During Wyndham Hotels & Resorts’ Q3 2025 earnings call with investors, President and CEO Geoff Ballotti focused on the company’s growing global footprint while acknowledging headwinds, particularly the ongoing decline in revenue per available room. “Despite a challenging macro environment, we delivered a 21 percent increase in room openings, signed 24 percent more deals in the quarter and grew our global pipeline by 4 percent to 257,000 rooms in nearly 2,200 hotels,” he told investors.
Notably, the company reported 2 percent growth in the midscale-and-above segments in the U.S. and 7 percent growth in the Europe, Middle East, Africa and Latin America regions. All of these regions tend to report higher revenue per available room.
Unit Growth
During the quarter, the company awarded 204 new contracts, an increase of 24 percent year over year. The pipeline grew 4 percent in the U.S. and 4 percent internationally.
Approximately 70 percent of the pipeline is in the midscale-and-above segments, which grew 4 percent year-over-year, while approximately 17 percent of the pipeline is in the extended stay segment. About 58 percent of the pipeline is international, 75 percent is new-construction and approximately 36 percent of these projects have broken ground. Rooms under construction grew 3 percent year-over-year.
Discussing future growth, CFO Michele Allen said that the world is "a very big place," and that "no market is off limits just because it's a lower- RevPAR market."
Revenue
Third-quarter global RevPAR decreased 5 percent in constant currency compared to 2024, reflecting declines of 5 percent in the U.S. and 2 percent internationally. In the U.S., RevPAR performance reflected a 300 basis-point reduction in occupancy and a 200 basis-point decline in average daily rate. Softer results in Texas, Florida and California were partially offset by continued strength across the Midwest. Hotels in Oklahoma, Michigan, Illinois, Missouri, Minnesota and Ohio collectively grew RevPAR 4 percent year over year, Ballotti noted.
During the call, Ballotti noted that franchisees in the lower chain scales are beginning to discount rates in a bid to capture demand. “We're helping franchisees where we can, and urging franchisees to hold rate where it makes sense,” he said, noting that this can be helpful for securing revenue from leisure business. While discounting can help “where appropriate,” he added, hoteliers should carefully consider “last-minute discounting.”
Internationally, the decrease was primarily driven by Asia Pacific, including China where RevPAR declined 10 percent, and Latin America, where RevPAR declined 5 percent. This was partially offset by 4 percent growth in the EMEA region and 8 percent growth in Canada, both primarily reflecting pricing power.
Operating Results
The company generated net income of $105 million compared to $102 million in third quarter 2024, primarily due to higher adjusted earnings before interest, taxes, depreciation and amortization, partially offset by higher interest expense. Adjusted net income was $112 million compared to $110 million in third quarter 2024.
Adjusted EBITDA grew 2 percent to $213 million compared to $208 million in the third quarter of 2024. This increase included a $6 million favorable impact from marketing fund variability, excluding which adjusted EBITDA remained flat on a comparable basis as lower royalties and franchise fees, along with elevated costs associated with insurance, litigation defense and employee benefits—all of which are reflective of the broader operating environment—were more than offset by cost containment measures, including both operational efficiencies and one-time variable reductions.
Outlook
The company adjusted its full-year outlook, reducing expectations from -2 to 1 percent growth to a decline of 2 to 3 percent. Allen noted that these numbers imply Q4 global RevPAR will be down between 4 and 7 percent. The company now expects adjusted EBITDA to be between $715 million to $725 million, down $15 million to $20 million or approximately 2 percent from the prior outlook of $730 million to $745 million.
“This outlook also assumes that U.S. performance continues to lag meaningfully behind our international regions, and that international trends moderate modestly from recent levels,” Allen said.
Expected rooms growth remained unchanged from 4 to 4.6 percent.
New Methodology
Beginning in the second quarter of 2025, the company revised its reporting methodology to exclude the impact of all rooms under the Super 8 China master license agreement from its reported system size, RevPAR and royalty rate, and corresponding growth metrics. The company’s financial results will continue to reflect fees due from the Super 8 master licensee in China, which contributed less than $3 million to the company’s full-year 2024 consolidated adjusted EBITDA.