Afrigather Wyndham Motels & Resorts (NYSE: WH) as we speak introduced outcomes for the three months and 12 months ended December 31, 2023. Highlights embrace:
- System-wide rooms grew organically by 3.5% year-over-year, a file excessive.
- Opened a file 66,000 natural rooms, representing a year-over-year improve of three%.
- International retention charge – together with all terminations – improved one other 30 foundation factors to a file 95.6%.
- Growth pipeline grew 1% sequentially and by 10% year-over-year to a file 240,000 rooms.
- Grew ECHO Suites pipeline almost 60% year-over-year with 98 new contract signings.
- Signed 766 contracts for legacy manufacturers, a rise of 8% year-over-year.
- Fourth quarter diluted earnings per share of $0.60 and web revenue of $50 million; adjusted diluted EPS of $0.91, adjusted web revenue of $75 million and adjusted EBITDA of $154 million.
- Full-year 2023 diluted EPS of $3.41 and web revenue of $289 million; adjusted diluted EPS of $4.01, adjusted web revenue of $341 million and adjusted EBITDA of $659 million.
- Internet money supplied by working actions of $376 million and free money circulate of $339 million for the full-year.
- Returned $515 million to shareholders for the full-year by $397 million of share repurchases and quarterly money dividends of $0.35 per share.
- Board of Administrators just lately licensed a 9% improve within the quarterly money dividend to $0.38 per share starting with the dividend anticipated to be declared in first quarter 2024.
“We’re tremendously proud to report fourth quarter outcomes that show the continued success of our world technique and our accelerating momentum,” mentioned Geoff Ballotti, president and chief govt officer. “Regardless of the distraction, uncertainty and misperceptions brought on by Selection and their slanted and fixed communications to our franchisee base, room openings accelerated and our world improvement pipeline grew by 10% to an all-time excessive of 240,000 rooms. Our staff opened 27% extra rooms than final 12 months within the fourth quarter and we welcomed 500 new accommodations to our system in 2023. This, when mixed with our enhancing franchisee engagement and file retention charge, drove the perfect natural system progress we have ever achieved. We grew comparable adjusted EBITDA by 6% and returned over half a billion {dollars} to our shareholders by dividends and share repurchases. We’re assured within the continued effectiveness of our progress technique and see distinctive value-creation alternatives within the years forward.”
System Measurement and Growth
|
Rooms |
||||||
|
December 31, 2023 |
December 31, 2022 |
YOY Change (bps) |
||||
|
United States |
497,600 |
493,800 |
80 |
|||
|
Worldwide |
374,200 |
348,700 |
730 |
|||
|
International |
871,800 |
842,500 |
350 |
|||
The Firm’s world system grew 3.5%, marking 12 consecutive quarters of natural progress and reflecting 1% progress within the U.S. and seven% internationally. As anticipated, these will increase included robust progress in each the upper RevPAR midscale and above segments within the U.S. and the direct franchising enterprise in China, which grew 3% and 13%, respectively. The Firm additionally elevated its retention charge, which incorporates all terminations, by one other 30 foundation factors year-over-year, ending the 12 months at a file 95.6%.
On December 31, 2023, the Firm’s world improvement pipeline consisted of over 1,950 accommodations and roughly 240,000 rooms, representing one other record-high degree and a ten% year-over-year improve. Key highlights embrace:
- 14th consecutive quarter of sequential pipeline progress
- 8% progress within the U.S. and 11% internationally
- Roughly 70% of the pipeline is within the midscale and above segments, which grew 6% year-over-year
- Roughly 58% of the pipeline is worldwide
- Roughly 79% of the pipeline is new development, of which roughly 34% has damaged floor
- The Firm awarded 766 new contracts for its legacy manufacturers in full-year 2023, a rise of 8% in comparison with full-year 2022. Moreover, the Firm awarded 98 extra new contracts for its ECHO Suites model and, as of December 31, 2023, the Firm had awarded 268 contracts, or over 33,000 rooms, for the model.
RevPAR
|
Fourth Quarter 2023 |
YOY Fixed Forex % Change |
Full-12 months 2023 |
YOY Fixed Forex % Change |
|||||
|
United States |
$ 44.06 |
(4 %) |
$ 50.42 |
(1 %) |
||||
|
Worldwide |
32.12 |
7 |
33.21 |
21 |
||||
|
International |
38.90 |
(1) |
43.10 |
5 |
Fourth quarter world RevPAR declined 1% in fixed forex in comparison with 2022 reflecting a 4% decline within the U.S. and progress of seven% internationally. For the complete 12 months, world RevPAR grew 5% in fixed forex in comparison with 2022 reflecting a 1% decline within the U.S. and progress of 21% internationally.
The Firm had achieved record-breaking RevPAR within the U.S. through the previous 12 months as a result of COVID-impacted journey patterns. Evaluating to 2019 to neutralize for COVID-impacted journey patterns, U.S. RevPAR grew 10% in fourth quarter – a 120 foundation level acceleration from third quarter 2023 progress – and 9% for the complete 12 months. Internationally, year-over-year RevPAR progress for each the fourth quarter and the full-year was primarily pushed by increased occupancy ranges. In comparison with 2019, worldwide RevPAR grew in fourth quarter and full-year by 44% and 36%, respectively, on a constant-currency foundation.
Working Outcomes
Fourth Quarter
- Price-related and different revenues was $320 million in comparison with $310 million in fourth quarter 2022 reflecting world web room progress in addition to increased license and ancillary charges.
- The Firm generated web revenue of $50 million in comparison with $56 million in fourth quarter 2022. The lower was reflective of a better efficient tax charge, increased curiosity expense, overseas forex influence from hyper-inflation in Argentina and transaction-related bills ensuing from the unsolicited provide by Selection Motels, partially offset by increased adjusted EBITDA.
- Adjusted EBITDA grew 22% to $154 million from $126 million. This improve included a $21 million favorable influence from advertising and marketing fund variability, excluding which adjusted EBITDA grew 6% primarily reflecting increased fee-related and different revenues.
- Diluted earnings per share was $0.60 in comparison with $0.63 in fourth quarter 2022. This lower displays decrease web revenue, partially offset by the good thing about a decrease share depend as a result of share repurchase exercise.
- Adjusted diluted EPS grew 26% to $0.91 per share from $0.72 per share. This improve included $0.19 per share associated to the favorable advertising and marketing fund variability (after estimated taxes), excluding which adjusted diluted EPS was unchanged year-over-year as adjusted EBITDA progress and the profit from share repurchase exercise was considerably offset by increased curiosity expense.
- Throughout fourth quarter 2023, the Firm’s advertising and marketing fund revenues exceeded bills by $9 million; whereas in fourth quarter 2022, the Firm’s advertising and marketing fund bills exceeded revenues by $12 million, leading to $21 million of selling fund variability.
