WH - Earnings call transcript Q1 2021 | Wyndham Hotels & Resorts, Inc.

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Operator

Good day and welcome to the Wyndham Hotels & Resorts First Quarter 2021 Earnings Conference Call. At this time, all participants have been placed on a listen-only mode and the floor will be open for your questions following the presentation. [Operator Instructions] I would now like to turn the call over to Matt Capuzzi, Senior Vice President of Investor Relations. Please go ahead.

Matt Capuzzi

Thank you, operator. you us. thank and morning for joining Good With Michele Allen, are Geoff CEO; and Ballotti, our our me today CFO.

statements. any subject Before we cause those remarks forward-looking our remind our you statements get started, differ I today with implied. want actual results will or recent are Securities report SEC. Form on factors materially Exchange annual that risk factors with and detail to the to to filed in expressed discussed risk subsequent Commission and that XX-K the These These may are most in from contain reports filed our

We available to reconciliation measures. of also our at website on earnings are number a Corresponding to measures of our GAAP metrics Investor Relations will non-GAAP be referring non-GAAP provided investor.wyndhamhotels.com. and is GAAP which measures in a release,

We discussing certain because GAAP unreasonable impact efforts, non-GAAP the a unable measures metric. without on comparable basis to provide only, we’re are providing future

we our our containing the In information presentation on Accordingly, addition, website investor website. evening, to supplemental continue encourage website the we relations posted may future. investor last our Geoff. provide monitor or and an on With in information press supplemental calls to will public addition with to the to investors SEC, releases, filings any I that, webcasts. call conference our over turn submitted in We

Geoff Ballotti

thanks joining Matt us for everyone Thanks, and today.

running the X% the of for occupancy domestic occupancies Our Month-to-date, internally RevPAR down the brands, levels. significantly XXXX domestic select-service of notably we improved franchise continuing in business once April. quarter. to XXXX in we that California, ahead to RevPAR to are to strong down XXs with were consumer system XX% in demand Across states, estimated seeing XXXX RevPAR only total throughout as to seeing also quarter, all in Florida, states improvements also spending is XXXX has of we're internationally near our start dozen economy normalize. almost model steady XX% our above RevPAR now with delivered we’re occupancy of is a month are back And Throughout ahead increase, what China, to our with tracking cover XX% at of later. domestic in rates pre-COVID Georgia including the levels. and highly encouraged the Utah, in in on and Most in month-to-date. cancellation see Texas, travel We're other XXs a Michele Arizona, will or and first again

Our to us. surveyed summer XX% surpassed six out hotels average is quarter booking XX Association converting the A lengthen reporting at out XX%. levels. upon the X only that back, Americans selling was XXXX Consumer to U.S. Website Adjusted over season a booking XXXX, is cash period XXXX. trip. strong XX% the adjusted are busy is generation Travel flow our windows are and and in confidence Free of where next nearly was March. equally booking again down EBITDA $XX to take every down million, with for planning EBITDA months

first were XX,XXX what strong, was rooms, forbearance near team of lender in year XX% in than quarter despite Conversions due sales buy quarter. ongoing of in was XXXX. lows new the stimulus, which our transaction for and restrictions the was accounting we government of quarter, what X,XXX franchise historic sell higher opened to the signed signed opened team first openings volumes last operations the rooms Our travel XX% in total and which our quarter. continued XX% And

quarter significantly Room grew terminations global to quarter year in were XXX,XXX importantly, the than lower Our they rooms. of sequentially consecutive pipeline were XX% and first prior below more for what XXXX. third the

power segments our are the hotels and to XXXX, X,XXX costs X% points hotels this of segments in occupancies the XXX the a of at brand. growth expectations. higher for highlights industry quarter, end into independent XX domestic According core mid-scale were hotels in while hotels for domestic select-service with XX our half on STR in hotels STR by full-year basis pace non-branded we and as economy than points Owners of were of basis XXX hotels independent entered in system, hotels points. tracked points, one of servicers recognizing lower. foreclosure basis the outperformed room around branded successfully agreements for the outperformed XXXX, net branded of In at basis that remained by our branded the Foreclosures with XXX

and that economy And like at brands ours cost. central that are finding lower brands franchisees a can midscale teams recognizable immediately for provide contribution distribution so new space, our in strong prospective looking the are system

we’ve Viana Hotel became Belize, their minutes Over franchisees European conversion the fit the quarter. Long A XXXX, tailored the versus past Jones STR the to Kunuku helped combined XXX our along activity needs, with Louise Resort followed independent Avenue conversion Wyndham. with which by Caribbean, And of of Golf powerful and loyalty, platform in Aqua share Turtle the sets Spa in sales, points guests than more brands points Beach include XXth Trademark in heart award and marketing, comp our offerings basis to Island, the we this no Beach. the Hotel In winning Trademark Resort award in evolving market & this Collection our from converted examples both in LEED-certified few our Union, so Island winning Bethpage Course hotels gain basis Brussels by another [Curacao], the distribution on several when to Brand. quarter years in by away the of trademark located European and recent XXX XXXX,

