Revenue rises 7%, despite a decline in reported adjusted EBITDA
In its results published on 21 October 2026, Wyndham Hotels & Resorts reported quarterly revenue of US$410 million, compared with US$382 million a year earlier.
The 7% increase reflects higher RevPAR, hotel network development, increased franchise fees and growth in ancillary revenue.
However, reported profitability presents a more mixed picture.
| Metric | Q3 2026 | Q3 2025 | Change |
|---|---|---|---|
| Net revenue | US$410m | US$382m | +7% |
| Net income | US$99m | US$105m | -6% |
| Adjusted EBITDA | US$207m | US$213m | -3% |
| Adjusted net income | US$107m | US$112m | Approximately -4% |
| Diluted earnings per share | US$1.33 | US$1.36 | -2% |
| Adjusted diluted earnings per share | US$1.43 | US$1.46 | -2% |
The group explains that these changes were affected by fluctuations in the financial results of its marketing fund.
In the third quarter of 2025, the fund’s revenue exceeded expenditure by US$18 million, compared with just US$1 million in the third quarter of 2026.
Excluding this effect, adjusted EBITDA increased by 5% on a comparable basis, while adjusted net income rose by approximately 7%.
This distinction is essential when assessing the group’s underlying operating performance.
United States: RevPAR increases by 6%
The US market remained the principal driver of performance during the quarter.
In the United States, RevPAR reached US$58.35, representing a 6% year-on-year increase.
Growth resulted from improvements in both occupancy and average daily rate.
Wyndham reported favourable performance across most US regions, with demand remaining strong in the Midwest and improvements recorded in Texas, Florida and California.
Global RevPAR reached US$51.13, up 2% at constant exchange rates.
| Region | Q3 2026 RevPAR | Year-on-year change |
|---|---|---|
| United States | US$58.35 | +6% |
| International | US$41.79 | -3% at constant currency |
| Worldwide | US$51.13 | +2% at constant currency |
This divergence between the United States and international markets illustrates the uneven performance of the group’s geographical portfolio.
International performance weighed down by China
Outside the United States, RevPAR declined by 3% at constant exchange rates compared with the third quarter of 2025.
Nevertheless, several regions recorded positive performance.
Canada achieved growth of 7%, while Southeast Asia and the Pacific region recorded a 5% increase, supported by average room rates.
Latin America grew by 2%, notably thanks to Mexico.
The Europe, Middle East, Africa and India region also recorded 2% growth, driven by favourable performance in Türkiye, India and Spain.
By contrast, China recorded a 10% decline in RevPAR, reflecting weaker demand, particularly in secondary cities.
This underperformance was one of the main factors behind the decline in international RevPAR.
A network of 877,400 rooms, with Revo complicating comparisons
As at 30 September 2026, Wyndham operated a global network of approximately 877,400 rooms, compared with 855,400 a year earlier, representing reported growth of 3%.
Excluding properties associated with Revo Hospitality Group, which is currently insolvent, growth reached 4%.
| Network | September 2026 | September 2025 | Change |
|---|---|---|---|
| United States | 500,000 rooms | 503,400 | -1% |
| International | 377,400 rooms | 352,000 | +7% |
| Worldwide | 877,400 rooms | 855,400 | +3% |
| Worldwide excluding Revo | 864,400 rooms | 833,200 | +4% |
The situation at Revo therefore requires a distinction between reported network growth and growth on an adjusted basis.
The group indicates that its midscale and higher segments continue to grow in the United States, with room numbers in these categories increasing by 2%.
Internationally, growth excluding Revo reached 11%, supported in particular by the expansion of direct franchising in Asia-Pacific.
A record development pipeline of 264,000 rooms
Wyndham’s development pipeline has reached a new record.
At the end of September, the group reported approximately 264,000 rooms in development across more than 2,200 hotels, excluding Revo.
The pipeline increased by 4% year on year.
Its composition reveals several strategic priorities:
- 69% of rooms are in the midscale and higher segments.
- 17% are in the extended-stay segment.
- 42% are located in the United States.