Full 12 months
- Price-related and different revenues was $1,384 million in comparison with $1,354 million in full-year 2022, which included $50 million from the Firm’s choose service administration enterprise and owned accommodations, which had been exited in 2022. On a comparable foundation, fee-related and different revenues elevated 6% year-over-year primarily reflecting world RevPAR and web room progress, increased license and ancillary charges and pass-through revenues related to the Firm’s world franchisee convention in September, which was held for the primary time since 2019.
- The Firm generated web revenue of $289 million in comparison with $355 million in full-year 2022, which included $37 million from the select-service managed and owned accommodations. The lower was reflective of a better efficient tax charge, increased curiosity expense, overseas forex influence from hyper-inflation in Argentina and transaction-related bills ensuing from the unsolicited provide by Selection Motels, partially offset by increased adjusted EBITDA.
- Adjusted EBITDA was $659 million in comparison with $650 million in full-year 2022, which included $18 million from the select-service managed and owned accommodations. The expansion in adjusted EBITDA was additional impacted by $11 million of unfavorable advertising and marketing fund variability. On a comparable foundation, adjusted EBITDA elevated 6% reflecting increased fee-related and different revenues.
- Diluted earnings per share was $3.41 in comparison with $3.91 in full-year 2022, which included $0.40 per share from the select-service managed and owned accommodations. This lower displays the decrease web revenue, partially offset by the good thing about a decrease share depend as a result of share repurchase exercise.
- Adjusted diluted EPS was $4.01 per share in comparison with $3.96 per share in full-year 2022, which included $0.15 per share from the select-service managed and owned accommodations. This progress in adjusted diluted EPS was additional impacted by $0.09 per share (after estimated taxes) of unfavorable advertising and marketing fund variability. On a comparable foundation, adjusted diluted EPS elevated 8% year-over-year reflecting the adjusted EBITDA progress and the profit from share repurchase exercise, partially offset by increased curiosity expense.
- Throughout full-year 2023, the Firm’s advertising and marketing fund revenues exceeded bills by $9 million; whereas in 2022, the Firm’s advertising and marketing fund revenues exceeded bills by $20 million, leading to $11 million of selling fund variability.
Full reconciliations of GAAP outcomes to the Firm’s non-GAAP adjusted measures for all reported durations seem within the tables to this press launch.
Steadiness Sheet and Liquidity
The Firm generated $376 million of web money supplied by working actions and free money circulate of $339 million within the full-year 2023. The Firm ended the quarter with a money steadiness of $66 million and roughly $650 million in whole liquidity.
The Firm’s web debt leverage ratio was 3.2 occasions at December 31, 2023, throughout the decrease half of the Firm’s 3 to 4 occasions said goal vary.
Share Repurchases and Dividends
Throughout the fourth quarter, the Firm repurchased roughly 1.7 million shares of its frequent inventory for $127 million. For the full-year 2023, the Firm repurchased roughly 5.5 million shares of its frequent inventory for $397 million, at a median worth of $72.25, 8% decrease than buying and selling ranges as of February 13th.
The Firm paid frequent inventory dividends of $28 million, or $0.35 per share, within the fourth quarter of 2023 for a complete of $118 million, or $1.40 per share, for the full-year 2023.
For the full-year 2023, the Firm returned $515 million to shareholders by share repurchases and quarterly money dividends.
The Firm’s Board of Administrators licensed a 9% improve within the quarterly money dividend to $0.38 per share, starting with the dividend anticipated to be declared in first quarter 2024.
Full-12 months 2024 Outlook
The Firm supplied the next outlook for full-year 2024:
|
2024 Outlook |
||
|
12 months-over-year rooms progress |
3 – 4% |
|
|
12 months-over-year world RevPAR progress |
2 – 3% |
|
|
Price-related and different revenues |
$1.43 – $1.46 billion |
|
|
Adjusted EBITDA |
$690 – $700 million |
|
|
Adjusted web revenue |
$341 – $351 million |
|
|
Adjusted diluted EPS |
$4.11 – $4.23 |
|
|
Free money circulate conversion charge |
~60% |
|
NOTE: |
Outlook for adjusted EBITDA, adjusted web revenue, adjusted diluted EPS and free money circulate conversion charge excludes all bills and money outlays related to the unsolicited provide by Selection Motels, that are at the moment anticipated to approximate $75 million earlier than taxes. |
|||||
12 months-over-year progress charges for adjusted EBITDA, adjusted web revenue and adjusted diluted EPS will not be comparable as a result of full-year 2023 advertising and marketing fund revenues exceeding bills by $9 million, which considerably accomplished the restoration of the $49 million assist the Firm supplied to its house owners throughout COVID. The Firm expects advertising and marketing revenues to equal bills throughout full-year 2024 although seasonality of spend will have an effect on the quarterly comparisons all year long.
About Wyndham Motels & Resorts
Wyndham Motels & Resorts (NYSE: WH) is the world’s largest resort franchising firm by the variety of properties, with roughly 9,200 accommodations throughout over 95 international locations on six continents. By its community of roughly 872,000 rooms interesting to the on a regular basis traveler, Wyndham instructions a number one presence within the financial system and midscale segments of the lodging business.