to front the Boomtown of in rated as is and with history. Westminster later our year Kansas next. full-service the and West Province, to to hotel hotels conversion another upscale converted we who Wyndham internationally, newest hotels beautiful China Hotel Front hotel Brand a in On a Morgantown, nine Range And the part on star of Downtown five Virginia four Hainan in lifestyle epicenter Wyndham Origin converted heart deal Tupelo, and in Hotel the Austin, highly a Shenyang Colorado's have two in Wyndham convert Thrash this the Group City Morgantown, the We growing the of to package Brand Wyndham. and of [Mobile] Mississippi

introduced convert our China hotels in in In ability our the Brands quarter build new XX years in to hotels franchise by total short Wyndham which construction seven progressed bringing brand to quarter, ago. two only team’s fourth China XX team to to was hotels open expects XX this we of country including a the under Microtel Microtel our first direct in addition the Brand, we construction in to our year, to saw also to opening, open fifth Microtel Tianjin, Wyndham new the where hotels

for motor pipeline a our to construction a developers Kansas popular the demand rentable Canada, new key lower efficient XXXX where land Microtel pandemic now be overseas. brand this prototypes prototype Microtel and interest that Raleigh, grew across the four opened Microtel’s sequentially. the new of XX% who peers. The Microtel for has Phoenix, both increased that for XXX improved pipeline now high RevPAR interest signed and a construction basis from Suites, the team's full-year cost tourist We North City, basis significantly XX% in building are become markets build XXX basis of development on pipeline build-out of highly points most XX just is pipeline, center square sequentially, representing requires and Developer time to penetrate new in from which Quebec Missouri, also New one of XXXX new & growth signings. new motor Carolina, under and conversion very basis, in Microtel’s XXX%. believe XX% construct, barrier less XXX On its reflecting is throughout our the Inn is points overall the our stems our design, new hotel prototypes drove and which versus index York, over sell primarily sales points about to development the We agreements an footage, [indiscernible]. construction over continued and quarter, at Scenic reflecting the XXX of franchise to our per to in construction first like thriving, Lake internationally ability domestic

at now in it sits it almost year rooms XX% did ago. pipeline a is China Our more rooms than and with XX,XXX it franchised entirely direct over

growing direct Wyndham's Our teams [China receiving branding. ability hotels five is development brands sell efforts to Shanghai where that umbrella recognition available now cities hotels execute decided sold so over fees. mix] franchise primarily of team's room agreements selectively XXX% of XX based as from our are in are franchise the a license Wyndham we've to full one-third to ability far has XX now China our being X,XXX concentration all-master capital star and our service China shifted X open country to provinces of we the a China direct the franchise open and Wyndham and buy testament and under over Wyndham strong to Brand royalty key sales Moreover, brand in

date. we to relief our doing our based announcement industry on by major while profitability most organization to our month, requirements are our economy satisfaction. relief changes a guest for the possibly since taken restore from overall feedback we has The These positive. can Earlier breakfast guests, entire leading the to help focused community And Our from levels. hotel and they're to costs, we brand operational been remains by this lower expanded feedback franchisees maintaining on in our owner hotels. pre-COVID that help councils, owners everything franchise engagement breakfast the company designed believe extensive measures significant reducing advisory our measures owner

highlights also of based advance way in data Green ethically, our our and posted This published and lodging, very report, doing corporate The health also biodiversity. to board XXXX a is work continue while our cybersecurity, related of are franchisees, support in yesterday, is the our report disclosures includes sustainable helping commitment and team response and socially, privacy, continued And financial to accounting environmentally climate a for Force in disclosures. and to our report certified business just The the members investor responsible. hotels now our report some Task And the enhanced on Wyndham COVID-XX around in teams standard safety websites. and them our our guests operating it's important to relation ensuring water ESG which that providing We become and features on our ESG conservation, Program. efforts. on we

an of X scores out on the that and a rights for intensified the A minus workplace score dialogue are on Equality and open XX environment, quality XXX% Resorts perfect our earned Wyndham we such efforts human for now three governance, ranked place makes as social. second achieved out of X best-in-class & as Index on And great consecutive report equity, the supports on by a years. that the CDP a XX inclusion LGBTQ X work. on year We've disclosure ISS rating Our Hotels row. diversity, out in we've of XX cultivate carbon to a campaigns, We've a

