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Wyndham Hotels & Resorts
(NYSE:WH)
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Rating:65Neutral
Price Target:
$81.00
â–²(6.76% Upside)
Action:Reiterated
Date:10/23/26
The score is driven mainly by solid profitability and free-cash-flow generation, but capped by elevated leverage and declining equity on the balance sheet. The latest earnings call adds support due to raised guidance and strong shareholder-return actions, while technicals are moderately positive and valuation is a modest headwind given the higher P/E despite a moderate dividend yield.
Positive Factors
Asset-light franchise model
The franchise-focused model limits direct property ownership and operating exposure while creating recurring fee income from a broad hotel base. As the network expands, Wyndham can add rooms, distribution value and brand reach without committing comparable capital to owning most properties.
Negative Factors
High leverage and declining equity
The debt-heavy balance sheet reduces financial flexibility and increases the sensitivity of equity value and cash allocation to operating setbacks. Declining equity also leaves less balance-sheet capacity for acquisitions, investment or sustained shareholder distributions during weaker conditions.
Read all positive and negative factors
Positive Factors
Negative Factors
Asset-light franchise model
The franchise-focused model limits direct property ownership and operating exposure while creating recurring fee income from a broad hotel base. As the network expands, Wyndham can add rooms, distribution value and brand reach without committing comparable capital to owning most properties.
Read all positive factors
Wyndham Hotels & Resorts (WH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.28B
Dividend Yield2.35%
Average Volume (3M)1.33M
Price to Earnings (P/E)26.5
Beta (1Y)0.83
Revenue Growth0.70%
EPS Growth-38.03%
CountryUS
Employees2,000
SectorConsumer Cyclical
Sector Strength84
IndustryTravel Lodging
Share Statistics
EPS (TTM)2.73
Shares Outstanding72,900,800
10 Day Avg. Volume1,505,458
30 Day Avg. Volume1,329,267
Financial Highlights & Ratios
PEG Ratio-0.96
Price to Book (P/B)12.22
Price to Sales (P/S)4.00
P/FCF Ratio17.82
Enterprise Value/Market Cap1.51
Enterprise Value/Revenue5.53
Enterprise Value/Gross Profit10.62
Enterprise Value/Ebitda16.48
Forecast
1Y Price Target
$93.58Price Target Upside23.35% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering13
EPS Forecast (FY)4.86
Revenue Forecast (FY)$1.49B
Wyndham Hotels & Resorts Business Overview & Revenue Model
Company Description
Wyndham Hotels & Resorts, Inc. functions internationally as a prominent hotel franchisor. Its business activities are primarily structured around two segments: Hotel Franchising and Hotel Management. Through Hotel Franchising, the company grants l...
How the Company Makes Money
Wyndham primarily makes money through an asset-light, franchise-focused model where independently owned hotels pay Wyndham for the right to use its brands and to access its systems and services. Key revenue streams generally include: (1) Franchise...
Wyndham Hotels & Resorts Earnings Call Summary
Earnings Call Date:Oct 21, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Feb 17, 2027
Earnings Call Sentiment Positive
The call was strongly positive. Highlights materially outweighed the lowlights, with solid U.S. RevPAR growth, improving international trends, record development pipeline growth, technology and loyalty expansion, strong cash generation, shareholder returns, and raised full-year guidance. The main challenges were China and overall international RevPAR declines, subdued U.S. transaction activity, reduced net room growth guidance, and planned REVO room exits.Positive Updates
Strong Third-Quarter Financial Performance
The company generated $410 million of net revenues, up 7% year over year, and $207 million of adjusted EBITDA, up 5% on a comparable basis. Adjusted diluted EPS was $1.43, up 9% on a comparable basis, supported by adjusted EBITDA growth and share repurchases. The CEO also characterized comparable-basis adjusted EBITDA and EPS growth as 59%, respectively, although the CFO provided the more detailed comparable figures of 5% and 9%.
Negative Updates
China RevPAR Decline
China RevPAR declined 10% year over year as softer travel demand, particularly in tier 2 cities, pressured performance. Management said tier 2 cities underperformed the industry by approximately 500 basis points. China was identified as the least favorable part of the quarter, although hotels held ADR flat versus the prior year.
Read all updates
Q3-2026 Updates
Positive
Negative
Strong Third-Quarter Financial Performance
The company generated $410 million of net revenues, up 7% year over year, and $207 million of adjusted EBITDA, up 5% on a comparable basis. Adjusted diluted EPS was $1.43, up 9% on a comparable basis, supported by adjusted EBITDA growth and share repurchases. The CEO also characterized comparable-basis adjusted EBITDA and EPS growth as 59%, respectively, although the CFO provided the more detailed comparable figures of 5% and 9%.
