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Wyndham Hotels & Resorts (WH)
NYSE:WH
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Wyndham Hotels & Resorts (WH) AI Stock Analysis

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WH

Wyndham Hotels & Resorts

(NYSE:WH)

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Neutral 55 (OpenAI - 5.2)
Rating:55Neutral
Price Target:
$78.00
▲(6.08% Upside)
Action:Reiterated
Date:07/23/26
The score is held back primarily by balance-sheet risk (high leverage) and weak technicals (price below major moving averages with negative momentum). Offsetting these are solid profitability/cash generation and a constructive earnings update with modestly improved guidance and strong pipeline/capital return execution.
Positive Factors
Asset-light franchising model
Wyndham's asset-light model generates recurring fee revenue from royalties, distribution, marketing and loyalty partnerships, which requires limited capital spending. This structure sustainably drives cash generation and high margins over time, enabling dividends, buybacks and reinvestment tied to franchise network growth.
Negative Factors
Elevated leverage
Very high leverage reduces financial flexibility and raises refinancing and interest-rate risk, limiting the firm's ability to absorb shocks or fund opportunistic M&A. While ROE is strong, it's amplified by a small equity base; sustained operating softness could strain coverage metrics and force capital allocation trade-offs.
Read all positive and negative factors
Positive Factors
Negative Factors
Asset-light franchising model
Wyndham's asset-light model generates recurring fee revenue from royalties, distribution, marketing and loyalty partnerships, which requires limited capital spending. This structure sustainably drives cash generation and high margins over time, enabling dividends, buybacks and reinvestment tied to franchise network growth.
Read all positive factors

Wyndham Hotels & Resorts (WH) vs. SPDR S&P 500 ETF (SPY)

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” franchising model. The largest revenue stream is franchise fees paid by hotel owners that operate under Wyndham brands, typically including (1) royalties and other recurring fees that are gene...

Wyndham Hotels & Resorts Earnings Call Summary

Earnings Call Date:Jul 22, 2026
(Q2-2026)
|
% Change Since: |
Next Earnings Date:Oct 28, 2026
Earnings Call Sentiment Positive
The call conveyed a largely positive operational and financial picture: record development openings and pipeline growth, U.S. RevPAR outperformance, modest EBITDA and EPS growth, solid cash generation and active capital returns, and meaningful progress on loyalty and AI-driven ancillary revenue initiatives. Offsetting these strengths were notable international challenges—particularly Revo-related disruptions, a severe Middle East RevPAR decline, Mexico-driven softness in Latin America, and a year-over-year net revenue decline—largely driven by timing and portfolio-specific issues that management expects to be temporary or containable. Management raised the back-half outlook and emphasized liquidity and disciplined capital allocation, suggesting confidence in underlying trends despite regional headwinds.
Positive Updates
Record Development Momentum
Opened nearly 18,000 rooms in Q2 (a second-quarter record), up 7% year-over-year; development pipeline grew for 24 consecutive quarters to ~261,000 rooms (record) with a FeePAR premium of ~30% vs existing system.
Negative Updates
Net Revenues Decline
Net revenues of $375 million in Q2 declined 6% year-over-year, primarily due to the absence of pass-through revenues from the May 2025 Global Franchisee Conference, lower other franchise fees and deferral of Revo-related fees.
Read all updates
Q2-2026 Updates
Negative
Record Development Momentum
Opened nearly 18,000 rooms in Q2 (a second-quarter record), up 7% year-over-year; development pipeline grew for 24 consecutive quarters to ~261,000 rooms (record) with a FeePAR premium of ~30% vs existing system.
Read all positive updates
Company Guidance
Management modestly raised its outlook, now expecting global RevPAR flat to +1% (with U.S. RevPAR assumed at +2% in the back half), unchanged net room growth of 4.0%–4.5% (ex‑Revo), net revenues of $1.48–$1.50 billion, adjusted EBITDA of $735–$745 million, adjusted net income of $355–$365 million and adjusted diluted EPS of $4.71–$4.83 (on 75.4 million diluted shares). They reaffirmed ancillary revenue growth of low‑to‑mid‑teens, unchanged free cash flow conversion and development advance plans (Q2 development advance spend $28M; $110M allocated), expect the marketing funds to breakeven for the year (H1 underspent ≈$5M; H2 to reverse), see most comparable EBITDA growth occurring in Q4, finished Q2 with ~ $1.0B liquidity and net leverage of 3.5x, and have up to ~$170M of capital available for repurchases/M&A after dividends and remaining development advance commitments; guidance excludes deferred Revo revenues while the insolvency is resolved, and the company noted a record ~261,000‑room pipeline with a ~30% FeePAR premium.

