WH - Earnings call transcript Q1 2024 | Wyndham Hotels & Resorts, Inc.

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Operator

Welcome to the Wyndham Hotels & Resorts First Quarter 2024 Earnings Conference Call. [Operator Instructions] I would now like to turn the call over to Mr. Matt Capuzzi, Senior Vice President of Investor Relations. Please go ahead, sir.

Matt Capuzzi

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

on the our recent differ to factors detail risk Before remind to with Commission Corresponding any relations that These may investor Form forward-looking of is I filed are reconciliation risk Exchange started, actual factors annual XX-K those Securities SEC. We'll These remarks results in investor.wyndhamhotels.com. in expressed at our that metrics implied. to and website statements. GAAP subject a measures. we provided subsequent which in and available the of contain from today our with on our also are are want non-GAAP statements report discussed cause to release, non-GAAP most will GAAP materially and our get reports a you filed to measures be or measures referring number earnings

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

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

Geoffrey Ballotti

United strong executions, room of retention RevPAR a this us to progress on the report joining net environment another for Despite quarter everyone, thanks, pleased and here and around the in we're Matt, world. challenging States, growth openings, our Thanks, morning.

increased the ahead. We year, continued ability going of its XX,XXX repurchase in our largest opened returns Board in rooms globally, cash quarter share XX.X%. In increased rate by nearly generate increase net since demonstrating X% a record importantly, to points rooms million, confidence by time year year than We to public development shareholder our and first most openings commitment room years last our authorization to franchisee growth opened our its our ago. XX% X.X% more we versus by delivered quarter, $XXX the last significant week, addition, late our flow room a pipeline the XX last over we in for record rooms. XXth XXX,XXX and retention X same to basis grew We consecutive

Wyndham again hotels the Extended WaterWalk Raleigh, extended segment, markets improvement we sequential located by system domestically, driven midscale in growth Charlotte, Jacksonville, to and hotel portfolio XX Suites such complementing key year-on-year hotels Stay while higher newly brand, construction the system Tucson new fee XX segments. Wyndham PAR and Stay brands. by Hawthorn created Suites the X.X% WaterWalk We States, Extended and expanding United upscale stay ECHO midscale our our our as adds into both saw the added and including in under by in Here more conversions revenue-intense above

we rooms net year. increased prior versus sequentially X% X% Internationally, by by and

Wyndham XXX-room with of drove team capital financial centers competitive net the by capital X% the sequential and versus Center adding city. significant new year, growth Hotel Our Latin Brazil renowned over America the steps shopping Tryp like Asunción net conversions of X% room room growth from brands and prior the of Paraguay's Convention São along of from Paulo Wyndham

teams adding versus the and they development its hotels room XX% pipeline Our the EMEA sequentially aspirational had quarter XXXX, this Shanghai team, XX to Pacific. more Resort in Sapanca I XX% to prior the Turkey by and in rooms than of the ceremonies in first Thermal net Downtown owners with like our and contracts added once again of Vienna, did Ramada across hotel the in which joined the year, to grew over Hotel Singapore trademark Wyndham month, and by quarter Austria. Last Asia awarded HX for visit new signing opportunity XX

and sequentially last and X% growing region, Thailand. Our leisure Rim XX% which several increased a Pacific entered markets, rooms Asia year, destination Pattaya, Southeast by versus including in new by

and In we China, contracts franchising opened sequentially XXX to and first the January, like over next grew the contracts hotel by new years. they awarded country, hotels approximately additions. Henan teams an construction the the net the across which upscale Wyndham And to for the awarding the last Globally, openings year, rooms we room an our versus owners, Jinpu, in XX expect City conversion quarter and opening had in in of what upper quarter open first X awarded market Dalian hotel another strong another Xx Tien, the X-star of over Province. Pattaya construction also Center our executions, team direct new in John in year XX,XXX Wyndham and upscale new X XX% prior X% of hotels

pipeline Domestic our our increased XX% Midscale contracts and rooms nearly acceleration signed and year quarter a development activity represent XXX,XXX our of pipeline. international year-over-year. now our to and segments of than This rooms to XX% higher X,XXX midscale for signings XX% QX grew last record first the and in above were pipeline increased by brands nearly X% above in and XXX,XXX a hotels. record the

X% at domestic XX%. power the XX% still XX% finished pricing with highest pre-COVID than Latin increased higher for Our basis XXXX, of comp midscale by Domestic of and from strong remained levels, domestic we regions QX the XXX pipeline trailing will levels compared EMEA and XXXX finished while occupancy the international toughest by has which all yet points XX% pipeline same down our increased with increased RevPAR X%, period. quarterly ADRs brands face America In RevPAR inflation, XXXX. of for and down above year, over

