Wyndham Hotels' Q3 profit beats as ancillary revenue rises

Wyndham Hotels & Resorts

22/10/2025 21:41

Overview

Wyndham Q3 adjusted EPS beats analyst expectations, adjusted net income also exceeds estimates

Company system-wide rooms and development pipeline grew 4% year-over-year

Returned $101 mln to shareholders via share repurchases and dividends

Outlook

Wyndham revises full-year RevPAR growth to (3%) to (2%)

Company lowers full-year adjusted EBITDA to $715-$725 mln

Wyndham expects marketing fund expenses to exceed revenues by $5 mln in 2025

Result Drivers

SYSTEM GROWTH - Co's system size and development pipeline grew 4% year-over-year, driven by increased development contracts and focus on high-quality expansions

ANCILLARY REVENUE INCREASE - Ancillary revenues increased 18% compared to Q3 2024, contributing positively to financial results

ORGANIC ROOM OPENINGS - Record year-to-date organic room openings achieved amid challenging macroeconomic conditions, per CEO Geoff Ballotti

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Adjusted EPS
Beat
$1.46
$1.44 (11 Analysts)
Q3 EPS
$1.36
Q3 Adjusted Net Income
Beat
$112 mln
$111.70 mln (10 Analysts)
Q3 Net Income
$105 mln
Q3 Adjusted EBITDA
Miss
$213 mln
$213.50 mln (10 Analysts)

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 14 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the hotels, motels & cruise lines peer group is "buy"

Wall Street's median 12-month price target for Wyndham Hotels & Resorts Inc is $99.00, about 18.1% above its October 21 closing price of $81.13

The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 16 three months ago

Press Release: ID:nPn87nCzWa

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)