Wyndham Hotels & Resorts Financial Statement Overview

Summary
Strong margins and solid free cash flow support operating quality, but the balance sheet is a major drag: leverage is elevated (debt-to-equity ~8.5x) and cash flow coverage versus debt is low, increasing financial risk. Revenue momentum has also softened in the trailing period.
Income Statement
66
Positive
Balance Sheet
38
Negative
Cash Flow
64
Positive
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue1.42B1.43B1.41B1.40B1.50B1.56B
Gross Profit910.00M841.00M1.41B815.00M830.00M795.00M
EBITDA495.00M466.00M568.00M582.00M638.00M524.00M
Net Income208.00M193.00M289.00M289.00M355.00M244.00M
Balance Sheet
Total Assets4.33B4.18B4.22B4.03B4.12B4.27B
Cash, Cash Equivalents and Short-Term Investments69.00M64.00M103.00M66.00M161.00M171.00M
Total Debt2.67B3.06B2.47B2.21B2.08B2.09B
Total Liabilities3.85B3.71B3.57B3.29B3.16B3.18B
Stockholders Equity480.00M468.00M650.00M746.00M962.00M1.09B
Cash Flow
Free Cash Flow323.00M321.00M241.00M339.00M360.00M389.00M
Operating Cash Flow371.00M367.00M290.00M376.00M399.00M426.00M
Investing Cash Flow-54.00M-103.00M-65.00M-66.00M179.00M-34.00M
Financing Cash Flow-277.00M-314.00M-175.00M-402.00M-584.00M-713.00M

Wyndham Hotels & Resorts Technical Analysis

Technical Analysis Sentiment
Negative
Last Price73.53
Price Trends
50DMA
79.93
Negative
100DMA
80.52
Negative
200DMA
78.04
Negative
Market Momentum
MACD
-1.99
Positive
RSI
33.52
Neutral
STOCH
12.67
Positive
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 73.53 is below the 20-day moving average (MA) of 77.41, below the 50-day MA of 79.93, and below the 200-day MA of 78.04, indicating a bearish trend. The MACD of -1.99 indicates Positive momentum. The RSI at 33.52 is Neutral, neither overbought nor oversold. The STOCH value of 12.67 is Positive, 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
$23.78B39.20-23.50%1.18%5.59%26.44%
69
Neutral
$72.48B46.58-28.13%0.19%8.74%4.50%
66
Neutral
$13.07B4.7941.76%5.21%9.63%59.04%
65
Neutral
$5.08B14.93312.73%1.04%1.18%12.87%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
56
Neutral
$16.64B63.296.71%0.32%6.36%-80.55%
55
Neutral
$5.65B27.1242.06%2.28%-2.21%-35.98%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
WH
Wyndham Hotels & Resorts
74.86
-7.22
-8.80%
HTHT
H World Group
42.69
12.87
43.18%
CHH
Choice Hotels
111.49
-13.04
-10.47%
H
Hyatt Hotels
174.06
37.07
27.06%
IHG
Intercontinental Hotels Group
162.28
49.12
43.41%
HLT
Hilton Worldwide Holdings
320.49
60.18
23.12%

Wyndham Hotels & Resorts Corporate Events

Business Operations and StrategyFinancial Disclosures
Wyndham Hotels Reports Strong Second-Quarter Financial Performance
Positive
Jul 22, 2026
On July 22, 2026, Wyndham Hotels Resorts reported strong results for the quarter ended June 30, 2026, highlighted by U.S. RevPAR growth of 2%, 4% year-over-year expansion in system-wide rooms and its development pipeline excluding insolvent Europ...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Wyndham CEO Continues Leadership Amid Health Diagnosis Update
Neutral
May 18, 2026
Wyndham Hotels Resorts announced that Chief Accounting Officer Nicola Rossi will leave the company on July 31, 2026, with Senior Vice President and Controller Christopher Androski set to assume the role on that date, signaling continuity in the f...
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.Date of analysis: Jul 23, 2026