over contracting both our time Business ahead to face Travel QX significant on growth all infrastructure support XXth the RevPAR comprehensive direct Wyndham April, tailored Rewards suite along outpacing business April direct loyalty our Wyndham the X Business April. channel planners revenue our these May X% through service than several TODAY's our by drive basis driven for and new to X easy credit increased RevPAR not constant dedicated the across business X% was internationally, million a where anticipate points XXXX Rewards from to of demand Month-to-date up with Wyndham by Wyndham we Leisure instant free with to year-over-year sizes around group bookings of planning who and group companies personalized at X% domestic program from U.S. billing gas these driven credit March shift + will into International it agreement in Wyndham increased automatic our driven by with tools higher over members to business claim tied XX% globally are additional XX% providing both weekend first domestically since a accelerated nights by spent in points. Ancillary we additional States Road with its for on bookings to to by Card, which eclipse pacing China for a every growth. continues a card the Thread basis of increased status, guarantee up USA books improved purchases. And quarter, Wyndham ran of XX% licensing thanks travel to to the expand along for occupancy, offering by to nation's ADR membership and and running, process which strong. hotel travel the ensure last also year earner RevPAR XXX during across RevPAR product America, its ancillary minimum RevPAR planners only RevPAR has STR products as EMEA, will revenues their see Warriors, that where for paid grow Easter like on new fee with to benefiting X% importance additional and We're both currency, And best-in-class Latin pressures, the points year-over-year, it years XX% opportunities drive smooth products, offerings over cardholders the types $X and a deflationary week, and million along also increased select professionals. We card Blue currently Rewards room Forbes co-branded the of success RevPAR to increased from solar year, same that in XXX us distinct and continues is and by XX ability Rewards United in with earn XX% suite from America, XX%, February products streamline X. last sales $XX and a Best garnered in discount, for launched X hotel into as and diamond of Wyndham offering to stays card Business workers booking #X XXX all Rewards strength prior process hotels, year. and to China,

was the I'll to Ethisphere. most our as over the Wyndham takeover both short behalf as On in our World's and Choice's surprise ability for company. their and thank support. we with in confident our it XXXX failed in months one the their now like Hotels by call honoree to no franchisees see past companies term of turn to Through Michele. team thank a want shareholders Newsweek for over our the We're trustworthy in growth and to most substantial the all, that, America in XXXX and of commitment we'd members Resorts ethical by create the Michele? overwhelming also to X-time Finally, unwavering is companies selected and term. And it support and our strategy our attempt value throughout long of of one Board,

Michele Allen

morning, review review first cash by then flows Thanks, begin followed I'll good our everyone. balance our outlook. a my with Geoff, remarks quarter today of and sheet, detailed results. and I'll our

results me marketing by exceeded expenses to our ongoing To our understanding back quarter the call. million, revenues revenues as results we that impact. the first quarterly of operations, let $X Before quarter which the comparability discussed million exceeding of remind everyone of by as spend I expected, fund comparable of last and is be In year. our first our by impacted the the compared our of $XX marketing year, fund basis, fund highlighting transparency the a on will a neutralizes timing on provide February in this marketing begin, results better expenses enhance

the and we in were million first partially the other generated Fee-related and U.S. year-over-year, increase and fee the offset our a declined other franchise royalties In RevPAR by larger declines partially an fee-related primarily both decline million in a franchisees, which lower global decline lapping ancillary system of reflecting in of X% and in other royalties of revenues and and marketing in of $X quarter, of million franchise a The decline $XXX RevPAR quarter fees international and fees by and reflects $XXX X% highest were EBITDA. These growth. offset revenues adjusted revenues. X% streams.

of Ancillary our effects margin revenues initiatives driven revenues our reflect as well power credit strategic X% Rewards points and XXX harness a the fees Adjusted marketing and as the grew to of partnerships license XX%. EBITDA basis, improved Wyndham loyalty basis adjusted card EBITDA higher program. on that comparable by

repurchase adjusted EBITDA expense. were X% our by on quarter basis, interest offset partially well share up from which diluted as EPS as reflecting benefits First growth a $X.XX, was higher comparable adjusted activity,

Loan rate in we swaps XXXX under X.X%. $XXX new starting in fourth interest facility, just the which XXXX quarter B first quarter, will and quarter During Term expire million executed on begin at our of fourth forward

Term than As rate end a result, of the fixed through than XXXX swapped our nearly more current is XXX B levels. Loan of all at basis of lower points a X.X%, blended now SOFR

the $XX lower advances our Free advance common repurchases to particularly and net and reflecting capitalize globe. X% reflecting to our cash our Development million our through $XXX half million adjusted year-over-year, in total primarily million quarter of range. was of system opportunities of leverage $XX and the stock on PAR attracting with before million the quarter million, $XX ongoing competitive increased over fee returned costs EBITDA across ratio $XXX dividends. We the properties target million share in flow X.Xx was ended development the of We liquidity, shareholders in year-over-year, growth. first up efforts landscape, in to $XX in transaction our higher spend

X.Xx, least levels. to $XXX are a outstanding of the recent planning We which at share leverage available at price capital year repurchases year, net finish this for of or million over provides X% shares ratio of at our

Xx, M&A outstanding an our Board's in will over and recent now the we which leverage opportunities, Additionally, $XXX available capital, depending upon million our which to equate approval million of of $XXX XX% have the we would of actionability authorization, shares. share And could availability to million increase provide the additional $XXX with us program. repurchase under with available of nearly

Turning to adjusted diluted to and, $X.XX outlook. our now of any range This XX.X of projection lower million repurchase activity. repurchase account our based share EPS share by diluted excludes for a shares is first quarter potential We're increasing future count share as a $X.XX to $X.XX activity. on usual, to outlook

outlook RevPAR for Our remains unchanged.

and first our experienced back call travel deteriorate recall year, coast. We throughout quarter in domestic we up, were air declines, a quarter, X% domestic RevPAR You'll then starting challenging the down in modestly the leisure XXXX, see hotels from in with the shift like destinations patterns expected drive-to of second a in opened moving while remainder the COVID as lifted. X% second Mexico along especially gradual to deepening Caribbean XXXX. the and by Cruise gradually began at to down and February quarter we improvement restrictions inexpensive demand comp year-end. that the travel in and Last to saw

to infrastructure this incremental we strong second we the of of continue positive growth as expectation of on to touched effects. move X% with April global are seeing of to these the some full-year X% our growth trends already We began Geoff May. beginning we into improving the combining expect trends lap half and recent RevPAR now and these in When year. that year March, capture, internationally,

