Wyndham Raises 2026 Outlook After U.S. RevPAR Rebound

The Tip Desk · October 27, 2026 · 4 min read

U.S. RevPAR rose 6% in the third quarter, and the company lifted full-year adjusted diluted EPS to $4.84–$4.92.

Wyndham Hotels & Resorts (WH) reported U.S. RevPAR growth of 6% in the third quarter, a step-up from 2% in the second quarter after a flat first-quarter comparison, and raised its full-year 2026 outlook for global RevPAR, adjusted EBITDA and adjusted diluted EPS.

Global constant-currency RevPAR turned positive at 2% year-over-year in the third quarter after a 1% decline in both the first and second quarters, and improved 4% sequentially. International constant-currency RevPAR declined 3% year-over-year, a narrower drop than the 6% decline in the second quarter, and improved 4% sequentially.

President and Chief Executive Officer Geoff Ballotti said the company delivered broad-based U.S. RevPAR growth that outperformed initial expectations, as well as market share gains. U.S. RevPAR of $58.35 reflected improved occupancy and ADR levels, with performance broad-based across nearly all regions, including sustained strength in the Midwest and continued year-over-year and sequential growth in Texas, Florida and California.

Internationally, Canada RevPAR rose 7% year-over-year on pricing and demand, Southeast Asia and the Pacific Rim grew 5% on ADR, Latin America increased 2% year-over-year and 9% sequentially primarily in Mexico, and EMEA rose 2% year-over-year on Turkey, India and Spain. China RevPAR declined 10% year-over-year as softer travel demand, particularly in Tier 2 cities, continued to pressure performance.

Net revenues increased 7% to $410 million from $382 million a year earlier, reflecting RevPAR and global net rooms growth, higher franchise fees, increased ancillary revenues and revenues from the company’s two owned hotels. Royalties and franchise fees were $156 million.

Adjusted EBITDA was $207 million, down 3% from $213 million a year earlier. On a comparable basis that neutralizes marketing-fund variability, adjusted EBITDA increased 5%, which the company said primarily reflected higher revenues, partially offset by the timing of variable costs and the lapping of one-time variable cost reductions in the third quarter of 2025. Marketing fund revenues exceeded expenses by $1 million in the third quarter of 2026, versus $18 million a year earlier.

Net income declined 6% to $99 million from $105 million a year earlier, while diluted EPS declined 2% to $1.33 from $1.36. Adjusted diluted EPS was $1.43. On a comparable basis, adjusted net income increased about 7% and adjusted diluted EPS increased about 9%, which the company attributed to comparable-basis adjusted EBITDA growth and share repurchase activity.

Global system rooms excluding insolvent Revo Hospitality Group were 864,400 at September 30, 2026, up 4% year-over-year. U.S. rooms were 500,000, down 1% year-over-year. International rooms excluding Revo rose 11%, including 12% direct-franchised growth in Asia Pacific and 13% in higher-RevPAR EMEA and Latin America. The development pipeline excluding Revo reached a record of approximately 264,000 rooms, up 4% year-over-year, with a FeePAR premium of approximately 30% to existing systems.

The company generated $93 million of net cash from operations and $100 million of free cash flow. It ended the quarter with $71 million of cash and $988 million of total liquidity. Net debt leverage was 3.6 times, near the midpoint of its 3-to-4 times target range.

Wyndham repurchased about 1.2 million shares for $91 million in the third quarter, a 30% increase year-over-year, at an average $73.39 a share. It paid dividends of $0.43 a share. The board increased the share-repurchase authorization by $400 million.

The company updated its full-year 2026 outlook to global RevPAR growth of 0.5% to 1.0% from 0.0% to 1.0%, adjusted EBITDA of $740 million to $745 million from $735 million to $745 million, and adjusted diluted EPS of $4.84 to $4.92 from $4.71 to $4.83. Net revenues remain $1.48 billion to $1.50 billion. Year-over-year rooms growth is now about 4%, versus a prior 4.0% to 4.5% range. The updated outlook assumes fourth-quarter domestic RevPAR is roughly consistent with third-quarter performance.