Wyndham Hotels & Resorts (WH) AI Stock Analysis

• Market Cap: $5.87B
• Dividend Yield: 2.13%
• Average Volume (3M): 1.46M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.91
• Revenue Growth: 3.38%
• EPS Growth: 38.04%
• Country: US
• Employees: 2,200
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Travel Lodging
• EPS (TTM): 0.93
• Shares Outstanding: 75,148,840
• 10 Day Avg. Volume: 1,303,208
• 30 Day Avg. Volume: 1,459,141
• PEG Ratio: -0.94
• Price to Book (P/B): 12.22
• Price to Sales (P/S): 4.00
• P/FCF Ratio: 17.82
• Enterprise Value/Market Cap: 1.52
• Enterprise Value/Revenue: 6.23
• Enterprise Value/Gross Profit: 10.58
• Enterprise Value/Ebitda: 18.47
• 1Y Price Target: $95.30
• Price Target Upside: 22.05% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): 4.83
• Revenue Forecast (FY): $1.49B

• Rating: 61 Neutral
• Price Target: $85.00 ▲(8.86% Upside)
• Action: Reiterated Date: 03/03/26
• Date: Action: Reiterated 03/03/26

The score is held back primarily by elevated leverage and weakening recent financial momentum (sharp 2025 revenue decline and margin compression), despite strong multi-year cash generation. Offsetting factors include a constructive earnings outlook with ongoing room growth and shareholder returns, plus neutral-to-slightly positive technicals. Valuation remains a headwind due to the high P/E, only partly balanced by the dividend yield.

Positive Factors

Large franchised global portfolio and diverse brands

Wyndham's asset-light franchising model and global scale create recurring, largely fee-based revenue streams and strong network effects. Diversified brands across price tiers reduce dependence on any single segment or region, supporting durable fee generation and resilience through business cycles.

Record room openings and improving development economics

Record organic openings and a large, higher-fee pipeline enhance long-term fee revenue per opening. Higher fee-par development and a sizeable signed pipeline provide sustainable future fee growth, making net room expansion a durable earnings lever rather than a short-term boost.

Consistent free cash flow generation and active capital returns

Sustained FCF conversion and meaningful shareholder returns demonstrate strong cash conversion that supports dividends, buybacks, and reinvestment. Reliable cash flow underpins capital allocation flexibility and the firm's ability to fund growth and manage obligations across economic cycles.

Negative Factors

Elevated leverage and weakened capital structure

Materially higher leverage reduces financial flexibility and amplifies earnings and equity volatility. Greater interest and covenant exposure limits strategic optionality, raises refinancing risk in stress scenarios, and makes the company more sensitive to cyclical RevPAR or macro shocks over the medium term.

Persistent RevPAR weakness, notably U.S. and China exposure

Sustained RevPAR declines in major markets erode fee-related revenues and margin leverage for the franchisor. Prolonged pricing and ADR weakness—particularly in China and key U.S. states—can compress franchisee economics and slow fee growth, making recovery timelines and revenue durability uncertain.

Material insolvency charge and deferred fees from a large franchisee

A significant franchisee insolvency highlights counterparty credit risk within the franchise base and creates uncertainty in fee collectability. Write-downs and deferred fees reduce near-term revenue visibility and may presage higher future provisioning, legal costs, or tighter franchisee underwriting standards.

Wyndham Hotels & Resorts Business Overview & Revenue Model

Company Description

Wyndham Hotels & Resorts, Inc. operates as a hotel franchisor worldwide. It operates through Hotel Franchising and Hotel Management segments. The Hotel Franchising segment licenses its lodging brands and provides related services to third-party hotel owners and others. The Hotel Management segment provides hotel management services for full-service and limited-service hotels. It is also involved in the reward loyalty program business. The company's hotel brand portfolios include Super 8, Days Inn, Travelodge, Microtel, Howard Johnson, La Quinta, Ramada, Baymont, AmericInn, Wingate, Wyndham Alltra, Wyndham Garden, Ramada Encore, Hawthorn, Registry Collection, Trademark Collection, TRYP, Dazzler, Esplendor, Wyndham Grand, Dolce, and Wyndham. As of August 9, 2022, it operated a portfolio of 22 hotel brands with approximately 9,000 hotels with approximately 8,19,000 rooms in approximately 95 countries. The company was incorporated in 2017 and is headquartered in Parsippany, New Jersey.

