Wyndham Raises Outlook After 6% Growth in US RevPAR

Wyndham Hotels Group raised its earnings outlook for 2026 after its average revenue per available room in the United States grew 6% during the third quarter, reaching $58.35, compared to about 2% in the second quarter. The company attributed the improvement to higher occupancy rates and average room prices.

On the other hand, international average revenue per available room declined 3% in constant currency to $41.79. The index fell 10% in Greater China due to weak demand in tier-two cities, while it grew 7% in Canada, 5% in the rest of Asia-Pacific, and increased 2% in Latin America, Europe, the Middle East, and Africa.

The company's revenues posted a 7% growth to $410 million, while net income fell 6% to $99 million. Wyndham raised its adjusted earnings per share guidance to between $4.84 and $4.92, compared to a previous range of $4.71 to $4.83, and its development pipeline reached a record high of 264,000 rooms.

The company's CEO, Geoff Ballotti, said third-quarter results reflect the team's continued execution and the strength of the asset-light, cash-generative business model. He added that the company recorded broad-based growth in US room revenue that exceeded its initial expectations, along with market share gains.

What do these terms mean?

Average revenue per available room: An indicator that measures the revenue generated by a single room available for sale regardless of its occupancy, calculated by dividing total room revenue by the number of available rooms multiplied by the number of nights.

Adjusted earnings per share: A company's profit per share after excluding extraordinary or non-recurring items, used to compare performance between periods.

Development pipeline: The number of hotel rooms or projects for which the company has signed agreements and have not yet opened, serving as an indicator of future growth.