- Earnings call transcript Q3 2022

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Operator

Good day and welcome to the Wyndham Hotels & Resorts Third Quarter 2022 Earnings Conference Call. [Operator Instructions] I would now like to turn the call over to Matt Capuzzi, Senior Vice President of Investor Relations.

Matt Capuzzi

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

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

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

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

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

Geoff Ballotti

thanks this joining for Thanks, us and Matt everyone morning.

where million to to of generated we X% levels. pleased $XXX shareholders our return last strong bringing consistency over EBITDA XXXX XX% returning business our demonstrating and to of market RevPAR finishing cash $XXX above our of or while cap. grew $XXX year, report are the adjusted model another million flow, year-to-date capital Global to nearly million XX% of We free delivered million quarter, and $XXX continued resiliency

October, and to generated highest year’s XX% last Year-to-date, driven occupancy X% last XXXX. down and ahead brands for of and well for for of higher down and RevPAR our above X ahead XXXX, for above the occupancy, XX% XXXX of X% closed to both quarter U.S. RevPAR continued accelerate RevPAR quarter LATAM And U.S. with the RevPAR weeks demand record rate ahead first third ever our XXXX both States, year, by to this XX QX International ran and RevPAR of XX% and quarterly prior brands. has year EMEA, points United XX% up levels. Canada driven last points by the finished ran from gains. XX our absolute Internationally, recorded which to XXX than in points regions, in basis Here excess RevPAR quarter improved XXXX XXXX which all of levels. quarter XXXX, the

us the demand We will continue for in overseas. tailwind as continues coming to quarters to grow provide meaningful a

in Our from among their industry last fully select the see recover the the COVID first service here franchisees businesses were United year. to States in

that of of will again While the XXXX from last owners was are climate. a year revenue ever the an be experienced best have them have XXXX they these that margin year financially, the macroeconomic small broader business most standpoint stronger despite us telling even majority said than and year

into of years than the As been our the the less seen in demonstrating, heading historically are seasonal pandemic. any prior U.S. occupancy signs slowdown that fall, we pronounced no results to-date have The to in occur declines here have significantly

we XXXX. On the in and to the increases as month the new double-digit front, traffic to booking highest capture weekday the we And web was compared to windows see continue on occupancy front, of leisure infrastructure-related our increase accounts. for September continue continue business to year-over-year our on record

franchise brands. including hotels by Germany. points Wyndham other and Wyndham-branded as agreements, grew the and by of net brand of public and House which XXXX, This look Vienna owner XX tailwind and was up current to XXrd network acquisition infrastructure XX As under acquired hotels, work high-quality over XX projects continues – due developer bill our for an basis largest on We law the long-term predominantly from a commence our Wyndham, ramps significant X%, than institutional over by construction in signed into more we in a rooms who represent rooms beyond bookings added brand, U.S. grow to business more of accretive European X,XXX its years.

brand of team infrastructure Our to strong years expand the looking we is Europe in over plug European Vienna few as network. distribution the and size House portfolio the next our the into

quarter We net that the world Excluding opened of pandemic rooms our X% all we quarter. regions to was hotels this organically new spectacular first grew returned some positive net by this room House, Vienna over growth. since and the around the sequential

by we in States, North rooms & Colorado. luxury of and rooms more in Carolina’s both La to opened XX%, Palladium the Hotel United with Dominican and we Panama. the welcome than XXXX. best hotels La X,XXX resorts Wyndham we back XXXX, in quarter registry outside over the where destination America, where collection by QX XX more latest construction, Quinta opened across very the XXXX our grew the Jamaica, Quinta did we we we of of opened net Internationally, rooms were Latin meeting Del Wyndham Republic, in and Group, Spa, Grand of golf Denver, Mexico proud third adding also We rooms QX one In more opened all Here of Resort than new prototype, to family. we the the open Grandover Sol

break Notably, XX% XXX the contracts we Texas Plano, Wyndham had Wyndham rooms visiting September of grew franchising X stay new Project opening the awarded EMEA to Ramada first X,XXX XX country state new X%, luxurious ECHO Hotels direct with travel Hospitality that new half of grew a grew multiple in with contracts a in and with hotels. another Doha, they next Inn our new Wyndham build. for Dubai We in residences the short is build with in the XXX Project by ground Virginia its Garden, I committed ground the Wyndham Project trademark China dozen despite Days system of just XX to hotels extended extended construction And number size sporadic over and ECHO Coast week, by the Gulf and across net developers ECHO establish in organically by our have financial business Grand quarter region construction X% to be Microtel facilities Project by Grand And and new and total impressive lockdowns Our Bay to to restrictions. another who Airport, the like committed district. record on collection new awarded Beach our X-Star Wyndham the XXX,XXX development spa, break XX ECHO months. Frankfurt pool Hotel the West and and will this operators Qatar’s hotels. hotels rooms first experienced Sandpiper room Palm heart Hospitality’s Michele We restaurant pipeline bringing additions its