How the Company Makes Money

Wyndham Hotels & Resorts generates revenue primarily through franchise fees charged to hotel owners for the use of its brand names and systems, which include marketing support and operational services. The company earns significant income from initial franchise fees, ongoing royalty fees based on a percentage of the hotel's revenue, and ancillary services such as training and operational support. Additionally, Wyndham benefits from its Wyndham Rewards loyalty program, which not only attracts guests but also enhances the value proposition for franchisees. Strategic partnerships with travel agencies, online booking platforms, and corporate clients also contribute to its earnings, as these collaborations help expand its market reach and drive occupancy rates across its hotels.

Wyndham Hotels & Resorts Financial Statement Overview

Summary

Strong and consistent free cash flow supports the business, but the balance sheet is a major constraint: leverage rose sharply (debt-to-equity ~6.53x in 2025) as equity shrank. Profitability has been solid since 2021, yet 2025 showed a steep revenue decline (-48.7%) and meaningful margin compression versus 2024.

Income Statement

Profitability is solid post-2020, with consistently positive operating profit and net income from 2021–2025 and healthy TTM-like margin levels in recent years (mid-to-high teens net margin in 2025). However, the revenue trajectory is mixed: revenues declined in several years and show a steep drop in 2025 (annual revenue growth of -48.7%), and margins also compressed meaningfully from 2024 to 2025 (net margin down from ~20.5% to ~13.5%). Overall: good profitability, but weakening growth/momentum is a key concern.

Balance Sheet

Leverage is the central risk. Debt rose materially in 2025 while equity fell, driving debt-to-equity up sharply (from ~3.79x in 2024 to ~6.53x in 2025). While returns on equity are high (roughly 37%–45% in 2021–2025), this is amplified by the shrinking equity base and higher leverage, which reduces financial flexibility and increases sensitivity to downturns. Asset levels are relatively stable, but the capital structure has become notably more debt-heavy.

Cash Flow

Cash generation is a strength. Operating cash flow and free cash flow are consistently positive from 2021–2025, and 2025 free cash flow improved versus 2024 (free cash flow growth ~9.2%). Cash conversion is generally good, with free cash flow running at ~83%–91% of net income across 2021–2025, indicating earnings are translating into cash. A watch item is that operating cash flow covers a modest share of EBIT (coverage below 1.0 in all years shown), which suggests some working-capital/other cash uses dampen conversion at the operating line.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.43B	1.41B	1.40B	1.50B	1.56B
Gross Profit	841.00M	1.41B	815.00M	830.00M	795.00M
EBITDA	466.00M	568.00M	582.00M	638.00M	524.00M
Net Income	193.00M	289.00M	289.00M	355.00M	244.00M
Balance Sheet
Total Assets	4.18B	4.22B	4.03B	4.12B	4.27B
Cash, Cash Equivalents and Short-Term Investments	64.00M	103.00M	66.00M	161.00M	171.00M
Total Debt	3.06B	2.47B	2.21B	2.08B	2.09B
Total Liabilities	3.71B	3.57B	3.29B	3.16B	3.18B
Stockholders Equity	468.00M	650.00M	746.00M	962.00M	1.09B
Cash Flow
Free Cash Flow	321.00M	241.00M	339.00M	360.00M	389.00M
Operating Cash Flow	367.00M	290.00M	376.00M	399.00M	426.00M
Investing Cash Flow	-103.00M	-65.00M	-66.00M	179.00M	-34.00M
Financing Cash Flow	-314.00M	-175.00M	-402.00M	-584.00M	-713.00M

Wyndham Hotels & Resorts Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 78.08
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WH, the sentiment is Positive. The current price of 78.08 is below the 20-day moving average (MA) of 79.52, below the 50-day MA of 78.32, and below the 200-day MA of 79.71, indicating a bearish trend. The MACD of -0.98 indicates Positive momentum. The RSI at 50.48 is Neutral, neither overbought nor oversold. The STOCH value of 39.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WH.

Wyndham Hotels & Resorts Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HTHT	74 Outperform	$15.58B	14.58	33.88%	3.60%	5.70%	9.53%
IHG	71 Outperform	$19.94B	28.95	-23.50%	1.21%	8.89%	23.20%
HLT	69 Neutral	$69.09B	46.53	-30.22%	0.21%	6.68%	48.03%
H	68 Neutral	$13.93B	-294.43	-1.50%	0.36%	2.61%	-106.74%
CHH	67 Neutral	$4.55B	17.22	614.45%	1.32%	2.76%	56.02%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
WH	61 Neutral	$5.87B	-23.83	35.09%	2.13%	3.38%	38.04%

Wyndham Hotels & Resorts Corporate Events

Wyndham Hotels Names New CFO, Reaffirms 2026 Outlook

On March 3, 2026, Wyndham Hotels & Resorts appointed Amit Sripathi as Chief Financial Officer, succeeding interim CFO Kurt Albert, while veteran executive David Wilner was promoted to Chief Development Officer – North America. Sripathi, a former Deutsche Bank investment banker who has driven 20 consecutive quarters of organic net room growth and led the divestiture of owned hotels, will oversee finance and capital allocation as the company maintains focus on FeePAR-accretive net room growth.

