Wyndham Hotels & Resorts (WH) AI Stock Analysis

• Market Cap: $6.49B
• Dividend Yield: 1.89%
• Average Volume (3M): 1.31M
• Price to Earnings (P/E): 19.9
• Beta (1Y): 0.86
• Revenue Growth: 3.65%
• EPS Growth: 38.50%
• Country: US
• Employees: 2,200
• Sector: Consumer Cyclical
• Sector Strength: 74
• Industry: Travel Lodging
• EPS (TTM): 1.33
• Shares Outstanding: 76,356,250
• 10 Day Avg. Volume: 1,265,433
• 30 Day Avg. Volume: 1,309,884
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.36
• Enterprise Value/Revenue: 6.08
• Enterprise Value/Gross Profit: 7.76
• Enterprise Value/Ebitda: 13.66
• 1Y Price Target: $100.79
• Price Target Upside: 20.29% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 74 Outperform
• Price Target: $96.00 ▲(14.57% Upside)

Wyndham Hotels & Resorts achieves a solid overall stock score driven by strong financial performance and positive earnings call insights. Despite high leverage, the company's ability to generate substantial returns and positive cash flow supports its financial health. Technical analysis presents mixed signals, suggesting caution in short-term trading. Valuation metrics indicate a fair market price, while recent corporate events and analyst ratings provide further confidence in the company's strategic direction.

Positive Factors

Financial Performance

Overall fees and EBITDA are poised to grow at the midpoint versus competitors, showing a strong financial outlook.

Valuation

Analyst recommends Buy, noting WH remains lowest valuation in C-corp coverage.

Negative Factors

Stock Performance

Despite an upside FY25 adj EBITDA guide, WH underperformed, -2% vs SPX +0.5%.

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 primarily generates revenue through two main streams: franchise fees and hotel management fees. Franchise fees are earned from hotel owners who operate their properties under one of Wyndham's brands, paying for brand recognition, marketing support, and operational standards. These fees typically include initial fees, ongoing royalties based on a percentage of room revenue, and marketing and reservation fees. In addition to franchising, Wyndham manages some properties directly, earning management fees based on the performance and revenue of these hotels. Strategic partnerships and loyalty programs also contribute to Wyndham's revenue by enhancing guest engagement and driving repeat business.

Wyndham Hotels & Resorts Financial Statement Overview

Summary

Wyndham Hotels & Resorts demonstrates strong financial performance with high profitability and steady revenue growth. The income statement is robust with high margins and effective cost management. However, the balance sheet reveals significant leverage, posing financial risk, though mitigated by strong ROE and positive cash flows.

Income Statement

Wyndham Hotels & Resorts shows strong profitability with a consistent rise in gross profit margins, reaching 95.3% in TTM. Net profit margin improved to 23.17% TTM, indicating efficient cost management. Revenue growth displayed a positive trend with a 3% increase from the previous year, highlighting stable market demand. EBIT and EBITDA margins are robust at 38.83% and 43.52% respectively, reflecting operational efficiency.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 5.39, indicating significant leverage which might pose financial risk. However, the equity ratio stands at 13.27%, suggesting a modest portion of assets are financed by equity. ROE is strong at 58.95%, reflecting effective utilization of equity to generate profits. The company has shown resilience in maintaining equity despite fluctuations in liabilities.

Cash Flow

Cash flows are generally positive with operating cash flow to net income ratio at 1.02, indicating strong cash generation relative to reported earnings. Free cash flow grew by 20.33% from the previous year, reflecting improved financial flexibility. The free cash flow to net income ratio is 0.86, demonstrating a healthy conversion of income to cash flow.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.41B	1.40B	1.50B	1.56B	950.00M
Gross Profit	1.33B	815.00M	830.00M	880.00M	531.00M
EBITDA	593.00M	582.00M	601.00M	524.00M	284.00M
Net Income	289.00M	289.00M	355.00M	244.00M	-132.00M
Balance Sheet
Total Assets	4.22B	4.03B	4.12B	4.27B	4.64B
Cash, Cash Equivalents and Short-Term Investments	103.00M	66.00M	161.00M	171.00M	493.00M
Total Debt	2.47B	2.21B	2.10B	2.08B	2.60B
Total Liabilities	3.57B	3.29B	3.16B	3.18B	3.68B
Stockholders Equity	650.00M	746.00M	962.00M	1.09B	963.00M
Cash Flow
Free Cash Flow	241.00M	339.00M	360.00M	389.00M	34.00M
Operating Cash Flow	290.00M	376.00M	399.00M	426.00M	67.00M
Investing Cash Flow	-65.00M	-66.00M	179.00M	-34.00M	-31.00M
Financing Cash Flow	-175.00M	-402.00M	-584.00M	-713.00M	363.00M

Wyndham Hotels & Resorts Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 83.79
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 83.79 is below the 20-day moving average (MA) of 87.41, below the 50-day MA of 84.32, and below the 200-day MA of 91.94, indicating a bearish trend. The MACD of 0.01 indicates Positive momentum. The RSI at 43.61 is Neutral, neither overbought nor oversold. The STOCH value of 17.93 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WH.

Wyndham Hotels & Resorts Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HLT	75 Outperform	$61.19B	39.96	-41.19%	0.23%	6.26%	38.11%
WH	74 Outperform	$6.49B	19.93	56.16%	1.89%	3.65%	38.50%
H	68 Neutral	$13.04B	17.70	22.31%	0.43%	-7.38%	19.62%
Sector *	67 Neutral	¥265.09B	13.26	6.53%	2.53%	5.21%	-14.31%
IHG	63 Neutral	$17.56B	29.59	-27.16%	1.35%	6.34%	-11.99%
MAR	59 Neutral	$71.14B	29.30	-144.82%	0.98%	5.12%	-11.48%
CHH	58 Neutral	$5.81B	19.03	-661.94%	0.93%	1.67%	35.28%

Wyndham Hotels & Resorts Corporate Events

Wyndham Hotels Reports Strong Q2 Results, Raises EPS Outlook

On July 23, 2025, Wyndham Hotels & Resorts reported strong second-quarter results, with system-wide room growth of 4% and a 40% increase in development contracts awarded year-over-year. The company also raised its full-year 2025 EPS outlook, reflecting confidence in its asset-light business model and strategic focus on higher FeePAR segments. Despite a softer domestic RevPAR environment, Wyndham demonstrated resilience with a 5% growth in comparable adjusted EBITDA and a 19% increase in ancillary revenues. The company also revised its international reporting basis due to operational challenges in China, excluding certain rooms from its metrics.

The most recent analyst rating on (WH) stock is a Buy 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 Elects Directors at Annual Meeting

On May 15, 2025, Wyndham Hotels & Resorts held its Annual Meeting of Stockholders, where stockholders elected eight directors to serve until the 2026 meeting. Additionally, stockholders approved executive compensation and decided to hold annual advisory votes on this matter. Deloitte & Touche LLP was ratified as the independent auditor for 2025.

The most recent analyst rating on (WH) stock is a Buy 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.