WYNDHAM HOTELS & RESORTS REPORTS THIRD QUARTER 2022 RESULTS

Company Raises Full-Year 2022 Outlook
Board Increases Share Repurchase Authorization by $400 Million
Company Grows System-Wide Rooms by 4% and Development Pipeline by 10%

PARSIPPANY, N.J., Oct. 25, 2022 /PRNewswire/ — Wyndham Hotels & Resorts (NYSE: WH) in the present day introduced outcomes for the three months ended September 30, 2022. Highlights embody:

• Global RevPAR grew 12% in comparison with third quarter 2021 in fixed forex.
• U.S. RevPAR grew 2% in comparison with third quarter 2021 and represents 110% of 2019 ranges.
• System-wide rooms grew 4% year-over-year, together with 1% of progress within the U.S. and 9% of progress internationally.
• Development pipeline grew 10% year-over-year to 212,000 rooms and U.S. growth signings elevated 82%, together with 48 new development initiatives for the Company’s new extended-stay model, bringing the entire quantity to 120 since launch in March.
• Hotel Franchising section revenues grew 9% year-over-year.
• Diluted earnings per share of $1.13 and adjusted diluted earnings per share of $1.21; web earnings of $101 million and adjusted web earnings of $108 million.
• Adjusted EBITDA of $191 million.
• Year-to-date web money offered by working actions of $349 million and free money circulation of $321 million.
• Returned $161 million to shareholders via $132 million of share repurchases and a quarterly money dividend of $0.32 per share.

“With our brands delivering record U.S. RevPAR and our global development teams driving net unit growth towards the top end of our initial guidance, we are raising our full-year 2022 outlook. Despite the broader macro-economic climate, we are confident in the continued resiliency of our franchise model as we continue to invest in the business and generate substantial shareholder returns,” mentioned Geoffrey A. Ballotti, president and chief govt officer. “This quarter, we grew our development pipeline by 10%, surpassed our full-year development goal for our new extended-stay brand and completed the acquisition of our 23^rd brand – Vienna House. We remain committed to a disciplined capital allocation strategy that will deliver outstanding value to our shareholders, guests, franchisees and team members in any environment.”

Fee-related and different revenues was $375 million in comparison with $377 million in third quarter 2021, which included $34 million from the Company’s select-service administration business and owned lodges – each of which have been exited within the first half of this 12 months. On a comparable foundation, fee-related and different revenues elevated 9% year-over-year reflecting international fixed forex RevPAR progress of 12% and better license charges.

The Company generated web earnings of $101 million, or $1.13 per diluted share, in comparison with $103 million, or $1.09 per diluted share, in third quarter 2021. The decline in web earnings was primarily as a result of exit of the

Company’s select-service administration business and owned lodges, partially offset by larger adjusted EBITDA within the Company’s resort franchising section. Adjusted EBITDA was $191 million in comparison with $194 million in third quarter 2021, which included a $10 million contribution from the Company’s select-service administration business and owned lodges – each of which have been exited within the first half of this 12 months. On a comparable foundation, adjusted EBITDA elevated 4% year-over-year reflecting larger fee-related and different revenues, partially offset by a 600 foundation level unfavorable timing affect from the advertising fund.

Full reconciliations of GAAP outcomes to the Company’s non-GAAP adjusted measures for all reported intervals seem within the tables to this press launch.

System Size

The Company’s international system grew 4%, reflecting 1% progress within the U.S. and 9% progress internationally. As anticipated, these will increase included robust progress in each the upper RevPAR midscale and above segments within the U.S. and the direct franchising business in China, which grew 6% and eight%, respectively, in addition to 80 foundation factors of progress globally and 200 foundation factors internationally from the acquisition of the Vienna House model.

RevPAR

Third quarter international RevPAR grew by 12% in fixed forex in comparison with 2021 because the U.S. grew 2% and worldwide grew 46%. Global RevPAR was 111% of 2019 ranges in fixed forex, with the U.S. at 110% and worldwide at 117%. The will increase in comparison with each 2021 and 2019 have been pushed primarily by stronger pricing energy.