There are the to also marketing our no for expectations funds. changes

XXXX, funds in the expect we the $XX million overspend then this with to half QX, by million half the the expect year. bringing will $X $XX back approximately overspend $XX during majority of in million now For outlook. which the we Choice's out $X quarter to Combined first of million recorded relating be to from our costs we reverse and down excluded we this second the these approximate XXXX total, million amount takeover will failed in expect costs to $XX attempt to previous from The vast estimate. that remember paid million, are

in In quarter RevPAR on despite softer results growth industry-wide closing, reflect the execution strategy our first our U.S. strong

would returns while and to We of strong shareholder pipeline we and significant incremental continue generate significant growth to accelerate net generated growth. growth ancillary driving earnings We operating improved continue room margins, fee And that, with to ample Geoff leverage growth. questions. year. With take a to capacity maintaining be sheet enhance balance remainder further over I happy your the and the Operator? cash,

Operator

JPMorgan. go [Operator of Instructions] first We'll Joe this to morning Greff

Joseph Greff

Michele, these Are you. call be particularly a more date developers developer would anything pursuit brand-specific pause you that some out? to buying within so about that Geoff, respect talk seeing your or the or to there that that know they would I that recent conversations you decided communicating reversed? or March whatever you you frequently. And with your of conversion-specific an after to development the conversations and you are I of to XX, hear from had them, you stop have acceleration seen, has community you pivot Choice may is with to love may

And growth question X%, And you're is, end target just my your the now to closer last me. start of year really respect pick kind it midpoint? with net the this rooms up that that's is to the follow-up for the maybe to fair and to think versus and accelerate higher of topic for all

Geoffrey Ballotti

Absolutely. Yes. Thanks, Joe.

are We in development less lot uncertainty there a seeing the out community.

to talking obviously, daily. franchisees, our are We

quarter on off. question your teams great think, had was I the question Our successes, last first

a than largest fourth did quarter are committing this we've first of better had, agreed of to to up sign. better, system certainly, ago. record terms who month. going a since who have with conversions But WaterWalk your of been with years uncertain there's full that dozen openings. year the in owners public did X noise example our on last want I wind had we the could of no deals dissipating, that those us, we again, the to Choice In And to not think openings quarter, question And quarter great have deal

trend, and we're more mean, has yes, a conversations, the out was seeing certainly there both if lot the the new construction So the there, I and reversed, conversion front. signing pause, on one the activity

think, a double had over on I our the digits, really XX%, quarter but only believe not from also conversion good executions signing even openings versus and were conversion quarter, a teams standpoint over side, quarter, before were Our XX% up first They I the the room COVID. new construction up up. up back in were

tenor that we're with in the gone yes, teams away. with there of uncertainty us and -- with our are positive development out terms up so franchise And going has of there business that doing conversations really was certainly any

Joseph Greff

respect sort maybe with the end then more to reasonable growth than higher of is of net the rooms midpoint? And

Geoffrey Ballotti

we've mean, as up X.X% all I good we've on really to room now we're believe growth right with first look, a firing just X% Sure, to you've taken net and quarter finished feeling -- seen, about the and to X% X% X% cylinders. we're our

improved XX had I believe moved, to few from domestically, the since The course, retention domestically this just room over our making years progress. and quarter, our our moves both public, going up I mean, we're last of points. point improve of retention internationally. a and continues it XX improvement retention internationally, over And said We've always other that, that to points year-over-year. growth basis up XX% a we've we point, retention is basis and XX%, piece and net a retention, of was -- great moving our

confidence our X.X%, highest to that's to X% quarter higher. move that quarter net growth to ever, X% increased been to continue the X% target that us at gives So to number first room with X%

Operator

David next Jefferies. to now of go Katz We

David Katz

further. a to to I subject just bit go Pursuant little wanted NUG, the of

deals? kinds understanding be it just seeing and about of those that just more been in kinds the announcement give because more some Should of intensity your seems environment NUG those things seeing And generally? seeing bit us more of trend. deals. it One where affiliate to more exemplifies about we've of the think of revenue the I a an we you the deals type industry we're deal of of than Can included we yourselves little talk be

Geoffrey Ballotti

upscale our I think and this be what be talk comes to if continue midscale, but mean, we'll I openings segment, like brands Sure. you David, in our our RevPAR at in midscale the pipeline, you more I look about midscale, mean, look quarter, it at always you above higher second. XX%. see, a in when to is quarter, up they upscale, which the it WaterWalk, to I'll if segments, leading and economy opens the were first upper weighted

that midscale Our terms reflected our but intense certainly was fee ability royalty of fee in our IP, It attached pipeline up. you're above And to teams which what selling was a higher that our fee, PAR in segments, that we've out revenue-intense in year-over-year segment. them, are laid have of executions pipeline, revenue and they in as more to drive seeing higher higher in royalty not a the XX% terms our only also in more up have has executions. gone

that who conversion experienced Jack hotels DeBore, I with the a about. guys call with led we're MGM IHG was very is dozen and by Suites script. straight of terms more he relationship and just many and of great have the who These and the think franchise markets Mrha, some intense revenue that's of Jim that XX-year a granddaughter very of Marriott talked pedigree. brand segments Strawn, WaterWalk, the really in Jim Summerfield Jim of very a upscale veteran Anhut It's Candlewood founder Residence the a strong on run great great group in in veteran, -- the built very, we Inn about know President WoodSpring. a late upscale excited developers. motivated by It's really and this In with a agreement XX-year

those IP, of X Boise, most the out Matt's last I of out the you which revenue-intense which just star of WaterWalk on hotels, Wyndham of reviews mean, see online the you if cover you received look by one a night, of at which review picture XX put sites.

