Wyndham’s third quarter was met with a negative market reaction, as revenue fell below Wall Street expectations and RevPAR (revenue per available room) continued to decline. Management attributed the softness to persistent consumer caution, especially in price-sensitive segments and key Sunbelt states. CEO Geoffrey Ballotti noted, “RevPAR declined 5% in constant currency, both globally and domestically, reflecting continued consumer caution in an uncertain economic environment, especially within the select service segments here in the United States.” Ancillary fee streams and net room growth were positive contributors, but these factors were not enough to offset the broader headwinds.
Is now the time to buy WH? Find out in our full research report (it’s free for active Edge members).
Wyndham (WH) Q3 CY2025 Highlights:
- Revenue: $382 million vs analyst estimates of $401 million (3.5% year-on-year decline, 4.7% miss)
- Adjusted EPS: $1.46 vs analyst estimates of $1.43 (2% beat)
- Adjusted EBITDA: $213 million vs analyst estimates of $210.6 million (55.8% margin, 1.1% beat)
- Management lowered its full-year Adjusted EPS guidance to $4.55 at the midpoint, a 3% decrease
- EBITDA guidance for the full year is $720 million at the midpoint, below analyst estimates of $735.1 million
- Operating Margin: 46.6%, up from 43.2% in the same quarter last year
- RevPAR: $50.05 at quarter end, down 4.8% year on year
- Market Capitalization: $5.47 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Wyndham’s Q3 Earnings Call
- Daniel Politzer (JPMorgan): Asked about structural risks in the economy segment and what management is doing to mitigate RevPAR declines; CEO Geoffrey Ballotti emphasized there are no structural concerns, citing stable booking trends and efforts to support franchisees with pricing strategies.
- Brandt Montour (Barclays): Inquired about the impact of infrastructure project delays on hotel demand; Ballotti responded that while some projects are paused, data center development and reshoring are providing offsetting demand in certain markets.
- Dany Asad (Bank of America): Sought early reads on Q4 domestic RevPAR; CFO Michele Allen said early trends in large states were slightly improved over September but cautioned against expectations of a sharp rebound.
- Steven Pizzella (Deutsche Bank): Asked about drivers of ancillary revenue growth and credit card contribution; Allen detailed multiple initiatives, including technology upgrades and international expansion, noting that the new subscription program will ramp slowly but has long-term potential.
- Elizabeth Dove (Goldman Sachs): Questioned the mix impact of high FeePAR deals versus international growth, especially China; Allen clarified that while international expansion can dilute global FeePAR, it remains accretive to overall revenue and EBITDA.
Catalysts in Upcoming Quarters
Looking ahead, our analysts will closely watch (1) whether RevPAR stabilizes or improves in key U.S. markets, (2) the pace of international net room growth and franchise pipeline additions, and (3) the adoption and revenue impact of new ancillary offerings and AI-driven technology. Execution on loyalty and brand extensions, as well as the ability to manage cost pressures, will also be critical signposts for Wyndham’s performance.
Wyndham currently trades at $72.27, down from $80.32 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free for active Edge members).
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