Wyndham touts growth despite RevPAR headwinds
Wyndham touts growth despite RevPAR headwinds
PARSIPPANY, New Jersey — Wyndham Hotels & Resorts reported a fourth-quarter RevPAR decline of 8% year-over-year in the U.S. and 6% globally, countered with systemwide rooms growth of 4% YOY as part of its Q4 earnings.
Wyndham said in the U.S., the Q4 results included approximately 140 basis points of unfavorable hurricane impacts and excluded would have led to a 610 bps RevPAR decline because of a 360 bps reduction in occupancy and a 250 bps decline in ADR. Wyndham said softer results in Florida, Texas and California were partially offset by continued strength across the Midwest.
Internationally, Q4 RevPAR growth was 7% in EMEA and 6% in Latin America and 1% in Canada. However, Wyndham said it saw softness in Asia Pacific, including China, where RevPAR declined 10%.
Full-year RevPAR decreased 3% YOY, which Wyndham said was in line with its growth outlook, reflecting a 4% decline in the U.S. and flat growth internationally.
Analyst Patrick Scholes of Truist Securities said Wyndham’s Q4 earnings were slightly ahead of expectations, while the 2026 guidance was “slightly light.”
“We see Q4 adj. EBITDA 1% ahead of Street expectations ($165M vs. implied guide of $162-$172M and consensus of $163M), driven by a combination of better than expected ‘other revenues’ and lower than anticipated operating expenses. Global RevPAR growth of -6% was towards the lower-end of the implied guide of approximately -7% to -4% and lower than Street expectations for -4.9%,” he said.
Wyndham also announced charges in Q4 due to the insolvency proceedings of its largest European franchisee (Revo Hospitality Group), and Scholes said he expects that topic to be discussed during the company’s earnings call.
“Expect questions on… Revo Hospitality Group,” he said. “Additionally, due to this insolvency, [Wyndham] determined that a portion of its Vienna House trademark and related franchise agreements were impaired… of note, 2026 earnings guide excludes any potential room termination impact associated with Revo’s ongoing insolvency.”
Analyst Michael Bellisario of R.W. Baird said investors will likely focus on the near-term RevPAR trends and the Revo insolvency (he said Revo operates around 22,000 rooms in Wyndham’s system, which remain open and bookable).
“U.S. RevPAR trends within the lower-end chain scales are improving (but still negative YOY), and we look to the conference call for more commentary on the near-term outlook (and if/when RevPAR will turn the corner),” he said. “ The negative surprise contained in the update is the $15 million financial impact from Revo Hospitality Group's insolvency… we expect most/all of the rooms to remain Wyndham-branded on the back end of restructuring, but near-term fees are impacted, and a significant amount of key money and loans has been written off. Likely some ‘health of the franchisee’ questions to emerge, in our view.”
Growth and pipeline
Wyndham touted its rooms and development growth for its Q4 earnings, with systemwide rooms growth of 4% YOY in the quarter, while the company awarded 870 development contracts globally, an increase of 18% YOY and an all-time high.
The company’s development pipeline is up 3% YOY to a record 259,000 rooms, with approximately 70% of that in the midscale and above segments and approximately 42% in the U.S. Wyndham said approximately 77% of its pipeline and approximately 36% of those projects have already broken ground.
“Our teams around the world opened a record 72,000 rooms, delivered 4% global net room growth and grew our global development pipeline to a record 259,000 rooms,” said Wyndham President and CEO Geoff Ballotti. “Despite continued negative U.S. RevPAR pressure, we grew full-year comparable-basis adjusted EBITDA and adjusted EPS in 2025 by 4% and 6%, respectively, generated adjusted free cash flow of more than $430 million and returned nearly $400 million to shareholders. As demand trends improve and RevPAR stabilizes, we remain confident in our long-term strategy while creating compounding value for franchisees, guests and shareholders.”
For the full-year, global RevPAR decreased 3% in constant currency compared to 2024, in line with the Company’s outlook, reflecting a 4% decline in the U.S. and flat growth internationally. U.S. results reflected a 270-basis-point reduction in occupancy and a 120-basis-point decline in ADR.
For its full-year 2026 outlook, Wyndham projected RevPAR to be -1.5% to 0.5% YOY, and rooms growth of 4-4.5%.
Other Q4 highlights
- Fee-related and other revenues were down YOY in the fourth quarter, but grew 2% for the year to $1.43 billion, reflecting a 15% increase in ancillary revenues and higher pass-through revenues because of the company’s global franchisee conference.