|
Desk 1 |
|||||||
|
WYNDHAM HOTELS & RESORTS |
|||||||
|
INCOME STATEMENT |
|||||||
|
(In hundreds of thousands, besides per share knowledge) |
|||||||
|
(Unaudited) |
|||||||
|
Three Months Ended December 31, |
12 months Ended December 31, |
||||||
|
2023 |
2022 |
2023 |
2022 |
||||
|
Internet revenues |
|||||||
|
Royalties and franchise charges |
$ 117 |
$ 118 |
$ 532 |
$ 512 |
|||
|
Advertising and marketing, reservation and loyalty |
133 |
128 |
578 |
544 |
|||
|
Administration and different charges |
3 |
3 |
14 |
57 |
|||
|
License and different charges |
29 |
26 |
112 |
100 |
|||
|
Different |
38 |
35 |
148 |
141 |
|||
|
Price-related and different revenues |
320 |
310 |
1,384 |
1,354 |
|||
|
Value reimbursements |
1 |
24 |
13 |
144 |
|||
|
Internet revenues |
321 |
334 |
1,397 |
1,498 |
|||
|
Bills |
|||||||
|
Advertising and marketing, reservation and loyalty |
124 |
140 |
569 |
524 |
|||
|
Working |
30 |
22 |
94 |
106 |
|||
|
Basic and administrative |
37 |
35 |
130 |
123 |
|||
|
Value reimbursements |
1 |
24 |
13 |
144 |
|||
|
Depreciation and amortization |
20 |
19 |
76 |
77 |
|||
|
Transaction-related |
5 |
— |
11 |
— |
|||
|
Separation-related |
— |
1 |
1 |
1 |
|||
|
Achieve on asset sale, web |
— |
— |
— |
(35) |
|||
|
Whole bills |
217 |
241 |
894 |
940 |
|||
|
Working revenue |
104 |
93 |
503 |
558 |
|||
|
Curiosity expense, web |
29 |
21 |
102 |
80 |
|||
|
Early extinguishment of debt |
— |
— |
3 |
2 |
|||
|
Revenue earlier than revenue taxes |
75 |
72 |
398 |
476 |
|||
|
Provision for revenue taxes |
25 |
16 |
109 |
121 |
|||
|
Internet revenue |
$ 50 |
$ 56 |
$ 289 |
$ 355 |
|||
|
Earnings per share |
|||||||
|
Fundamental |
$ 0.61 |
$ 0.64 |
$ 3.43 |
$ 3.93 |
|||
|
Diluted |
0.60 |
0.63 |
3.41 |
3.91 |
|||
|
Weighted common shares excellent |
|||||||
|
Fundamental |
82.0 |
87.8 |
84.4 |
90.3 |
|||
|
Diluted |
82.6 |
88.3 |
84.9 |
90.8 |
|||
|
Desk 2 |
||||||||||
|
WYNDHAM HOTELS & RESORTS |
||||||||||
|
HISTORICAL REVENUE AND ADJUSTED EBITDA BY SEGMENT |
||||||||||
|
The reportable segments offered beneath signify our working segments for which separate monetary info is on the market and is utilized regularly by our chief working choice maker to evaluate efficiency and allocate sources. In figuring out our reportable segments, we additionally contemplate the character of providers supplied by our working segments. Administration evaluates the working outcomes of every of our reportable segments based mostly upon web revenues and adjusted EBITDA. Throughout the first quarter of 2023, we modified the composition of our reportable segments to replicate the current adjustments in our Lodge Administration phase, together with the sale of our owned belongings, the exit of our select-service administration enterprise and the exit from considerably all of our U.S. full-service administration enterprise. The remaining resort administration enterprise, which is predominately the full-service worldwide managed enterprise, has been aggregated, on a potential foundation, inside our Lodge Franchising phase. We imagine that adjusted EBITDA is a helpful measure of efficiency for our segments which, when thought-about with GAAP measures, permits a extra full understanding of our working efficiency. We use this measure internally to evaluate working efficiency, each completely and compared to different firms, and to make everyday working choices, together with within the analysis of chosen compensation choices. Our presentation of adjusted EBITDA will not be similar to similarly-titled measures utilized by different firms. |
||||||||||
|
First Quarter |
Second Quarter |
Third Quarter |
Fourth Quarter |
Full 12 months |
||||||
|
Lodge Franchising (a) |
||||||||||
|
Internet revenues |
||||||||||
|
2023 |
$ 313 |
$ 362 |
$ 402 |
$ 321 |
$ 1,397 |
|||||
|
2022 |
272 |
335 |
367 |
303 |
1,277 |
|||||
|
2021 |
209 |
283 |
337 |
270 |
1,099 |
|||||
|
Adjusted EBITDA |
||||||||||
|
2023 |
$ 164 |
$ 175 |
$ 215 |
$ 173 |
$ 727 |
|||||
|
2022 |
155 |
185 |
201 |
138 |
679 |
|||||
|
2021 |
105 |
166 |
193 |
128 |
592 |
|||||
|
Lodge Administration |
||||||||||
|
Internet revenues |
||||||||||
|
2023 |
n/a |
n/a |
n/a |
n/a |
n/a |
|||||
|
2022 |
$ 99 |
$ 51 |
$ 40 |
$ 31 |
$ 221 |
|||||
|
2021 |
94 |
123 |
126 |
122 |
466 |
|||||
|
Adjusted EBITDA |
||||||||||
|
2023 |
n/a |
n/a |
n/a |
n/a |
n/a |
|||||
|
2022 |
$ 20 |
$ 6 |
$ 7 |
$ 4 |
$ 37 |
|||||
|
2021 |
5 |
16 |
16 |
19 |
57 |
|||||
|
Company and Different |
||||||||||
|
Internet revenues |
||||||||||
|
2023 |
$ — |
$ — |
$ — |
$ — |
$ — |
|||||
|
2022 |
— |
— |
— |
— |
— |
|||||
|
2021 |
— |
— |
— |
— |
— |
|||||
|
Adjusted EBITDA |
||||||||||
|
2023 |
$ (17) |
$ (17) |
$ (15) |
$ (19) |
$ (68) |
|||||
|
2022 |
(16) |
(16) |
(17) |
(16) |
(66) |
|||||
|
2021 |
(13) |
(14) |
(15) |
(16) |
(59) |
|||||
|
Whole Firm |
||||||||||
|
Internet revenues |
||||||||||
|
2023 |
$ 313 |
$ 362 |
$ 402 |
$ 321 |
$ 1,397 |
|||||
|
2022 |
371 |
386 |
407 |
334 |
1,498 |
|||||
|
2021 |
303 |
406 |
463 |
392 |
1,565 |
|||||
|
Internet revenue |
||||||||||
|
2023 |
$ 67 |
$ 70 |
$ 103 |
$ 50 |
$ 289 |
|||||
|
2022 |
106 |
92 |
101 |
56 |
355 |
|||||
|
2021 |
24 |
68 |
103 |
48 |
244 |
|||||
|
Adjusted EBITDA |
||||||||||
|
2023 |
$ 147 |
$ 158 |
$ 200 |
$ 154 |
$ 659 |
|||||
|
2022 |
159 |
175 |
191 |
126 |
650 |
|||||
|
2021 |
97 |
168 |
194 |
131 |
590 |
|||||
|
NOTE: |
Quantities embrace the outcomes of the Firm’s Wyndham Grand Bonnet Creek Resort and Wyndham Grand Rio Mar Resort, which had been bought in March 2022 and Might 2022, respectively, and its select-service administration enterprise, which was exited in March 2022, by their sale/exit dates. Quantities could not add throughout as a result of rounding. See Desk 7 for reconciliations of Whole Firm non-GAAP measures and Desk 9 for definitions. |
||||
|
(a) |
