Wyndham Hotels & Resorts, in common with other international hotel brand groups such as Hilton, experienced weakness in its home US market during the second quarter of 2025.
Revenue per available room, the sector’s key metric, was down 4% for the period at Wyndham’s US hotels, while across its international portfolio, revpar remained in positive territory. Highlights included the Latin American portfolio, up 18% year on year, and EMEA hotel which saw a 7% improvement. Revpar at Canadian hotels matched the EMEA performance, too.
Building ancillary revenue streams
Despite these challenges, diluted earnings per share were up 6% year on year, with net income up 1% to USD87 million. The group has worked hard to build ancillary revenues, such as fees from credit and debit cards, and these were up 19%.
Wyndham agreed 229 new hotel contracts during the second quarter, a volume up 40% on the previous year, and contributing to a pipeline now standing at a record 255,000 rooms. Around 70% of those properties are in the midscale segment or higher, the company noted, with around 17% of signings in the extended stay segment.
Despite the trend among major hotel groups towards conversion properties, Wyndham says 76% of its pipeline will be newly built hotels. And of the total, 58% are hotels outside the USA. The company continues to improve the quality of its estate by removing hotels that fail to meet standards. During the quarter, it deleted 12,300 rooms in the US, and 7,200 internationally.
“Record first-half openings and a 40% second quarter increase in new contracts awarded reflect strong developer confidence in Wyndham’s powerful, owner-first value proposition,” said Geoff Ballotti, Wyndham’s president and chief executive officer. “Amid a softer domestic RevPAR environment, we grew comparable adjusted EBITDA by 5% and comparable adjusted EPS by 11%.”
During its presentation to investors, the group highlighted its recent expansion in key markets. Openings have included the Wyndham Garden Jim Corbett Chhoi, in India; the Dazzler by Wyndham Salta in Argentina; and Wyndham Soleil Danang in Vietnam, which all opened in June 2025.
In recent years, Wyndham has continued to expand its brand family, which now extends to 25 flags. Recent additions include the upscale Vienna House in Europe, and a new extended stay offer, already launched in the USA, Echo Suites.
Issues in China
The Chinese market continues to disappoint all hotel operators in the short term, with travel volumes failing to recover at a similar pace to the rest of the world. Wyndham reported revpar in China down 8% in the second quarter, with hotel occupancy levels weaker. Wyndham has also revealed an issue with one Chinese partner, its master license holder in the country for Super 8. An investigation is being carried out.
For the rest of 2025, Wyndham’s outlook is an expectation that rooms growth for the year will be in the range 4-6%, while revpar will settle at between 2% down to 1% up. With hopes that international trade tensions will ease, comes a belief that inbound travel to the US will pick up once again – benefitting the major hotel groups such as Wyndham.
