Wyndham Hotels & Resorts (WH) AI Stock Analysis

• Market Cap: $6.34B
• Dividend Yield: 2.13%
• Average Volume (3M): 1.48M
• Price to Earnings (P/E): 33.7
• Beta (1Y): 0.86
• 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: 1,681,233
• 30 Day Avg. Volume: 1,481,478
• 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: 1.47
• Enterprise Value/Revenue: 6.53
• Enterprise Value/Gross Profit: 11.10
• Enterprise Value/Ebitda: 19.37
• 1Y Price Target: $95.70
• Price Target Upside: 13.98% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): 4.85
• Revenue Forecast (FY): $1.49B

• Rating: 61 Neutral
• Price Target: $89.00 ▲(6.00% Upside)
• Action: Reiterated Date: 02/25/26
• Date: Action: Reiterated 02/25/26

The score is primarily held back by elevated balance-sheet leverage and the sharp 2025 revenue/margin deterioration despite solid cash generation. Technicals are constructive with strong trend and momentum, while valuation looks rich at a 33.24 P/E with only a modest dividend yield. Earnings-call guidance supports modest 2026 growth but highlights continued RevPAR headwinds and franchisee-related fee uncertainty.

Positive Factors

Strong free cash flow generation

Consistent and sizable free cash flow ($433M in 2025) with ~60% EBITDA-to-FCF conversion and substantial shareholder returns demonstrates durable internal funding for development advances, dividends, buybacks and strategic initiatives without reliance on equity issuance, supporting long-term financial resilience.

Large, improving development pipeline and room growth

Record organic openings and a ~260k room pipeline with high signings indicate durable unit-level growth and scale. New-construction bias and higher fee par for openings imply sustainably stronger fee income over time as rooms stabilize and higher-fee openings mature into recurring royalty streams.

Technology & AI driving direct bookings and cost efficiency

The company’s AI deployments materially improve direct-booking economics and lower franchisee on-property labor costs. Structural improvements in distribution mix and service automation should raise long-run fee capture and reduce operating cost exposure for franchisees, strengthening franchise value propositions.

Negative Factors

Elevated leverage and tighter capital structure

A sharp increase in leverage (debt-to-equity near ~6.5x) reduces financial flexibility, raises interest cost sensitivity and limits capacity to absorb shocks. Even with refinancing plans, an elevated debt load increases default and covenant risk and constrains discretionary investment during downturns.

Sharp 2025 revenue and margin deterioration

A dramatic revenue decline and meaningful margin compression weaken the sustainability of fee-related earnings. Lower top-line momentum reduces royalty and ancillary revenue growth potential, making earnings more reliant on cost control and one-off items rather than organic fee expansion.

China & Asia RevPAR headwinds

Persistent RevPAR weakness in China and parts of Asia reduces franchisees' revenue bases and lowers royalty income long-term. Continued ADR pressure in large markets can compress fee-related revenues, make new openings less accretive, and prolong recovery of margins in regional portfolios.

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, consistent operating cash flow and free cash flow (2021–2025) support resilience, and profitability has remained positive post-2020. Offsetting this, leverage increased sharply in 2025 (debt-to-equity rising materially) alongside a steep 2025 revenue decline and margin compression, raising balance-sheet risk.

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: 83.96
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 83.96 is above the 20-day moving average (MA) of 77.88, above the 50-day MA of 78.00, and above the 200-day MA of 80.21, indicating a bullish trend. The MACD of 1.84 indicates Negative momentum. The RSI at 65.45 is Neutral, neither overbought nor oversold. The STOCH value of 70.12 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	$16.30B	31.58	32.28%	3.60%	5.70%	9.53%
IHG	71 Outperform	$20.88B	28.72	―	1.21%	8.89%	23.20%
HLT	69 Neutral	$71.72B	51.09	―	0.21%	6.68%	48.03%
H	68 Neutral	$15.50B	-305.08	-1.51%	0.36%	2.61%	-106.74%
CHH	67 Neutral	$5.01B	13.79	541.60%	1.32%	2.76%	56.02%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
WH	61 Neutral	$6.34B	33.75	34.53%	2.13%	3.38%	38.04%

Wyndham Hotels & Resorts Corporate Events

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.