For 2023, the Lodge Franchising phase consists of the previous Lodge Administration phase, which is primarily comprised of the Firm’s remaining full-service administration enterprise. |
||||
|
Desk 3 |
|||
|
WYNDHAM HOTELS & RESORTS |
|||
|
CONDENSED CASH FLOWS |
|||
|
(In hundreds of thousands) |
|||
|
(Unaudited) |
|||
|
12 months Ended December 31, |
|||
|
2023 |
2022 |
||
|
Working actions |
|||
|
Internet revenue |
$ 289 |
$ 355 |
|
|
Depreciation and amortization |
76 |
77 |
|
|
Deferred revenue taxes |
(17) |
(39) |
|
|
Achieve on asset sale, web |
— |
(35) |
|
|
Funds of improvement advance notes, web |
(72) |
(48) |
|
|
Working capital and different, web |
100 |
89 |
|
|
Internet money supplied by working actions |
376 |
399 |
|
|
Investing actions |
|||
|
Property and tools additions |
(37) |
(39) |
|
|
Proceeds from asset gross sales, web (a) |
— |
263 |
|
|
Acquisition of resort model |
— |
(44) |
|
|
Different, web |
(29) |
(1) |
|
|
Internet money (utilized in)/supplied by investing actions |
(66) |
179 |
|
|
Financing actions |
|||
|
Proceeds from long-term debt |
1,378 |
400 |
|
|
Funds of long-term debt |
(1,245) |
(404) |
|
|
Dividends to shareholders |
(118) |
(116) |
|
|
Repurchases of frequent inventory |
(393) |
(448) |
|
|
Different, web |
(24) |
(16) |
|
|
Internet money utilized in financing actions |
(402) |
(584) |
|
|
Impact of adjustments in change charges on money, money equivalents and restricted money |
(3) |
(4) |
|
|
Internet lower in money, money equivalents and restricted money |
(95) |
(10) |
|
|
Money, money equivalents and restricted money, starting of interval |
161 |
171 |
|
|
Money, money equivalents and restricted money, finish of interval |
$ 66 |
$ 161 |
|
|
Free Money Movement: |
|||||||
|
12 months Ended December 31, |
|||||||
|
2023 |
2022 |
||||||
|
Internet money supplied by working actions (b) |
$ 376 |
$ 399 |
|||||
|
Much less: Property and tools additions |
(37) |
(39) |
|||||
|
Free money circulate |
$ 339 |
$ 360 |
|||||
|
(a) |
Consists of proceeds of $179 million, web of transaction prices, acquired from the Firm’s gross sales of the Wyndham Grand Bonnet Creek Resort and the Wyndham Grand Rio Mar Resort and $84 million of proceeds from CorePoint Lodging associated to the Firm’s exit of its select-service administration enterprise. |
||||
|
(b) |
The year-over-year comparability is impacted by the absence of $13 million as a result of exit of the select-service administration enterprise and owned accommodations. Excluding which, free money circulate decreased $8 million as increased money earnings had been offset by $24 million of incremental improvement advances and $22 million of upper curiosity expense. |
||||
|
Desk 4 |
|||||
|
WYNDHAM HOTELS & RESORTS |
|||||
|
BALANCE SHEET SUMMARY AND DEBT |
|||||
|
(In hundreds of thousands) |
|||||
|
(Unaudited) |
|||||
|
As of December 31, 2023 |
As of December 31, 2022 |
||||
|
Belongings |
|||||
|
Money and money equivalents |
$ 66 |
$ 161 |
|||
|
Commerce receivables, web |
241 |
234 |
|||
|
Property and tools, web |
88 |
99 |
|||
|
Goodwill and intangible belongings, web |
3,104 |
3,131 |
|||
|
Different present and non-current belongings |
534 |
498 |
|||
|
Whole belongings |
$ 4,033 |
$ 4,123 |
|||
|
Liabilities and stockholders’ fairness |
|||||
|
Whole debt |
$ 2,201 |
$ 2,077 |
|||
|
Different present liabilities |
422 |
386 |
|||
|
Deferred revenue tax liabilities |
325 |
345 |
|||
|
Different non-current liabilities |
339 |
353 |
|||
|
Whole liabilities |
3,287 |
3,161 |
|||
|
Whole stockholders’ fairness |
746 |
962 |
|||
|
Whole liabilities and stockholders’ fairness |
$ 4,033 |
$ 4,123 |
|||
|
Our excellent debt was as follows: |
|||||
|
Weighted Common Curiosity Fee (a) |
As of December 31, 2023 |
As of December 31, 2022 |
|||
|
$750 million revolving credit score facility (due April 2027) |
7.2 % |
$ 160 |
$ — |
||
|
$400 million time period mortgage A (due April 2027) |
7.2 % |
384 |
399 |
||
|
$1.6 billion time period mortgage B (due Might 2025) |
— |
1,139 |
|||
|
$1.1 billion time period mortgage B (due Might 2030) |
4.1 % |
1,123 |
— |
||
|
$500 million 4.375% senior unsecured notes (due August 2028) |
4.4 % |
495 |
494 |
||
|
Finance leases |
4.5 % |
39 |
45 |
||
|
Whole debt |
4.9 % |
2,201 |
2,077 |
||
|
Money and money equivalents |
66 |
161 |
|||
|
Internet debt |
$ 2,135 |
$ 1,916 |
|||
|
Internet debt leverage ratio |
3.2x |
2.9x |
|||
|
(a) |
Represents weighted common rates of interest for the fourth quarter 2023, together with the results from hedging. |
||||
|
Our excellent debt as of December 31, 2023 matures as follows: |
|||
|
Quantity |
|||
|
Inside 1 12 months |
$ 37 |
||
|
Between 1 and a couple of years |
45 |
||
|
Between 2 and three years |
48 |
||
|
Between 3 and 4 years |
485 |
||
|
Between 4 and 5 years |
514 |
||
|
Thereafter |
1,072 |
||
|
Whole |
$ 2,201 |
|
Desk 5 |
|||||||||
|
WYNDHAM HOTELS & RESORTS |
|||||||||
|
REVENUE DRIVERS |
|||||||||
|
12 months Ended December 31, |
|||||||||
|
2023 |
2022 |
Change |
% Change |
||||||
|
Starting Room Rely (January 1) |
|||||||||
|
United States |
493,800 |
490,600 |
3,200 |
1 % |
|||||
|
Worldwide |
348,700 |
319,500 |
29,200 |
9 |
|||||
|
International |
842,500 |
810,100 |
32,400 |
4 |
|||||
|
Additions |
|||||||||
|
United States |
26,700 |
26,700 |
— |
— |
|||||
|
Worldwide |
39,300 |
43,700 |
(4,400) |
(10) |
|||||
|
International |
66,000 |
70,400 |
(4,400) |
(6) |
|||||
|
Deletions |
|||||||||
|
United States |
(22,900) |
(23,500) |
600 |
3 |
|||||
|
Worldwide |
(13,800) |
(14,500) |
700 |
5 |
|||||
|
International |
(36,700) |
(38,000) |
1,300 |
3 |
|||||
|
Ending Room Rely (December 31) |
|||||||||
|
United States |
497,600 |
493,800 |
3,800 |
1 |
|||||
|
Worldwide |
374,200 |
348,700 |
25,500 |
7 |
|||||
|
International |
871,800 |
842,500 |
29,300 |
3 % |