year-over-year in we XXX increased awarded third higher have is The quarter of XXXX, construction XXXX. approximately number and which we XXX approximately we awarded prototype of record the of contracts, compared remainder pipeline did for new planned signings and increased Our United of we In this new new XXX teams the construction XXXX have States in poured new XX% last and percentage than cost-efficient awarded foundations contracts nearly the which account we point basis contracts Year-to-date, for consecutive contracts than new marks XX,XXX new than XXXX and our signed of in QX than the the quarter have and development year States, each contracts X United rooms. of more sequential what in XX% both ninth that every our higher was XXXX. last in the signed points to year than over for total more ground we above we internationally, as of growth XX% of breaks XX contracts XXX% signed new XXXX. did have The pipeline our business in pipeline more QX day.

recognized best for over Our Rewards award-winning by along USA hotel hotel program at as program been Rewards over Wyndham membership the card consecutive credit with past of loyalty the the earner its and Wyndham year as months Today Wyndham stands the X% best Total has Rewards fifth XX card. grew readers XX to now the by the grew U.S. XX% million across XX% in members. bookings rate of of driven growth U.S. members. Wyndham on over Revenue with our loyalty Rewards all compared the channels guests, the direct in Wyndham large part Rewards in outpacing the third-party from generated XXXX, nearly quarter all representing loyalty brand.com sites program

hit levels. wyndham.com As remain a record channels an channels our percentage XXXX OTA contribution, total third-party of as below all-time bookings of

to encouraging to ownership diverse commitment continues grow. hotel Our

his Next week, member co-host a will owners Atlanta, black Georgia. hotel inaugural BOLD with for stands and mixed-use symposium lodging Wyndham, development project in our black developers at ownership which by

Room interest And Own program started help with exceed to Women have Wyndham’s now We Wyndham The searching a From Google proud our in XX for that their get hotel with are Green-certified educational a sustainability event to BOLD, is our very we over with designed journey badge The on Own to ownership. BOLD when accommodations. black dozen this over Women hotels hotels development eco and along Room displaying continues hotels expectations, now certification its perspective, pipeline. entrepreneurs in

recognized of for one Google that are only hotel certification. We programs this is two

year continued of and are quarter and franchise any further business this ability at search identify to franchisees, confident from our our levels now attracting stability deliver and added hotels in cover our stakeholders our allowed confidence app. outstanding franchising websites on developers, our that our Wyndham our us to in interest ever brands can full With Green-certified the performing we in so to Michele Additionally, customers we This our guests our its owners and value will record functionality model detail. and business easily mobile more raise Michele? which outlook, environment. than brand.com

Michele Allen

begin then by will and update as today outlook, third to of balance and sheet, Geoff mentioned. our good everyone. an I quarter Geoff review with followed morning review Thanks, results. our XXXX will our remarks detailed I cash my a flows

adjusted third fee-related $XXX other our the and revenue quarter, was and EBITDA our million $XXX was million. During

As our year. quarter results, the to the not In around first mentioned our our second in my owned segment commentary on our due an simplify sale effort to select will management of service and performance. be our are of two hotels results year-over-year centered business of call, the again this half comparable our today exit

X% revenue X% Adjusted grew higher Our basis impacted constant as which expected margin by increased primarily to timing XX% offset license by year-over-year, up by higher partially $XXX and as growth, in fees. spend the EBITDA increases million global marketing Franchising quarter, the XXX the reflecting were RevPAR revenue unfavorably segment of currency points.

as partially these management excluding basis, offset of EBITDA neutralizing Excluding impact, adjusted last owned increased reflected and and third owned Adjusted million as of segment sale and business pressures adjusted select by with service and in Within time comparable in the and expected our EBITDA adjusted our due a prior the well service hotel management in our repurchase the million X% and hotels. the a from the and our adjusted was segment, higher diluted quarter $X EPS EPS In sale This to our funds, in million adjusted contributed adjusted Management consistent corporate year. our year. for saw collectively select Franchising $XX aforementioned environment. improved impacts this EBITDA was EBITDA activity. we $X.XX, as the the of benefit of declines revenue approximately the growth diluted Hotel marketing grew cost reflecting businesses, in segment, share revenue timing Hotel XX% inflationary $XX and differences On margin XX%. our other expenses reflection to which a EBITDA current

not Before see cash to we tailwinds moment back pre-pandemic a take free levels. yet moving RevPAR beyond current to moving me and performance on XXXX let regional occupancy flow, with the to discuss

in first As RevPAR to at improved Geoff XX% ADR EMEA, surpass XX% by XX% occupancy of was pre-COVID levels by power. for continued levels, globe. recover international levels, mentioned, This of global Occupancy, to and China, quarter strong ADR reflecting the XXX% room again, and saw XXXX RevPAR stronger continued recovery still surpass reached led XXX%. across levels. and in XXXX U.S., XXXX RevPAR global Overall, regions across room global however, occupancy Europe exceeded the levels, XX%. the this XXXX we of U.S. XXXX, considerably illustrating all demand recovery quarter of In pricing XXXX significant XX%. to has XX%, up with in international in