Read all positive updates
Company Guidance
For 2026, Wyndham expects full-year ancillary revenue growth of low double digits, free cash flow to convert at approximately 55 to 60% of adjusted EBITDA, and the marketing fund to breakeven on a full-year basis; global RevPAR outlook is 0.5% to 1%, net room growth is approximately 4% excluding Revo, net revenues are expected to be $1.48 billion to $1.5 billion, adjusted EBITDA $740 million to $745 million, adjusted net income $363 million to $369 million, and adjusted diluted EPS $4.84 to $4.92 based on a diluted share count of 74.9 million shares, with no changes to development advance spend or free cash flow conversion and key money outlook of $110 million for the full year; the outlook assumes Q4 U.S. performance is consistent with Q3 as well as continued improvement internationally, while royalty and franchise fees and comparable adjusted EBITDA are expected to be consistent with growth with Q3, and management expects momentum into 2027 to return to 2.5% to 3% RevPAR growth.Wyndham Hotels & Resorts Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
46
Neutral
Cash Flow
71
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.45B | 1.43B | 1.41B | 1.40B | 1.50B | 1.56B |
| Gross Profit | 753.00M | 841.00M | 1.41B | 815.00M | 830.00M | 795.00M |
| EBITDA | 485.00M | 466.00M | 568.00M | 582.00M | 638.00M | 524.00M |
| Net Income | 202.00M | 193.00M | 289.00M | 289.00M | 355.00M | 244.00M |
Balance Sheet | ||||||
| Total Assets | 4.36B | 4.18B | 4.22B | 4.03B | 4.12B | 4.27B |
| Cash, Cash Equivalents and Short-Term Investments | 71.00M | 64.00M | 103.00M | 66.00M | 161.00M | 171.00M |
| Total Debt | 2.73B | 3.06B | 2.47B | 2.21B | 2.08B | 2.09B |
| Total Liabilities | 3.88B | 3.71B | 3.57B | 3.29B | 3.16B | 3.18B |
| Stockholders Equity | 475.00M | 468.00M | 650.00M | 746.00M | 962.00M | 1.09B |
Cash Flow | ||||||
| Free Cash Flow | 330.00M | 321.00M | 241.00M | 339.00M | 360.00M | 389.00M |
| Operating Cash Flow | 378.00M | 367.00M | 290.00M | 376.00M | 399.00M | 426.00M |
| Investing Cash Flow | -63.00M | -103.00M | -65.00M | -66.00M | 179.00M | -34.00M |
| Financing Cash Flow | -295.00M | -314.00M | -175.00M | -402.00M | -584.00M | -713.00M |
Wyndham Hotels & Resorts Technical Analysis
Negative
75.87
Price Trends
72.19
Positive
75.24
Negative
77.27
Negative
Market Momentum
1.13
Negative
46.87
Neutral
49.88
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WH, the sentiment is Negative. The current price of 75.87 is above the 20-day moving average (MA) of 73.58, above the 50-day MA of 72.19, and below the 200-day MA of 77.27, indicating a neutral trend. The MACD of 1.13 indicates Negative momentum. The RSI at 46.87 is Neutral, neither overbought nor oversold. The STOCH value of 49.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WH.
Wyndham Hotels & Resorts Risk Analysis
Wyndham Hotels & Resorts disclosed 29 risk factors in its most recent earnings report. Wyndham Hotels & Resorts reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Wyndham Hotels & Resorts Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $5.28B | 26.53 | 43.21% | 2.35% | 0.70% | -38.03% | |
65 Neutral | $23.55B | 33.99 | -25.04% | 1.17% | 3.41% | -1.33% | |
65 Neutral | $78.69B | 50.82 | -28.13% | 0.17% | 8.74% | 4.50% | |
62 Neutral | $101.88B | 40.70 | -66.73% | 0.72% | 4.72% | 8.81% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
60 Neutral | $4.88B | 15.21 | 214.91% | 1.06% | 2.65% | 8.53% | |
56 Neutral | $16.28B | 200.67 | 2.37% | 0.35% | 6.36% | -80.55% |
* Consumer Cyclical Sector Average
WH
Wyndham Hotels & Resorts
72.42
-0.70
-0.95%
CHH
Choice Hotels
108.48
12.29
12.77%
H
Hyatt Hotels
172.58
24.22
16.32%
IHG
Intercontinental Hotels Group
162.40
38.48
31.05%
MAR
Marriott International
390.71
121.74
45.26%
HLT
Hilton Worldwide Holdings
349.63
83.93
31.59%
Wyndham Hotels & Resorts Corporate Events
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Wyndham Hotels Raises Outlook After Strong Third Quarter
Positive
Oct 21, 2026
On October 21, 2026, Wyndham Hotels Resorts reported third-quarter 2026 results showing 2% global RevPAR growth in constant currency and a 6% increase in U.S. RevPAR, alongside 4% year-over-year expansion of its system-wide rooms and development ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.