NYSE:WH
WYNDHAM HOTELS & RESORTS, INC.
A diversified international hotel group leveraging technology and scale to drive guest loyalty and operational efficiency across thousands of locations globally.
Key Metrics
Investment Thesis
Bull Case
The robust operating cash flow of $367M provides flexibility to manage debt and fund growth initiatives while the expanding global footprint offers long-term organic growth potential; strong brand loyalty and diversified revenue streams across lodging and leisure segments provide resilience against single-market shocks.
Bear Case
Significant decline in net income from $289M in 2024 to $193M in 2025 reflects deteriorating profitability trends that could continue if interest rates remain elevated; the company's substantial debt obligations and capital expenditure requirements of $46M pose ongoing liquidity risks that may limit dividend sustainability or share repurchase programs.
About WYNDHAM HOTELS & RESORTS, INC.
WYNDHAM HOTELS & RESORTS, INC. is a leading global hospitality operator providing lodging, food and beverage, and leisure experiences to travelers worldwide through its extensive portfolio of owned and leased properties.
Analysis
Management Discussion
Despite a modest revenue increase to $1.43B, net income declined significantly to $193M due to elevated interest expenses of $139M and share repurchases of $266M offsetting operational cash flow of $367M; the company maintained a healthy operating profit margin but faces pressure from debt servicing costs.
Industry Overview
The global hospitality industry is recovering from pandemic-era disruptions with strong demand for travel experiences, though competition remains fierce among hotel chains and alternative lodging providers; investors must monitor macroeconomic factors like inflation and energy costs which impact operational margins across the sector.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $1.50B | $1.40B | $1.41B | $1.43B |
| Cost of Revenue | $0 | $0 | $0 | $0 |
| Gross Profit | $1.50B | $1.40B | $1.41B | $1.43B |
| Operating Expenses | $940.0M | $894.0M | $913.0M | $1.03B |
| Operating Income | $558.0M | $503.0M | $495.0M | $402.0M |
| G&A | $123.0M | $130.0M | $130.0M | $125.0M |
| Stock-Based Comp | $33.0M | $39.0M | $45.0M | $43.0M |
| D&A | $77.0M | $76.0M | $71.0M | $62.0M |
| Depreciation | $46.0M | $49.0M | $44.0M | $35.0M |
| Amortization | $31.0M | $27.0M | $27.0M | $27.0M |
| Other OpEx | $817.0M | $764.0M | $783.0M | $902.0M |
| Non-Operating Income | $-82.0M | $-105.0M | $-127.0M | $-139.0M |
| Interest Expense | $80.0M | $102.0M | $124.0M | $139.0M |
| Interest Income | $5.0M | $6.0M | $5.0M | $8.0M |
| Pre-Tax Income | $476.0M | $398.0M | $368.0M | $263.0M |
| Income Tax | $121.0M | $109.0M | $79.0M | $70.0M |
| Continuing Ops | $355.0M | $289.0M | $289.0M | $193.0M |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $355.0M | $289.0M | $289.0M | $193.0M |
| Minority Interest | $0 | $0 | $0 | $0 |
| Net to Common | $355.0M | $289.0M | $289.0M | $193.0M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $545.0M | $373.0M | $467.0M | $435.0M |
| Cash & Equivalents | $161.0M | $66.0M | $103.0M | $64.0M |
| Accounts Receivable | $234.0M | $241.0M | $271.0M | $291.0M |
| Other Current Assets | $150.0M | $66.0M | $93.0M | $80.0M |
| Long-Term Assets | $3.58B | $3.66B | $3.76B | $3.75B |
| PP&E (Net) | $99.0M | $88.0M | $94.0M | $104.0M |
| Goodwill | $1.52B | $1.52B | $1.52B | $1.52B |
| Operating Leases | $11.0M | $10.0M | $10.0M | $6.0M |
| Other LT Assets | $1.94B | $2.04B | $2.13B | $2.11B |
| Total Assets | $4.12B | $4.03B | $4.22B | $4.18B |
| Current Liabilities | $406.0M | $459.0M | $466.0M | $507.0M |
| Accounts Payable | $39.0M | $32.0M | $37.0M | $38.0M |
| Current Leases | $4.0M | $4.0M | $3.0M | $3.0M |
| Deferred Revenue | $83.0M | $91.0M | $121.0M | $134.0M |
| Taxes Payable | $38.0M | $64.0M | $66.0M | $107.0M |
| Other Current Liab | $-22.0M | $-31.0M | $-26.0M | $-65.0M |
| Long-Term Liabilities | $2.75B | $2.83B | $3.11B | $3.21B |
| LT Operating Leases | $7.0M | $6.0M | $6.0M | $3.0M |
| Other LT Liab | $2.58B | $2.65B | $2.93B | $2.98B |
| Total Liabilities | $3.16B | $3.29B | $3.57B | $3.71B |
| Shareholders' Equity | $962.0M | $746.0M | $650.0M | $468.0M |
| Paid-In Capital | $1.57B | $1.60B | $1.65B | $14.0M |
| Retained Earnings | $318.0M | $488.0M | $654.0M | $471.0M |
| AOCI | $38.0M | $19.0M | $17.0M | $3.0M |
| Treasury Stock | $964.0M | $1.36B | $1.67B | $21.0M |
| Total L&E | $4.12B | $4.03B | $4.22B | $4.18B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $355.0M | $289.0M | $289.0M | $193.0M |
| Non-Cash Adjustments | $28.0M | $130.0M | $-34.0M | $0 |
| Working Capital Changes | $16.0M | $-43.0M | $35.0M | $174.0M |
| Cash from Operations | $399.0M | $376.0M | $290.0M | $367.0M |
| Capital Expenditures | $39.0M | $37.0M | $49.0M | $46.0M |
| Cash from Investing | $179.0M | $-66.0M | $-65.0M | $-103.0M |
| Debt Issuances | $400.0M | $1.38B | $1.83B | $405.0M |
| Debt Repayments | $404.0M | $1.25B | $1.54B | $312.0M |
| Share Buybacks | $448.0M | $393.0M | $310.0M | $266.0M |
| Dividends Paid | $116.0M | $118.0M | $122.0M | $127.0M |
| Cash from Financing | $-584.0M | $-402.0M | $-175.0M | $-314.0M |
| FX Effect | $-4.0M | $-3.0M | $-3.0M | $1.0M |
| Net Change in Cash | $-10.0M | $-95.0M | $47.0M | $-49.0M |
| Beginning Cash | $171.0M | $161.0M | $66.0M | $113.0M |
| Ending Cash | $161.0M | $66.0M | $113.0M | $64.0M |
Frequently Asked Questions
How does WYNDHAM HOTELS & RESORTS, INC. make money?
The company generates revenue primarily through room sales, food and beverage services, and ancillary offerings like spa and event services across its diverse portfolio of hotels, resorts, and timeshare properties.
What are the main risks for WH?
High leverage levels with significant interest expense could strain cash flows during economic downturns or rising rate environments; sensitivity to travel demand fluctuations from geopolitical events or consumer spending shifts; potential for rapid obsolescence of physical assets requiring continuous capital expenditures; regulatory and operational challenges in managing a decentralized franchise network.
What is WH's competitive advantage?
The Wyndham Rewards loyalty program drives high customer retention and repeat visitation; extensive global real estate footprint provides scale advantages in procurement and marketing; and strong brand recognition fosters trust among international travelers.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.