PARSIPPANY, New Jersey—Wyndham Hotels & Resorts announced its third-quarter 2025 results. Highlights include:
- System-wide rooms grew 4 percent year-over-year.
- Awarded 204 development contracts globally, an increase of 24 percent year-over-year.
- Development pipeline grew 4 percent year-over-year and 1 percent sequentially to a record 257,000 rooms.
- Ancillary revenues increased 18 percent compared to the third quarter of 2024 and 14 percent on a year-to-date basis.
- Diluted earnings per share increased 5 percent year-over-year to $36; adjusted diluted EPS grew 5 percent percent to $1.46, or increased 1 percent on a comparable basis.
- Net income increased 3 percent year-over-year to $105 million; adjusted net income increased 2 percent to $112 million, or decreased 2 percent on a comparable basis.
- Adjusted EBITDA increased 2 percent year-over-year to $213 million, or remained flat on a comparable basis.
- Returned $101 million to shareholders through $70 million of share repurchases and quarterly cash dividends of $0.41 per share.
“Our third quarter results once again demonstrate the resilience of our business model and the consistent execution of our teams around the world,” said Geoff Ballotti, president and chief executive officer. “Amid a challenging macro backdrop, we delivered record year-to-date organic room openings, grew our global pipeline to another all-time high, and achieved double-digit growth in ancillary revenues—all while expanding our portfolio with high-quality, FeePAR-accretive hotels. As we continue to focus development on our strongest brands and markets, advance the industry’s leading technology and loyalty platforms, and drive meaningful returns to shareholders, we’re positioning Wyndham for sustained growth and value creation well into 2026 and beyond.”
System Size and Development
The company’s global system grew 4 percent, including 2 percent growth in the higher RevPAR midscale and above segments in the United States and 7 percent growth in the higher RevPAR EMEA and Latin America regions.
On September 30, 2025, the company’s pipeline consisted of approximately 2,180 hotels and 257,000 rooms, representing another record-high level and a 4 percent year-over-year increase. Key highlights include:
- Awarded 204 new contracts, an increase of 24 percent year-over-year.
- 4 percent pipeline growth in the U.S. and 4 percent growth internationally
- Approximately 70 percent of the pipeline is in the midscale and above segments, which grew 4 percent year-over-year
- Approximately 17 percent of the pipeline is in the extended-stay segment
- Approximately 58 percent of the pipeline is international
- Approximately 75 percent of the pipeline is new construction, and approximately 36 percent of these projects have broken ground; rooms under construction grew 3 percent year-over-year
RevPAR
Third quarter global RevPAR decreased 5 percent in constant currency compared to 2024, reflecting declines of 5 percent in the United States and 2 percent internationally.
In the United States, RevPAR performance reflected a 300 basis-point reduction in occupancy and a 200 basis-point decline in ADR. Softer results in Texas, Florida, and California were partially offset by continued strength across the Midwest.
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.
Third-Quarter Operating Results
The comparability of the company’s third-quarter results is impacted by marketing fund variability. The company’s reported results and comparable-basis results (adjusted to neutralize these impacts) were presented to enhance transparency and provide a better understanding of the results of the company’s ongoing operations.
- Fee-related and other revenues were $382 million, compared to $394 million in the third quarter of 2024, reflecting a 5 percent decline in RevPAR and lower other franchise fees, partially offset by an 18 percent increase in ancillary revenue, royalty rate expansion both domestically and internationally, and global net room growth of 4 percent.
- The company generated net income of $105 million compared to $102 million in the third quarter of 2024, primarily due to higher adjusted EBITDA, partially offset by higher interest expense. Adjusted net income was $112 million compared to $110 million in the third quarter of 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.
- Diluted earnings per share increased 5 percent to $36 compared to $1.29 in the third quarter of 2024. This increase primarily reflects the benefit of a lower share count due to share repurchase activity.
- Adjusted diluted EPS grew 5 percent to $1.46 compared to $1.39 in the third quarter of 2024. This increase included a favorable impact of $0.06 per share related to marketing fund variability (after estimated taxes). On a comparable basis, adjusted diluted EPS increased 1 percent year-over-year, primarily reflecting the benefit of share repurchase activity, partially offset by higher interest expense.
- During the third quarter of 2025, the company’s marketing fund revenues exceeded expenses by $18 million; while in the third quarter of 2024, the company’s marketing fund revenues exceeded expenses by $12 million, resulting in $6 million of marketing fund variability.