Earnings call transcript Q4 2022

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Operator

Good day, and welcome to the Wyndham Hotels & Resorts Fourth Quarter and Full Year 2022 Earnings Conference Call. [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. subject Before we cause those remarks forward-looking expressed our remind our you statements get started, differ I today want actual results or will materially that implied. risk factors to to to that These may are from contain

and filed with our report on annual the risk are the and These Series recent factors reports discussed most in any Exchange SEC. Commission XX-K with detail filed subsequent in Form

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

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

posted in evening, Investor provide presentation In website our Relations we We supplemental our supplemental may website. addition, an continue to the information on on investor last future. information containing

we public encourage submitted and over turn Geoff. to SEC call addition in webcast. the with releases, website any our the our press calls that, to I filings or to With will Accordingly, conference monitor investors

Geoffrey Ballotti

everyone, EBITDA shareholders, to with results thanks, in cap. us and $XXX We million which and million. Matt, adjusted XX%; market of X%; room global over our of net returned million X% year We're our and XXXX flow growth over to free represented finished thrilled RevPAR joining of Thanks, cash reported generated $XXX $XXX of morning. report our stronger this full than for expectations QX that our growth of

from net outstanding Resorts. of brand, points X%, an rooms by House our was year for including of acquisition it basis grew Wyndham. and accounts, by XX Vienna the XXrd Wyndham We all Hotels By growth

rooms represents last year, XX,XXX than each every hotel and more the than Vienna XX% added year. day. for opened This more X we rooms House, Excluding we

hotels, to Trademark like our Hawthorn streamline great the XX,XXX diamond utilizing States, a the of converted of combined a hotel and Here AAA to X meeting brand rooms operational in outside two extended development costs Stone construction, designed we hotel our United in hotels with Lawrence, other Collection stay share added select-service and who rooms, in Hill new first mid-scale a some opening the City, lobby, space fitness amenities. by La Quinta and and a bar center, Kansas Texas, Suite

the last back opened additions Registry XX with we Grand Wyndham America the across our Caribbean luxury welcomed XX% quarter, Latin Cancun Latin located of fourth did way the centrally rooms Resort Collection Beach in our and first year organically the than with in than led we Internationally, zone. to Mexico. Cancun in resort Wyndham Mexico X% in Hotel And Grand our opening in brand did more more XXXX the we XXXX. and America team Front,

in XX% Bulgaria, Ramada we Asia, buying In Ramada net the King Sofia, our did by near back grew we new Fahd, rooms license XXXX. Arabia. Southeast in and XXXX resort also Riyadh did and year, trademark like tremendous XXXX a than the more Our town or impressive additions opening XX% EMEA Jewel region had the than higher of collection conversion last organically year with quarter Razlock Bulk a X% resort, in fourth X%, first the Saudi rooms agreement addition rooms they master open in than since more

more now development many and XXth And lockdowns team face for have Asia rooms hotel beach of quarter, team Bay thankfully members Golden XX%. impressive Wyndham than new throughout fourth quarter the continue And the did XXX after China of fourth the XXXX. added welcomed on net opening development finally, restraints, to team sporadic in the French Resort our Colonial port, Benin the grew they marking room years beautiful in the our of this directly franchise despite former we another our Pacific many Vietnam. rooms direct in development, dissipated. which by And The travel team direct

they year. in fourth rooms did quarter the And of last nearly twice many as than

opening Quinta Wyndham Convention Grand in beautiful Shanxi, direct China located Quinta to in like the Shanxi and district second in hotels, quite new construction the Center. featuring the of three our the Expo And Shanxi's the the With Wyndham, represents new La Quinta XXXX. heart to province of Shanxi open business in hotels La this La access new International a and