compared We generated free during million quarter flow. of Now, turning the X% an cash $XX $XXX to and year-to-date, XXXX. million increase to

have of million the this cash was X% the million shareholders XX% excess Vienna rate represents at common which coupled during returned well conversion cash Our and year-to-date $XXX used flow the Geoff the XX% as $XXX of million deployed dividends. achieve our cap. free repurchases of our we our to higher track we the second on remain through $XXX conversion million stands acquire $XXX to million million third share quarter cash targeted of than House to rate. now shareholders, $XX XX% We brand, and When to capital mentioned, quarter. returned of with $XX quarter Year-to-date, of approximately market stock

is with our a and to organic tuck-in earnings The and existing we adjacent higher asset-light accretive of actively reinvest scale acquisition the targeting the brand of explore example ability an in chain external both opportunities. first type grow priority markets. As business always, in to growth Vienna are and small in House is the deals we an and to

by be ratio repurchase was to our net confidence million, substantial our strategy. Earlier repurchases Board to leverage shareholder maintain increased liquidity approximately We and continued payout and $XXX the continue our ended quarter our business’ X.Xx. this and Moving to integral authorization to with week, in element allocation industry share into dividend XXXX and $X share billion its expect commitment approval, we return. total reflecting continue of leading to an will generate cash the of capital its our subject ability Board to

proceeds hotel Our due levels million to have balance sale and deployed. select of to normal from above owned transactions of is we the ending yet the portion cash our received be service the $XXX that management

target low Excluding Xx our the stated this our excess was of net range. cash, leverage at end

gross rate, building cash limiting rate balance are not variable rising debt interest Despite excess climate, exposure economic long-term XX% broader is our our the of the our only to deleveraging Importantly, environment. or considerations. sheet on

our business resilience profile and Given liquidity demonstrated our down cycles. prior the drivers demand highly model, the of our cash-generative throughout nature current as of

approximately full We increase growth to revenues strength higher turning to to Fee-related expected primarily billion are $XXX to adjusted our increase to RevPAR $XX expect be to marketing outlook $X.XX and outlook, funds contribute These year an raising year-over-year and million room of from of room X%. follows. now to XX% global RevPAR and Now net other XX% as $XX expect we XXXX $XXX global to net million. compared outlook, million. the growth billion, $X.XX July’s are $XX reflecting changes Based million expectations. reservation on with $XX we which and is our global for trends, of adjusted of our of EBITDA EBITDA growth the approximately previous loyalty be million our to RevPAR projected million an combined expectation, now of

of free to as $XX $X.XX be based prior quarter $XXX There our cash flow share usual increases on approximately fourth adjusted share XX%. for per rate no million, of any diluted adjusted diluted which excludes expectation count EPS to income expect higher and per conversion share a $XX our repurchases. change prior per is is of million, outlook our projected We million share $X.XX to than share our million $X.XX to now And net $XXX outlook.

which investor in impact Slide the owned As XXXX, our will to sensitivity. from provides And and base. of need resiliency In demonstrate capabilities XX our flow adjusted the again third business service to select business Slide looking towards provides and we of slides historical two strong your help your quarter a presentation XX financial be hotels, cash results modeling. our closing, model. our once with provided have reminder, revenue management

to means facility extension $XXX years. our and with our mid-XXXX, balance and drive with returns, leverage, increase this us year strength We growth would a growth Session million such tremendous ours. Question-and-Answer we the strategic fund in believe an capital happy low and provides are business deploying revolving as along Geoff light sheet questions. of the earlier which disciplined shareholder continue business available to our in take asset that, the the of over credit to fashion your flexibility initiatives With no until coming the to our maturities Operator? be With I

Operator

our Securities. first take We of from Instructions] Scholes Patrick [Operator will question Truist

Patrick Scholes

Hi, good everyone. morning,

Geoff Ballotti

Patrick. Good morning,

Patrick Scholes

Good morning.

range, of how a expectations? any internal is much from year for your versus think full sense. we from expectations guidance And that should Hopefully, that earnings beating organic your makes raise that how XQ is about prior XQ? Regarding of you

Michele Allen

raised versus race by a and $XX $X Sure. and Good We $XX million this in our quarter million morning, to our our beat represents million Patrick. internal third the year about guidance a projections, fourth expectations. quarter full

Patrick Scholes

you. thank Okay,

So a small organic in the fourth quarter.

