Wyndham Hotels & Resorts NYSE: WH reported what executives described as a strong second quarter of 2026, citing record room openings, improving U.S. RevPAR trends and continued growth in ancillary revenue, while also raising parts of its full-year outlook.
Chief Executive Officer Geoff Ballotti said the company opened nearly 18,000 rooms during the quarter, a second-quarter record and 7% more than the prior year. Wyndham also expanded its development pipeline for the 24th consecutive quarter to approximately 261,000 rooms across more than 60 countries.
“We’re very pleased to report another strong quarter,” Ballotti said, adding that the pipeline carries a FeePAR premium of approximately 30% compared with Wyndham’s existing domestic and international systems.
Ballotti also opened the call by thanking investors and analysts who had wished him well during his treatment for multiple myeloma. He said he is receiving care, staying active with work and is “very optimistic about the treatment path ahead.”
U.S. RevPAR Improves as Domestic Demand Strengthens
Wyndham said U.S. RevPAR rose 2% in the second quarter, which was 120 basis points ahead of the company’s expectations. Ballotti said domestic RevPAR improved by more than 200 basis points sequentially from the first quarter, driven by both demand and rate. Domestic demand rose 60 basis points, while average daily rate increased 160 basis points.
Performance improved notably in Wyndham’s three largest states — Texas, California and Florida — which together account for one-quarter of the company’s U.S. room count. Ballotti said those states improved from a 3% RevPAR decline in the first quarter to 4% growth in the second quarter.
The company also cited strength in the industrial Midwest, including RevPAR gains of 10% in Illinois and Indiana, 9% in Iowa, 7% in Wisconsin and 6% in Ohio. Ballotti said infrastructure-related demand is supporting midweek occupancy, with hotels benefiting from transportation, artificial intelligence, data center and industrial projects.
During the Q&A portion of the call, Ballotti said Wyndham believes domestic demand trends are sustainable. He pointed to improving cancellation rates, steady booking lead times of about 15 days, longer average stays and continued drive-to leisure demand. He also cited expected tax refund-related spending and ongoing infrastructure and oil-and-gas-related business demand.
International RevPAR Pressured by Middle East, Germany and Mexico
Global RevPAR was down 1% in constant currency, while international RevPAR declined 6% during the second quarter. Ballotti said Canada increased 2%, and Southeast Asia and the Pacific Rim grew 5%, led by Vietnam, Thailand and New Zealand.
However, EMEA RevPAR declined 6%. Ballotti said strength in Turkey and India was more than offset by softness in the Middle East, where RevPAR fell 45% in the quarter, and by underperformance in Germany tied to the Revo portfolio as it moved through insolvency.
Latin America RevPAR declined 7%, pressured by lower U.S. inbound travel to Mexico. Excluding Mexico, Ballotti said the region was flat. In China, Wyndham’s RevPAR was flat sequentially but down 5% from the second quarter of 2025, even as the broader industry in China saw a 400-basis-point sequential decline.
In response to an analyst question about Europe, Ballotti said that excluding the Middle East and Revo, EMEA RevPAR was up 5%, with Spain up 26%, Turkey up 16%, India up 11% and Africa up 11% during the quarter. He also said July RevPAR in Mexico was running up 5% month to date, driven largely by rate.
Revenue Declines, But Comparable EBITDA and EPS Rise
Chief Financial Officer Amit Sripathi said Wyndham generated $375 million of net revenues and $212 million of adjusted EBITDA in the second quarter. Net revenues declined 6% year-over-year, primarily due to the absence of pass-through revenue from the company’s May 2025 global franchisee conference, lower other franchise fees and deferred fees from Revo.
Those factors were partially offset by higher ancillary revenues, EBITDA-neutral revenue from two Revo hotels the company has taken possession of, and a larger global system. Sripathi said ancillary revenues grew 12% year-to-date, driven by higher credit card and partnership fees, and Wyndham continues to expect low- to mid-teens ancillary revenue growth for the full year.