On rate prior that consecutive our XX.X%, owner-first and time including improved the of exceeded to ever-improving our and rooms X% of year Wyndham's We international to hotels. sequential XXX,XXX high retention growth. tenth an by quarter rate the of for second we XX%, pipeline global grew retention has our front, value versus first the year XX% record a indication a X,XXX by consecutive This development proposition. marks sequentially pipeline record

and XX% additions, each is year which The business fourth developer Our contracts we what our brands in of the higher reflecting X teams was full contracts and awarded contracts in room globally awarded XXX,XXX number interest XX% we awarded higher new over of in year. for awarded record what than signed XXXX, the every quarter than nearly domestic day. last fourth for XXX over quarter the

last launching year. XXXX is U.S. short the Echo XXXX. experienced launch bringing XX another than in number increased extended the executions hotels months in fastest-growing this of contracts signed and XXX Echo brand quarter of total Suites Wyndham XX,XXX establish double industry's and We we contracts more new new the quarter brand amount the making hotel contracts just signed room awarded nearly and awarded for to construction to which by last stay Fourth XX%. XX% additions, domestic developers since March Notably, the operators, in X XXX

in open construction another Hotels ECHO year broke increased X domestic and XXXX, to Suites first as our the We expect basis, hotels year X we in break on a XXX% new ground hotels last On later executions ECHO months year-over-year. on by dozen full few ECHO ground we first our of Wyndham this XXXX.

than domestic to ever they XX% Developers XXXX. execution While now conversion Wyndham offerings have. selecting increased by more new compared are construction

Microtel, economy added construction to driven in its prototype. by motor in XXXX, developer domestic Our pipeline interest brand, rooms its new cost-efficient X,XXX

brands added we Wyndham, new upscale Wyndham X,XXX to continued pipeline. grew its strong mid-scale new pipeline which saw like X,XXX domestic In Garden upper the demand While brands like construction rooms by year. segment, its construction U.S. rooms this for

Consumer strong. demand remains

over are spend work than more travel customers given they longer environments. as ever last so and and booking staying blocked prior Our summer. spring were of out many days XX on have, back fear windows versus being they they XX% ahead planning in middle-class and hybrid guests XXXX, continue saw year were with space further constraints to increase to the We than given

our and of to in length both Thursday the guest and XXXX. average climb stays fourth quarter versus Sunday in continued back occupancies have were where night they

these giving combined to up continue confidence the the space with trends yield to ADR real are select-service with messaging to tools in pricing that the flat remains franchisees management All the ago. to our X was new years it revenue constant them, for providing of their we're where essentially

Wall our same been priority which U.S. XX% always surveys seen infrastructure-related as has the in consumer XXXX recent travel leisure makes Wyndham. up We This believe spend from the so consumer that #X time, MNG among as growth revenues, many we've of strong royalties. at Americans for about strength discretionary a organizations in middle-income area the our remain for such our

here size And grow weekday making domestic spending, on with already begins off our been grow government $X.X infrastructure they we've economy as levels highest paying and with to the in the Act of investments further trillion at that substantially the Those pies in have share. our hotels investments their occupancy to record. absolute CHIPS begun

XXXX, trend second revenues fourth quarter that began quarter increased in XXXX. versus Our infrastructure of a the back digits general related the double in

the systems, new And from we're economy the and XXXX, billions rail, it several the lift Funneling take projects that our benefit. state public a airports, states markets as dollars require mid-scale bridges, begin. of for and commence transfer coordination projects strengthen the levels over as in the agencies to broadband is years owners time hundreds and will and throughout of to will heavy business on roads, next confident where water continue both federal will small the that these

spend We for billion opportunity royalties and over for over Wyndham for level spend of our of this of represents estimate $X.X incremental franchisees us an the to generate revenue new period. over incremental that $XXX million

over Our recognized USA the fifth and award-winning readers X% loyalty the XX past as its million at program Wyndham program Rewards the hotel XX for months the stands best members. now consecutive by Today, enrollment grew by loyalty of year

sites. XX% record of once a bookings drive in outpacing across again, level helped all sites, increase rate a growth Rewards our the brand.com contribution for brand.com our to high direct third-party and, channels of representing Wyndham

measure Wyndham connie work. drives engagement our are growth of why recent our place a such and great to such member survey, to work great values what and core Our high results. culture are no that generated most heart we which of the team makes our at record better place what service a There's

the largest see the of surprise We would Market in Index, without S&P members Michele Dow and call Michele? And with Wyndham based be constituent our support, Resorts & companies this a Index Jones global Broad to qualify CFO, the sincerely none possible. environmental thank Global turn And practices. XXXX of the Hotels I'll to on XX% no Allen. sustainability of X,XXX index the top it a was of Sustainability team whose as valued consisting over our that,

