International Rooms | | | | | | | | | 2026 | | 368,600 | | 372,300 | | 377,400 | | n/a | | n/a | 2025 | | 337,300 | | 343,400 | | 352,000 | | 363,800 | | 363,800 | | | | | | NOTE: | Data excludes the impact from all rooms associated with the Company's Super 8 master licensee in China in all periods. (a) | The following table represents global rooms excluding Revo: | | | First Quarter | | Second Quarter | | Third Quarter | | Fourth Quarter | | Full Year Global Rooms ex. Revo | | | | | | | | | 2026 | | 848,000 | | 853,600 | | 864,400 | | n/a | | n/a 2025 | | 817,400 | | 824,200 | | 833,200 | | 846,800 | | 846,800 Table 7 WYNDHAM HOTELS & RESORTS NON-GAAP RECONCILIATIONS (In millions) | | | | | | | | | The tables below reconcile certain non-GAAP financial measures. The presentation of these adjustments is intended to permit the comparison of particular adjustments as they appear in the income statement in order to assist investors' understanding of the overall impact of such adjustments. The Company believes that adjusted EBITDA, adjusted net income and adjusted diluted EPS financial measures provide useful information to investors about the Company and its financial condition and results of operations because these measures are used by its management team to evaluate its operating performance and make day-to-day operating decisions and adjusted EBITDA is frequently used by securities analysts, investors and other interested parties as a common performance measure to compare results or estimate valuations across companies in its industry. These measures also assist the Company's investors in evaluating its ongoing operating performance for the current reporting period and, where provided, over different reporting periods, by adjusting for certain items which may be recurring or non-recurring and which in the Company's view do not necessarily reflect ongoing performance. The Company also internally uses these measures to assess its operating performance, both absolutely and in comparison to other companies, and in evaluating or making selected compensation decisions. These supplemental disclosures are in addition to GAAP reported measures. These non-GAAP reconciliation tables should not be considered in isolation or as a substitute for, nor superior to, financial results and measures determined or calculated in accordance with GAAP and may not be comparable to similarly-titled measures used by other companies. | | | | | | | | | Reconciliation of Net Income/(Loss) to Adjusted EBITDA: | | First Quarter | | Second Quarter | | Third Quarter | | Fourth Quarter | | Full Year 2026 | | | | | | | | | Net income | $ 61 | | $ 102 | | $ 99 | | | | Provision for income taxes | 19 | | 36 | | 36 | | | | Depreciation and amortization | 16 | | 15 | | 14 | | | | Interest expense, net | 34 | | 36 | | 37 | | | | Stock-based compensation | 9 | | 8 | | 9 | | | | Development advance notes amortization | 8 | | 9 | | 9 | | | | Restructuring and other-related (a) | 5 | | 5 | | 2 | | | | Revo-related (b) | 2 | | 1 | | 1 | | | | Transaction-related (c) | 3 | | — | | — | | | | Separation-related (d) | (1) | | — | | — | | | | Adjusted EBITDA | $ 156 | | $ 212 | | $ 207 | | | | | | | | | | | | | 2025 | | | | | | | | | Net income/(loss) | $ 61 | | $ 87 | | $ 105 | | $ (60) | | $ 193 Provision/(benefit) for income taxes | 18 | | 29 | | 37 | | (12) | | 70 Depreciation and amortization | 15 | | 15 | | 15 | | 16 | | 62 Interest expense, net | 33 | | 34 | | 36 | | 36 | | 139 Stock-based compensation | 9 | | 8 | | 8 | | 14 | | 41 Development advance notes amortization | 7 | | 8 | | 8 | | 9 | | 32 Impairment (e) | — | | — | | — | | 86 | | 86 Revo-related (b) | — | | — | | — | | 74 | | 74 Restructuring and other-related (a) | — | | 13 | | 2 | | 2 | | 18 Transaction-related (c) | 1 | | 1 | | 1 | | — | | 2 Separation-related (d) | 1 | | — | | — | | — | | 1 Foreign currency impact of highly inflationary countries (f) | — | | — | | 1 | | — | | — Adjusted EBITDA | $ 145 | | $ 195 | | $ 213 | | $ 165 | | $ 718 | | | | | NOTE: | Amounts may not add due to rounding. (a) | 2026 amounts primarily consist of employee-related costs in connection with a restructuring plan. 2025 amounts primarily consist of employee-related costs and real estate costs related to a call center closure in connection with a restructuring plan. (b) | 2026 amounts consist of professional fees associated with Revo's ongoing insolvency, which is reflected in general and administrative expenses on the Condensed Consolidated Statements of Income. 