We ahead, busy summer how demand, thrilled teams with the achieved, around we I'll to Michele? see and currently are the up. the have world with call with what Michele. turn upturn our recent the that, with season shaping And over

Michele Allen

I'll today, and my also morning, Good to restrictions, prior therefore first results year followed prospects. help I'll are our of brief meaningful in year, note were of everyone. strategy but and update recent Geoff. and an Thanks, to already review little not quarter as we today only remarks our Throughout outlook. by trends discussion detailed more on begin prior XXXX, are my impacted capital results COVID-related recovery allocation on by which believe provide with a travel analyzing a comparisons

the pushing continue excluding as strength resiliency or versus decline, demonstrate brands. quarter the decrease two a was majority of quarter, a RevPAR decline RevPAR results an and model XX% We both and Leisure. XX% exactly by globally, on RevPAR rate XX% XX% fourth driven down what & the improvement we our decrease million of to revenue and of XX% the was from provides our Travel and currency occupancy internationally revenues license when which by to ADR. occupancy first of Versus year-over-year successfully basis. generated constant want RevPAR see. when Our our opportunity. well This at $XXX in effects The The global was a stronger outsized of is] [Our XXXX. cost owned fees reimbursement is hotels this driven domestically, XX% as stronger lower XX% domestic business represents owner down from from XXXX,

decline XX% As to are internationally The the in-line was RevPAR was brands relaxation favorable regional a than of Geoff as RevPAR offset occupancy recovery XXXX restrictions. trends with regions due with levels. And levels. XX% fast XXXX mentioned, followers of softening fourth quarter other performance, more within surpassing about leading despite now This our international to economy now our local XXXX occupancy with in of brands by China XXXX are XX% lockdowns. some result the midscale

encouraged We China below XX% were month-to-date was XXXX. about only year the quarter, averaging versus by the Adjusted recent are in a EBITDA now ago, April $XX million occupancy in trends XXXX are levels XX% versus first XX% and levels. down

revenue As to our were expenses. plan offset reduced and implemented substantially declines by last lower costs, due related COVID April the mitigation volume

XXX our adjusted our basis and franchising approximately Importantly, points, compared XXXX. EBITDA each with margin margin improved

excess of EBITDA reflecting not margin also this increased adjusted Our in cost but funds only XX%, COVID-XX year. savings, less quarter to the the marketing spent

benefiting rate, a $XX first million, XXXX. six-fold a increase tax first state by rate the cash the effects plan. non-cash XXXX. our interest almost XX%, a predominantly changes. to or the to XX% as our with franchising diluted Adjusted to XX%, XXXX, calculated XX Our as the of per due same $X.XX, overall cost mitigation the share liabilities funds on was of declined net down to deferred higher X flow as earnings to year-over-year to associated compared basis million tax use an from elevated excludes well the cash compared primarily re-measurement expense for million higher which caused quarter COVID-XX in of to compared increased of and marketing peers, quarter margin of Free in balance, quarter death Due of our tax

our million debt] $XX recall both primarily notes special million to due X doubled structure the while returns Post quarter lien the both April our as a management. cash first paid, $XX impact of levels, we unsecured we We the [partial our August with well profile of somewhat normalizing at Even million year, redeem for that item capital impact and those leverage collections approximately notes, approximately by position X.X to this call on outlays. interest net our be was times of net available working point XXXX XX, well ended our by of outstanding. after amounts, year little nearly was limit. the approximately used the was There at X.X over we and as free You'll prior XXX X.XXX% $X.X premium included XXXX, effectively the debt by annual periods the maturity cash ratio we cash of notes. the million. in Coupled On in flow billion back with muted XXX periods below This and pass XXX basis of years liquidity as liquidity, expense reducing times, redeemed will interest pre-pandemic redemption, stands redemption lower million. debt to extending XXX rate. our liquidity issuance strong

it allocation was with capital what consistent remains today pre-COVID. Our philosophy

due there with on to increasing more optimism a Our been limited recovery, M&A invest expect growth. has first could disparities. business preference market active bid/ask be we future is around to the horizon. for in always activity the But

This business. and We into We strategic continue to be evaluating will and to the half access deals is X lower to range. in this range right target goal leverage tremendous times optionality, methodical with creation to for After look continue plentiful a a us the range for and sourcing be of thorough we providing opportunities. of analysis, believe pandemic debt. valuation times our while this came X and to preference that affordable affords in

this within degeneration expect we EBITDA as to We back primarily range XXXX. through get approach

will payout management's, to throughout rate. C excess of rate and only ratio the the last allocated repurchases. also double shareholder be year, then cash in-line low-to-mid-XXs, to lodging We maintain only to to the the board's to demonstrating earnings commitment which Any we dividend meaningful dividend our quarter pandemic, in return. able dividend growth growth payer. regular first be were would our a we a put year's We Corp in the with Not generally were continue dividend target dividend a further share this annual

confident grow yet there and a passing full are day uncertainties more we and providing occupancy outlook for XXXX. still to increasing with vaccination we each ahead ever percentages not trends, now outlook, are recent Moving while therefore

a projections I February's to provide updates do provided to call. want the few on However, we

remains previous Our full-year our net projection X%. room growth with of consistent target X% to