|||||
|
As of December 31, |
FY 2023 Royalty Contribution |
||||||||
|
2023 |
2022 |
Change |
% Change |
||||||
|
System Measurement |
|||||||||
|
United States |
|||||||||
|
Financial system |
230,800 |
235,800 |
(5,000) |
(2 %) |
|||||
|
Midscale and Higher Midscale |
247,600 |
239,000 |
8,600 |
4 |
|||||
|
Upscale and Above |
19,200 |
19,000 |
200 |
1 |
|||||
|
Whole United States |
497,600 |
493,800 |
3,800 |
1 % |
80 |
||||
|
Worldwide |
|||||||||
|
Higher China |
171,100 |
161,100 |
10,000 |
6 % |
3 |
||||
|
Remainder of Asia Pacific |
34,600 |
30,400 |
4,200 |
14 |
2 |
||||
|
Europe, the Center East and Africa |
88,700 |
79,200 |
9,500 |
12 |
7 |
||||
|
Canada |
39,900 |
39,500 |
400 |
1 |
5 |
||||
|
Latin America |
39,900 |
38,500 |
1,400 |
4 |
3 |
||||
|
Whole Worldwide |
374,200 |
348,700 |
25,500 |
7 % |
20 |
||||
|
International |
871,800 |
842,500 |
29,300 |
3 % |
100 % |
||||
|
Desk 5 (continued) |
|||||
|
WYNDHAM HOTELS & RESORTS |
|||||
|
REVENUE DRIVERS |
|||||
|
Three Months Ended December 31, 2023 |
Fixed Forex % Change (a) |
||||
|
Regional RevPAR Development |
|||||
|
United States |
|||||
|
Financial system |
$ 35.83 |
(7 %) |
|||
|
Midscale and Higher Midscale |
49.47 |
(4) |
|||
|
Upscale and Above |
89.85 |
5 |
|||
|
Whole United States |
$ 44.06 |
(4 %) |
|||
|
Worldwide |
|||||
|
Higher China |
$ 16.58 |
44 % |
|||
|
Remainder of Asia Pacific |
33.28 |
2 |
|||
|
Europe, the Center East and Africa |
52.15 |
5 |
|||
|
Canada |
44.75 |
4 |
|||
|
Latin America |
43.91 |
(12) |
|||
|
Whole Worldwide |
$ 32.12 |
7 % |
|||
|
International |
$ 38.90 |
(1 %) |
|||
|
Three Months Ended December 31, |
|||||
|
2023 |
2022 |
% Change |
|||
|
Common Royalty Fee |
|||||
|
United States |
4.6 % |
4.6 % |
— |
||
|
Worldwide |
2.3 % |
2.0 % |
30 bps |
||
|
International |
3.8 % |
3.8 % |
— |
||
|
12 months Ended December 31, 2023 |
Fixed Forex % Change (a) |
||||
|
Regional RevPAR Development |
|||||
|
United States |
|||||
|
Financial system |
$ 41.76 |
(2 %) |
|||
|
Midscale and Higher Midscale |
56.27 |
— |
|||
|
Upscale and Above |
97.14 |
4 |
|||
|
Whole United States |
$ 50.42 |
(1 %) |
|||
|
Worldwide |
|||||
|
Higher China |
$ 16.76 |
33 % |
|||
|
Remainder of Asia Pacific |
32.58 |
15 |
|||
|
Europe, the Center East and Africa |
52.02 |
21 |
|||
|
Canada |
54.35 |
12 |
|||
|
Latin America |
44.53 |
15 |
|||
|
Whole Worldwide |
$ 33.21 |
21 % |
|||
|
International |
$ 43.10 |
5 % |
|||
|
12 months Ended December 31, |
|||||
|
2023 |
2022 |
% Change |
|||
|
Common Royalty Fee |
|||||
|
United States |
4.6 % |
4.6 % |
— |
||
|
Worldwide |
2.4 % |
2.1 % |
30 bps |
||
|
International |
3.9 % |
3.9 % |
— |
||
|
(a) |
Worldwide and world excludes the influence of forex change actions. |
||
|
Desk 6 |
|||||||||||
|
WYNDHAM HOTELS & RESORTS |
|||||||||||
|
HISTORICAL REVPAR AND ROOMS |
|||||||||||
|
First Quarter |
Second Quarter |
Third Quarter |
Fourth Quarter |
Full 12 months |
|||||||
|
Lodge Franchising (a) |
|||||||||||
|
International RevPAR |
|||||||||||
|
2023 |
$ 37.20 |
$ 46.47 |
$ 49.71 |
$ 38.90 |
$ 43.10 |
||||||
|
2022 |
$ 33.08 |
$ 43.74 |
$ 48.61 |
$ 39.18 |
$ 41.23 |
||||||
|
2021 |
$ 24.02 |
$ 35.69 |
$ 44.67 |
$ 34.77 |
$ 34.85 |
||||||
|
U.S. RevPAR |
|||||||||||
|
2023 |
$ 43.84 |
$ 55.26 |
$ 58.46 |
$ 44.06 |
$ 50.42 |
||||||
|
2022 |
$ 41.01 |
$ 54.70 |
$ 58.45 |
$ 45.49 |
$ 50.00 |
||||||
|
2021 |
$ 29.68 |
$ 46.99 |
$ 56.38 |
$ 42.45 |
$ 43.95 |
||||||
|
Worldwide RevPAR |
|||||||||||
|
2023 |
$ 27.99 |
$ 34.44 |
$ 38.05 |
$ 32.12 |
$ 33.21 |
||||||
|
2022 |
$ 21.05 |
$ 26.80 |
$ 33.90 |
$ 30.16 |
$ 28.11 |
||||||
|
2021 |
$ 15.26 |
$ 18.21 |
$ 26.62 |
$ 23.13 |
$ 20.86 |
||||||
|
International Rooms (b) |
|||||||||||
|
2023 |
844,800 |
851,500 |
858,000 |
871,800 |
871,800 |
||||||
|
2022 |
793,200 |
799,200 |
816,300 |
827,100 |
827,100 |
||||||
|
2021 |
748,700 |
752,500 |
758,600 |
769,400 |
769,400 |
||||||
|
U.S. Rooms |
|||||||||||
|
2023 |
494,400 |
495,100 |
495,700 |
497,600 |
497,600 |
||||||
|
2022 |
486,600 |
487,600 |
488,100 |
493,500 |
493,500 |
||||||
|
2021 |
452,500 |
454,200 |
458,000 |
465,100 |
465,100 |
||||||
|
Worldwide Rooms (b) |
|||||||||||
|
2023 |
350,400 |
356,400 |
362,300 |
374,200 |
374,200 |
||||||
|
2022 |
306,600 |
311,600 |
328,200 |
333,600 |
333,600 |
||||||
|
2021 |
296,200 |
298,300 |
300,600 |
304,300 |
304,300 |
||||||
|
Lodge Administration |
|||||||||||
|
International RevPAR |
|||||||||||
|
2023 |
n/a |
n/a |
n/a |
n/a |
n/a |
||||||
|
2022 |
$ 56.55 |
$ 65.13 |
$ 71.54 |
$ 68.04 |
$ 64.07 |
||||||
|
2021 |
$ 38.17 |
$ 56.08 |
$ 64.63 |
$ 57.57 |
$ 53.81 |
||||||
|
U.S. RevPAR |
|||||||||||
|
2023 |
n/a |
n/a |
n/a |
n/a |
n/a |
||||||
|
2022 |
$ 69.92 |
$ 135.35 |
$ 126.34 |
$ 98.28 |
$ 92.66 |
||||||
|
2021 |
$ 42.89 |
$ 67.42 |
$ 78.27 |
$ 66.77 |
$ 63.20 |
||||||
|
Worldwide RevPAR |
|||||||||||
|
2023 |
n/a |
n/a |
n/a |
n/a |
n/a |
||||||
|
2022 |
$ 40.26 |
$ 40.89 |
$ 53.57 |
$ 59.49 |
$ 48.61 |
||||||
|
2021 |
$ 27.12 |
$ 31.20 |
$ 37.53 |
$ 40.96 |
$ 34.31 |
||||||
|
International Rooms |
|||||||||||
|
2023 |
n/a |
n/a |
n/a |
n/a |
n/a |
||||||
|
2022 |
20,100 |
19,700 |
19,700 |
15,400 |
15,400 |
||||||
|
2021 |
48,500 |
45,500 |
44,000 |
40,700 |
40,700 |
||||||
|
U.S. Rooms |
|||||||||||
|
2023 |
n/a |
n/a |
n/a |
n/a |
n/a |
||||||
|
2022 |
5,300 |
4,800 |
4,800 |
300 |
300 |
||||||
|
2021 |
33,500 |
30,600 |
28,800 |
25,500 |
25,500 |
||||||
|
Worldwide Rooms |
|||||||||||
|
2023 |
n/a |
n/a |
n/a |
n/a |
n/a |
||||||
|
2022 |
14,800 |
14,900 |
14,900 |
15,100 |
15,100 |
||||||
|
2021 |
15,000 |
14,900 |
15,200 |
15,200 |
15,200 |
||||||
|
Desk 6 (continued) |
|||||||||||
|
WYNDHAM HOTELS & RESORTS |
|||||||||||
|
HISTORICAL REVPAR AND ROOMS |
|||||||||||
|
First Quarter |
Second Quarter |
Third Quarter |
Fourth Quarter |
Full 12 months |
|||||||
|
Whole System |