On a comparable basis, adjusted EBITDA increased 3%, reflecting lower general and administrative expenses, higher ancillary revenues and timing benefits, partially offset by lower other franchise fees and Revo-related fee deferrals. Sripathi said second-quarter G&A favorability was largely timing-related and is expected to reverse in the second half.
Adjusted diluted earnings per share were $1.48, up 3% on a comparable basis. Wyndham generated $105 million of free cash flow in the second quarter and $169 million year-to-date.
Capital Returns and Outlook Raised
Wyndham returned $86 million to shareholders during the quarter, including $54 million through share repurchases and $32 million through common stock dividends. Year-to-date, the company has repurchased 1.3 million shares for $105 million. Sripathi said Wyndham ended the quarter with approximately $1 billion in total liquidity and a net leverage ratio of 3.5 times, at the midpoint of its target range.
The company raised its global RevPAR outlook to flat to up 1%, increasing the low end of the range by 100 basis points. Wyndham also updated its assumption for U.S. RevPAR growth in the second half to up 2%, from flat previously. Sripathi said the second-half domestic RevPAR outlook is expected to be about two-thirds rate-driven and one-third occupancy-driven.
Wyndham maintained its net room growth outlook of 4% to 4.5%, excluding Revo. Sripathi said the Revo insolvency process is nearing conclusion, and Wyndham expects to retain a subset of the related rooms, while the majority of the portfolio is expected to terminate during the third and fourth quarters.
Net revenues are now expected to be between $1.48 billion and $1.5 billion, with the bottom end raised by $10 million. Adjusted EBITDA is expected to be $735 million to $745 million, with the bottom end raised by $5 million. Adjusted net income is projected at $355 million to $365 million, and adjusted diluted EPS is projected at $4.71 to $4.83.
Loyalty, AI and Development Remain Key Growth Priorities
Ballotti said Wyndham Rewards membership grew 9% year-over-year to more than 126 million members, with the program contributing more than one out of every two domestic check-ins. He also noted that U.S. News & World Report again named Wyndham Rewards the No. 1 hotel rewards program.
The company plans to expand Wyndham Rewards from three to four award tiers in September. Free nights will start at 5,000 points, down from 7,500 points previously, while a select group of aspirational hotels will move to a new 45,000-point tier. Ballotti said the program will retain its fixed redemption structure with no dynamic pricing.
Wyndham also highlighted its AI-related initiatives. Ballotti said Wyndham Connect, an AI-enabled guest engagement platform, is installed at more than 5,000 hotels and is being rolled out internationally. He said Wyndham AI Concierge, a premium add-on, is live in 1,500 hotels and is designed to handle direct-to-hotel voice, messaging and SMS interactions while booking reservations autonomously.
On development, Ballotti said Wyndham is focused on replacing lower-quality, lower-FeePAR rooms with higher-quality, higher-FeePAR rooms. He said retention was 95% globally on a rolling 12-month basis and that the company remains focused on moving retention toward 96% domestically and internationally.
About Wyndham Hotels & Resorts (NYSE:WH)
Wyndham Hotels & Resorts, Inc NYSE: WH is a leading global hospitality company specializing in hotel franchising and management. Established in 2018 through the spin-off of Wyndham Hotel Group from Wyndham Worldwide, the company focuses on the development, marketing and distribution of hotel brands designed to meet the needs of business and leisure travelers. Its core business model centers on franchising agreements, enabling third-party hotel owners to operate under the Wyndham portfolio while accessing the company's centralized services and support.
The company's brand portfolio spans economy, midscale and upper-midscale segments, featuring well-known names such as Wyndham, Ramada, Days Inn, Super 8, Microtel Inn & Suites, and La Quinta by Wyndham.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.
Before you consider Wyndham Hotels & Resorts, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Wyndham Hotels & Resorts wasn't on the list.
While Wyndham Hotels & Resorts currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
Tesla, Nvidia, and Google helped shape the last era of market growth, but the next wave could come from a new group of companies. Inside this report, you’ll find 7 stocks that could play a major role in the next tech-driven market boom.
Get This Free Report