Michele Allen

remarks begin I'll fee-related quarter, full and our in full We our above morning, $XXX other EBITDA XXXX our and of fourth detailed everyone. I'll and million, to both followed Geoff, bringing EBITDA a my review million sheet, and $XXX with and to other by billion expectations. revenues million and then $X.XX fourth balance adjusted Thanks, year and year our $XXX our adjusted flows today good quarter cash fee-related of revenues results. of review outlook. generated the

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

impact, adjusted timing EBITDA grew this quarter, XX% and Excluding fourth consistent adjusted our EBITDA the our remained prior with in year. margin

fee-related with collectively revenue of were fourth million and and to and Corporate relatively our in sale declined, Management select-service expenses Hotel and owned and in approximately quarter our our $XX other reflected $XX flat the segment, in Within adjusted line EBITDA adjusted XXXX. which revenue quarter or Other our XXXX. in In fourth expectations million hotel businesses, contributed segment, EBITDA management compared

X% quarter a from benefit Fourth year-over-year our our EPS approximately This was on a Hotel growth $X.XX, increase well repurchase EBITDA comparable share reflects or diluted as basis. in increase adjusted a segment,as adjusted XX% Franchising activity.

full turning Now year to results.

license higher and grew by segment revenue fees. reflecting primarily franchising global growth year-over-year, Our XX% RevPAR

management increased declines EBITDA to first despite with half our Adjusted our XXXX segment, of the million and $XX of exit XXXX other owned XXXX million of hotel million and full year select-service during was consistent EBITDA million reflected XXXX and ongoing million $XX contributed margin businesses, adjusted XX% $XX EBITDA Management our $XXX XXXX pressures. in $XXX and during of and XXXX. revenue inflationary fee-related In which adjusted adjusted Hotel EBIT and in revenue and

benefit Other increase comparable growth we expense Corporate a on our of or was lower higher and year adjusted $X repurchase reflects a XX% a adjusted with expectations. line activity. segment, Hotel interest Within in in to Franchising expenses share net This cost million XX% diluted and our segment, EBITDA inflationary saw due EPS increase Full approximately from pressures, basis. our $X.XX,

for growth of third XXXX. XXX fourth continued RevPAR accelerate the for take RevPAR of the to Domestically, RevPAR and moment year-over-year Global Before finished up our cash first XXX basis from the basis third basis XX% XXXX, with ahead on RevPAR points RevPAR XXX constant in to XXXX And X points points discuss fourth me year-over-year. current weeks to performance. approximately XX% has of in the flow, in accelerated U.S. the ahead quarter, quarter regional grew a currency quarter. from U.S. XX% let brand moving in the free X% to quarter. in up

levels. ran XXXX. XX% year of ahead international of especially in Full for quarters with regions, All finished fourth excess year constant for to Pacific, overseas, generated XXXX both currency the Pacific and quarter a continue only of of exception well demand to whole XX% occupancy to EMEA of Internationally, above Asia XXXX, levels. meaningful as RevPAR XXXX respectively, provide XX%, in and Asia XX% down regions, grow tailwind XXXX us XXXX will continues and RevPAR last XX% coming in were the our which, the and and

in well million expected, as Now advances. in free We generated cash turning collected as $XXX XXXX reflecting, flow. fee compared from deferrals as higher XXXX cash XXXX, COVID-related to to development $XXX million lower

high business EBITDA on XX% to through capital million cap to our converted the returning adjusted repurchases line cash by market flow, our our of stock right our million of we of grow while shareholders, share with our of over executed We $XXX $XXX Importantly, and stated strategy free investing $XXX a million successfully record $XXX X% to representing common million target. in allocation dividends.

As we our remains move unchanged. into strategy allocation XXXX, capital

We will core room that an are the complementary existing M&A and to our remain disciplined from strategy growth and of transactions perspective, brand on tenets net our earnings portfolio. accretive and pursue

brand in incentivize also franchisees invest to equity. to prototype to We will brand improve continue new overall designs

expect the begin opening we we of the on of earmarked as ECHO XXXX. new late $XXX in first success capital ECHO development a date, Suite based million hotels the Suites And stay to deploy to near portion extended of our to brand

expect to lower onetime repurchases proceeds we payout integral be dividend ratio XXXX, approval given last of Finally, element than absence allocation and maintain Board transaction. an continue from the capital will our industry-leading to to strategy, year's of albeit the subject our share

with and liquidity, million of We the net leverage our total ended below of stated the just ratio was approximately quarter our $XXX low range. X.Xx, end

outlook. Moving on to

portfolio, X% which year a growth XX% XXXX, translates growth pre-COVID the be much levels to recovered to levels, our above global which industry's full select-service that than faster room of X% XXXX still X% point X%, we to to and RevPAR the to we since data full over U.S. of base. global service For consider to represents relevant of net expect X% X% space,