Next question.

the for On of Vienna can an the House purchase provide you brand, multiple that? EBITDA

Michele Allen

a months. calculated I on a was $XX the upon purchase million Yes, believe I sure. stabilized – of believe and XX million based price, about I to multiple it’s basis believe EBITDA for we generate going $X EBITDA

Patrick Scholes

question the that’s we some last wonder for driving give going SBC as that. thank don’t you the In And stock-based your accounting-wise. going I’m today’s color progressed, just something Thank down. then down. what’s you. Okay, that of I wondering expectations Michele, could noticed lot a see for you. costs I’ve year comp on environment, if just

Michele Allen

time There is how would as based a tested And in the different the upon we expense accounting portion. bunch recognize well. vested here obviously, attrition and between is the of reflect there performance it then

Patrick Scholes

Okay. attrition that Was there want you’d driving that? to that significant major call any in out was

Michele Allen

highlight. important or, I think, material Nothing to

Patrick Scholes

me. Okay. you. Fair for enough. That’s it Thank

Geoff Ballotti

Thanks, Patrick.

Operator

you. Thank

JPMorgan. question comes Greff Joe Our next from of

Joe Greff

everybody. morning, Good

Geoff Ballotti

Good morning, Greff.

Joe Greff

percentage rates, rooms than given going forward, your nine it with things X% ECHO, Vienna Michele, quarters X closer pipeline just pipeline do sequential momentum is to like of general is development target floor point? growth, Geoff, House, strides the development in you that growth in Project and momentum net retention think to

Geoff Ballotti

about which where been up your mean been good off have expectations, pipeline, of I slowing. healthy headed. is in feeling just call, this pipeline In Joe, terms we’re was healthier, has where growth, a and it put obviously. There of but the that been just has We’re quarter has not but guidance with, on and giving we’re never new also explosive, it the how the what many the year-over-year, very prototype our sits point, given not only certainly, teams from so charts – Echo our brands. to our construction fear our

La mean, brands, that on versus Moda prototype across our the in board, not where when our We’ve Quinta Hawthorn this growth almost Garden year. this was up We’re it new Wyndham prototype aside is look up year Echo, demand our which over pipeline I at our we’ve Suites certainly and up XX%. XX% last just from construction lot XX%, brand, it time where the we and from sits great talked seen – a at was seeing our – our about we’ve seen

we’re in confident move our growth pipeline. just this it with in thrilled terms So of room and net and the very we where happening future with what’s year could the

Joe Greff

to years? Great. on in that the you What more given then XXX what terms get maybe developer, do than And do maybe October. you And that, answer going single it obviously, have in on it the is Project to ECHO, development single you to ECHO, Project you following X Wyndham just to opportunity? pipeline, answering up deals? to start when X benchmark or of up it brands think think do about we’re in following penetration way against products And in you to

Geoff Ballotti

that’s over Well, over. all next reached extended nation’s have the Joe. with the years development preeminent runway to of developers. agreements And We’ve brand multiunit seven great questions, the X providing for a state

had we’re the another this groundbreak As Plano pipeline now hope year-end, as talked what deals. signing by as break and in we’re our XXX, said, ground say, year, have week. to we’d first we next We still about we’ve you at XXX

really than hotels announced less ground four XXXX in at we years late will for first the year, when open with from that X those least exit the laying to it. We and foundation hotels next

of way. out about. will expand by other team. individual is the it the far. just brands. what So we delta off It’s Chip seeking we a against mid yes, extended big to seen I and this. what That’s the rest development XX-point extended and benchmark line running today asking that David you’re expect time the so those rest at occupancy-wise accelerate is We tough do. and just industry owners demand is It’s would of to seeing we’ve of XXXX, a we’re to Olson be piece The stay what between will And expect the that rising. to it mean charts. on we’re yes, of our their And year-to-date Willner thrilled

Joe Greff

final going to buyback is up Or cash really quickly you using actually Great. you free it cash stock? And for then stock? maybe and excess think when internally flow about buy Michele, up one forward, back the generated lever back would to more buy

Michele Allen

this I given in environment. rate current think the former time, point at it is the interest

lever up above to inclined our a do without aren’t so. stated reason We compelling range to

clearly we proceeds, obviously, of consider. something we good So would use had a

Joe Greff

Thank you, guys.

Geoff Ballotti

Thanks, Joe.

Michele Allen

Thank you.