Leisure remove at We sensitivity of are RevPAR fees to To our & would hotels reach exceeding million QX to and $X.X given this contractual point RevPAR sales minimum before continue embedded need the better per VOI fees. updating our XX Travel time, conservatism from At the expected million owned X.X results to in know of and we billion license gross per performance. than We February's million. estimates X.X point. project to reflect April-to-date two

continue breakeven expense million, expect to achieved recent changes funds were reflecting and notes. XXXX We provided quarter first of connection expected There for $XX previously marketing in our now our is the our are million closing, other that expected lining, leading of well the and up interest unique in better in If down February. opportunity to than in $XX we be the the XXXX In of the with cycles. it was to and redemption advantages rearview. RevPAR with the no results in the built savings projections strength was XXXX way. perform provided in a cycles space, there select-service Wyndham a the is showcase to is our us both silver it brands, the resilient and U.S. to to

questions. Operator? franchisees, for value on and the creating take greater happy would on that your Geoff is future, today focus even With shareholders. Our I our profitability driving for and on to our be

Operator

Joe ahead. JPMorgan. We'll Instructions] today take [Operator Please question our go with from Greff first

Joe Greff

morning, good Hi, guys.

Geoff Ballotti

morning, Good Joe.

Joe Greff

quarter on retention And removal/retention, relative you quarter, quarters timing ago, are and views to months was is lower progress first question three the in better first to in on removals is as is get that are but to XXXX? of on or to how your between the know, you function specific you is a retention a function first XX% favorable? that the it the in about and March churn, churn your more know, you really think My

Geoff Ballotti

and it's normally have termination I our certainly Terminations QX them, seasonality some think period. lowest to Joe. both is

yes, annualizing – know, be would that we rate do you we is believe our at XX%. So, QX

full-year. said, most bit our in franchisees retaining think that that But it the I know, now. progress We're very the I think getting to for not valuable making ourselves we've the happy us confidence ahead XX% in been ordinary it you out a is of of and great seeing right anything with gives level. getting we're back

as – talked prior X% less our terms still you And see I improve are but year, were about Foreclosures really to and X.X% the have to system. levels. just we or than not XXXX two of pleased

of in has rates look, Quinta, been And, at that year. brand and In to Super about XXXX back run terms believe they still to or to back Microtel, question, you La in were eight running XXXX]. And, of rates the we over got from XXXX, more everything we've at there We could talking like fact, moving XX% that to higher XX%. better. XX, been retention for making our big few achieved of out termination retention we've prior brands is to days last a were know, XX, our quarters, in they your down of we've progress, [XX, with significant teams our XX to the than in been part plenty which course, obviously do XX, and

this and over to to focused year, getting we're up know, you moving back XX So, time. then that XX% on

Joe Greff

X.X Michele average, sensitivity percentage per thank for across RevPAR anything on annum for anybody, a – XQ that is and does Great, or through the XXX,XXX quarter per And your regard then, question, million probably that point how or with XQ? you. sensitivity, the X about the to follow-up RevPAR

Michele Allen

Joe. Good morning,

– be far across that think I it the think would I different too quarters. wouldn't

significant straight there. could you it much pretty line variance I without think

to is not quarter obviously going meaningful largest very third be The overall model. earnings your but quarter, our to it's

Joe Greff

related million you does see And marketing realized that it. first much quarter? Got is – the the final XX do was year? the spend? How How balance [ticky-tack] through question, absence in one how that the the to of of then of just funds that allocate

Michele Allen

in believe The I marketing quarter. fund million. $X the first favorable was It about million year-over-year it was overspent $X

So, in X realized XX was of QX. the

Joe Greff

the it. heavily to is more year, Got is the it months? it or And for even relatively the then balance summer weighted of

Michele Allen

second not at Oh, sure. I be even would and heavily the more definitely yeah, all. be for it would weighted, It believe QX in

Joe Greff

Got job. it. Thanks, guys. Good

Michele Allen

Thank you.

Operator

from ahead. is Please with question go Katz next Our David Jefferies.