|||||||||||
|
International RevPAR |
|||||||||||
|
2023 |
$ 37.20 |
$ 46.47 |
$ 49.71 |
$ 38.90 |
$ 43.10 |
||||||
|
2022 |
$ 34.06 |
$ 44.28 |
$ 49.17 |
$ 39.86 |
$ 41.88 |
||||||
|
2021 |
$ 24.90 |
$ 36.92 |
$ 45.80 |
$ 35.99 |
$ 35.95 |
||||||
|
U.S. RevPAR |
|||||||||||
|
2023 |
$ 43.84 |
$ 55.26 |
$ 58.46 |
$ 44.06 |
$ 50.42 |
||||||
|
2022 |
$ 42.11 |
$ 55.57 |
$ 59.15 |
$ 45.96 |
$ 50.72 |
||||||
|
2021 |
$ 30.62 |
$ 48.37 |
$ 57.73 |
$ 43.84 |
$ 45.19 |
||||||
|
Worldwide RevPAR |
|||||||||||
|
2023 |
$ 27.99 |
$ 34.44 |
$ 38.05 |
$ 32.12 |
$ 33.21 |
||||||
|
2022 |
$ 21.95 |
$ 27.46 |
$ 34.79 |
$ 31.44 |
$ 29.05 |
||||||
|
2021 |
$ 15.83 |
$ 18.84 |
$ 27.15 |
$ 23.99 |
$ 21.52 |
||||||
|
International Rooms (b) |
|||||||||||
|
2023 |
844,800 |
851,500 |
858,000 |
871,800 |
871,800 |
||||||
|
2022 |
813,300 |
818,900 |
836,000 |
842,500 |
842,500 |
||||||
|
2021 |
797,200 |
798,000 |
802,600 |
810,100 |
810,100 |
||||||
|
U.S. Rooms |
|||||||||||
|
2023 |
494,400 |
495,100 |
495,700 |
497,600 |
497,600 |
||||||
|
2022 |
491,900 |
492,400 |
492,900 |
493,800 |
493,800 |
||||||
|
2021 |
486,000 |
484,800 |
486,800 |
490,600 |
490,600 |
||||||
|
Worldwide Rooms (b) |
|||||||||||
|
2023 |
350,400 |
356,400 |
362,300 |
374,200 |
374,200 |
||||||
|
2022 |
321,400 |
326,500 |
343,100 |
348,700 |
348,700 |
||||||
|
2021 |
311,200 |
313,200 |
315,800 |
319,500 |
319,500 |
||||||
|
NOTE: |
Quantities could not foot as a result of rounding. Outcomes replicate the reclassification of rooms from the Lodge Administration phase to the Lodge Franchising phase associated to the CorePoint Lodging asset gross sales, together with roughly 19,000 rooms in first quarter 2022. |
|||||
|
(a) |
For 2023, the Lodge Franchising phase consists of the previous Lodge Administration phase, which is primarily comprised of the Firm’s remaining full-service administration enterprise. |
|||||
|
(b) |
Consists of 6,400 Vienna Home rooms acquired within the third quarter of 2022. |
|||||
|
Desk 7 |
|||||||||
|
WYNDHAM HOTELS & RESORTS |
|||||||||
|
NON-GAAP RECONCILIATIONS |
|||||||||
|
(In hundreds of thousands) |
|||||||||
|
The tables beneath reconcile sure non-GAAP monetary measures. The presentation of those changes is meant to allow the comparability of specific changes as they seem within the revenue assertion with the intention to help buyers’ understanding of the general influence of such changes. We imagine that adjusted EBITDA, adjusted web revenue and adjusted EPS monetary measures present helpful info to buyers about us and our monetary situation and outcomes of operations as a result of these measures are utilized by our administration staff to judge our working efficiency and make day-to-day working choices and adjusted EBITDA is continuously utilized by securities analysts, buyers and different events as a standard efficiency measure to check outcomes or estimate valuations throughout firms in our business. These measures additionally help our buyers in evaluating our ongoing working efficiency for the present reporting interval and, the place supplied, over totally different reporting durations, by adjusting for sure objects which can be recurring or non-recurring and which in our view don’t essentially replicate ongoing efficiency. We additionally internally use these measures to evaluate our working efficiency, each completely and compared to different firms, and in evaluating or making chosen compensation choices. These supplemental disclosures are along with GAAP reported measures. These non-GAAP reconciliation tables shouldn’t be thought-about an alternative choice to, nor superior to, monetary outcomes and measures decided or calculated in accordance with GAAP. |
|||||||||
|
Reconciliation of Internet Revenue to Adjusted EBITDA: |
|||||||||
|
First Quarter |
Second Quarter |
Third Quarter |
Fourth Quarter |
Full 12 months |
|||||
|
2023 |
|||||||||
|
Internet revenue |
$ 67 |
$ 70 |
$ 103 |
$ 50 |
$ 289 |
||||
|
Provision for revenue taxes |
24 |
26 |
33 |
25 |
109 |
||||
|
Depreciation and amortization |
19 |
19 |
19 |
20 |
76 |
||||
|
Curiosity expense, web |
22 |
24 |
27 |
29 |
102 |
||||
|
Early extinguishment of debt (a) |
— |
3 |
— |
— |
3 |
||||
|
Inventory-based compensation |
9 |
9 |
10 |
11 |
39 |
||||
|
Growth advance notes amortization |
3 |
4 |
4 |
5 |
15 |
||||
|
Transaction-related (b) |
— |
4 |
1 |
5 |
11 |
||||
|
Separation-related (c) |
2 |
(2) |
— |
— |
1 |
||||
|
International forex influence of extremely inflationary international locations (d) |
1 |
1 |
3 |
9 |
14 |
||||
|
Adjusted EBITDA |
$ 147 |
$ 158 |
$ 200 |
$ 154 |
$ 659 |
||||
|
2022 |
|||||||||
|
Internet revenue |
$ 106 |
$ 92 |
$ 101 |
$ 56 |
$ 355 |
||||
|
Provision for revenue taxes |
34 |
31 |
38 |
16 |
121 |
||||
|
Depreciation and amortization |
24 |
17 |
18 |
19 |
77 |
||||
|
Curiosity expense, web |
20 |
20 |
21 |
21 |
80 |
||||
|
Early extinguishment of debt (a) |
— |
2 |
— |
— |
2 |
||||
|
Inventory-based compensation |
8 |
9 |
8 |
8 |
33 |
||||
|
Growth advance notes amortization |
3 |
3 |
3 |
3 |
12 |
||||
|
(Achieve)/loss on asset sale, web (e) |
(36) |
1 |
— |
— |
(35) |
||||
|
Separation-related (c) |
— |
(1) |
1 |
1 |
1 |
||||
|
International forex influence of extremely inflationary international locations (d) |
— |
1 |
1 |
2 |
4 |
||||
|
Adjusted EBITDA |
$ 159 |
$ 175 |
$ 191 |
$ 126 |
$ 650 |
||||
|
2021 |
|||||||||
|
Internet revenue |
$ 24 |
$ 68 |
$ 103 |
$ 48 |
$ 244 |
||||
|
Provision for revenue taxes |
11 |
25 |
36 |
19 |
91 |
||||
|
Depreciation and amortization |
24 |
24 |
23 |
25 |
95 |
||||
|
Curiosity expense, web |
28 |
22 |
22 |
22 |
93 |
||||
|
Early extinguishment of debt (a) |
— |
18 |
— |
— |
18 |
||||
|
Inventory-based compensation |
5 |
8 |
7 |
8 |
28 |
||||
|
Growth advance notes amortization |
2 |
2 |
3 |
3 |
11 |
||||
|
Impairments, web (f) |