$X.XX billion and Fee related $X.XX to be expected other revenues are to billion.

adjusted based which EBITDA million the is diluted our $XXX million $XX adjusted projected year-over-year, and to repurchases. of in $XX.X Adjusted variability investment. any approximately less $X.XX for net million, which of will XXXX of projected $XXX $XXX diluted $X.XX a income potential funds on million adjusted projecting when comparable recapture neutralizing XXXX are approximately EBITDA growth We as which at million, completely share million count to to X% $XXX reflects EPS the marketing excludes expect is in to to contribute we be share basis

Finally, expecting interest to our in approximately advancement expense. we are XX% in the expected well increase flow to in EBITDA development impact from as conversion $XX from XX%, of from cash million adjusted XXXX free higher million XXXX which reflects as $XX

our XX As business with to from we revenue adjusted Slide your provided to which a the base. two reminder, need historical be slides our hotels, in impact and have sensitivity. investor presentation help service management your XX of provides And provides owned modeling. financial select will Slide

shareholders. a to pipeline, successfully by we of pleased We and Geoff generating cash We brand, closing, system, profitability adjusted the returning momentum bill owners' of free business performance. EBITDA happy record are our very amount Wyndham surrounding questions. executed with behind a our Operator? model, In our our stay and strong our that, great history. flow be our on record your infrastructure while ECHO our to XXXX enter nation's With and increasing our with XXXX Suites objectives, capital and take business optimism I simplifying tremendous and deal balance growing new key extended a in a would largest significant sheet,

Operator

[Operator Instructions].

JPMorgan. Joe with question first comes from Our Greff

Joseph Greff

environment I a X much characterize what How for, that acquisitions there a follow-up. ago? is the tuck-in is years about we talk you warm on? can Is tuck-in for you're the anything acquisitions. have year as working today How Geoff, And or environment I there? versus competitive guess, out

Geoffrey Ballotti

though, But NRG tuck-in and Registry both continue our will Four was brands accretive as we Vienna good do a that and quality to no we potential. pickup scale that you and we'll shareholders to Ultra, example do And covered long as going we're are we we continue when us great and high deals think EPS evaluating year better continue deals believe high XX last do have been I all methodical for deal organically. Vienna to been they not have, there's is that, are any and of just but with for will House have have have ROI us, the in present look House deals. the be that of the -- And compelling And I acquired, the We having to continue it have always brands size reason and brands in you that, as latest ensure we'll segment brand X We'll improve, we every of a at remain be But will to with to X DNA, do that of and to ECHO is We're come next be Trademark, industry. look in looking or now can't internationally, for our think strategic. House brands environment deal. domestically disciplined continue brands launches, than And for matters, the XX our anyone and acquisition. joe. deal the returns launched that themselves. that matters. a and as of do for going the Vienna to along. as had. M&A

Joseph Greff

pivot, ECHO us XXXX that yet ECHO it doesn't nice more then X% both over growth ECHO, see a growth single? to there continue then as Geoff, incorporates sequential is to And the heard is to here. to And systemwide your contributor? and X% to Geoff, sound Michele, and multi-development any your your deals And rooms switching of much comments that XXXX from on I to comments,

Geoffrey Ballotti

there Yes, is offline. before a Questions pivot. you've asked

is impacted net the really which your And expect no We there thousands much impact this we individual to XXXX direct to do room to later ECHO year. franchisees, have to not growth. of question, yet offered

our We will ECHO year. later have first this openings

Sterling, excited. said the broken We're all some mean these, team to of open -- the those are, XXX. And have ground that say, unbelievably an developers have Plano, we Richmond, these agreements most we you We impact at And some big just these and really to open can. I as we these markets: multiunit as and RevPAR builds extended as want on call phenomenal the nation's Virginia; with Texas; in develop is with pipeline. the development XXX Virginia. successful have QX we stay because