2025 amount represents a provision for accounts and loans receivable from Revo, which is reflected in operating expenses on the Condensed Consolidated Statements of Income. (c) | Represents costs related to corporate transactions, including the Company's defense of an unsuccessful hostile takeover attempt and the Company's issuance of 5.625% senior unsecured notes. (d) | Represents (income)/costs associated with the Company's spin-off from Wyndham Worldwide. (e) | Represents an impairment of development advance notes and intangible assets related to Revo. (f) | Relates to the foreign currency impact from hyper-inflation, primarily in Argentina, which is reflected in operating expenses on the Condensed Consolidated Statements of Income. Table 7 (continued) WYNDHAM HOTELS & RESORTS NON-GAAP RECONCILIATIONS (In millions, except per share data) | | | | | | | Reconciliation of Net Income and Diluted EPS to Adjusted Net Income and Adjusted Diluted EPS: | | | | | | Three Months Ended September 30, | | Nine Months Ended September 30, | 2026 | | 2025 | | 2026 | | 2025 Diluted EPS | $ 1.33 | | $ 1.36 | | $ 3.49 | | $ 3.26 | | | | | | | Net income | $ 99 | | $ 105 | | $ 262 | | $ 253 | | | | | | | Adjustments: | | | | | | | Acquisition-related amortization (a) | 6 | | 6 | | 19 | | 20 Restructuring and other-related | 2 | | 2 | | 12 | | 16 Transaction-related | — | | 1 | | 3 | | 2 Revo-related | 1 | | — | | 4 | | — Separation-related | — | | — | | (1) | | 1 Foreign currency impact of highly inflationary countries | — | | 1 | | — | | — Total adjustments before tax | 9 | | 10 | | 37 | | 39 Income tax provision (b) | 1 | | 3 | | 8 | | 9 Total adjustments after tax | 8 | | 7 | | 29 | | 30 Adjusted net income | $ 107 | | $ 112 | | $ 291 | | $ 283 Adjustments - EPS impact | 0.10 | | 0.10 | | 0.38 | | 0.38 Adjusted diluted EPS | $ 1.43 | | $ 1.46 | | $ 3.87 | | $ 3.64 | | | | | | | Diluted weighted average shares outstanding | 74.3 | | 76.9 | | 75.1 | | 77.6 | | | | | (a) | Reflected in depreciation and amortization on the Condensed Consolidated Statements of Income. (b) | Reflects the estimated tax effects of the adjustments. Table 8 WYNDHAM HOTELS & RESORTS 2026 OUTLOOK As of October 21, 2026 (In millions, except per share data) | | | | | 2026 Net revenues | $ | 1,480 – 1,495 Adjusted EBITDA (a) | | 740 – 745 Depreciation and amortization expense (b) | | 34 – 36 Development advance notes amortization expense | | 34 – 36 Stock-based compensation expense | | 39 – 41 Interest expense, net | | 144 – 146 Adjusted income before income taxes | | 483 – 492 Income tax expense (c) | | 120 – 123 Adjusted net income | $ | 363 – 369 | | Adjusted diluted EPS | $ | 4.84 – 4.92 | | Diluted shares (d) | | 74.9 | | Capital expenditures | | $40 – 45 Development advance notes | | Approx. $110 | | Free cash flow conversion rate | | ~55 - 60% | | Year-over-Year Growth | | Global RevPAR (e) | | 0.5% – 1.0% Number of rooms (f) | | ~4% | | | | | (a) | Includes the effects of the deferral of royalties and franchise fees from Revo and the inclusion of previously disclosed one-time variable cost reductions made in 2025; excluding which comparable basis growth rates would be approximately 6% - 7%. (b) | Excludes amortization of acquisition-related intangible assets of approximately $25 million. (c) | Outlook assumes an effective tax rate of approximately 25%. (d) | Excludes the impact of any share repurchases after September 30, 2026. (e) | Represents constant currency basis; on a reported basis, which includes foreign currency impacts, would be 0.5% - 1.0%. The Company's updated outlook assumes fourth quarter domestic RevPAR is roughly consistent with third quarter performance. (f) | Excludes any room termination impact associated with Revo's ongoing insolvency. To assist with modeling, each 1% change in RevPAR equates to an approximate $10 million impact to net revenues and $4 million to adjusted EBITDA. If a significant pullback in demand were to materialize beyond the Company's current assumptions, actual results could fall below these estimates. In determining adjusted EBITDA, interest expense, net, adjusted income before income taxes, adjusted net income, adjusted diluted EPS and free cash flow conversion rate, the Company excludes certain items which are otherwise included in determining the comparable GAAP financial measures. The Company is providing these measures on a non-GAAP basis only because, without unreasonable efforts, it is unable to predict with reasonable certainty the occurrence or amount of all the adjustments or other potential adjustments that may arise in the future during the forward-looking period, which can be dependent on future events that may not be reliably predicted. Based on past reported results, where one or more of these items have been applicable, such excluded items could be material, individually or in the aggregate, to the reported results. Table 9 WYNDHAM HOTELS & RESORTS DEFINITIONS Adjusted Net Income and Adjusted Diluted EPS: Represents net income and diluted earnings per share ("EPS") excluding acquisition-related amortization, impairment and other-related charges (including Revo-related charges), significant accelerated depreciation, restructuring and other-related charges, contract termination costs, separation-related items, transaction-related items (acquisition-, disposition-, or debt-related), (gain)/loss on asset sales, foreign currency impacts of highly inflationary countries and special tax items. The Company calculates the income tax effect of the adjustments using an estimated effective tax rate applicable to each adjustment. Adjusted EBITDA: Represents net income excluding net interest expense, depreciation and amortization, early extinguishment of debt