- Wyndham’s net income decreased 33% to $193 million compared to $289 million in full-year 2024, reflecting higher impairment and other costs (related to the Revo insolvency), however, adjusted diluted EPS increased 6%.
- Full-year 2025 adjusted EBITDA increased 3% to $718 million, which Wyndham said was in line with its expectations.
- The company generated $367 million of net cash provided by operating activities and $433 million of adjusted free cash flow in 2025. Wyndham ended Q4 with a cash balance of $64 million and $840 million in total liquidity.
Host Hotels & Resorts sold two of its Four Seasons-branded resorts for a combined $1.1 billion.
In a news release ahead of its fourth-quarter and full-year 2025 earnings call today, the hotel-focused real estate investment trust said it sold the 444-key Four Seasons Resort Orlando at Walt Disney World Resort and its 125-key Four Seasons Resort and Residences Jackson Hole in Teton Village, Wyoming.
Though Host did not disclose the buyer of these resorts in the release, CoStar News’ Mark Heschmeyer reported an affiliate of merchant bank BDT & MSD Partners bought the Four Seasons Orlando property for $750 million. The sale of this property excludes its ongoing condo development. CoStar data lists BDT & MSD Partners as the buyer of the Jackson Hole resort, as well.
Host bought the properties in 2021 and 2022, respectively, for a total of $925 million, and neither required significant capital expenditures in the following years.
The $1.1 billion sale price represents a 14.9-times multiple on trailing 12-month earnings before interest, taxes, depreciation and amortization, according to the release. That includes roughly $88 million of estimated foregone capital expenditures over the next five years. The combined investment represents an 11% unlevered internal rate of return while Host owned them. That includes $58 million of capital expenditures, funded through its furniture, fixtures and equipment reserve, and transaction costs.
In the release, Host President and CEO James Risoleo said the sale of these two resorts represents another important step in advancing Host’s capital allocation strategy.
“We are pleased with our ability to monetize two recently acquired hotels at an attractive profit and an accretive multiple, and we will continue to use our competitive advantages to create value for our shareholders,” he said.
The company will use the proceeds from the sales to further solidify its balance sheet, he said.
“We will continue to be opportunistic in our capital allocation strategy while positioning Host to outperform over the long term,” he said.
Host also shared that it closed in January on its previously announced sale of the 232-key St. Regis Houston for $51 million.
Since 2018, Host has sold hotels for a combined $6.4 billion at a blended 16.7-times EBITDA multiple.
A strong finish to 2025 has executives at Accor optimistic even as the France-based global hotel company weighs the scope of downsizing its portfolio.
During a fourth-quarter and full-year 2025 earnings conference call, Accor Chairman and CEO Sébastien Bazin confirmed discussions are happening for the company to exit its Essendi holdings — formerly known as AccorInvest — and that a possible exit from its Ennismore luxury and lifestyle division is not off the table.
Accor must complete the Essendi transaction in 2026, Bazin said.
“We’re not late. Exactly at the same time last year when the question was asked, [we said] it was a 12- to 18-month process … and we are exactly at the stage we wanted to be,” Bazin said.
Jean-Jacques Morin, Accor's group deputy CEO and CEO, added the Essendi exit is very complex.
“Because of the very nature of the people you are faced with, sophisticated investors … and it takes time to align everyone,” he said, adding Accor remains within its timeline to get the deal done. “There is no surprise here.”
Ennismore remains one of the Accor's greatest differentiators, Bazin said, adding there has been no change from Accor's outlook the company gave in October about a potential Ennismore exit.
“We said the board of Accor will be in exploration mode, as is the board of any [company], by the way, on exploring the benefits, the constraints, the plusses and minuses of actually a potential listing of Ennismore on any market, which if we were to do so would certainly enhance the visibility, authority, quality and maybe flexibility of [it],” he said. “[It] is an extraordinary asset of Accor, and Accor in any scenario will intend to remain in control of that growth engine.”
Accor reported full-year revenue per available room rose 4.2% in 2025, including a 7% RevPAR jump in the fourth quarter, according to its earnings release. The company's full-year RevPAR growth exceeded its projections, which predicted 2025 RevPAR growth between 3% and 4%.