Operator

from Stephen comes question next Our with Stanley. Grambling Morgan

Stephen Grambling

first development just hoping and those loan comments into rate This gross improve. your that dig especially We continue to follow-up components in just pipeline, more to additions guidance XX% I maybe on attrition year-over-year in attrition context up guess, it's and the contract broadly. growth they a ECHO of one, the of now the to in

any of and adds, splitting any the gross you we guidance about geography? in provide nuances think So by kind can color attrition as out

Michele Allen

Yes, sure.

in XXXX about the So deal say we significant see perspective, the from pipeline. a year construction. room the construction within I signed. U.S., from would X being growth the XX% or impact of growth today is pipeline in net of a don't new the starts in And

XX- there So XX-month a from there. to on build is average,

typically in X pipeline the little So it's it's longer. years. And internationally, a

would X- be period. to a over So overall, to pipeline we realized expect the X-year

have to and a as going and mentioned. pipeline part that's growth XXXX, of is impact our big the to ECHO just -- So brand, Geoff a material not

when expectations and at see net XX%, I when that's look should target. you net since But growth -- we been toward to to and improvement our were as to steadily will that we've see XX% growth, you our And room always range, improving about expect us XX% left. there, and then, rate. marching basis think points then that retention back we've Moving every the XX XX get room if talked year in also overall you require pre-XXXX, we're

Stephen Grambling

and for changing 'XX good gears. Sounds then. 'XX Maybe

broader details component but more some resumes? RevPAR bit potentially had impact country, China you reopening how outbound You color the and on only on there. direct region in the as may the also Can not good a provide the there domestic

Geoffrey Ballotti

for XX,XXX Stephen. in already have for rooms hotels I see our from big that South Yes, to be we a in Singapore. more that Indonesia, million resumes number, 'XX, to hearing are dropped years. going XX the we're beneficiaries. seeing arrivals, Thailand, -- we beneficiary, they're travel. over the all and Chinese XXX last the Korea, international And Chinese to mean, are certainly over under travelers know, as Australia, China were outbound X seeing as where teams we our Those looking represented big

So we're excited that. see to

ground, we're encourages to get the just On during the Year. strong the rebound see all New out Chinese

weeks the the to holiday in vacation resorts through Sanya last after Hainan given strong. X days, really our Year, up of X% Wyndham got destinations, in our last year year. demand. family XX% last in XX up and Sanya travel Our back and big And we that XX% XXXX, last to mean came Chinese New resorts were pent-up really, RevPAR I was to China

Smith Travel, hotel 'XX, they was came in gate almost over XX% up to Hainan, was week X% the was win see XX% results our was big around last clean night was up driven, are to 'XX in while versus last from overall Chinese XXXX. levels. XX% New great importantly, what out in running China year, up comp week last And with RevPAR Year to where Our occupancy a but that respectively, XX%, that and it

about able really more the with to excited our quarter team teams XX% from in last and we're challenges net there hearing over they our accomplished direct QX open business were everything hotels really, franchising So thrilled they that tough our we're room were growth how what in with despite a many than just and year.

Operator

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

Dany Asad

you're looking is your we at marketing like to EBITDA if fee out guidance, a at as so we you whole. But to unit combine X% like X% look just growth When at a your expectations X%. growth if growth your more expectations, we strip look of XX% reservation your RevPAR kind them, if guidance, XXXX

term? algorithm that for maybe on just you XXXX? can So think we longer drag And should us understand the dynamic help about a what's how causing

Michele Allen

Yes, Danny.

factors: is correct. I contributing think mostly first inflation. to one And expenses, there's due is higher there two The math Your

that XXXX, and is months we Some that a apart I some knew internationally the the didn't how business have And and the and COVID say, but sensitivities, international last years typically, U.S. if algorithm, had is in the the in would was into roll per we XXXX, when X separate then X growth, growth regions rate mix really international with XX impact long-term RevPAR full all provide months on U.S., And second RevPAR will algorithm? saw of is a over point growth algorithm plays are we growing knew it, regions the differences we similar at effect in XXXX. be but the out, XXXX. from we the impact have half in still we because to of second the that full the works, of there of the that sensitivity fully while why growth we versus business? higher in business recovered been for as going the U.S. to mode of provide in which really are playing the RevPAR recovery the of XX

Operator

Katz comes from Jefferies. Our next question with David

David Katz

that, the areas through other how peers signings light where compare the the is on that historically world, making some that of the has but in one in as U.S.? China, been out making if the on of some to I intensity of intensity. And you deals think shed we've you can with or a bit you're you're themes those internationally, revenue Following lower, the started of on I wonder your one largely the build focus