— |
— |
— |
6 |
6 |
||||
|
Separation-related (c) |
2 |
1 |
— |
— |
3 |
||||
|
International forex influence of extremely inflationary international locations (d) |
1 |
— |
— |
— |
1 |
||||
|
Adjusted EBITDA |
$ 97 |
$ 168 |
$ 194 |
$ 131 |
$ 590 |
||||
|
NOTE: |
Quantities could not add as a result of rounding. |
||||
|
(a) |
Quantity in 2023 pertains to non-cash prices related to the Firm’s refinancing of its time period mortgage B. Quantity in 2022 pertains to non-cash prices related to the Firm’s extension of its revolving credit score facility and the prepayment of $400 million of its time period mortgage B. Quantity in 2021 pertains to the redemption premium and non-cash bills related to the early redemption of the Firm’s 5.375% senior unsecured notes. |
||||
|
(b) |
Represents prices associated to company transactions, together with Selection Motels’ unsolicited provide. |
||||
|
(c) |
Represents prices related to the Firm’s spin-off from Wyndham Worldwide. |
||||
|
(d) |
Pertains to the overseas forex influence from hyper-inflation, primarily in Argentina, which is mirrored in working bills on the revenue assertion. |
||||
|
(e) |
Represents (achieve)/loss on gross sales of the Firm’s owned accommodations, the Wyndham Grand Bonnet Creek Resort and Wyndham Grand Rio Mar. |
||||
|
(f) |
Represents a non-cash cost to cut back the carrying values of the Firm’s owned accommodations long-lived belongings to their honest worth in reference to the Firm’s Board approval of a plan to promote these belongings in 2022. |
||||
|
Desk 7 (continued) |
|||||||
|
WYNDHAM HOTELS & RESORTS |
|||||||
|
NON-GAAP RECONCILIATIONS |
|||||||
|
(In hundreds of thousands, besides per share knowledge) |
|||||||
|
Reconciliation of Internet Revenue and Diluted EPS to Adjusted Internet Revenue and Adjusted Diluted EPS: |
|||||||
|
Three Months Ended December 31, |
12 months Ended December 31, |
||||||
|
2023 |
2022 |
2023 |
2022 |
||||
|
Diluted earnings per share |
$ 0.60 |
$ 0.63 |
$ 3.41 |
$ 3.91 |
|||
|
Internet revenue |
$ 50 |
$ 56 |
$ 289 |
$ 355 |
|||
|
Changes: |
|||||||
|
Acquisition-related amortization expense (a) |
7 |
6 |
27 |
31 |
|||
|
International forex influence of extremely inflationary international locations |
9 |
2 |
14 |
4 |
|||
|
Transaction-related |
5 |
— |
11 |
— |
|||
|
Early extinguishment of debt |
— |
— |
3 |
2 |
|||
|
Separation-related |
— |
1 |
1 |
1 |
|||
|
Achieve on asset sale, web |
— |
— |
— |
(35) |
|||
|
Whole changes earlier than tax |
21 |
9 |
56 |
3 |
|||
|
Revenue tax provision/(profit) (b) |
(4) |
1 |
4 |
(2) |
|||
|
Whole changes after tax |
25 |
8 |
52 |
5 |
|||
|
Adjusted web revenue |
$ 75 |
$ 64 |
$ 341 |
$ 360 |
|||
|
Changes – EPS influence |
0.31 |
0.09 |
0.60 |
0.05 |
|||
|
Adjusted diluted EPS |
$ 0.91 |
$ 0.72 |
$ 4.01 |
$ 3.96 |
|||
|
Diluted weighted common shares excellent |
82.6 |
88.3 |
84.9 |
90.8 |
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(a) |
Mirrored in depreciation and amortization on the revenue assertion. |
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(b) |
Displays the estimated tax results of the changes. The 2023 quantities embrace a overseas tax evaluation impacting years 2017, 2018 and 2019. |
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Desk 8 |
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WYNDHAM HOTELS & RESORTS |
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2024 OUTLOOK |
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As of February 14, 2024 |
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(In hundreds of thousands, besides per share knowledge) |
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2024 Outlook (a) |
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|
Price-related and different revenues |
$ |
1,430 – 1,460 |
|
Adjusted EBITDA |
690 – 700 |
|
|
Depreciation and amortization expense |
46 – 48 |
|
|
Growth advance notes amortization expense |
23 – 25 |
|
|
Inventory-based compensation expense |
43 – 45 |
|
|
Curiosity expense, web |
118 – 120 |
|
|
Adjusted revenue earlier than revenue taxes |
454 – 468 |
|
|
Revenue tax expense (b) |
114 – 117 |
|
|
Adjusted web revenue |
$ |
341 – 351 |
|
Adjusted diluted EPS |
$ |
4.11 – 4.23 |
|
Diluted shares (c) |
83.0 |
|
|
Capital expenditures |
Approx. $40 |
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Growth advance notes |
Approx. $90 |
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|
Free money circulate conversion charge |
~60% |
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12 months-over-12 months Development |
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International RevPAR |
2% – 3% |
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Variety of rooms |
3% – 4% |
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NOTE: |
Outlook for adjusted EBITDA, adjusted web revenue, adjusted diluted EPS and free money circulate conversion charge excludes all bills and money outlays related to the unsolicited provide by Selection Motels, that are at the moment anticipated to approximate $75 million earlier than taxes. |
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(a) |
12 months-over-year progress charges for adjusted EBITDA, adjusted web revenue and adjusted diluted EPS will not be comparable as a result of full-year 2023 advertising and marketing fund revenues exceeding bills by $9 million (earlier than taxes), which considerably accomplished the restoration of the $49 million assist the Firm supplied to its house owners throughout COVID. |
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(b) |
Outlook assumes an efficient tax charge of roughly 25%. |
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(c) |
Excludes the influence of any share repurchases after December 31, 2023. |
