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Wyndham leans into higher-fee segments for growth

RevPAR at Wyndham Hotels & Resorts’ U.S. hotels rose 2% year-over-year in the second quarter, and the franchisor raised its outlook for full-year global RevPAR growth to a range of flat to up 1%, representative of an increase of 100 basis points on the low end of the range from its prior outlook, the company said.

“Our solid second-quarter results reflect the continued strength of Wyndham’s asset-light, fee-based business, bolstered by system expansion, higher ancillary revenues, and accelerating U.S. RevPAR growth that exceeded our expectations — delivering comparable-basis adjusted EBITDA growth of 3%,” said Geoff Ballotti, president and CEO of Wyndham Hotels & Resorts. “Record second quarter openings focused on higher FeePAR hotels in the midscale and above segments demonstrate franchisees’ continued confidence in our brands and Wyndham’s compelling ‘Owner First’ value proposition. As domestic RevPAR trends, net rooms growth, global pipeline development, and ancillary revenue streams continue to strengthen, we remain confident in our ability to deliver sustainable long-term growth and create meaningful value for our shareholders, franchisees, and guests.”

Net income increased 17% year-over-year to $102 million.

One variable impacting Wyndham’s numbers was the January insolvency of Revo Hospitality, a large franchisee of Wyndham brands, which led to a $160 million charge in early 2026. Wyndham removed all Revo-related revenue recognition from its 2026 outlook and reported results given the uncertainty on expected outcomes and collectability. In addition, the company’s 2026 net room growth outlook also excluded any impact associated with Revo’s ongoing insolvency and, as such, the company’s global net room growth metrics are also presented excluding Revo-related rooms.

Wyndham’s system-wide rooms grew 4% year-over-year, excluding insolvent Revo Hospitality Group rooms. Likewise, the development pipeline, excluding Revo, grew 4% year-over-year to a record of approximately 261,000 rooms, carrying a FeePAR premium of approximately 30% to existing domestic and international systems.

Wyndham’s U.S. system grew 10 basis points sequentially and was flat year-over-year. International growth of 10% year-over-year, excluding Revo, included 12% direct-franchised growth in the company’s Asia Pacific region and 11% growth in the company’s higher RevPAR EMEA and Latin America regions.

Second quarter global RevPAR decreased 1% compared to 2025, reflecting the 2% growth in the U.S. against a 6% decline internationally.

In the U.S., RevPAR growth reflected improved occupancy and ADR levels. Overall, U.S. RevPAR results were primarily driven by continued strength across the Midwest and both sequential and year-over-year growth in Texas, Florida, and California, Wyndham said.

Growth in those regions was tempered by Latin America, which declined 7% year-over-year primarily due to lower U.S. cross-border demand in Mexico, Wyndham said. EMEA declined 6% year-over-year driven by the geopolitical conflict in the Middle East as well as softness in the performance of Revo hotels in its insolvency. China declined by 5% year-over-year primarily due to continued deflationary pricing pressure.

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