PARSIPPANY, New Jersey—Wyndham Resorts & Resorts introduced outcomes for the three months and yr ended December 31, 2024. Highlights embody:
- International RevPAR grew 5 % in comparison with fourth quarter 2023 in fixed forex, a 400 foundation level enchancment sequentially; full-year world RevPAR grew 2 % year-over-year in fixed forex.
- U.S. RevPAR grew 5 % in comparison with fourth quarter 2023, a 600 foundation level enchancment sequentially; full-year U.S. RevPAR was flat.
- System-wide rooms grew 4 % year-over-year.
- Opened a document 68,700 rooms globally, representing 4 % year-over-year progress, together with almost 28,000 in the US, which additionally grew 4 % year-over-year.
- International retention charge reaches document degree at 95.7 %.
- Improvement pipeline grew 2 % sequentially and 5 % year-over-year to a document 252,000 rooms.
- Fourth quarter diluted earnings per share elevated 80 % to $1.08 and adjusted diluted EPS grew 14 % to $1.04, or roughly 18 % on a comparable foundation; full-year 2024 diluted earnings per share elevated 6 % to $3.61 and adjusted diluted EPS grew 8 % to $4.33, or roughly 10 % on a comparable foundation.
- Fourth quarter internet revenue elevated 70 % to $85 million and adjusted internet revenue elevated 9 % to $82 million, or roughly 13 % on a comparable foundation; full-year 2024 internet revenue was $289 million, or flat year-over-year, and adjusted internet revenue elevated 2 % to $347 million, or roughly 4 % on a comparable foundation.
- Fourth quarter adjusted EBITDA elevated 9 % to $168 million, or roughly 12 % on a comparable foundation; full-year 2024 adjusted EBITDA elevated 5 % to $694 million, or roughly 7 % on a comparable foundation.
- Returned $430 million to shareholders for the full-year via $308 million of share repurchases and quarterly money dividends of $0.38 per share.
- Board of Administrators not too long ago approved an 8 % improve within the quarterly money dividend to $0.41 per share starting with the dividend anticipated to be declared within the first quarter 2025.
“We’re proud to report a really robust end to 2024 with internet rooms progress of 4 % and comparable adjusted EBITDA progress of seven %. Our workforce’s give attention to increasing into increased FeePAR markets, rising our extended-stay footprint, and unlocking new ancillary income streams underscore the various progress alternatives inherent in our asset-light, resilient enterprise mannequin,” stated Geoff Ballotti, president and CEO, Wyndham. “What excites us most about our future is the developer curiosity in, and demand for, our manufacturers each right here and abroad, mirrored in a pipeline that grew one other 5 % to a document quarter-of-a-million rooms that may open within the coming years with important FeePAR premiums in comparison with our current system. This, when coupled with bettering buyer demand we’re seeing throughout each our leisure and infrastructure segments, lays a strong basis for sustained momentum and significant worth creation for our shareholders, visitors, franchisees, and workforce members for a few years to return.”
System Measurement and Improvement
The corporate’s world system grew 4 %. Importantly, these outcomes included 4 % progress within the increased RevPAR midscale and above segments in the US in addition to robust progress within the firm’s increased RevPAR EMEA and Latin America areas, which grew a mixed 7 %. The corporate additionally elevated its retention charge by one other 10 foundation factors year-over-year, ending the yr at a document 95.7 %.
On Dec. 31, 2024, the corporate’s world improvement pipeline consisted of roughly 2,100 lodges and 252,000 rooms, representing one other record-high degree and a 5 % year-over-year improve. Key highlights embody:
- 7 % progress in the US and 4 % internationally
- 18th consecutive quarter of sequential pipeline progress
- Roughly 70 % of the pipeline is within the midscale and above segments, which grew 5 % year-over-year
- Roughly 17 % of the pipeline is within the extended-stay phase
- Roughly 58 % of the pipeline is worldwide
- Roughly 78 % of the pipeline is new development and roughly 35 % of those initiatives have damaged floor
RevPAR
Fourth quarter world RevPAR elevated 5 % in fixed forex in comparison with 2023, reflecting 5 % progress in the US, which accelerated all through the quarter, and 6 % progress internationally. For the total yr, world RevPAR was flat in comparison with 2023 on a reported foundation, consistent with the corporate’s outlook, and grew 2 % in fixed forex reflecting flat progress in the US and eight % progress internationally.
In the US, fourth quarter outcomes included 140 foundation factors of favorable hurricane impacts; excluding which, RevPAR grew 4 % year-over-year reflecting power in each weekday enterprise bookings and weekend leisure demand. Total, U.S. RevPAR improved 620 foundation factors sequentially from the third quarter, or 480 foundation factors excluding hurricane impacts.
Internationally, RevPAR power was pushed by ADR progress of 6 % in fixed forex, whereas occupancy remained flat. The corporate’s EMEA and Latin America areas noticed the most important will increase year-over-year within the fourth quarter, collectively rising 15 %. RevPAR for the corporate’s China area declined 11 % within the fourth quarter, pushed by a ten % lower in ADR.