Operator

you. Thank

of Our Jefferies. comes David Katz from next question

David Katz

Hi, my good morning, everyone. Thanks questions. for taking

those speaking and and end exposure that earnings particularly the about And and talk look, a So, bit. issues that I’d your just segments? your to second, broadly in to travel to whether speaking, One, Wyndham. China leisure outlook to a risk pose of and/or lower couple about exposure those the have just little up, come sort you what for of broadly love moderate cadence. is either a of Asia, And

I would helpful. think it be

Geoff Ballotti

well has awarded XXXX. in of did same has past the long-term they issue quarter us form there. China optimistic as in your in team on of forward. going China Pacific way, from teams any and are year-to-date Yes. Asia And our I the accomplished an prospects about pipeline. is direct third questions. rooms the I’ll over proud Asia given have David, the same of team back how and rooms the which opened first, China, Two the are of number franchising the that they last in as everything end delivery the is we they shape but performing. specifically not, XXXX. great contracts development and teams mean about impressively, question few our XX,XXX opened through they more years, we’re incredibly very got the take Year-to-date, number in back these It consistently the for or We’ve

China. in, out, conversion successful new mainly as franchising they introducing the X% markets an has last challenges direct been growth quarter have quarter. despite doubled, consistently their as new brands to they across pipeline have all room our been as in quarter delivering business And So net

We there. over good prospects about very feeling long-term, are the

of on call. mentioned we talked consumer. the as end last that you about robust clearly seeing more In – ever the right lower possible. I than now terms just But thought mean class, the demand would the we’re we’re we have middle is

We’re seeing continued demand. consumer

Our increasing. last are Google keep search volumes up XX% to They year. just

just the for consistent Our charts forecasting for seeing. leisure New pickup year time is what in and The August. holiday searches It’s ahead are same off October, this for to last seeing. back is That’s week Thanksgiving, for November, Year’s. the Pulse travel. pace December of Christmas out robust everything Duetto industry report we’re was The and continuing with holiday

is it was Our our cancellation double where in web of ‘XX. running back rates traffic And ahead digits down. are

continues X October to first windows, with up. see accelerate to look is this through in at mid-scale that all I this booking need as consumer demand Our we stays our hotels. think we these And do month-to-date mentioned, to weeks how were mid-income,

best that where big ‘XX, well Georgia, in is Texas, occupancy last all but way North not Florida, in and of year only occupancy. up ever both October XXXX it’s We’re in ahead X% And up seen. was the we’ve September of last And consistently. ahead that month-to-date back XX%, over in rate year. is of was states occupancy running our Carolina it California,

the guests driving that numbers, have. taking seeing They So who and in that vacations put ever they summer we’re and off to segment record I are roads are than our think further in hotels.

David Katz

Please. Understood.

Michele Allen

part Yes, super the would say, situation. team David, our success, everything Geoff if we I their of I economic has to mentioned, the Despite there which just risk as the earnings aware address of are China the was of last we could accomplished. our question, proud cadence. the – are

is in a a there, region XXXX The large of and them team we’re on generating less EBITDA. have touch basis. with of daily than X% locals in our We

David Katz

of loyalty on Geoff, seen and throw around. value bases. for RevPAR industry too. out from outside Thanks. fee of your the Understood. the would streams scope all And are I any Is that’s be discussion And if there other where that long-term? can opportunity me. And comments helpful, have one short-term, here program, companies for you for we just membership an generating it those thoughts across matter the

Geoff Ballotti

for And XXX it is important that and it was said, loyalty program the loyalty we that Sure. program it’s business the contributes owners one our number The And the was very mean our hotel by best where proxy small up points franchisees. is to to I XXX, basis share pre-pandemic. our as David, nightly. voted of occupancy world it occupancy U.S. just, in

that’s News XXs. consecutive we’re it USA and really But that. pre-pandemic, proud in World Report, we’re grow and size, as the fifth for the year by TODAY, to of and continues in

We’re year XXX believe will hit approaching, we we our million member this at some point.

that is but two phenomenal most check-ins the doing every of is is XXXX, up important, to that terms occupancy a hearts. of proposition for our on share and job of ability one out for We’re nearest year-over-year our domestically, XX% contribution drive to are program hotels are to what’s which the and focused what up into to what’s are X% and in continuing is our dearest and terms of in really see very our owners, paying value direct teams franchisees our

David Katz

Thank you. Please.

Michele Allen

We do opportunities see just beyond occupancy. the

we credit to we to continue our well card multiple are partnerships those looking incremental our value end. as incremental loyalty and earnings to drive have to are We as owners expand with a partnerships, program, – co-branded to

David Katz

very much. Okay, you thank

Geoff Ballotti

David. Thanks,

Operator

you. Thank

of Michael from comes question Baird. next Our Bellisario

Michael Bellisario

everyone. Thanks. Good morning,

Geoff Ballotti

Michael. morning, Good

Michael Bellisario

July maybe the for best line had to saw questions. give been the weaknesses? follow-up from And be that’s mentioned far, so if to that last time us could how of October you much infrastructure you in a you what coming strength then the you month-to-date tough and when strengths? September of Where the stronger. one were updates just comps may were or Can you a Geoff, domestically of quantify through sort in walk and much the us earlier? Where

Geoff Ballotti

great questions. Two Sure.