David Katz

Hi. the conversions know, among industry Good across morning, and for topics conversion The, the know, is prevalent and more you everyone. sales. really, us you

you is, just You we an a its on for you know, know, just go I'd love how ability competitive and, how accelerating you optimistic you know, forward. are more to color that little it, NUG know, as drive,

Geoff Ballotti

competitive. absolutely it's Sure,

the from moved and we mid-XXs, internationally room open hear moved opens over domestically, domestically And our seeing, last as pleased to You on each about our conversion talked XX% and pick-up and our to their rooms of really XX% David. internationally. this calls, more were our peers to year. it about know, picked we the you of on to last we it expected than year in talking It it We're it opens the all to of thrilled continue over from call. up activity of mid-XXs be,

In of teams Pacific, it our terms value Europe, you they're strong hotels, seeing actually Asia seeing proposition of, is in to So, teams how seeing in are in too just our focused are right now it. on. where it; independent international terms our they're know,

rooms doubled, and across they higher the internationally. conversion Our China, board, in for were example,

pandemic. this very So, number. teams on our did are on the any driving cut We sales teams not focused our all back of franchise look, throughout

– only especially more that Armada Travelodge brands. good conversion in great domestically but in a our giving both and deploying And support. Wyndham our in think saw them Days I place, pipeline grew we're overseas, the in resources leaders we domestically Inn and to our And And conversion our sequentially. them We're We're more in and our Our sellers pipeline, conversion the the your sales franchise hotels independent we question have teams part independent out the you it's place. market when of you Travel. report those place, XXX,XXX, we mid-scale. We're And in looking last at they XXX,XXX most economy, size there, need are and are plan. those and look the of those segments at independents with in in interest in internationally job of to keeping did brands. is XX,XXX teams not of Smith opportunity, hotels in seeing for interest seeing brands. great independent XX,XXX existing the example, the

optimistic the really pleased and we're So, really with progress.

David Katz

Alright. of Thank know, the have you just couple Michele, of thoughts strongly not for carried half? know, remainder the we models, concerns And, one help things get models balanced follow year. you. down you us a know, on away, us with back you a up, know, as look maybe And I how of strong you given have how at look, too as just things on the give we our should sit have the to accelerated, – think just we focus

Michele Allen

David. do to happy I'm Okay. that,

think great And the degree I the we and there's if quite trends about confident really variability still for our international temperamental. to predict select-service. think a seeing feel we when We in year, the feel as of of the and they're in select-service we're segment markets. in full-service that ability the back half

in confident without what interruption. by encouraged really be, is see be, sustained we the we're while what recovery seeing in ability China, further to I what say we a we're more to want want So, would to

forward certainly something that looking to. we're that's so, And

start but in upside to plenty there's be more performance. bit the half consistency the of full-service bit a would think more, and we willing that to we little back until a international seeing nothing year, the commit to of I little

David Katz

Perfect. Thanks. Great. Congrats.

Michele Allen

Thank you.

Operator

Scholes go with Please is question ahead. Securities. from Patrick Next Truist

Patrick Scholes

everyone. the your progresses? to you. give ramp Can of Thank net you. unit X% will morning, you color Thank on year a bit growth little how as Good that us expectations X%

Geoff Ballotti

Sure.

as that, last know, know, it with were looking at in executions, and we XXXX, was we said, We wise net XX% openings XX,XXX you points first XX% quarter, terms look rooms more You way that, to of the those than the of our I growing which you We at X in XX,XXX openings room’s XX% approximately back roughly XX% think we're first said we higher the of X%. assuming opened in in open QX when rooms be XXXX again, this opened we've in we for, know would we of were which and were rooms. And what did the is easiest down. ramp. were could call quarter terms percentage

know, back half and we're loaded right are is openings looking that You above continue to will slightly XX% or now retention ramp always tracking on and for.

QX domestic rooms know, going and as you international think, year, we're the from I QX. that So, the in QX, contribute see quarter to to to then first back expecting especially saw half growth in coming we begin we're net the of and QX

David Katz

you. Thank great. Okay,

Geoff Ballotti

Thanks.

Operator

Goldman is ahead. with from question go Sachs. Please Grambling Next Stephen

Stephen Grambling

morning. Hey, good

Geoff Ballotti

morning. Good

Michele Allen

Stephen. morning, Good

Stephen Grambling

in on ancillary RevPARs expense. that think hotels areas follow-up upside fees you quarter [owned and XXXX of the had fees sensitivities, as were some deck, projections such the and license debt to last and] a potential Just I bad unrelated

upside of in So, other aren’t about areas related? any color you the that drive what RevPAR will sensitivity thinking these can provide

Michele Allen

Yes.

