Wyndham Hotels & Resorts (WH) AI Stock Analysis

• Market Cap: $6.69B
• Dividend Yield: 1.82%
• Average Volume (3M): 1.06M
• Price to Earnings (P/E): 20.5
• Beta (1Y): 0.85
• Revenue Growth: 3.65%
• EPS Growth: 38.50%
• Country: US
• Employees: 2,200
• Sector: Consumer Cyclical
• Sector Strength: 81
• Industry: Travel Lodging
• EPS (TTM): 1.33
• Shares Outstanding: 76,356,250
• 10 Day Avg. Volume: 744,228
• 30 Day Avg. Volume: 1,056,346
• 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: 1.32
• Enterprise Value/Revenue: 6.08
• Enterprise Value/Gross Profit: 7.76
• Enterprise Value/Ebitda: 13.66
• 1Y Price Target: $101.07
• Price Target Upside: 16.70% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 74 Outperform
• Price Target: $97.00 ▲(12.00% Upside)

Wyndham Hotels & Resorts' overall stock score is driven by strong financial performance and positive earnings call insights. The company's ability to maintain high margins and revenue growth, coupled with strategic initiatives and technological advancements, supports a favorable outlook. However, high leverage and challenges in certain markets pose risks that temper the score.

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 a franchise model, where it charges franchise fees to hotel owners who operate under its brands. These fees include initial franchise fees, ongoing royalties based on the hotel's revenue, and additional fees for services such as marketing and technology support. The company also earns revenue from its hotel management services, where it operates hotels on behalf of property owners for a fee. Key revenue streams include the franchise and management fees, as well as revenues from the Wyndham Rewards loyalty program, which drives customer retention and repeat bookings. Partnerships with travel agencies, online travel platforms, and corporate clients further enhance earnings by increasing the visibility and booking capabilities of its properties.

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: 86.61
• 50DMA: Positive
• 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 Negative. The current price of 86.61 is below the 20-day moving average (MA) of 86.89, above the 50-day MA of 86.09, and below the 200-day MA of 91.93, indicating a neutral trend. The MACD of 0.36 indicates Positive momentum. The RSI at 48.54 is Neutral, neither overbought nor oversold. The STOCH value of 53.27 is Neutral, 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
WH	74 Outperform	$6.69B	20.55	56.16%	1.82%	3.65%	38.50%
HLT	70 Outperform	$64.98B	42.46	-41.19%	0.22%	6.26%	38.11%
H	69 Neutral	$13.65B	33.72	11.66%	0.42%	0.74%	-54.42%
MAR	65 Neutral	$72.71B	30.49	-144.82%	0.97%	5.12%	-11.48%
IHG	63 Neutral	$18.30B	25.18	-27.16%	1.41%	8.89%	23.20%
Sector *	61 Neutral	$17.60B	14.14	-5.40%	3.04%	1.49%	-15.29%
CHH	58 Neutral	$5.51B	18.50	-661.94%	0.96%	1.67%	35.34%

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.