- 78% are new-build projects.
- Construction has already begun on approximately 35% of new-build projects.
Wyndham also reports that the pipeline has a FeePAR approximately 30% higher than that of its existing US and international networks.
FeePAR, which measures franchise and related fees generated per available room, is a particularly relevant indicator for assessing the economic potential of a hotel franchisor’s development pipeline.
Future network growth is therefore not simply about increasing the number of rooms. It could also improve the group’s average fee revenue per room, provided the projects are completed and achieve their expected performance.
2026 guidance raised across several metrics
Following the third quarter, Wyndham has revised its full-year guidance.
| Metric | Previous guidance | Updated guidance |
|---|---|---|
| Global RevPAR growth | 0% to +1% | +0.5% to +1% |
| Adjusted EBITDA | US$735–745m | US$740–745m |
| Adjusted net income | US$355–365m | US$363–369m |
| Adjusted diluted EPS | US$4.71–4.83 | US$4.84–4.92 |
| Net revenue | US$1.48–1.50bn | Unchanged |
| Annual network growth | 4% to 4.5% | Approximately 4% |
The expected increase in adjusted EBITDA remains modest in absolute terms, but the improvement in adjusted earnings per share is more significant.
The forecasts incorporate the effects of deferred franchise and management fees associated with Revo.
Wyndham also specifies that comparable annual adjusted EBITDA growth is expected to reach approximately 6% to 7% after adjusting for the items identified in its outlook.
Share buybacks: US$123 million returned to shareholders in Q3
Wyndham also highlights its cash generation and shareholder return policy.
During the third quarter, the group generated:
- US$93 million in net operating cash flow.
- US$100 million in free cash flow.
- US$988 million in total available liquidity at the end of September.
Net debt represented 3.6 times EBITDA, within the group’s stated target range of 3 to 4 times.
During the quarter, Wyndham spent US$91 million repurchasing approximately 1.2 million shares, at an average price of US$73.39.
It also paid US$32 million in dividends, equivalent to US$0.43 per share.
In total, US$123 million was returned to shareholders during the quarter.
The Board of Directors also approved a US$400 million increase in the share repurchase authorisation.
This policy illustrates the priority given to shareholder returns within a business model primarily based on franchising and fee income.
LTH Analysis | FeePAR is becoming as important as network growth
Wyndham’s results illustrate the characteristics of an asset-light hotel business model heavily focused on franchising.
The 6% increase in US RevPAR and growth in franchise fees support business activity, even though reported adjusted EBITDA declined by 3% due to unfavourable comparisons relating to the marketing fund.
The record pipeline of 264,000 rooms is a major strategic asset, particularly as its FeePAR potential is approximately 30% higher than that of the existing network.
For investors, the economic quality of future rooms is therefore becoming as important as their number.
However, the situation at Revo highlights the risks associated with the financial strength of franchise partners.
Wyndham’s ability to grow its network, preserve franchisee profitability and translate expansion into recurring fee income will be decisive in supporting its valuation.
At a Glance
Company: Wyndham Hotels & Resorts.
Reporting period: Third quarter ended 30 September 2026.
Net revenue: US$410 million, up 7%.
Net income: US$99 million, down 6%.
Adjusted EBITDA: US$207 million, down 3% reported and up 5% on a comparable basis.
Global RevPAR: US$51.13, up 2% at constant currency.
US RevPAR: US$58.35, up 6%.
International RevPAR: US$41.79, down 3% at constant currency.
Global system: Approximately 877,400 rooms.
Network growth excluding Revo: 4%.
Development pipeline: Approximately 264,000 rooms across more than 2,200 hotels, excluding Revo.
Pipeline FeePAR premium: Approximately 30%.
2026 adjusted EBITDA guidance: US$740–745 million.
2026 adjusted diluted EPS guidance: US$4.84–4.92.
Shareholder returns in Q3: US$123 million.
CEO: Geoff Ballotti.
LTH perspective: Strong US operating performance and higher-value franchise development offset by international disparities and Revo-related uncertainty.