we is and owners brands complement pipeline stay conversion extended It's older us of for PIP talking teams this both and extended expect not our product. have upscale stay -- opportunities our economy and a build upscale and midscale are construction requirements. to X to great a that conversion for Gen out new to but facing It So new does one. there today,

supply is building. demand extended and Our stay underserved is

this sales more And of a sell that stay brand our teams absolutely. adds there aggressively. are do, it we extended had sell So grow us upscale, to to like will for point And question, that there to franchise brand an us final your previously. look to haven't out for deals

David Katz

the Or there back in maybe should degree follow-up, commentary of just, setting We're was year? high prepare a your that with things some of in the of potential as keep that just always, Xx mean that part the So right, just this about for leverage. we obviously, reaching the that are mind of boundaries? to going ourselves Michele, offing listening scrutiny. some remainder Does and

Michele Allen

be the we've invest delighted respect always that allocation toward made in include pipeline I would that organic think to a our room and with setting capital priority, this floor share our growth, maybe But can is a some with ceiling said for future our business growth opportunities, first through M&A. to or boundaries, and for David. objectives net we've repurchases, it's and growth inorganic and quarter. progress We're

revenue-accretive And so to secure and some our strategy great long-term we're agreement. is franchise able working, really

that think example us executing strategy. is on good I WaterWalk a of

and opportunities. and million, I the and those the of depending gives authorized share which share million go so would think in us is we Board trading And that when go we a the that and other $XXX I we repurchase, above the then another above believe investment of do undervalued investment to would $XXX going why the only opportunity, is recently million which thing current that the ability represents upon repurchase, about minimum potentially But $XXX compelling probably say then availability could is we're to think about $XXX levels, our probably stock million. beyond significantly that the a at actionability

Operator

We'll go Asad, now to Bank America. Dany next of

Dany Asad

prepared your where of sense for you finishing guys geographies occupancy maybe just remarks, or us XXXX. remaining at they the out domestic In points, coming are from, Can XX a whether you XX% help called get it's segments?

Michele Allen

remaining of to we occupancy points in midweek, really Asia We United see index are then over the which XX today. just both States it to in the U.S. China going The come in also levels. regions, of all from Southeast the and and but XXXX Pac, the continue in below not weekend Asia

So across think occupancy. to we the opportunity really improve that globe there's

forecast you'll see RevPAR the to to particular any pick one think point specific up don't assumes we're I year of of occupancy. rest going region. it's that another think I the

Dany Asad

Got it.

just then level. a bit maybe And a as follow-up, Okay. higher little

you've we in footprint Just is or it rooms But looking guided domestically, years back what you growth growth that in out at higher-end to. have range than XXXX, less time, your from X% parse you incremental go chain same to growing lot XX% back your unit we And did about the XX% at then. economy your growth, where X% scales. it's XXXX, quite accelerated and a to looked that looks coming like when over we're the rooms like you're of right nicely,

scales? perspective, this understand Wyndham actively whether maybe dynamic, a higher this is can help chain into from So pushing what's you you'd and driving consider strategy just us whether this

Geoffrey Ballotti

higher-chain as say Yes, we segment. I said to are certainly on question. actively, the But into the always scales, pushing would we will Dany, economy be looking in previous lead I

the the in new economy use. And of experienced, question, where Now to before back second are part are highest non-hotel I the units. That for the went system majority add part question why older, quarter, this still XXXX, from that exits to economy X/X of lower-quality economy we We point, in rate declined, the leaving? your public. were say coming that they of despite supply since into would first your your limited of our segment, economy why terms

our rate than proposition Our hundred economy additions owner STR our franchisees. with was We I several first in had X%. value the at XX% economy retention lower economy. resonating is over points certainly retention think in space And the rate, basis retention rate gross

that transaction domestically that growth So we're with with ECHO. room continues we're for pleased the above been the which, focus with X% will the pleased improve. Certainly, we've increase retention in pleased to economy we'll volumes question, net And potential yes, midscale We're economy the rate on. continue to to our really and the seeing. segments, us your

Operator

We next go now Bellisario Michael of to Baird.

Michael Bellisario

secondarily, opening you actually I going notes. but in the deals flow then question, what focus in putting help or investments? we money net can cash statement, the understand are but first dollars the And money unit development door us key maybe see out go back to signed into. help understand to the either percentage my Just on of growth, that are targeting those are Maybe advanced you're want us on returns what the

Michele Allen

XX% still are the our then, of our starting were And we category. chain the moving see quarter that deals RevPAR we return door as From cost Good always are ECHO morning. and rates of of is funding to well funded capital, also a are that we this just about our in in course, higher over and underwriting that hurdle in go Geoff talked excess some well. scales of perspective, out into process. the of targeting the of part

might working. I'd and say thrilled present opportunities made the penetrate scale tied there percentage is isn't chain that we've specific I markets money with necessarily RevPAR we're key participate of a Was And question, amount I those a think themselves. the using when that key second money to to and into upper the deals. progress missed in of it. part they We're of to happy higher strategy to have So

Michael Bellisario

maybe or or better guess, of signed has it you're prior either the question percentage much that stepped I how hasn't? money up years versus The into, is, deals it opening putting maybe

Michele Allen

No, I think it actually has.