which in down And us, mean I October start think Day, said certainly not meaning demand And back was significantly think up is to both of in XX% up the XX% seasonal it ahead were up occupancy, up I October of was our to throughout years declines seasonal past, big year September was mean like for Georgia vacation XX% the example, a last we in seeing it expected team I this of ahead Labor for with seeing RevPAR that for we’re on month-over-month states, month-to-date season are September I on ADR time to I October, what year. our – talking record-setting to those that didn’t. again, XXXX. XX% occupancy example, will goes resorts of Florida, stop last year, would Newport, in are We well year less RevPAR for than what ahead to X% call, no year, last year. prior and with to and to significantly up big bit and in happened Wyndham ‘XX there, seasonality. we’re prior XX% RevPAR July. last states and was with occupancy seeing running we they summer. ahead months, expected owners The are XX%. and

XX an more it leisure constrained fall, find maybe forward find vacations that space, availability availability. they the going they So they July. of night, September, July was no not guests it’s And spending from more it seeing stronger from going was ran we’re I And put this those with over quarter that’s worried of getting account certainly size I in boost I card to our of a XXXX. a last our Customers we big with think it out signs seeing consecutive our it standpoint, has pretty than the last COVID, did things running survey, and and mid-scale of to travel think just data is – any than just It out increased The lodging were picked demand year-to-date. now ever. couldn’t was because Mastercard the payments it. travel up your from fear two we’re was time consecutive to picking to how to report to year. versus looking Pulse meaningful mean economy From of by space, a is question, mean the they in for try digit are industry, slowdown And whether one small To continuing where summer spending no up standpoint owners. Visa’s consumer put continue is second clear infrastructure double across XX%, demand and of business lack growth are again, months this the brands third XX% which think and the couldn’t this infrastructure the this we were we XX%. off significantly into the now it about and part just were up companies the XXXX.

owners. lodging be book and ‘XX attractive the and going so midscale are billion then of ‘XX, these is $XXX versus that are the hotel for those estimating being the that, Budget white are CBO and and it’s XXXX business incremental XX% outlay collar infrastructure bridges highways Office, into step will triple who XXXX. XX% companies of $XX business. of in which is repair is our that to and about you $XXX It’s but Congressional nation’s XX% spending going you us is workers is our our and think And travel. If in leisure, is It our blue-collar those if brands recall, very spent is our you that estimating only contracted different. infrastructure $XX and was strong, back run ‘XX. many economy it $XXX billion companies billion, And to to business, XX% is competitors, to is They business of that in not billion that ports. for that that The of business mix just billion business

And that. that’s all of incremental $XXX gets about think are regular reauthorized of top on So, the $X.X the this billion authorization the spending us to is legislation, trillion billion the which we in news. that of $XXX about reading

for So, significant team. our tailwinds

very We it. are about excited

and we going think bids accounts, We continue are gain more to are share. we to and to market more win adding sellers mid-week domestic sign more

Michael Bellisario

then… And helpful. very That’s Yes.

Michele Allen

will that. just points add to I quick Michael, three

up digits was consecutive some will First, for infrastructure as the seeing had weekends accounts, as leisure the is then were on And remarks, we be, in well leisure third, exceed And XXXX the levels, longer double are quarter. occupancies occupancy this his which for Sunday long Geoff prepared we in as September third mixing record. still there. best second mentioned

Michael Bellisario

forward, Helpful. well? looking where as ‘XX, also calendar downside but the as be? about might might of you on are risks not just And the sort lie guidance thinking And for upside then looking flips, how where then the drivers

Michele Allen

well – about travel, we as also just that is so that’s think a the U.S. for be internationally, the of XXXX tailwinds sustainability ADR, we but occupancy still the recovery the positive. not although about piece, incrementally as in it of think small When will business

the hotels out, For our House. XXXX, about we something to some trends. XXXX. then and think the as we risk, macroeconomic we ECHO as obviously, And contributing Vienna that when have And of well opening balance with will

Michael Bellisario

Thank Helpful. you.

Geoff Ballotti

Thanks Mike.

Operator

Thank you.

America. from comes of question Bank next Our Asad of Dany

Dany Asad

morning Good on Hey. question My pipeline. everybody.

quarter So, And XX% like growth for we how that would pipeline in seeing guess growth? from you of unit like ask into long and are I is the I follow-up take it to bump one the pipeline my your ECHO? much accelerating that will that how turn saw project

Geoff Ballotti

sequential been. not am our pipeline this healthiest is pipeline guidance, but on we quarter saw ECHO the I consecutive significant X%. year, from your entirely question, it that only construction versus the out brands has increased growth was our last new other ECHO. sequentially a still Dany, giving prototype to piece It And from taking I The ninth strong and that mentioned. but ECHO, ever call, of not of growth, very But is increased growth. U.S. the Again, XX%

from it’s record XX% a year. questions about last of ECHO. pipeline brands have hotels, And right We have now, in that just been a back number the I hotels been up that to the few talked addition X,XXX in driving

Dany Asad

Thank you.

