Wyndham Hotels Q3 adj EPS beats on US RevPAR growth; raises outlook, buyback

Overview

• U.S. hotel franchisor's Q3 adjusted EPS beat analyst expectations

• Q3 adjusted EBITDA beat analyst expectations

• Company raised full-year outlook and increased share buyback authorization by $400 mln

Outlook

• Wyndham raises 2026 adjusted diluted EPS outlook to $4.84-$4.92 from $4.71-$4.83

• Company now sees 2026 adjusted net income of $363-$369 mln, up from $355-$365 mln

• Wyndham expects 2026 adjusted EBITDA of $740-$745 mln, up from $735-$745 mln

Result Drivers

• U.S. REVPAR GROWTH - Co said 6% year-over-year U.S. RevPAR growth was driven by improved occupancy and average daily rates, with broad-based gains across regions

• SYSTEM EXPANSION - Co attributed 4% year-over-year global system growth (excluding Revo) to expansion in higher RevPAR segments and direct-franchised growth in Asia Pacific, EMEA and Latin America

• HIGHER FRANCHISE FEES - Co said 6% increase in royalties and franchise fees was supported by investments in technology, loyalty and distribution initiatives

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 14 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the hotels, motels & cruise lines peer group is "buy"

• Wall Street's median 12-month price target for Wyndham Hotels & Resorts, Inc. is $98.98, about 28% above its October 20 closing price of $77.35

• The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 17 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)