The following is a summary of the Wyndham Hotels & Resorts, Inc. (WH) Q1 2024 Earnings Call Transcript:
Financial Performance:
Wyndham Hotels & Resorts reported Q1 fee-related and other revenues of $304 million and adjusted EBITDA of $141 million.
Adjusted EBITDA grew 3% on a comparable basis and the adjusted EBITDA margin improved to 83%.
An increase of 8% in ancillary revenue streams was registered, driven by higher license fees and credit card revenues.
The company achieved a net leverage ratio of 3.4 times and plans to finish the year at a ratio of at least 3.5 times, providing over $400 million of capital available for share repurchases this year.
Earnings per share were upwardly adjusted by $0.07 to a range of $4.18 to $4.30 to account for Q1 share repurchase activity.
Business Progress:
Wyndham opened over 13,000 rooms globally, a 27% increase from last year, marking their largest first quarter of room openings since going public nearly six years ago.
The development pipeline grew by 8% to record 243,000 rooms. Mid-scale and above brands in the pipeline increased by 4% to a record 168,000 rooms, nearly 70% of the pipeline.
The company added 11 hotel conversions under the newly created WaterWalk Extended Stay by Wyndham brand in key US markets.
Net rooms rose by 1% sequentially and by 8% versus prior year internationally with significant growth in Latin America and EMEA.
The company launched Wyndham Business to streamline the direct booking process for businesses and travel planners.
The company is expecting a lift from the infrastructure sector in the coming quarters due to rising interest and recent federal government allocations.
The first ECHO Suites locations are expected to open during summer, with multiple sites being developed across different states.
The company reported significantly better results in China due to increased domestic travel, despite limitations with flight capacity.
More details: Wyndham Hotels & Resorts IR
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