Dive Brief:

• Wyndham Hotels & Resorts’ global RevPAR grew by 7% in Q2, as compared to the same time in 2022, with the U.S. declining 1% and international growing 34%, according to the company’s Q2 earnings report released Wednesday. 
• Wyndham also saw decreased net income ($70 million, or $0.82 per diluted share) in the second quarter of this year compared to the same time last year, when it reported $92 million, or $1 per diluted share. 
• The Q2 decline in U.S. RevPAR and net income can be attributed to changing travel patterns and macroeconomic factors, respectively, Wyndham detailed in its Q2 earnings report. Its development pipeline holds strong, however, up 10% year over year in Q2 2023, and with new development deals signed in July, the company expects continued growth in the remainder of the year.

Dive Insight:

Wyndham said record-breaking RevPAR in the U.S. during 2022 due to COVID-impacted travel patterns resulted in this year’s Q2 decline. To neutralize these impacts, the company compared Q2 2023 U.S. RevPAR with that from the same time in 2019, and it grew by 8%. 

The company also saw decreased net income in the second quarter of this year compared to 2022, but when compared to 2019, adjusted diluted earnings per share grew 10%. And adjusted EBITDA, which totaled $158 million in Q2 2023, grew 8% on a comparable basis. 

In the earnings report, Wyndham said its decreased net income in Q2 was expected and reflective of the marketing fund variability, higher interest expense and transaction-related costs primarily related to the company's refinancing of its Term Loan B Facility. 

One area that saw growth in the second quarter of this year was Wyndham’s development pipeline. On June 30, the pipeline consisted of nearly 1,850 hotels and approximately 228,000 rooms, representing a 10% year-over-year increase, including 22% growth in the U.S., according to the report. 

The second quarter of this year marked Wyndham’s “12th consecutive quarter of sequential growth in its development pipeline, which has never been stronger,” the company’s president and CEO, Geoff Ballotti, said in the report. 

Wyndham has already significantly expanded its development pipeline in Q3. In July, the company signed multiple development deals that will bring 60 new Echo Suites extended stay hotels to the U.S. and Canada.