Wyndham Hotels & Resorts (WH, Financial) has entered into a significant development agreement with Soliteight Hotel Projects, aimed at expanding its Super 8 by Wyndham brand into Spain and Portugal. Soliteight, which already collaborates with Wyndham as a franchisee, will spearhead the development and launch of 40 Super 8 hotels throughout the Iberian Peninsula over the next decade.
Currently, Wyndham operates 14 Super 8 hotels across the EMEA region, including locations in Germany, the United Kingdom, and Saudi Arabia. The expansion into the Iberian market will begin with the opening of the first hotel in Leiria, Portugal, slated for the fourth quarter of 2027. Future developments will target both Tier 1 and Tier 2 cities, capitalizing on high-demand areas.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 15 analysts, the average target price for Wyndham Hotels & Resorts Inc (WH, Financial) is $110.21 with a high estimate of $125.00 and a low estimate of $94.00. The average target implies an upside of 32.46% from the current price of $83.20. More detailed estimate data can be found on the Wyndham Hotels & Resorts Inc (WH) Forecast page.
Based on the consensus recommendation from 15 brokerage firms, Wyndham Hotels & Resorts Inc's (WH, Financial) average brokerage recommendation is currently 1.7, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Wyndham Hotels & Resorts Inc (WH, Financial) in one year is $87.81, suggesting a upside of 5.54% from the current price of $83.2. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Wyndham Hotels & Resorts Inc (WH) Summary page.
WH Key Business Developments
Release Date: February 13, 2025
- Net Room Growth: 4% increase, with a record 69,000 rooms opened.
- Adjusted EBITDA Growth: 7% increase year-over-year.
- Adjusted EPS Growth: 10% increase year-over-year.
- US RevPAR Growth: 5.3% increase in Q4, with a 3.9% increase excluding hurricane impacts.
- International RevPAR Growth: 6% year-over-year in constant currency.
- Fee-Related and Other Revenues: $341 million in Q4, a 7% increase year-over-year.
- Adjusted EBITDA: $168 million in Q4, a 12% increase on a comparable basis.
- Adjusted Diluted EPS: $1.04 in Q4, an 18% increase on a comparable basis.
- Full-Year Fee-Related and Other Revenues: Approximately $1.4 billion.
- Full-Year Adjusted EBITDA: $694 million, a 7% increase on a comparable basis.
- Full-Year Adjusted Diluted EPS: $4.33, a 10% increase on a comparable basis.
- Adjusted Free Cash Flow: $130 million in Q4 and $397 million for the full year.
- Shareholder Returns: $430 million returned in 2024, including $122 million in dividends and $308 million in share repurchases.
- 2025 Outlook - Global Net Room Growth: Expected to be 3.6% to 4.6%.
- 2025 Outlook - Global RevPAR Growth: Projected at 2% to 3% on a constant currency basis.
- 2025 Outlook - Adjusted EBITDA: Expected to be between $745 million and $755 million.
- 2025 Outlook - Adjusted Diluted EPS: Projected at $4.66 to $4.78.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Wyndham Hotels & Resorts Inc (WH, Financial) reported a strong finish for 2024 with net room growth of 4% and comparable adjusted EBITDA and EPS growth of 7% and 10%, respectively.
- The company achieved a record 69,000 room openings, marking the largest annual organic room additions in its history.
- Wyndham's global retention rate improved to 95.7%, indicating high franchisee engagement and satisfaction.
- The ECHO Suites brand and upscale extended stay segment showed strong performance, contributing significantly to the development pipeline.
- Wyndham Rewards membership grew by 8% to 114 million members globally, enhancing customer loyalty and engagement.
Negative Points
- China's RevPAR declined by 11% due to deflationary pressures, although ADR remains 3% ahead of 2019 levels.
- The company's financial results were impacted by the timing of marketing fund spend, with marketing fund expenses exceeding revenues by $1 million for the full year.
- Higher interest expenses partially offset the growth in adjusted diluted EPS.
- The legacy master license agreements in China had a nominal impact on EBITDA, affecting net room growth.
- The company faces continued deflationary pressures in China, impacting overall international RevPAR growth.