Geoff Ballotti

luck weeks Thanks baby and number away. two with we hear, Dany good

Dany Asad

you. Thank

Geoff Ballotti

keep You with… to got up

Operator

you. Thank

Zaffino We next of will from our Ian question take Oppenheimer.

Ian Zaffino

mentioned continuing? Is trend stays. weekends, color you that longer know more Sunday very of there Thank kind Thanks. Just helpful. you be would idea any I of this Great. much. Hi. Michele, Is it decelerating? accelerating,

Michele Allen

well and demand continuing on that see We on it as weekdays. leisure Yes. pricing, occupancy And obviously those drive as now to demand is more overall driving Sundays. higher Thursday, do increasing

Geoff Ballotti

basis Michele. more our the points night, right, it’s exactly And in when we And where fastest-growing windows XXXX XXX continue specifically, back was you it look That’s grow. as we will at Yes. up being and to visibility, booking over have it increase Sunday levels. think good continue to

Ian Zaffino

Good. any and touched now at car some open charging. putting then the is are the IRA the as of on, I stream, we proliferation of Okay. piece franchisees know stations? would If you? look rental ancillary of I what going that infrastructure in a [ph] source revenue doing the you. now for Thank EVs just And new at color And an be it. up helpful you on And know does that as because vehicles, companies as the there far charging looking EV the revenue

this? know So, you I and what you are thinking how don’t Thanks. guys are approaching

Geoff Ballotti

It’s were few councils. is a – with it a we meeting great advisory XX lot talk franchise the a It’s it’s list. something on We question, Ian, makes weeks And top and them our back. list. our it with

models company there up But what expecting to companies, and series be ahead. sourcing in mean with of going charging focused years and with a on right I it’s that something leading to are that our partnering be like offered are very have It EV have we franchisees. a of important. from We could measurable are ours. the it’s it’s we large some they we the nation’s

Ian Zaffino

much. very you Thank Okay.

Geoff Ballotti

Ian. Thanks

Operator

Thank you.

We our Stephen Grambling question next Stanley. Morgan will of take from

Stephen Grambling

Hey. Thanks in. me sneaking for

more on a In different between of leisure Could following parse or also the end other you words, may a components GDS called the pre-pandemic? property, how you of are you OTA the leisure. or on questions Just give up And you base? channels be little distribution out mix other some demographics your traffic. on your customer age color changing? of out higher regarding other Can web higher capturing versus

Geoff Ballotti

we Stephen, boomers. is there. impressed few on back, we her few most younger Welcome older A you and with to – team, we most Lisa think calls. are that impressed travelers Checchio group questions great are missed share the continue are the What gain with marketing I last seeing

in travelers, Ys next-generation of the and Zs, of basis quarter another X, to the from generation year this year Our increased share XX% the last XXX check-ins. the XX% points

so that important. is And really

really, back it right of and and are is Wyndham it’s is for fastest-growing important. members Rewards $XX,XXX. the a year. is last standpoint really third-party contribution of seeing as is are a it where piece significantly the And Reward as standpoint, age And $XX,XXX the strong pandemic, driving ahead making average well where fall were Reward growth of the we channel It share income of And members now as attractive the as increase of ahead contribution. seeing we consistently are it From channels. believe, we as our seeing Wyndham what our as program medium We that’s a program from Wyndham grows. from of the our we owners. check-ins of the we what’s before around to runs were run big And

Michele Allen

U.S. basis XXXX. points in contribution XXX our the up is And from

Stephen Grambling

follow-up. anticipate missed you But one are the have on from may Thank other will to key Michele, eye the thinking that we this usage been drop you And brand, about I response stand have you. or going should up And this. or continue the brands? already? it unrelated up seeing ECHO as Great. money being in how loosening is go you based forward used

Michele Allen

you. Thank

are pleased with money We seeing perspective. are really what from key a we

We on the today we table participate are previously that been deals hadn’t in. to at invited

increase bearing repurchase. that’s of brand, incentivize the our ability either seating will in to to the for slightly it as going using So, the sheet we allocation growth to or – brands away through allocation invest from move inorganic expect share capital materially draw but nothing ECHO is opportunities money us. owners really balance to key fruit I do the to will our to

Stephen Grambling

Helpful. Thanks much. so

Michele Allen

Stephen. you, Thank

Operator

you. Thank

Our Dan next Wasiolek from question comes Morningstar. of

Dan Wasiolek

Hey. the questions. guys. taking for Good Thanks morning

occupancy all there. the the improvement color seeing for around are thanks the call So, and you on the

of kind the guys kind of Just have. driver combining as with that wondering, that you infrastructure

several that’s quarter it this just as if was then You where last enter a weekday mentioned financing me. the ability occupancy versus quarter? you business is question maybe for to improving. weeks – I give headwinds guess seen for far U.S. any have of in pipeline? to maybe the as incremental the get weekday people that had follow-up Thanks. looking any you that U.S. your my occupancy last could in been And And for kind the Wondering

Geoff Ballotti

on are you Michele mute.