gave slide see the the Slide now as upon license have we go, guidance deck likely in Leisure And fees that quarter XX. say, that – & as this So, the upside far right same the Travel based would as I the I don't being for their are and fees year. the necessary to increase that billion they in to we we that would reach the minimum them would contractual performance, to for for be exceed QX $X.X the a see the think full projecting significant QX second half have

in we from perform to the how were We and performance. do even the since why both for a And see better than million the So, owned hotels. pleased upside quite year we material did Rico upside through we is saw us. we first I RevPAR Hotel the see to February sensitivity, don't It April, being which our with in now increased we though, from million and say, owned hotels increased Puerto – our $X.X the of X.X then part as our would for million that X.X Hotel quarter and we embed potentially, reason Orlando expected. was bright spot that

And those our both depending upside that so And our we we expectations even could progresses. there more be some upon took recovery up think expectations how hotels. for is what currently in beyond

that's potential And upside. so

The banking and and right of and forecast a we to we're be little and so fees there outside favorability. both would continue bad reasonable upside indicate both see two could are believe forecasts adjust and have other behavior, a for we not ancillary depending watching if to those on something those. they're that debt, But on trends and we in areas that when our certainly now, of control franchisee while We're so our it. that's

Stephen Grambling

that follow-up, to recovery, can leveraging I and beyond And number specific pandemic, before loyalty the in us remind for just was your those on then we company – you've recovery? a just initiatives, business everyone's program, a obviously including this an position of but implemented, leveraging, a growth might know what even that in of the you are focused imparity, implemented and unrelated where how been know, you relationship initiatives path with

Geoff Ballotti

initiatives, that new of to of and our benefiting to gain about business sales down well and solution. which step us. terms booking the was we've year that year-to-date on we've mean, improving us, occupancy Stephen from what there. has for tell prior that. all franchisees as this workflow, the into, more lot we where up. been down first before, and the wasn't for and is again and negotiated you franchisees our of been mean, we closed, And is they're [indiscernible] check now giving improve to huge the mobile there's the we teams – the of longer-term in pleased business just doing our that your than direct occupancies, pick and on new Sure, which attract road about done I mobile which lot our up been with to our then of app, and happened up that really, leisure what see think over when outperformed and demand a our referenced is XX% It is attraction hotels to XXXX] partnership will XX% recovery. down is, owners our positions then is those business accounts in [versus there never again, segment talked was franchise ability It's XX%. game share hotels, business share very pull been is really stay which our with for app, yeah. big our for We're had. and for allowed year, What and a percentage We've our customer that's QX, platform, February thing we've booking know, think which imparity travelers was open to is in driving automating biggest nearest our weekends more our rates, what the a piece Salesforce mean, it is and franchisees, big hotel side or proxy January all no three talked to our from each when What lot segment on really quarter. bookings us is, for less to us of I in billing our really accounts better I for I accounts did us continues And that a think, of fastest XX% mid-week the working quarter been the a we've the mid-week it's data as we the a important. everything and in which our it's and

Our of about that the infrastructure in what we mix And actually last we in to put largest our It's the business. business, last business, running our our night. is in that us talked which ahead. for trucking X% flat last year. business is segment transportation and is out second year. IP now in That's nearly logistics construction That's ahead

accounts with those feel to sellers, So, our design throughout brands us, which the initiatives, gains to again has are back find all to allowing sales our go of we new global think what for out we outside share our been pandemic. teams, field and gets

Stephen Grambling

That's color. much. great so Thanks

Geoff Ballotti

Thanks.

Operator

Our Dany Please next go Bank of with Asad question America. is ahead. from

Dany Asad

more more recent like everybody. – morning, is on my trends. My question good first the HI, one more is

from April So, to March the sequential is pretty significant acceleration here.

that that and much So, into due further that sustainable know calendar you for of RevPAR is spring as acceleration the how have a how and so you shifts, sense just to we on, is breaks, progress year?

Geoff Ballotti

the had terms out resorts windows and XXXX. the the rates period It at during and to business just it a booking states of Thanks that's to lengthening, Sure. the be that out peak continued summer back know, see lot Florida travel in which of Dany. certainly help the that you Brand. mean, I we'll would terms was Beach, for pick were like terms question, and months. break average and rates in continued like spring gain level and being average and to above fall, it suggest – lengthening segment Clearwater continue higher share. stays continuing anxiety for sooner. optimism in up Then do, But of spring the in length looking with to than obviously, our And seeing pick occupancies recent demand continue Wyndham our we selling global through that did daily in in there, hotels hotels up, of to our we us

Dany Asad

the up side. in your And Got a construction is so what developers and it? And and bit my development on from hearing deliveries terms sense new you unit then is Give much on? a timelines how economics? follow you us know, of inflation little more are of, changing

