Wyndham Hotels & Resorts Q2 Earnings Call Highlights

Wyndham Hotels & Resorts reported what executives described as a strong second quarter of 2026, citing record room openings, improving U.S. RevPAR trends and continued growth in ancillary revenue, while also raising parts of its full-year outlook. Chief Executive Officer Geoff Ballotti said the company opened nearly 18,000 rooms during the quarter, a second-quarter record and 7% more than the prior year. Wyndham also expanded its development pipeline for the 24th consecutive quarter to approximately 261,000 rooms across more than 60 countries. Ballotti said the pipeline carries a FeePAR premium of approximately 30% compared with Wyndham’s existing domestic and international systems. Ballotti also opened the call by thanking investors and analysts who had wished him well during his treatment for multiple myeloma. He said he is receiving care, staying active with work and is “very optimistic about the treatment path ahead.” Wyndham said U.S. RevPAR rose 2% in the second quarter, which was 120 basis points ahead of the company’s expectations. Ballotti said domestic RevPAR improved by more than 200 basis points sequentially from the first quarter, driven by both demand and rate. Domestic demand rose 60 basis points, while average daily rate increased 160 basis points. Performance improved notably in Wyndham’s three largest states — Texas, California and Florida — which together account for one-quarter of the company’s U.S. room count. Ballotti said those states improved from a 3% RevPAR decline in the first quarter to 4% growth in the second quarter. The company also cited strength in the industrial Midwest, including RevPAR gains of 10% in Illinois and Indiana, 9% in Iowa, 7% in Wisconsin and 6% in Ohio. Ballotti said infrastructure-related demand is supporting midweek occupancy, with hotels benefiting from transportation, artificial intelligence, data center and industrial projects. During the Q&A portion of the call, Ballotti said Wyndham believes domestic demand trends are sustainable. He pointed to improving cancellation rates, steady booking lead times of about 15 days, longer average stays and continued drive-to leisure demand. He also cited expected tax refund-related spending and ongoing infrastructure and oil-and-gas-related business demand. Global RevPAR was down 1% in constant currency, while international RevPAR declined 6% during the second quarter. Ballotti said Canada increased 2%, and Southeast Asia and the Pacific Rim grew 5%, led by Vietnam, Thailand and New Zealand. However, EMEA RevPAR decl...