As RevPAR and of in those higher openings into higher chain the system and RevPAR are coming our -- higher markets. a additions greater scales that portion

more participate perspective. those represent to better We are from fields underwriting an and just willing able in from returns -- to because they participate

Michael Bellisario

it. that is incremental capital are And other buyback? manage capital buybacks lines expense front, spending interest my the same buyback, but Got to the on that better? sources those there to what source what follow-up then Is or is are sources? the could for of of Or on it really the the credit fund the Understood. line just borrowings use you of on

Michele Allen

of No, most it come this year. leverage I capacity think will through

Operator

now Scholes Truist. next go of We to Patrick

Charles Scholes

the the to C stock and when yourselves think is I is is I as the it missing as valuation hear question your corps first multiples be been, I'd multiple, looks are at on about certainly, valuation about where on ever as ever and look most What it's as you it's thoughts My spread the been. like do the on cheap trading, that. of here? wide to between investors look

Geoffrey Ballotti

Yes, question a it's happened ago. And we ourselves day. to I mean what's every years it's with we we're public a great X question, ask since excited really Patrick. us went

investors deals and We've hotels a sold exited us terms there, we all we're us everyone I do. way wanted now wanted investors to are out our managed the -- do. to of us pure play. We've had, hotels. now think growing sold else we're as completely the own at HMA We've guarantee see looking that in we've versus of our see have

you We've It's to deck, an quarters And XX% So us EBITDA. to margin out And continue EBITDA to continue beating see as been we need we I been adjusted the as pipeline we've the went to deliver. see got to in grown investors hotels. and we've consecutive nearly consensus EPS deliver doing. there. since think X,XXX public, XX want industry-leading pipeline

billion hotels to returned believe, I need of more our tell shareholders we story return. We've XXX company shareholder than other rooms. to and to continue public $X execute. last capital opened any We year, to and about with our So over XX,XXX continue openings

a rooms and continuing opportunity beginning is there might believe that deliver day to on environment, our that show doing to what we of add, continuing to with hear every While we're need we're there, which macro ancillary continue there keep everything concern on to the just the we growing investors doing, happy retention and revenue-accretive to improve that on. weighing is terms our out in really that rates. And we're be side, out retention business, there doing certainly and we us, need we huge on to we're fee to to continue pipeline, RevPAR the on

You payout to to think saw began we investors show capital accretive disciplined that and it in I in launches are now that the allocation we we've we comes brand this WaterWalk to doing, -- cash as see and a pay dividend Vienna need as finally, XXs return out very And quarter. seeding excess and like shareholders. been House to you of to continue deals rate ECHO when such the terms to continue that new

Charles Scholes

a would had we've be might in you Okay. do years. that folks think number have Day. from something one to think be -- you don't helpful I a of I Investor big in

So that's my unsolicited opinion might of help. that something

better my Is folks follow-up anything executive in be there on you at point? to team you this think Moving doing question. could the management

Geoffrey Ballotti

I we're we investors measure improve Patrick. that comes better our continually have I been thing we think one shareholders mean, it to is that to point, day, every engagement learned with that when to that your always communications members, to that our higher. -- has of need certainly, the a we was continue and about is could we now right months, our certainly with to that. on us think level XX feeling XX one communication thing never last mean, franchisee our more rates, with last with team that these I our we and I that's The think franchisees. work Well, best retention and proven is the everyone. that months Throughout the

Operator

Montour now next Barclays. go to Brandt of We

Brandt Montour

for from and infrastructure that that the Or in business business of did lift you're you on looking implied what segment. the got that confidence? in then spend just this you you kind year of are think the us in of already the rest segment? And XQ? XQ your or delta is what your of specific booked? this piece you lift that Or from a the the sense what you this that sort around So dynamics Can business, when you that just there visibility gives for -- of broadly give

Geoffrey Ballotti

only the the the federal spend $XXX of allocations mostly and been our investor company's to in doing launched And in that billion discounts hit we've projects without been Business government in at of instantly last will visibility that since incremental needs, uptick for ground. But nearly projects, year a Wyndham of spent in RFP able to from providing in hotels. And allowing road in those and immediately planners of in great XX% increase a think infrastructure that think the shovels track leads have has doubled, when mean, presentation It question, trillion investing projects. an we're uptick the revenues seen book a slide from from Brandt, but that lead There's of our around and contract week, airport to manage terms an or haven't been that. pace XX% travel the XX% to a double-digit states, have you help accounts. that of new bill. visibility. we is big one it's we franchisees. fraction capabilities, franchised a seen XX% our $X.X seeing standpoint. and we Last I and help our applications about We've we increase that those And to to needing everything train bridge we're

underway. put there. say to believe, we've I'd into, maybe stop We there tremendous royalty think out thing. once million those projects I finally, I'd what for quarters this means will in about So we think $X we a one think is get translate of out us the of it Well, revenues us for amount us ahead. potential there Michele, year. And it

there also opportunity driving from or that a in center power booms data to I back. gas and growth think you I Brandt, believe build-outs out the markets. oil when EV electrification an see mean America, is nation's is coming AI charging that or the we of gas natural is are stations starting we're the pickup that think about, demand

largest year And nation's a Super oil large has Hawthorn his Suites Microtel of steady of Xs seeing coming the is had think, I was of back. year chance digits. lot about those ADR He lot Alaska our last CEO excited West there some in Louisiana, similarly. about. last in up he's a and properties, a talk still Virginia. pickup optimistic. our and increasingly parking Virginia gas is states. He's gas that but in at West oil occupancy X% of did lot. night, very who the over said to states up, well owners states that in of look of they're seeing not trucks yet, I slowly was double and perform back to some And one are and prior when we above up