Working Outcomes
Fourth Quarter
- Price-related and different revenues grew 7 % to $341 million in comparison with $320 million in fourth quarter 2023, which displays increased royalties and franchise charges.
- Web revenue grew 70 % to $85 million in comparison with $50 million in fourth quarter 2023, reflecting increased adjusted EBITDA, in addition to a decrease efficient tax charge and decrease international forex influence for extremely inflationary international locations, which have been partially offset by increased curiosity expense.
- Adjusted EBITDA grew 9 % to $168 million in comparison with $154 million in fourth quarter 2023. This improve included a $4 million unfavorable influence from anticipated advertising and marketing fund variability, excluding which adjusted EBITDA grew 12 % on a comparable foundation, primarily reflecting increased royalties and franchise charges and margin growth.
- Diluted earnings per share grew 80 % to $1.08 in comparison with $0.60 in fourth quarter 2023, which primarily displays increased internet revenue and the good thing about a decrease share rely as a consequence of share repurchase exercise.
- Adjusted diluted EPS grew 14 % to $1.04 in comparison with $0.91 in fourth quarter 2023. This improve included an unfavorable influence of $0.04 per share associated to anticipated advertising and marketing fund variability (after estimated taxes). On a comparable foundation, adjusted diluted EPS elevated roughly 18 % year-over-year reflecting comparable adjusted EBITDA progress and the good thing about share repurchase exercise, partially offset by increased curiosity expense.
- Throughout fourth quarter 2024, the corporate’s advertising and marketing fund revenues exceeded bills by $5 million; whereas in fourth quarter 2023, the corporate’s advertising and marketing fund revenues exceeded bills by $9 million, leading to $4 million of promoting fund variability.
Full 12 months
- Price-related and different revenues grew 1 % to $1.40 billion in comparison with $1.38 billion in full-year 2023, which included $18 million of pass-through revenues related to the corporate’s 2023 world franchisee convention, absent which, fee-related and different income elevated 3 %. This progress primarily displays increased royalties, franchise charges, and ancillary revenues.
- The corporate reported internet revenue of $289 million, according to 2023, as increased adjusted EBITDA was offset by increased transaction-related bills in reference to defending an unsuccessful takeover try. Different gadgets embody increased curiosity expense, restructuring prices, and an impairment cost, which have been offset by a decrease efficient tax charge, the absence of international forex impacts from extremely inflationary international locations, and a profit from the reversal of a spin-off associated matter.
- Adjusted EBITDA grew 5 % to $694 million in comparison with $659 million in full-year 2023. This improve included a $10 million unfavorable influence, as anticipated, from advertising and marketing fund variability, excluding which adjusted EBITDA grew 7 % on a comparable foundation, primarily reflecting increased royalties and franchise charges, elevated ancillary revenues, and margin growth.
- Diluted earnings per share grew 6 % to $3.61 in comparison with $3.41 in full-year 2023, which primarily displays the good thing about a decrease share rely as a consequence of share repurchase exercise.
- Adjusted diluted EPS grew 8 % to $4.33 in comparison with $4.01 in full-year 2023. This improve included an unfavorable influence of $0.09 per share, as anticipated, associated to advertising and marketing fund variability (after estimated taxes). On a comparable foundation, adjusted diluted EPS elevated roughly 10 % year-over-year reflecting comparable adjusted EBITDA progress and the good thing about share repurchase exercise, partially offset by increased curiosity expense.
- Throughout full-year 2024, the corporate’s advertising and marketing fund bills exceeded revenues by $1 million; whereas in 2023, the corporate’s advertising and marketing fund revenues exceeded bills by $9 million, leading to $10 million of promoting fund variability.
Steadiness Sheet and Liquidity
The corporate generated $290 million of internet money supplied by working actions and $397 million of adjusted free money circulation in full-year 2024. The corporate ended the quarter with a money steadiness of $103 million and roughly $765 million in complete liquidity.
The corporate’s internet debt leverage ratio was 3.4 occasions on Dec. 31, 2024, slightly below the midpoint of the corporate’s 3 to 4 occasions acknowledged goal vary and consistent with expectations.
Share Repurchases and Dividends
Throughout the fourth quarter, the corporate repurchased roughly 0.3 million shares of its frequent inventory for $23 million. For the full-year 2024, the corporate repurchased roughly 4.1 million shares of its frequent inventory for $308 million.
The corporate paid frequent inventory dividends of $30 million, or $0.38 per share, throughout the fourth quarter 2024 for a complete of $122 million, or $1.52 per share, for the full-year 2024.
For the full-year 2024, the corporate returned $430 million to shareholders via share repurchases and quarterly money dividends.
The corporate’s Board of Administrators approved an 8 % improve within the quarterly money dividend to $0.41 per share, starting with the dividend anticipated to be declared in first quarter 2025.
