SoFi shares rise as record revenue, member growth drive strong Q3 results
Investing.com -- Wyndham Hotels & Resorts (NYSE:WH) shares tumbled 6.1% in after-hours trading Wednesday after the hotel franchisor missed revenue expectations and significantly cut its full-year outlook amid deteriorating travel demand.
The hotel chain reported third-quarter adjusted earnings per share of $1.46, slightly above analyst estimates of $1.44. However, revenue fell short at $382 million compared to the consensus forecast of $403.64 million. The company’s global RevPAR (revenue per available room) declined 5% year-over-year, reflecting weakening travel trends particularly in the U.S., where RevPAR dropped 5% due to lower occupancy and room rates.
"Our third quarter results once again demonstrate the resilience of our business model and the consistent execution of our teams around the world," said Geoff Ballotti, president and chief executive officer. "Amid a challenging macro backdrop, we delivered record year-to-date organic room openings, grew our global pipeline to another all-time high, and achieved double-digit growth in ancillary revenues."
Despite system-wide room growth of 4% YoY and an 18% increase in ancillary revenues, Wyndham slashed its full-year 2025 outlook. The company now expects adjusted EPS of $4.48-$4.62, well below the previous guidance of $4.60-$4.78 and analyst consensus of $4.72. The company also reduced its revenue forecast to $1.43-$1.45 billion from $1.45-$1.49 billion previously.
The guidance cut follows a significant downward revision to RevPAR expectations, now projected at -3% to -2% for the full year, compared to the previous forecast of -2% to +1%. Adjusted EBITDA is now expected to be $715-$725 million, down from $730-$745 million.
On a positive note, Wyndham’s development pipeline grew 4% YoY to a record 257,000 rooms, with 204 new development contracts awarded in the quarter, representing a 24% increase from the prior year. The company also returned $101 million to shareholders through $70 million in share repurchases and quarterly dividends of $0.41 per share.
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