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In figuring out adjusted EBITDA, curiosity expense, web, adjusted revenue earlier than revenue taxes, adjusted web revenue, adjusted diluted EPS and free money circulate conversion charge, we exclude sure objects that are in any other case included in figuring out the comparable GAAP monetary measures. We’re offering these measures on a non-GAAP foundation solely as a result of, with out unreasonable efforts, we’re unable to foretell with affordable certainty the prevalence or quantity of all of the changes or different potential changes which will come up sooner or later through the forward-looking interval, which may be depending on future occasions that will not be reliably predicted. Based mostly on previous reported outcomes, the place a number of of this stuff have been relevant, such excluded objects may very well be materials, individually or within the mixture, to the reported outcomes.
Desk 9
WYNDHAM HOTELS & RESORTS
DEFINITIONS
Adjusted Internet Revenue and Adjusted Diluted EPS: Represents web revenue/(loss) and diluted earnings/(loss) per share excluding acquisition-related amortization, impairment prices, restructuring and associated prices, contract termination prices, separation-related objects, transaction-related objects (acquisition-, disposition-, or debt-related), (achieve)/loss on asset gross sales and overseas forex impacts of extremely inflationary international locations. The Firm calculates the revenue tax impact of the changes utilizing an estimated efficient tax charge relevant to every adjustment.
Adjusted EBITDA: Represents web revenue/(loss) excluding web curiosity expense, depreciation and amortization, early extinguishment of debt prices, impairment prices, restructuring and associated prices, contract termination prices, separation-related objects, transaction-related objects (acquisition-, disposition-, or debt-related), (achieve)/loss on asset gross sales, overseas forex impacts of extremely inflationary international locations, stock-based compensation expense, revenue taxes and improvement advance notes amortization. Adjusted EBITDA is a monetary measure that isn’t acknowledged beneath U.S. GAAP and shouldn’t be thought-about as an alternative choice to web revenue/(loss) or different measures of monetary efficiency or liquidity derived in accordance with U.S. GAAP. As well as, the Firm’s definition of adjusted EBITDA will not be similar to equally titled measures of different firms.
Common Day by day Fee (ADR): Represents the typical charge charged for renting a lodging room for at some point.
Common Occupancy Fee: Represents the share of accessible rooms occupied through the interval.
Comparable Foundation: For 2023, represents a comparability eliminating the contribution from the Firm’s owned accommodations and select-service administration enterprise – each of which had been exited within the first half of 2022, in addition to the variability in its advertising and marketing funds as a result of restoration of the COVID assist that the Firm supplied to its house owners throughout 2020. For 2024, represents a comparability eliminating the year-over-year variability of the Firm’s advertising and marketing funds.
Fixed Forex: Represents a comparability eliminating the results of overseas change charge fluctuations between durations (overseas forex translation) and the influence brought on by any overseas change associated actions (i.e., hedges, steadiness sheet remeasurements and/or changes).
Free Money Movement: For 2023, represents web money supplied by working actions much less capital expenditures. For 2024, the Firm’s definition of free money circulate was modified to replicate the add again of improvement advances as such outflows signify capital deployment into the enterprise. The Firm believes free money circulate to be a helpful working efficiency measure to it and buyers. This measure helps the Firm and buyers consider its potential to generate money past what is required to fund capital expenditures, debt service and different obligations. However money available and incremental borrowing capability, free money circulate displays the Firm’s potential to develop its enterprise by investments and acquisitions, in addition to its potential to return money to shareholders by dividends and share repurchases and even to delever. Free money circulate will not be a illustration of how the Firm will use extra money. A limitation of utilizing free money circulate versus the GAAP measure of web money supplied by working actions as a way for evaluating Wyndham Motels is that free money circulate doesn’t signify the entire money motion for the interval as detailed within the condensed consolidated assertion of money flows.
Free Money Movement Conversion Fee: Represents the share of adjusted EBITDA that’s transformed to free money circulate and gives insights into how effectively the Firm is ready to flip earnings into money out there to be used, similar to for investments, debt discount, dividends or share repurchases.
Internet Debt Leverage Ratio: Calculated by dividing whole debt much less money and money equivalents by trailing twelve months adjusted EBITDA.
Variety of Rooms: Represents the variety of rooms on the finish of the interval that are (i) both beneath franchise and/or administration agreements or Firm-owned and (ii) properties beneath affiliation agreements for which we obtain a charge for reservation and/or different providers supplied.
RevPAR: Represents income per out there room and is calculated by multiplying common occupancy charge by ADR.
Royalty Fee: Represents the typical royalty charge earned on our franchised properties and is calculated by dividing whole royalties, excluding the influence of amortization of improvement advance notes, by whole room revenues.
SOURCE Wyndham Motels & Resorts