So as we're in well. with addition oil markets, positioned positioned as looking our a of in feeling infrastructure, well over very ahead, system that to XX% also tailwind gas to and capture comeback

Brandt Montour

are Okay. of you gives you strong year-over-year macro That's a seeing you. point the big I the a calendar then the domestic and consumer all period for at the what this other that from kind this middle-income of side a period got we and lower you leisure how look guess sort for travel great. summer? we're gearing of And of travel summer. to in indicators think What or heading maybe on for of side, I is away you light things, of but do consumer, That's the the could to sense that sense generally comps, end up easing on in of sort we're leisure the good what the

Geoffrey Ballotti

Patrick's levels. Their back what's guest guest. It's middle-income employed, concern in stocks we're consumer back that earlier in are Sure. stable of weighing up, terms -- is levels deposit their are look they're on and obviously prices our Kind higher look more and they're that, It's at both to their in that what But of and confidence. their their up, shape. That's savings. is that stock. -- home wages middle we are growing. seeing of We question than they good income at pre-COVID were

rates look where up we last hundred they to significantly to from continuing of of at report, up. length and it Memorial consumer versus are at they insight X% preference stay, to before XX% to lengths to, XX similarly like trends XX are are and people the We our out XX% steady we to look windows, XX% daily, to think demand will year vacation which continues you But May. drive #X things and summer. March looking from along, is of close up basis chug points to this than be about longer We at I this by Cancellation driving Day into If monthly to March. our last further to pre-COVID. they continue And now. of were and are weekend slowed. is think continue were see a tick about windows we talked to from booking domestic Booking stay couple our the days look sentiment

Operator

We'll go Morgan of Stanley. next now to Grambling Stephen

Stephen Grambling

one I unit how pipeline growth translates is up questions and get we fees. feedback. shareholder on just area guess the following to guess net I on

the how and launches existing brand the on has pipeline the rates help pipeline the you about of the especially looking provide some few the years? RevPAR or color new evolved some the at midscale for to and Can think give growth did as past So over on base, stats you royalty quantify pipeline, in the above. compares and how we

Michele Allen

sure. Yes,

If you premium royalty now that we're existing a we're specifically focus XX% on for there, development than RevPAR the our growing least royalty right not an the the above higher average PAR system. that bringing driving focus of think our basis on premium that about hotels in at a our in increasing than more of and those carries and into as our to higher points to And double-clicking we our average seeing XX% higher segment, system. RevPAR objective current revenue-accretive our just system direct deals, and towards see international existing excess it's is And midscale domestic system. on pipeline rate X rooms, we it rate franchising royalty rates we U.S. compared and fee current in XX% this But internationally business. our see are compared

Stephen Grambling

nailed it. I think that

Operator

Steve Pizzella Deutsche go We to Bank. now of next

Steven Pizzella

limited STR, to moving context share was should of for March think that forward? service, decelerating think especially implying noted you. the impressive, pretty that driving from gains RevPAR how The do in some March, we RevPAR you improvement about for And February What you? February is to

Geoffrey Ballotti

March. up Yes. into that We really see did, pick Steven,

well I points so and of focused. think share of saw ramped business over our XXX in back basis up, is as much leisure March we leisure gain

I whose think per and out, travelers corporate us. try also government they're we're to been tapped seeing beginning diems have

there's standpoint. continue have brands side, there brands, to our from outperformed pressure the always think do our overindex Our lodging any to could large when share and continue on a we it. market we segments broader the certainly, out macro And brands,

Wyndham of Days Quinta Our Hawthorn share, and most brands, fair our well. X,, and as very well Inn marketing large Suites, and all side. filing. XXX% April over the again, With by jumped proud our La Inn, in teams Rewards XXX% doing. team Microtel Days ADD, great -- recent the work we're it's with being the share great are market has our driven Inn from doing really all on latest fair Days And work Super to the

it Our of where domestically XXX I pre-COVID. share -- points versus over think it's grow. occupancy to up basis was It's continues up

to to continue put look share, And to competitive, that we drive further as on certainly teams frequently our could that base promote allows get and arrival continue the out. into grow looking date books rate business business as more can what we're business, ADR infrastructure on so that becoming And that's and that for we're contracted to to to the see. that going weekends. franchisees sales often on closer And in, as as beginning global to to

Steven Pizzella

how were And ancillary fairly that just revenue? how moving is the margins the ex of the the from expenses? much in we some think then are And about higher And pivoting Okay. core margin year-over-year How spend much of from margins. marketing quarter. operating should margin to The strong forward? goals

Michele Allen

to X/X you'll think I but to I top my have back about -- from think confirm, the go it's ancillary the about the and X/X off maybe from it's Matt, side. and head, cost of

Matt Capuzzi

sounds that right. about Yes,

Michele Allen

year-over-year -- do be pretty expecting are to margins basis. on are we a year we comparable We -- and full yes,