Michele Allen

I answer am on I that. to was I and sorry. apologize for started mute. I

On financing impact we are seeing time. in point the at any not side, this

relationships strong the financed our local deep mostly or on have really owners banks regional developers with Our and with. deals level are that

growth. volatility our a returns And impact X% that high cost seen interest we is so returns in prior meaningful we instances, interest And not of in debt net while higher you and this have very and still really that we slide, really can are a the to returns we it’s Slide rates and first haven’t those rates, the know I or where believe the presentation, we in have the teens. Actually, see are the really room a XX, time see owner our also investor seen obviously healthy. still we adjusted

prior what rates. the necessarily stability think not reversion in the to is today rates, interest a market I the for looking more is

rates stress sustained from the increase the ROIs, by softened a an just going perspective in while higher was to QX, in healthy certainly And occupancy and XX%. are is ADR. blow So, about it

Dan Wasiolek

do have for number you that? – was Okay. that second the And quarter

Michele Allen

XX%, just second sorry. seconds grab will it. XX% give and I I two me The quarter, am –

Dan Wasiolek

sorry, am it? what was I

Michele Allen

the versus quarter. XX% in third XX%

Dan Wasiolek

Yes.

Okay. Very guys. congrats nice quarter,

Geoff Ballotti

you. Thank

Operator

you. Thank

from Montour comes question final Our Brandt of Barclays.

Brandt Montour

everybody. Good Hey. for Thanks questions. morning taking my

the you – the year $XX if guidance. I On said million it, and full but this, and raised approximately Michele year apologize the I EBITDA – maybe full missed

incremental marketing $XX about million. the fund marketing You or XQ, the split was XQ, but from from us the between gave EBITDA – income

XQ? million So, much hit $XX the of how that versus the just in XQ curious

Michele Allen

hit it in All the quarter. third of

Brandt Montour

be that, the just next the tailwind Great. spending of back could on years. Okay. few And Thanks. over in then the on and increase infrastructure that comments the the

think between Just business. that toggling and capacity the curious management of how you from about perspective leisure your between revenue allocations contract

contract are for the dilutive between So, in embedded are, that ADRs? then bookings is what overall And to broad questions those I times segments? different – two the are business the specific guess, lead rates your

Geoff Ballotti

that overall our them better could be of diligently an it that very it’s that’s is the small things business are And dilutive at with convince to weekend continue we Well, coming owners to to and one working they ADR. years. OTA, long-term ahead, you next whatever the Especially believe few responding to they up and look, ramp this over and should they mid-week, solid will standpoint. comes, up. be business proposal, yield contracted a yield in are now as mean request to weekend right. approach the an that that recovery looking And they which from Brandt and occupancy. realizing be they to our that need I a is owners that taking still a than are I for should peak point, doing to the lot look tools to your both mean on we are multiyear

looking years ahead. than they those stronger La who yielding more be there be of blue up think the Their out all to well much appropriately. good and the are in and the is leading We hotels. them now all really to we have help constantly, and want forecast To are accurately They And X,XXX IDS available management domestic [ph]. provider make revenue it’s to out with price partnered more more that infrastructure wish performed about are your now picking lower. that’s taking just product pandemic there. our Wyndham question, sure had workers because but that is been. mid-week [indiscernible] this they are have using they on the are days hotel businesses it they They business how one or at collar they owners mean throughout Quinta I better saying out future much continually going optimistic to in are more based are I leverage and thing the I they they very positioned, there. ever mean that should

Brandt Montour

Great. Thanks so much guys.

Geoff Ballotti

Thanks Brandt.

Operator

remarks. End Thank you. floor the over will back to Geoff Q&A closing Ballotti now of I turn for

Geoff Ballotti

interest Well, you, Resorts. for your for questions your & and Hotels Todd, thanks Wyndham in and thank everyone

remain again XXXX sequential the net levels mid-week our world And growth as the most and believe thank we well international line will quarter quarters our summarize in which the tailwinds around the capital returns exceeded occupancy would RevPAR in EBITDA globe forward our again teams the this saying saw happy the to weeks We and have to the once will Monday. growth to development look as across talking to We all Brandt’s conversion year. question ahead. continued delivered that and organic deliver Global all year. we teams strong very flow everyone conferences. seeing allocation, improvement investor would in and again from I some me wish room quarter helped and just to revenue like free importantly many regions in cash Let joining like us. provide Halloween that Thanks upcoming of pipeline. a at seen U.S. Matt for by very record our shareholder we we and its on us top disciplined and this ahead adjusted Michele, this who of recovery, in strong you

Operator

conclude Thank time day. & and at wonderful have call. Wyndham a earnings third Hotels this line XXXX today’s disconnect you. conference Please quarter This does Resorts your

Wyndham Hotels & Resorts (WH) 26 Oct 222022 Q3 Earnings call transcript