Geoffrey Ballotti

license yes. near business, growth the right And growth direct God XX% and is have that. that moms nowhere where international better, segments midscale more in it's the double we're of our know, direct X are brands I hear driving midscale master about revenue-intensive growing China, are our which, -- pipeline put in certainly, IP our In franchising And our in that is to above as Matt that and revenue-generating you our at coming our of good you're mean, which doing than that over rooms. franchising bless Xx we're above, are -- with the The higher XX% your see seeing domestic agreements, pipeline. her. XX% our that now you Over in And and correct. over pipeline or XX% out on Slide night, the last in of XX% digit.

So points XXX the RevPAR are especially increasing they're over means basis fees higher our what brands. us values for domestically, the more weighted they're weighted And average room of higher of deal pipeline that brands. important to million up there. basis that our years. with which up over And represents is XXX internationally. royalty is per RevPAR, points $XXX for They're and us in X internationally, upscale in in segments, Domestically, Europe as next mid-scale America as in some more higher markets, notably Latin and that upper

brand are brands. luxury Our upscale Resorts, Registry brands, our Wyndham full-service Collection, and Hotels

very that. we're excited So about

David Katz

could you bit more. talk just if Understood. a And

issues is the into -- the as people are being environment people your of guidance with year think people one altering you macro the process what factoring we're how respect I to progresses? to are

Michele Allen

has say since our been XXXX, into of what levels well, fully X% pre-COVID XXXX. XXXX, the And to our I business we would Sure. are I guidance U.S. first, above half is mentioned. -- recovered finished second really factoring

So X% half And of lap X% from to we're say year. looking more to another the second XXXX. that in to on add were began perspective, would about growth a we seeing I growth. comps normalized the U.S., year-over-year macro We X% in of top this

not internationally, that all of are a bigger recovered yet XXXX. to where markets levels, there's And trend continuation into So expecting a year-over-year the pre-pandemic we're growth opportunity.

to of get So Asia occupancy pretty Pac close we're the with levels. expecting to of regions back all international exception our XXXX

of occupancy half to half our we're come some ADR about growth. for looking So recovery overall, and other to from the from modest growth come

Operator

from next Baird. Michael question Bellisario Our comes with

Michael Bellisario

follow-up one there. just Michele,

helpful. the you little any it Just components X what would of on more just X. give specifics the sort I know just sort bit, a U.S. be in but the more spread is expectation system-wide X any international, to versus to globally. Can touched of on X you the the of specifics

Michele Allen

going U.S. international sure. be compared is growth mode since to certainly there in for overall recovery to still be lower

few So we're in there's out there's going Whereas a much a internationally, lift of ADR a growth, growth. like probably points U.S., I to to bigger the said, occupancy growth be of but and of expecting few coming some occupancy. again modest ADR points see

Michael Bellisario

have then, your the economy maybe to you And so what And a you, picture. now on franchisees? space, you big getting from are front? the for big Geoff, hearing you are the far competitor conversion into What Okay. risks

Geoffrey Ballotti

play father wish impact the on not Congrats brands. Yes, to economy we're about and made more. you birth Andy our talked on of need two a any offline. Mary four that Lucy, you question of last girls, your to seeing to Tuesday. I We

in most have over XX both. COVID we've owners, We customers. they know know performed our more financial been have in never brands workers in economy our everyday wish We close for that economy and the product in the record they brands X/XX years. our given stopped traveling just The and demonstrated has crisis. to recognized infrastructure we numbers, We great they they how was these well to were important these essential what and allowed staying throughout never construction franchisees how COVID to after performed it's space, know that space base is These owner this well own to and which our one down. brands Wyndham the economy and thing and

Xx X and what renovation important our what And than with to our is we the the and economy focus the on priced we owners. the lowest less provide is Economy less installation. flexible a we'll So continue most know focus many to know and also Xx competitively stack the costs and just with run to our on our PIP of most to cash-on-cash guests our brands costs And technology best at continued to returns a remain our larger our in peers operating X brand stack generating technology segment. important

Operator

Our Patrick Scholes next Securities. of from question comes Truist

Charles Scholes

One question.

rate achieving in XX%. talked press your of goal your You release of about retention

you do continued at improve forward, there's point? that level Going do this the see that? equilibrium of as sort you see to opportunity Or