The company detailed Sripathi’s compensation, incentive structure and severance protections, including cash, equity-based long-term incentives and COBRA reimbursement, underscoring its effort to secure continuity in financial leadership. Albert will depart the CFO role on March 4, 2026 and move into a nine-month advisory position with separation and advisory fees, while Wyndham reaffirmed its full-year 2026 outlook, signaling confidence in its current growth trajectory and stability for franchisees and shareholders.

The most recent analyst rating on (WH) stock is a Hold with a $89.00 price target. To see the full list of analyst forecasts on Wyndham Hotels & Resorts stock, see the WH Stock Forecast page.

Wyndham Issues $650 Million Senior Notes, Refinances Debt

On February 27, 2026, Wyndham Hotels & Resorts, Inc. issued and sold $650 million of 5.625% senior unsecured notes due 2033, with interest payable semi-annually beginning September 1, 2026. The notes rank equally with the company’s existing senior debt, are guaranteed on a senior unsecured basis by certain domestic subsidiaries, and include standard covenants, change-of-control protections, and events-of-default provisions.

Wyndham used the net proceeds from the offering to fully repay outstanding borrowings under its term loan A and revolving credit facility, fund related fees and expenses, and support general corporate purposes. The transaction refinances bank debt with longer-dated capital markets funding, potentially improving the company’s debt maturity profile while maintaining relationships with key lenders and initial purchasers that also participate in its credit facilities.

The most recent analyst rating on (WH) stock is a Hold with a $89.00 price target. To see the full list of analyst forecasts on Wyndham Hotels & Resorts stock, see the WH Stock Forecast page.

Wyndham Hotels Issues $650 Million Senior Notes Offering

On February 24, 2026, Wyndham Hotels & Resorts, Inc. entered into a purchase agreement with J.P. Morgan Securities LLC and other initial purchasers to offer and sell $650 million of 5.625% senior notes due 2033 in a private placement to qualified institutional buyers in the U.S. and certain non-U.S. investors. The notes will be guaranteed by certain domestic restricted subsidiaries that also back Wyndham’s existing credit facilities and notes.

The offering, expected to close on February 27, 2026, is structured under Rule 144A and Regulation S and is not registered under the Securities Act. Wyndham plans to use the net proceeds to repay all outstanding borrowings under its term loan A and revolving credit facility, cover related fees and expenses and fund general corporate purposes, effectively refinancing shorter-term bank debt with longer-dated bond financing and potentially improving its liquidity profile and capital structure.

The most recent analyst rating on (WH) stock is a Buy with a $95.00 price target. To see the full list of analyst forecasts on Wyndham Hotels & Resorts stock, see the WH Stock Forecast page.

Wyndham Hotels Boosts Dividend Amid Strong Development Pipeline

On February 18, 2026, Wyndham Hotels & Resorts reported its results for the fourth quarter and full year ended December 31, 2025, alongside posting a new investor presentation and raising its quarterly dividend by 5% to $0.43 per share from the first quarter of 2026. The company delivered 4% global net room growth to 868,900 rooms, opened a record 72,000 rooms and signed an all-time high 870 development contracts in 2025, driving its development pipeline to a record 2,200 hotels and 259,000 rooms, with particular strength in midscale-and-above and extended-stay segments.

Despite a 3% decline in full-year global RevPAR in constant currency, driven by a 4% drop in the U.S. and softness in Asia Pacific, Wyndham achieved record ancillary revenues, 3% growth in adjusted EBITDA to $718 million on a comparable basis and 6% growth in adjusted diluted EPS to $4.58, even as reported EPS and net income fell sharply due to non-cash impairment and related charges. The group generated $433 million in adjusted free cash flow and returned $393 million to shareholders in 2025 through share buybacks and dividends, while continued international RevPAR resilience in EMEA and Latin America and a largely new-construction pipeline positioned the company for longer-term growth despite near-term RevPAR pressure in key U.S. markets.

The most recent analyst rating on (WH) stock is a Buy with a $91.00 price target. To see the full list of analyst forecasts on Wyndham Hotels & Resorts stock, see the WH Stock Forecast page.