Geoff Ballotti

up. of and every capacity in sites, know, the standpoint, towards you development XX return those overall, franchisees are production franchisees I back terms relates from down soon But know I for by a a construction terms what and traveling is delays it's talked new have and four that to our what's and equipment last do fixtures that, but few arriving and bit the will economist our read a to was are we're tough with and know, the and it's cash we'll leaving it’s they Quinta’s, hearing more in from pipeline or two to we're ours [indiscernible] of Michele twice months normal beginning and delivery more I with lumber, mills late which XX. FF&E on it most [if this to lumber, developers, hearing return to And normal hopeful side probably the open. knows to to and XX will know, XX think Florida. continue I the that you we've what we're by going how measures, quite is in of aren't pick furniture permitting, on we've than that's after which that in beds, do, today belief new to to with some are months anyone’s towards hear afternoon, the we're think to probably of development, experience, and been are economics, actually for we've mean, know, and on deliveries, to] springs following what La of late looking seeing heading with time the as Microtel have continue because box that's weeks of that our But, are I late when on and side. easing to been the especially comes new you you it that of the construction you about, we the sourcing looking quantitative to is going expensive, all been trying

Dany Asad

much. very you Thank

Geoff Ballotti

Dany. Thanks

Operator

Zaffino Our with question next Oppenheimer. Ian from go is Please ahead.

Ian Zaffino

you. Thank

far, sort talk your know, as a You guys housekeepers, You of increase thinking you that's kind availability know, side, to should that can the franchisees, been, of of as higher what's you know, color you're on know, are Just on you going some know, labor any has far that Thanks. occupancy, a the some discussions there. maybe etcetera? so the with been that or, expect steps do etcetera? we of headwind your to Is what about franchisees? color mitigate You And the that? of to going taking forward. kind and ADR, also

Geoff Ballotti

week, been of the is applicants week, and Michele to industry need workers, on and the and in need focused this That's group, is it destination service it's mean, an ask, in call, full Sure. to workers visa what began. Chip if it's, And foreign so drop different Lodging employs that and meeting was fill workers, before especially that's students, when for always into the very, us all is all we Rogers, on long your Association fronts. the one our insurance, foreign that the calls hotels. several million that that's lifted COVID to we hotel known we went a out with great CEO doing is, urban, – a and American has asking in travel. to think, Hotel we a our is struggling XX,XXX. and what Ian, I I question unemployment this issue the issue. our at now the many and XX,XXX we've administration grow a additional another temporary in all more. It's he’s HXB bucket, I travel million need for it's industry industry see need And we Tuesday, approved the were an is that's know, there. we're We're normal, hotel XXX,XXX. leadership mean, it question culinary to the an last Last concerning be Right to had pandemic desk were number very you people. XX Labor XX,XXX, more advocating always you I certainly We before hearing. ban But housekeepers. more and that's jobs. the JX front issue allowing And and administration on. what pandemic we more

seen – in much labor industry don't of new word terms portal in of hotels and now launching we're from across week America, to have occupancy of this have Everybody’s really don't What in in we restaurants, is Let's back I what the facilities, of part have. [EFTE ours. terms out, requirements] the like our led we an they're large the a great franchisees getting a to breakfast top is getting the downtown getting especially less focused banquet the opportunity United was company We you had outlets, to what economy may our It levels, doing. of and we now don't to to they it put XXXX. reduce that have our the of back our young for the we the on custom issue mind know, certainly catering but in right profitability the the it's our for AHLA owners back select-service levels and a and our space attract for out that see, the And for standards have ownership. areas, to States what the a – owners. that the

Ian Zaffino

Okay, the can How bit far out segments, select-service how that know, know, do you sort infrastructure benefit will know, would and, great. your and would little to of and we are get we maybe kind of do your an we kind up, best, And the through you how as bill. go I but that? and what expect here, wouldn't of they that there you about like benefit a from think much, something each you imagine of Thanks. as brands thoughts operate to but flows

Geoff Ballotti

winning shovel Wyndham about And, We're we're are these Stephen already country's infrastructure to – about mean success take, are folks out them Whatever talking the new plans shares. are working bids, our to that We're and stay our customers products to benefit more are at mean, all gaining shape so excited. great of hotels. there what direct new pick more asked really of seeing find certainly that I infrastructure at our Sure. capabilities. expect infrastructure business ours. in teams and and billing that trying many I call we'd might our the we accounts. I the of mean, it's companies targeted, them

in in did said produced has a the sequentially launched XX% fourth. ago, middle more year the first which last I minute was than Wyndham Direct, it the in of business As our quarter

it your combined and at, companies was building computer of construction, looking them going the we the think who's XX% last. mix, know, know, to about and we're where look, X%. It that it's and that, again you and that flat so question you roads companies and power XX% companies, infrastructure and and And – is after nearly we're and hit bridges the broadband down

looking big that a also us we’re We’re – logistics at business. which opportunity our XX a that's high, manufacturing the and really as at segment we for index well, on that U.S. focused business, also think think with we're winning looking and we at year

Ian Zaffino

Thank Great. very much. you

Geoff Ballotti

Thank you.