Geoffrey Ballotti

and XXXX, to We it -- that in Michele opportunity said, to moved improve XX.X% in XXs We to we've Patrick. in it, Absolute we in 'XX. continue the as 'XX. to moved were XX%

incredibly Our teams focused that. are on

record how growth been addition to unitization what that our it's in all-time side, to We House we've we room organic growth moved we're you X% Michele's time organically, system, on An for those organic which gross out X% and You two XXXX. to that take X% with We Vienna X%. to 'XX. gross point, doing that X% that to and blend in achieved blend additions confident in an the up. move moving over of also X$% could additions we're

Operator

of Our next Brandt Barclays. question comes from Montour

Brandt Montour

back that, guide just think having have brand last the rate Michele, maybe and rubber Marriott deletion of to to COVID lot that pushing start they in the or on the that goal versus what of-- and So the some deferred where saw that will to XX.X% brands XX.X% with versus industry is lot because this same held of a off, that year. year that over maybe the of this deal is CapEx Geoff last just year. me sort this curious owners hotels year theme, they during the this year on had I'm retention we the folks the a higher on meets road it seems that year

of guys opposite your just think direction think be of your curious about and able about what to owners your move that? brands you in you that you'll sort system, So the

Geoffrey Ballotti

us we've progress to the Brandt, think to making, Well, been I to that XX% from the XX.X% confidence. to your point, XX% XX% gives

transaction in the by opportunity The we of I continue increase with economy to the year. front. second there on proposition still half and are expected stress sales this space the there's value to the to think an up mid-scale conversion think volumes going accelerate. to out And are brand best pick

front are really continue rates the we're us very give saw our we've that efforts lower great were adds, and today. that move our very focused to good we targeted higher. can quality all we've movement XXXX brand and been than confidence said, over as and we So We the last few focused quality where retention they had doing XXXX that were that significant in substandard deletions on of And on when the years. number and the

Brandt Montour

Okay.

the if equation better get might look Okay. we side say because if move versus splitting imply did growth actually it But of the sort retention net the unit to hairs a you midpoint slight a your do but -- at would here, not decel 'XX. maybe or other of gross what And of you your to if ads guidance, Great. we're would stay little then same. you the in

isn't So terms gross of your last ads is scales there of in a as that that that strong part year? you regionally? on the as just would chain conservatism? part Or is focus Or

Michele Allen

Yes, Brandt, think decel. it's a slight don't I actually

acquisition net basis House. there's to you look tuck-in I in XXXX, remember, from growth there room think the XX growth you when the in of the points at have of Vienna

I basis. of and X% rate. X% X%. say year an imply rounded XX to this a the points think would would year And basis retention we of in organic we're And improvement then I XX is So number. midpoint for our on looking the -- guide delivered that every at

at be but the So X.X%. be X.X%, it X% or expecting it It it better could we're be X.X%, could the could midpoint. to be

so if of, X% net in somewhere you're opens. And retention growth X% driving would you're at I think rate a XX.X% between then and looking that imply say, X% and let's gross target you room that

Operator

Oppenheimer. with question Ian comes from next Our Zaffino

Ian Zaffino

at on You had but do build, government another kind we on this, know don't might expect impact bills other really can to be of any us able or do directionally XXXX? you the spending When in least infrastructure give the you question I here. of magnitude to of we through the guidance should if what expect? kind flow

Geoffrey Ballotti

many reauthorization time-sensitive late moved will you trillion the Act spent that's preexisting round follow set in The out being certainly There of bridges. forward. everything Sure. We half that the budget with $XXX 'XX. office highway the congressional of being that already if that are on the good expect billion projects in put fund have by billion $XX the of next example and would year, a $X back is

excited these adding prepared in we're we federal X.X while In think a identify years, relationships partners. and dedicated win in people for franchisees a There another state royalties to to we're business-to-business over team over that million the We're and said I in with the X remarks our there. investments for greater the creating third-party a period. of would that our super businesses of we it. States are infrastructure next about making X in to incremental our the million-ish processes sellers been it's sales out over have mean And terms $XXX size, today, We're United leveraging allocations, of more $X opportunity and company which billion biggest and technologies. our a share opportunity targets revenue

been like sending Our we country. with travel across CLC, the conferences calling like that called companies, Contractors to conventions and buying and and management And before American Concrete who haven't over never Society of events our centers we're teams on X,XXX to have before. the companies have