“For the third year in a row Accor’s performance is line or above its midterm perspective … and we have a very strong finish in 2025 with results above our annual guidance,” Chief Financial Officer Martine Gerow said, adding that Accor's RevPAR jump in the fourth quarter was “mostly driven by rate.”
Accor's premium, midscale and economy hotel division reported a 1.9% revenue increase for the full year, while its luxury and lifestyle division achieved a 13.1% revenue jump.
Gerow said such numbers confirmed “the benefit of our geographical and segment diversification. Room revenue growth was driven by both leisure and business … with corporate activity actually picking up speed in the fourth quarter.”
Bazin said the firm saw “overachieving results despite macroeconomic and geopolitical headwinds.”
Accor's full-year recurring earnings before interest, taxes, depreciation and amortization increased by 13% to €1.2 billion.
“We are doing all this,” Bazin added, “to make sure we have cash to return to shareholders. … We delivered on what we have been promising to you, cost discipline.”
Accor executives confirmed the launch of a €450 million ($528.7 million) share buyback plan. In 2025, the company returned €743 million to shareholders, which is equal 6.5% of Accor’s market capitalization as of Jan. 1, 2025.
Gerow said that return meant that in the last three years, the firm has returned €2.1 billion to shareholders.
Accor also set new records in hotel rooms signings and in loyalty-program member additions in 2025. Bazin said 15 million new members joined last year, an increase from the 12 million that joined in 2024.
“Probably between 15 million and 20 million in 2026,” he added. “In 2019 when we launched [loyalty program] All, we had €6 million partnership revenues.”
In 2025, Accor opened 303 hotels and approximately 51,000 rooms, which translates to 3.7% net unit growth year over year. As of the end of the year, Accor's portfolio includes 5,836 hotels and 881,427 rooms along with a development pipeline of 1,527 hotels and more than 257,000 rooms.
Accor’s current hotel development pipeline equals 10.3% of its existing network. Bazin said he expects fewer property exits and was very confident in the quality of the hotels signed in 2025 that have been added to Accor's pipeline.
“We know where [the hotels] are, we know what we signed … and [we expect] a lesser amount of churn,” he said. “One thing that is striking … the net-unit growth has been 3.7% last year, which is roughly 50,000 rooms being opened, a record number for Accor. We are certainly looking for overachieving that 50,000-rooms marker. …. We’ve never enjoyed so much of a signings pace [than we have] over the last few months of 2025, and notably in” Accor's premium, midscale and economy segment.
Accor executives also plan to pivot to a hotel franchise model in mature markets, Bazin said.
“No. 1, it is proven by many other operators and by us as well that you have a better market when it comes to a franchise hotel. … Two, it is more resilient in terms of performances over the years. Three, which is probably very much additive, it does enable you to go faster …. Probably twice as faster,” he said.
Accor also negotiated two new senior bond issuances, the first a €600 million, eight-year bond with a 3.5% coupon, the second a €500 million, seven-year bond with a 3.625% coupon, Gerow said.
As of press time, Accor stock was trading at €48.29 ($56.73) a share, down 0.5% year over year. The Euronext Stock Exchange was up 19.3% over the same period.
Sporting events continue to drive hotel demand around the globe, and there's none bigger than Formula 1 racing.
Sarah Duignan, STR’s director of client relationships, joined the latest episode of “The Upgrade: EMEA Hospitality News” podcast to dig into the hotel data and impact of sports and major events on certain markets. Throughout 2025, Formula 1 events drove hotel demand and rates.
Take Abu Dhabi for an example. In 2022 during the Abu Dhabi Formula 1 race event, hotel occupancy in the market was 93%. The market reached that occupancy level in 2025, too, but the difference between those two years was clearly average daily rate.
In 2022, Abu Dhabi hotel ADR was approximately $500, but in 2025 it was closing in on $900, an 80% jump, Duignan said. Its ADR across the two weeks either side of the early December race hovered around $200, so 350% less.
That’s full-throttle driving.
“Abu Dhabi, in my humble opinion, is the most-exciting Formula 1 race of the season. … It is currently the last race of the season,” she said, adding that at the beginning of the race there were three drivers in contention to be the overall season champion.
Monaco remains No. 1 in terms of hotel ADR performance around F1 events, but Monaco's hotels are historic and unique.
During Monaco’s 2025 Formula 1 race, hotel “revenue per available room was $30 shy of $3,000,” Duignan said.
For more from STR's Sarah Duignan on sporting events, on hotel performance and on hotel pipeline, among other subjects, please click here.
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