Wyndham Hotels & Resorts closed 2025 with its development engine operating at peak capacity, even as sustained weakness in US revenue per available room and a significant European franchisee collapse pushed reported net income sharply lower. The world’s largest hotel franchising company by property count reported full-year adjusted earnings that met its own guidance, while signalling cautious optimism for 2026.
The company opened a record 72,000 rooms across 2025, expanding its global system 4% year-on-year to approximately 869,000 rooms across more than 8,300 hotels. Its development pipeline reached an all-time high of roughly 2,200 hotels and 259,000 rooms by year-end – 3% above 2024 levels. Wyndham also awarded 870 development contracts globally during the year, an 18% increase year-on-year and another record.
“Despite continued negative US RevPAR pressure, we grew full-year comparable-basis adjusted EBITDA and adjusted EPS in 2025 by 4% and 6%, respectively,” said Geoff Ballotti, president and chief executive officer.
The RevPAR drag
Revenue per available room remained the central pressure point throughout 2025. Global RevPAR declined 3% in constant currency for the full year – a 4% decline in the US and flat performance internationally. The fourth quarter was sharper: global RevPAR fell 6% in constant currency, with the US down 8% and international markets down 1%.
Hurricane disruptions in the US accounted for roughly 140 basis points of the fourth quarter decline. Excluding that, the underlying US figure still reflected a 360 basis-point drop in occupancy and a 250 basis-point fall in average daily rate. Florida, Texas and California were particular soft spots, with the Midwest offering partial offset.
Internationally, EMEA delivered 7% constant-currency RevPAR growth in the fourth quarter, and Latin America 6%, supported by both demand recovery and stronger pricing. China, however, remains a drag – RevPAR there declined 10% in Q4 – a headwind that Wyndham has progressively worked to insulate through its revised reporting methodology that now excludes Super 8 China master licensee rooms from system-wide metrics.
The Revo insolvency: a material complication
The most significant one-time development of the quarter was the disclosure that Revo Hospitality Group, a large European franchisee operating approximately 22,000 rooms under Wyndham brands, filed for insolvency proceedings under self-administration for most of its entities.
Wyndham recorded total charges of $160 million connected to the Revo situation: $74 million as a provision against accounts and loans receivable, $48 million in impairment against asset carrying values, and $38 million to write down the Vienna House trademark and related franchise agreements to estimated fair value. The company has deferred all Revo-related revenues from the fourth quarter onwards pending clarity on recoverability.
Revo’s 22,000 rooms will remain within Wyndham’s reported system count and RevPAR statistics for as long as the underlying franchise agreements remain in effect. The company notes that Revo’s historical contribution to annual net room growth has been immaterial.
Underlying performance holds steady
Stripping out the Revo charges and other non-cash items, Wyndham’s core operating performance was broadly in line with expectations. Full-year adjusted EBITDA grew 3% to $718 million (4% on a comparable basis). Adjusted diluted EPS rose 6% to $4.58. Ancillary revenues – which include technology, global distribution, and other fee streams beyond royalties – climbed 15% for the full year, hitting an all-time high and partially offsetting the royalty revenue impact of softer RevPAR.
Fee-related and other revenues grew 2% to $1.43 billion. The company generated $367 million in net cash from operating activities and $433 million in adjusted free cash flow. Net debt leverage stood at 3.5 times at year-end, at the midpoint of the company’s 3-to-4 times target range.
Shareholders received $393 million in returns during the year, comprising $266 million in share repurchases and $127 million in dividends. The board has approved a 5% increase in the quarterly dividend to $0.43 per share, effective from the first quarter of 2026.
What 2026 looks like
Wyndham’s 2026 guidance projects rooms growth of 4% to 4.5%, adjusted EBITDA of $730 million to $745 million, and adjusted diluted EPS of $4.62 to $4.80. Global RevPAR is expected to range between a 1.5% decline and 0.5% growth in constant currency – reflecting continued uncertainty in the US demand environment.
The 2026 EBITDA outlook absorbs $12 million of deferred Revo royalties and the non-recurrence of $15 million in one-time cost reductions taken in 2025. Excluding both, management estimates comparable-basis growth of 5% to 7% – a figure that underscores the underlying franchise model’s resilience even as the external operating environment remains unsettled.
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