So fourth. We XX% of to franchisees competitive experiencing. up look, the invest our third this forever. come. best to seen in business has the terms We're in heavily were a that The continuing in it. strength XX% are in a been quarter, we've for accelerated quarter, in consecutive the ours pickup yet is what to this and And of seventh

come. to what's about excited really we're So

Michele Allen

a our part Add year to generating business. We're of million $XX about from this really quick. that

would pie for $X And hits course, continued So capture, the actually of market. expansion the category once to continued the for about in we're size share double-digit in we're of of looking if EBITDA. an be it just the just not incremental spend increase the million looking

Ian Zaffino

That's quick good as a follow-up. color. And really then just

can growth the that higher, like does with you're softening How give the assuming puts any algorithm and takes you change economy. those projections, us what a maybe of factors? the with on two rates in On room going

Michele Allen

Yes.

new are projects the by pipeline in of in So that current the let ground. me or already rooms the start saying half construction either conversions

to we the reduced with of have half then sustained during hotels, increases be is interest they higher have going in current rates offset what or higher can the to just And asset ability offsetting of all levels cases, that's the which rates on I'd expense. and XXXX. fully hotels they have dynamics and are rapid ADR, underwriting our we're other that side say, market and interest inflation daily, is which equation, our in interest and whether So developers that, cost the value it pipeline. they that in the And -- seeing partially, or in but to Canadian exposure are some significantly saw that impacted the do either rise all pricing, unique --

that delivering offering even the we're this once to facing well-capitalized we and we're we're economic Even decade, pass for though and control best believe the select-service rates to in they is seen the with, expecting over really owners our build. working a inflation all than we've that high is these ROI the time lows developers past this decrease bit and requirements. have that over all hotels historic rates minimal and higher this under that very uncertainty are attractive the So interest staffing we They're will environment.

Operator

Our Wasiolek Dan next with question from comes Morningstar.

Dan Wasiolek

of night at? by that's room So membership it How also And OTA if your percentage update could of grown I engagement where nights to the the or pertaining on is room give figure being then XXXX? base? the you loyalty wondering Was bookings number of for that question, you booked for maybe you give that's the direct And channel? the were just think wondering similar up loyalty XX%. if that and second mentioned a

Geoffrey Ballotti

Sure.

to double-digit what's the it part enrollments, We're of Dan, quote. at year-over-year. million XX members Our And question, that that year-on-year first percentage X%, globally. grew driving is

brand.com OTA Our growth. is outpacing it's is at the the to level ever growth piece, And highest it the OTA been.

upper XX% Quinta basis X are blended. got of our La to about which is brands, nearly was that we've domestically. same of program. occupancy coming out occupancy check-ins occupancy has space. of domestically where share the percentage to it increased pushing economy that every And share But Our and through we mid-scale, XXX pre-pandemic, brands of like XX% have the certain in nearly are mid-scale, pretty upscale now remarkable, economy points It's American share a X

Operator

At remarks. this in Geoff time, further turn call I questions to queue. back the for I'll show no closing Ballotti

Geoffrey Ballotti

growth thank significant again, to, is the for along once stronger a in & at and for than deliver your organic our team and development helping Resorts. pipeline never quarter with been eighth and like of their sequential Hotels We'd accomplishments a it today. valued us XX% members that's Todd, Thanks, everyone, Wyndham our growth for room around your thanks, questions net interest world and

many and our iconic and accelerated tailwind a prior franchisees outstanding our RevPAR deliver guests, talking weeks consumer We ahead to Matt forward to conferences our contribution for and soon. opportunities I look that of brands weekend be trusted ahead. holding delivering members. happy wish Domestic XXXX through providing and Day investor year our record our and and shareholders, of Michele, you we enthusiastic brand.com levels the year continues growth to levels the everyone look to very travel seeing ability and to and demand of a lie forward meaningful about will and you steadfast in With our channels, the recovery, occupancy direct in upcoming our its the ahead team in value months both at global President's to seeing attending. many are us in

Operator

your does at Quarter have time Earnings This conclude XXXX Call. this and and day. wonderful Full Please & Hotels Year a line Conference Fourth you. disconnect Resorts today's Thank Wyndham

Wyndham Hotels & Resorts (WH) 16 Feb 232022 Q4 Earnings call transcript