Wyndham Hotels & Resorts delivered solid second-quarter 2026 results, with adjusted diluted earnings per share rising 11% year-over-year to $1.48 and net income growing 17% to $102 million. The company also raised its full-year 2026 outlook across key financial metrics, citing system expansion, higher ancillary revenues, and accelerating U.S. RevPAR growth. Geoff Ballotti, President and Chief Executive Officer, noted that comparable-basis adjusted EBITDA grew 3%, reflecting the continued strength of the company's asset-light, fee-based business model.

Second Quarter Financial Performance

The following table summarizes key operating results for the second quarter, compared to the prior-year period:

Net revenues declined 6% to $375 million compared to $397 million in the second quarter of 2025, primarily reflecting the absence of pass-through revenues related to the company's global franchisee conference held in May 2025, lower other franchise fees, and the deferral of fees from Revo Hospitality Group ("Revo"), a large European franchisee that filed for insolvency. These headwinds were partially offset by higher ancillary revenues and global net rooms growth of 4% (excluding Revo). Adjusted EBITDA of $212 million included an $11 million favorable impact from marketing fund variability; on a comparable basis, adjusted EBITDA increased 3%, primarily driven by lower general and administrative expenses and higher ancillary revenues.

System Size, Pipeline, and RevPAR

The company's global system size and development pipeline showed continued momentum. The following table presents room counts as of June 30:

Excluding Revo, the global system grew 4%, with international growth of 10% year-over-year driven by 12% direct-franchised growth in Asia Pacific and 11% growth in higher-RevPAR EMEA and Latin America regions. The U.S. system grew 10 basis points sequentially and was flat year-over-year. The global development pipeline reached a record high of approximately 261,000 rooms across over 2,200 hotels, up 4% year-over-year (excluding Revo), with approximately 69% in the midscale and above segments and approximately 78% representing new construction.

Second quarter RevPAR performance is summarized below:

U.S. RevPAR improved 2% both year-over-year and sequentially, driven by continued strength in the Midwest and growth in Texas, Florida, and California. Internationally, constant currency growth in Canada (+2%) and Southeast Asia and the Pacific Rim (+5%) was more than offset by declines in Latin America (-7%), EMEA (-6%), and China (-5%), reflecting lower cross-border demand, geopolitical headwinds, and deflationary pricing pressure, respectively.

Balance Sheet, Cash Flow, and Shareholder Returns

The company ended the quarter with a cash balance of $69 million and $1.0 billion in total liquidity. Net debt leverage stood at 3.5 times as of June 30, 2026, at the midpoint of the company's stated 3-to-4 times target range. During the quarter, Wyndham repurchased approximately 657,000 shares for $54 million and paid common stock dividends of $32 million, or $0.43 per share, returning a total of $86 million to shareholders.

Updated Full-Year 2026 Outlook

The company raised its full-year 2026 guidance following the second-quarter results. The updated and prior outlooks are presented below:

The updated outlook reflects the removal of all Revo-related revenue recognition given ongoing insolvency proceedings, a deferral of $12 million in royalties and franchise fees from Revo, and the inclusion of approximately $10 million of net revenues from two Revo hotels the company foreclosed on and took possession of. The prior second-half domestic RevPAR outlook of approximately 0% has been increased to approximately 2% in the updated guidance.

JP Morgan analyst Daniel Politzer has maintained an Overweight rating on Wyndham Hotels & Resorts (NYSE: WH) and lowered the price target to $97 from $100. This adjustment follows a series of rating updates from other major financial institutions regarding the hospitality company's stock.

Morgan Stanley analyst Stephen Grambling has maintained an Overweight rating on Wyndham Hotels & Resorts. The firm raised its price target for the stock to $93 from $89. The adjustment reflects a revised valuation outlook for the hospitality company.

Wells Fargo analyst Trey Bowers has maintained an Equal-Weight rating on the stock. Wells Fargo raised its price target to $98 from $96.

Barclays analyst Brandt Montour maintains an Overweight rating on Wyndham Hotels & Resorts. The firm lowered its price target to $102 from $104.