Business Segment Discussion

Hotel Franchising revenues elevated 9% year-over-year to $367 million primarily as a result of international RevPAR enhance and better license charges. Hotel Franchising adjusted EBITDA of $201 million elevated 4% reflecting the expansion in revenues, partially offset by an unfavorable timing affect from the advertising fund, excluding which Hotel Franchising adjusted EBITDA would have elevated 12%.

Hotel Management revenues decreased 68% year-over-year to $40 million, together with a $54 million lower in cost-reimbursement revenues, which haven’t any affect on adjusted EBITDA. Absent cost-reimbursements, Hotel Management revenues decreased $32 million, or 80%, and adjusted EBITDA decreased $9 million reflecting the exit of the Company’s select-service administration business and owned lodges.

During the third quarter 2022, the Company’s advertising fund revenues exceeded bills by $12 million; whereas in third quarter 2021, the Company’s advertising fund revenues exceeded bills by $19 million.

Development

The Company awarded 214 new contracts this quarter in comparison with 151 within the third quarter 2021. On September 30, 2022, the Company’s international growth pipeline consisted of over 1,600 lodges and over 212,000 rooms, of which roughly 76% is within the midscale and above segments (61% within the U.S.). The pipeline grew 10% year-over-year – 24% within the U.S. and a couple of% internationally. Approximately 60% of the Company’s growth pipeline is worldwide and 80% is new development, of which roughly 36% has damaged floor. The pipeline contains 120 new contracts awarded for the Company’s new extended-stay model since its launch in March 2022.

Acquisition of Vienna House

On September 8, 2022, the Company accomplished the acquisition of the Vienna House model, including an upscale and midscale portfolio of over 40 lodges and greater than 6,400 rooms to the Company’s current footprint within the EMEA area. The buy worth was $44 million.

Cash and Liquidity

The Company generated year-to-date web money offered by working actions of $349 million and free money circulation of $321 million. The Company ended the quarter with a money stability of $286 million and roughly $1.0 billion in complete liquidity.

Share Repurchases and Dividends

During the third quarter, the Company repurchased roughly 2.0 million shares of its widespread inventory for $132 million. In October 2022, the Company’s Board of Directors elevated the Company’s share repurchase authorization by $400 million.

The Company paid widespread inventory dividends of $29 million, or $0.32 per share.

Full-Year 2022 Outlook

The Company is updating its outlook as follows:

More detailed projections can be found in Table 8 of this press launch. The Company is offering sure monetary metrics solely on a non-GAAP foundation as a result of, with out unreasonable efforts, it’s unable to foretell with cheap certainty the prevalence or quantity of the entire changes or different potential changes which will come up sooner or later in the course of the forward-looking interval, which could be depending on future occasions that will not be reliably predicted. Based on previous reported outcomes, the place a number of of these things have been relevant, such excluded gadgets might be materials, individually or within the mixture, to the reported outcomes.

Conference Call Information

Wyndham Hotels will maintain a convention name with traders to debate the Company’s outcomes and outlook on Wednesday, October 26, 2022 at 8:30 a.m. ET. Listeners can entry the webcast stay via the Company’s web site at https://investor.wyndhamhotels.com. The convention name might also be accessed by dialing 800 225-9448 and offering the passcode “Wyndham”. Listeners are urged to name no less than 5 minutes previous to the scheduled begin time. An archive of this webcast will probably be obtainable on the web site starting at midday ET on October 26, 2022. A phone replay will probably be obtainable for about ten days starting at midday ET on October 26, 2022 at 800 839-4197.

Presentation of Financial Information

Financial data mentioned on this press launch contains non-GAAP measures, which embody or exclude sure gadgets. These non-GAAP measures differ from reported GAAP outcomes and are supposed as an example what administration believes are related period-over-period comparisons and are useful to traders as a further software for additional understanding and assessing the Company’s ongoing working efficiency. The Company makes use of these measures internally to evaluate its working efficiency, each completely and compared to different corporations, and to make everyday working choices, together with within the analysis of chosen compensation choices. Exclusion of things within the Company’s non-GAAP presentation shouldn’t be thought of an inference that these things are uncommon, rare or non-recurring. Full reconciliations of GAAP outcomes to the comparable non-GAAP measures for the reported intervals seem within the monetary tables part of this press launch.