Operator

now of go Ian next to Oppenheimer. Zaffino We'll

Isaac Sellhausen

Sellhausen Isaac for This is on Ian.

if us between you Just uplift maybe infrastructure impacts. big on split Could you to the bridge a occupancy. more occupancy specifically, help can the but X% levels. a XXXX sounds out to I'm understand and opportunity gap it ADR obviously follow-up X% broadly not there's like is to break sure how the

Geoffrey Ballotti

We more tremendous occupancy than rate. so see Absolutely.

the got as of we XX%. biggest our rate issues pricing One out there our in rate, our prepared said that pressure, with up we've is remarks,

to and albeit the not when an base educating only that, to with infrastructure sure bring much that a working our We so I our RFP, they're average that make important, sales them franchisees are is account, responding one global but that longer daily a about teams at that that sales, of lower field they're rate. just talked realizing length business of stay immediately

Isaac Sellhausen

Okay, to understood. And on at what's well? open for line maybe up? as time then first a locations And WaterWalk conversions suites quick follow-up ECHO Stay. the expect we the Extended When should

Geoffrey Ballotti

all this they're South should who my we'll across from But be you other guess our and states -- local country. Spartanburg, shows way It's we developers my soon nearing it grand dozen from hotels development. X another summer. the receives the attend. inspection and Carolina of the that have active the XX great to and a would are racing nearly It's guess, be well, the Developers ask question certainly have each occupancy. construction offices our Texas of all time. country that opening that, a all a across be XX should their the first half sites under a going dozen be to Texas We flip in Plano, Sure. up if presentation, to in opening investor certificate to is dozen completion of the Florida now of Slide sometime

our this franchise build. is and And Business of going is be will platforms beginning looking think for construction them that direct announced that But WaterWalk, just doing to I new them right shifting bringing mix more timing, of excited it we're to operating conversion to and Wyndham and our everything of sales team As more margins. about distribution forward. to said, very pipeline I we've and getting in terms just now deal, they're to that a mix on terms as drive in a

Operator

go of Brignall Atlantic. next Alex We'll now Redburn to

Alex Brignall

been negative, is was on RevPAR. of the to, number QX your the It's year-on-year obviously, question XXXX lowest broader the comps own based everybody. referring XXXX. number kind to you're versus one I've that And the to putting In it's highest. in basis a it harder. But the Europe of it's disclosure, those QX XXXX not to first The on 'XX in the that's But Europe, -- the beginning was HX points got in numbers versus when in comp, all U.K. in XXX international. versus XXXX year-on-year all because U.S., we're of particularly In see terms harder turn it's about obviously XXXX.

XXXX just that trying versus rather how comp year-on-year you're about. about terms you the to talked reconcile So that number I'm than versus thinking of in

Geoffrey Ballotti

in I'll overall, you, But Michele we year-on-year were really into just Alex. happened Thank pleased what let comps. Europe. dive the with

for saw of All is because saw which the U.K. of tailwind of our then countries But mentioned talk growth. to just a year-on-year for base the positive question, with largest we us. year-on-year. Germany, single-digit you sort low both think, I occupancy the, both U.K., have XXXX. and and rate was And I'll we let's moment year-on-year still the get to

digit when as the double versus and from rate. and to think And international Spain growth XXXX. XX%, for was deck opportunity the this I flat. from we XX% Turkey I QX we Occupancy points the think in X% the saw look QX still that back up was But we year digit. U.K. I to in were is an the is QX X of year-on-year, to accelerated I point double tailwind versus for -- it was XXXX, X mean about occupancy was from XXXX. -- probably rest in was for well believe

and capture carriers solid are and the banner a optimistic. forecasting And Tour really important in our pickup So summer over points world, contracted seeing of corporate occupancy across there. to obviously, for of high. a overseas are We're MICE there internationally. sharp seeing And us. very very uptick. all a are are low-cost tailwind European record XX regions operators a is Europe

I team we in But if to opportunity and Asia. European add there to anything encouraged know we that? is don't do you Michele, our So see want as

Michele Allen

Yes. That was great, Geoff.

power. not of a most international occupancy think occupancy. recovery in I pricing Asia we've in add in versus the We EMEA, recovery ADR Pacific, long most the and I growth the seen QX only regions. thing the in is It's still of runway have XXXX it's of is the would in

from what that's we're really in So on focused international. recovery a standpoint

Alex Brignall

then And follow-up. a just Fantastic. Okay.

that way people. being strength wasn't signings peers. of and attribute the held phenomenal you it the have you you performance causing. Or through You is hiatus that, your market of share taking COVID, all own in than other think whilst stronger? much Do some better after that largely of with the seems that's And continued you back performance dealing been that your kind your would that the some back it maybe QX to were had had

Geoffrey Ballotti

both look we new it it it's was latter, with been Hawthorn back and our suites. developers. new mean paused, that out all well they those -- are -- have our hiatus new have more dual are there, been prototypes I that La brand, that up. Alex. our at from Microtel, uncertainty at Sure. any and really And any a been I'd you say of the construction -- of I performing we've our standpoint, that ECHO ways having Quintas, conversations Quinta our construction look but a La conversion picking may

the I reflected certainly can't the room and and back delivering we're in doing we you're to, of all value conversion And Our new up believe, continuing it well construction just in steel because reason share, way versus, owner first pipeline keep seeing pre-COVID. executions -- XX% no said, there's were as our that. we signings in perform have proposition