Operator

our Please ahead. And is next from Michael Baird. go with Bellisario

Michael Bellisario

morning, Good everyone.

Geoff Ballotti

Mike. morning, Good

Michael Bellisario

topic deal back financial maybe picture improves I here how to view circle bigger [T&L a for platform? be this guys What want hear on might me. Just you overall receive to there's deal? there it to means if would that think helpful. your Interested and the growth brand transaction]. as longer-term your any from benefit you comments perspective, a the Any a then result of

Geoff Ballotti

great standpoint. Yeah. Look, a we're Wyndham I on a thrilled a with is – destinations it apart know, from brilliant It just move thought rebranding was, you brand.

look when incentivized Blue our to sales, owner sales, Thread you so initiatives. many X% if that We're year-on-year new – sales, you everything doing and yesterday, – essentially, new XX%. possibly on we those can there's we're following and were from on to know, it at doubled, You

lot there's working their could call do guests And front are the a new T&L think There's Blue teams Travel a franchisees marketing. standpoint, provide have two lobby drive for to take center our the concierge we to CMP sales lot the their a opportunity & love We more over that to Leisure. as services. their the of Wyndham would There's or Brown desk from together sales change Our and and front owner no on the on continue marketing we to on that really timeshare said is to of branding strategy timeshare transaction X% transactions. increased, the basis points Thread called us rewards World. just to a offers Mike from yesterday continues you the the our It with standpoint. program redemption Leisure come – Travel great additions all that use strengthen Wyndham know, & into of with XXX

and future the you that? well together. working Michele, to teams really to about are optimistic very did want we're anything so add our And

Michele Allen

earn licensee the contract ability to to the our] fee. to No structural changes [or

Michael Bellisario

Understood. it. Got you. Thank

Geoff Ballotti

Mike. Thanks

Michele Allen

you. Thank

Operator

go final Longbow Alton ahead. today Our Please with from Research. Stump comes question

Alton Stump

expected quarter, [indiscernible] are key and know, over rest that Michele quickly, know the what you of just drivers you the company-owned the you year? hotels to you in had thank Great, good first wanted on morning. ask and back the that of I just

Michele Allen

thank Yes, you.

So, our island the hotel and of at the then benefited increased actually, bunch restrictions. air eased from travel the a Puerto Rico hotel, had had

we then some outlets, Spa, So, guests better and F&B our of the performance were like felt in had saw spend that. they bit confined things initially expected. that leisure the once were outlets, on-property the they a And than property, on we

great, Hotel first had leisure really Bonnet they the to quarter. [group with typically job business] rated supply by the to so team Creek really rated great all same it's will and first a higher there. was the they What Orlando, the able as great quarter there's really so, get the And in do about rate. were they in At business,

For both the they XX% of half in earn typically of hotels, EBITDA first the about year. their

in than of So, potential back there's a, the the I there's more a little the first bit of half say, upside year. half. But limited would

Alton Stump

that know, probably help the the current to should there see a as continue will the is hopefully or of that going year? year? [indiscernible] of fund dries up insurance, Thanks to up the or your dry on if the you And into kind thought] on big thought front, you a then is a for a unemployment the see know, labor Great. know, industry, color. certainly issue, once [fantasy is know, you or that know, rest exploiting you is over we, across that which you tighten know, it as quick step-back, could you follow-up current, So, start you you know, we're hospitality any is, you to environment that I know, situation you labor

Geoff Ballotti

help stimulus. I predict, Yeah, out it I it from I mean, away. when on goes should But think is Alton the can't absolutely there horizon franchisees what is know, that September else expectation you in

Alton Stump

it. sense. Got so Makes Thanks much.

Geoff Ballotti

Thanks.

Michele Allen

you. Thank

Operator

have questions. to further we I'll closing return Geoff no any remarks. appears the floor It Ballotti for

Geoff Ballotti

be in Matt, Resorts. and you'll our being hope we as normal. one out spring, we see of your and everybody in you interest your you I for summer industry this soon. much and thank weeks you the and to and at Well the person meantime, Alright. Wyndham summer. we’ll thank very to Michele, you talking and attending continued to that hopefully enjoy hope look events in industry healthy In returns the [Keith] all Hotels on & spring with you to road the ahead be many this forward Stay

Operator

today's Wyndham XXXX time, this day. a your conference Resorts and quarter conclude lines at does earnings Hotels Please This wonderful & disconnect have first call.

Wyndham Hotels & Resorts (WH) 29 Apr 212021 Q1 Earnings call transcript