About Wyndham Hotels & Resorts

Wyndham Hotels & Resorts (NYSE: WH) is the world’s largest resort franchising firm by the variety of properties, with roughly 9,100 lodges throughout over 95 international locations on six continents. Through its community of roughly 836,000 rooms interesting to the on a regular basis traveler, Wyndham instructions a number one presence within the economy and midscale segments of the lodging trade. The Company operates a portfolio of 23 resort manufacturers, together with Super 8®, Days Inn®, Ramada®, Microtel®, La Quinta®, Baymont®, Wingate®, AmericInn®, Hawthorn Suites®, Trademark Collection® and Wyndham®. The Company’s award-winning Wyndham Rewards loyalty program provides over 97 million enrolled members the chance to redeem factors at 1000’s of lodges, trip membership resorts and trip leases globally. For extra data, go to www.wyndhamhotels.com. The Company could use its web site as a way of exposing materials personal data and for complying with its disclosure obligations below Regulation FD. Disclosures of this nature will probably be included on the Company’s web site within the Investors part, which might presently be accessed at www.investor.wyndhamhotels.com. Accordingly, traders ought to monitor this part of the Company’s web site along with following the Company’s press releases, filings submitted with the Securities and Exchange Commission and any public convention calls or webcasts.

Forward-Looking Statements

This press launch accommodates “forward-looking statements” inside the which means of the federal securities legal guidelines, together with statements associated to the Company’s present views and expectations with respect to its future efficiency and operations, together with revenues, earnings, money circulation and different monetary and working measures, share repurchases and dividends, restructuring prices and statements associated to the coronavirus pandemic (“COVID-19”). Forward-looking statements embody people who convey administration’s expectations as to the long run based mostly on plans, estimates and projections on the time the Company makes the statements and could also be recognized by phrases akin to “will,” “expect,” “believe,” “plan,” “anticipate,” “intend,” “goal,” “future,” “outlook,” “guidance,” “target,” “objective,” “estimate,” “projection” and related phrases or expressions, together with the damaging model of such phrases and expressions. Forward-looking statements contain identified and unknown dangers, uncertainties and different components, which can trigger the precise outcomes, efficiency or achievements of the Company to be materially totally different from any future outcomes, efficiency or achievements expressed or implied by such forward-looking statements. You are cautioned to not place undue reliance on these forward-looking statements, which converse solely as of the date of this press launch.

Factors that might trigger precise outcomes to vary materially from these within the forward-looking statements embody, with out limitation, common financial situations; the continuation or worsening of the consequences from COVID-19, its scope, period, resurgence and affect on the Company’s business operations, monetary outcomes, money flows and liquidity, in addition to the affect on the Company’s franchisees and property house owners, visitors and group members, the hospitality trade and general demand for journey; the success of the Company’s mitigation efforts in response to COVID-19; the Company’s efficiency in the course of the restoration from COVID-19 and any resurgence or mutations of the virus; varied actions governments, companies and people proceed to absorb response to the pandemic, together with stay-in-place directives (together with, as an example, quarantine and isolation pointers and mandates), security mitigation steering, in addition to the timing, availability and adoption charges of vaccinations, booster pictures and different therapies for COVID-19; considerations with or threats of different pandemics, contagious illnesses or well being epidemics, together with the consequences of COVID-19; the efficiency of the monetary and credit score markets; the financial setting for the hospitality trade; working dangers related to the resort franchising and administration companies; the Company’s relationships with franchisees and property house owners; the affect of warfare, terrorist exercise, political instability or political strife; dangers associated to restructuring or strategic initiatives; the Company’s capability to fulfill obligations and agreements below its excellent indebtedness, together with the cost of principal and curiosity and compliance with the covenants thereunder; dangers associated to the Company’s capability to acquire financing and the phrases of such financing, together with entry to liquidity and capital; and the Company’s capability to make or pay, plans for, and the timing and quantity of any future share repurchases and/or dividends, in addition to the dangers described within the Company’s most up-to-date Annual Report on Form 10-Ok filed with the Securities and Exchange Commission and any subsequent reviews filed with the Securities and Exchange Commission. The Company undertakes no obligation to replace or revise any forward-looking statements, whether or not on account of new data, subsequent occasions or in any other case.