Operator

from next Dan of Morningstar. now our take question We'll Wasiolek

Dan Wasiolek

about this, closing thinking and about inflation of this with You kind occupancy that recovery beyond that can gap year? you How looking I in talked that, of of tailwind the are still just potential but ADR guess, have. already you relation kind guys to that

couple-year tailwind the forward we this an growth few years after this a for type mean, to and recession growth for potential can you're the to, RevPAR look of that? maintaining next year expecting I of kind that is barring economic

Michele Allen

Yes.

the is for especially think it the of and higher. multiyear you inflation. a to demand absent recovery, know ADR periods increasing when there to side, push growth, it's the I that think we particularly room at I ability is I compared look on of would the occupancy that there still during say occupancy rate recovery, rate

it both in as the ADR multiyear globe. So we see a recovery and occupancy across

Operator

go Meredith now Jensen to HSBC. of next We

Meredith Prichard Jensen

of might the in given kind questions interested new for kind can Wyndham from and was differ I the what metrics what your importance Yes. we that platform And kind to ask to progress going of of small groups of how existed of and Business or the overall forward prior? track business? the businesses what

Geoffrey Ballotti

Sure. and we've and to those hotels lot easier I the look we of to are on, and doubled, midscale number there since discounts, Well, forward travel looking out we're as pace needs further Meredith, to country. applications launched companies just our want drive planners select continue has the week and had we make And booking our their weekly I million the it book. going economy companies to infrastructure helping to it it manage applications for are a help you of the obviously, it. this business focus providing adding metric the but have that think We've members signed. a these at are and a will that pace across being service And ago, said X.X

multiple think days. that roll book been done is make more it we've Business. with out is without We've Wyndham We've the about by talked that about with looking team technology within our So, we'll hotels it And markets investing of X,XXX sell of to in they've is to is technology to standpoint contract hotels easier sales RFP are new our team like do to our last call, been in on projects it because increased that those. this business over early we to this to miles team identified, that's really sales from really allows a them continue heavily of excited us. increasing continue capabilities. something and XX%, I the one lot markets to just again, We've to our XX and having those a

and While with sure to yet that XX% has not spent us. make spend, been it's been allocated it's of we spent, want

Meredith Prichard Jensen

and Super. if missed One before. I apologies quick, that last

discuss there and what you're also the up If kind you could the of occupancy engagement differential maybe kind If program take of or kind the the a there's in seeing? of brands. and loyalty internationally between

Geoffrey Ballotti

Sure.

occupancy, the share talked Meredith, go-to-market Our think, and points, share up sales is It's our of it. it, our basis higher was high that level you franchisees. for internationally. X of miss occupancy over one United States X important didn't our is don't which of really about I I we But touched XXX our of proposition check-ins team than Roughly franchise biggest it every that of out America. has. is domestically are offers it And across value

it's opportunity to But grow. their share for Overseas, higher. faster, it points. in asking lower. is growing an and Here It's be continue occupancy this has to growing country, loyalty of we'll overseas, that

X. I roughly X think is domestically our occupancy overall of of share out

really a to fee they're creative opportunities become push we're I think a more XX% I somewhere like work our bullish. ancillary team The on in We platform, marketing we've awareness And our things doing marketing are of I a continue lot there, a very is over could we occupancy. share the approaching countries about higher. grow. Wyndham that marketing global teams of that China, continues targeted. think lot And China over from standpoint, mean, doing basis, of with there. mean, to digital

Operator

from And follow-up question. a our Scholes Truist final of with question will Patrick come today

Charles Scholes

Great.

phenomenal. how Certainly, were America, RevPAR the XX% that's by quarterly results, on numbers question bit regarding you all give little Just more color there? Certainly, a in did caught international. here you us surprise. a your Latin us specifically follow-up Can

Geoffrey Ballotti

It's a it about there. good of down all question, know Patrick. Most Argentina, the is and hyperinflation you

Argentina, back -- a in Latin at and quarter. our great Argentina X% had out by roughly America you If that was RevPAR driven came obviously,

We in Peru. in good had market the for important -- of but it. good bulk have had results We an us, that was results Brazil. it's We

Charles Scholes

then overall you the than market. And here, lastly did significantly that? What China better Okay. drove on

Geoffrey Ballotti

being is Sure. travel. Obviously, I the Yes, capacity We're load part China you is part a way China our Meredith, But seeing very, the as the peers, fly you team, consciousness, in said more of bullish. could of -- Flight of factor not believe to our before. it. team talked again, about cost our also just able terms domestic to is very of -- it. some

February strong to pickup And If the continue domestic more year, believe at to I of travel it of the stay opting period, saw Chinese Year rest think I New really year. this they're was the days. We travel. home, that think throughout will over especially a Chinese the you X that for patterns was look closer XX, we

our Wyndham and X terms X where well of we're probably are big cities, big X Tier doing it's very, in. Wyndhams, outpacing cities and the are In very brands happening, Tier our

Operator

sir, At this Mr. closing time, Ballotti, I'd you, comments. things any hand to for back like to

Geoffrey Ballotti

you, be interest in forward Michele, Matt and everybody, investor of & seeing Resorts. to many of to Have your Wyndham and great attending. talking Thank right. a for day. we'll hopefully I and thanks, conferences Hotels ahead you months look at many and weeks the in your and questions upcoming the All

Operator

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

Wyndham Hotels & Resorts (WH) 25 Apr 242024 Q1 Earnings call transcript