charges, impairment and other-related charges (including Revo-related charges), restructuring and other-related charges, contract termination costs, separation-related items, transaction-related items (acquisition-, disposition-, or debt-related), (gain)/loss on asset sales, foreign currency impacts of highly inflationary countries, stock-based compensation expense, income taxes and development advance notes amortization. Adjusted EBITDA is a financial measure that is not recognized under U.S. GAAP and should not be considered as an alternative to net income or other measures of financial performance or liquidity derived in accordance with U.S. GAAP. In addition, the Company's definition of adjusted EBITDA may not be comparable to similarly titled measures of other companies. Adjusted Free Cash Flow: Represents free cash flow excluding payments related to separation-related items. Ancillary Revenues: Represents the summation of the license and other fees line item and other revenues line item per the income statement. Average Daily Rate (ADR): Represents the average rate charged for renting a Room for one day. Average Occupancy Rate: Represents the percentage of available Rooms occupied during the period. Comparable Basis: Represents a comparison eliminating Marketing Fund Variability. Constant Currency: Represents a comparison eliminating the effects of foreign exchange rate fluctuations between periods (foreign currency translation) and the impact caused by any foreign exchange related activities (i.e., hedges, balance sheet remeasurements and/or adjustments). FeePAR: Represents annual royalties per franchised Room and is calculated by dividing total annual royalty revenue of the Company's franchised hotels by the number of franchised Rooms in its system size. Free Cash Flow: Reflects net cash provided by operating activities excluding development advances, less capital expenditures. The Company believes free cash flow to be a useful operating performance measure to it and investors. This measure helps the Company and investors evaluate its ability to generate cash beyond what is needed to fund capital expenditures, debt service and other obligations. Notwithstanding cash on hand and incremental borrowing capacity, free cash flow reflects the Company's ability to grow its business through investments and acquisitions, as well as its ability to return cash to shareholders through dividends and share repurchases or even to delever. Free cash flow is not a representation of how the Company will use excess cash. A limitation of using free cash flow versus the GAAP measure of net cash provided by operating activities as a means for evaluating Wyndham Hotels is that free cash flow does not represent the total cash movement for the period as detailed in the condensed consolidated statement of cash flows. Free Cash Flow Conversion Rate: Represents the percentage of adjusted EBITDA that is converted to free cash flow and provides insights into how efficiently the Company is able to turn profits into cash available for use, such as for investments (including development advance notes), debt reduction, dividends or share repurchases. Marketing Fund Variability: Relates to the quarterly timing variances from the Company's marketing funds. The Company's franchise agreements require the payment of marketing and reservation fees, and in accordance with these franchise agreements, the Company is generally contractually obligated to expend such fees for the benefit of each of its brands over time. Marketing and reservation fees earned are generally highest during the summer season when the franchised hotels have the highest occupancy and daily rates, while marketing and reservation expenses are generally highest during the first half of the year in an effort to drive higher occupancy in the summer months. Accordingly, the seasonality of the marketing and reservation revenues and expenses results in adjusted EBITDA variability during the quarters throughout the year but are designed such that, in the long-term, the Company's marketing funds are expected to break even. Net Debt Leverage Ratio: Calculated by dividing total debt less cash and cash equivalents by trailing twelve months adjusted EBITDA. RevPAR: Represents revenue per available franchised or managed/owned Room and is calculated by multiplying average occupancy rate by ADR. Rooms: Represents the number of rooms at the end of the period which are (i) either under franchise and/or management agreements, excluding all rooms associated with the Company's Super 8 master licensee in China, (ii) Company-owned, and (iii) properties under affiliation agreements for which the Company receives a fee for reservation and/or other services provided. Royalty Rate: Represents the average royalty rate earned on the Company's franchised Rooms and is calculated by dividing total royalties, excluding the impact of amortization of development advance notes, by total room revenues. View original content to download multimedia:https://www.prnewswire.com/news-releases/wyndham-hotels--resorts-reports-strong-third-quarter-results-302915892.html