Q2 2024 Wyndham Hotels & Resorts Inc Earnings Call Transcript
Key Points
- Wyndham Hotels & Resorts Inc (WH) reported strong earnings with a 6% increase in adjusted EBITDA and a 12% rise in EPS.
- The company achieved a 4% system growth and saw significant increases in both US and international royalty rates.
- Wyndham opened over 18,000 rooms in the quarter, a 16% increase in domestic room openings compared to last year.
- The development pipeline grew for the 16th consecutive quarter, reaching a record 245,000 rooms globally.
- Wyndham's new AI-driven guest engagement platform, Wyndham Connect, is enhancing guest experiences and increasing ancillary revenue for franchisees.
- Global RevPAR declined by 1%, impacting overall revenue growth.
- The company revised its full-year 2024 RevPAR growth outlook to be essentially flat year-over-year.
- Marketing fund expenses exceeded revenues by $5 million in the second quarter.
- Higher interest expenses partially offset the benefits from share repurchase activity and a lower effective tax rate.
- The company noted a more gradual return to year-over-year growth than previously anticipated, impacting revenue projections.
Good morning, everyone. And welcome to the Wyndham Hotels & Resorts second-quarter 2024 earnings conference call. (Operator Instructions)
Now, at this time, I would like to turn the call over to Mr. Matt Capuzzi, Senior Vice President of Investor Relations. Please go ahead, sir.
Thank you, operator. Good morning. And thank you for joining us. With me today are Geoff Ballotti, our CEO; and Michele Allen, our CFO and Head of Strategy.
Before we get started, I want to remind you that our remarks today will contain forward-looking statements. These statements are subject to risk factors that may cause our actual results to differ materially from those expressed or implied. These risk factors are discussed in detail in our most recent annual report on Form 10-K filed with the Securities and Exchange Commission and any subsequent reports filed with the SEC.
We'll also be referring to a number of non-GAAP measures. Corresponding GAAP measures and
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