Wyndham Hotels & Resorts, Inc. WH reported mixed fourth-quarter 2024 results, with adjusted earnings surpassing the Zacks Consensus Estimate while net revenues missed the same. On a year-over-year basis, the top and bottom lines grew.

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The quarter’s performance reflects strength in weekday business bookings and weekend leisure demand in the United States. Internationally, the demand trends were favorable, primarily in WH’s EMEA and Latin America regions.

Furthermore, the company’s focus on expanding into higher FeePAR markets, growing its extended-stay footprint and unveiling new revenue generation streams amid the diverse growth opportunities is supporting its growth trends to a great extent.

Post the results, WH stock inched down 0.6% on Wednesday’s after-hours trading session.

Wyndham’s Q4 in Detail

The company reported adjusted earnings per share (EPS) of $1.04, which surpassed the Zacks Consensus Estimate of $1 by 4%. In the last quarter, it reported an adjusted EPS of 91 cents.

Quarterly net revenues of $341 million marginally lagged the consensus mark of $344 million by 0.8%. However, the metric grew 6.2% from the year-ago quarter’s level of $321 million.

The Fee-related and other revenues increased 7% year over year to $341 million. The upside was backed by higher royalties and franchise fees.

The Royalties and franchise fees increased to $136 million from $117 million reported in the year-ago quarter. Marketing, reservation and loyalty and License and other fees also rose 1.5% to $135 million and 3.4% to $30 million year over year, respectively.

Management and other fees were on par with the prior-year quarter at $3 million. Other revenues declined 2.6% year over year to $37 million.

WH’s RevPAR and Adjusted EBITDA Discussion

In the quarter under review, global RevPAR grew 5% year over year (on a constant currency basis), reflecting 5% growth in the United States and 6% internationally.

Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) increased 9% year over year to $168 million.

Wyndham’s 2025 Highlights

Total revenues were up 0.8% to $1.408 billion from $1.397 billion reported in 2023. The full-year adjusted EPS was $4.33, up from $4.01 reported in the year-ago period.

Fee-related and other revenues were up to $1.404 billion from $1.397 billion reported last year.

WH’s global RevPAR (on a constant currency basis) in 2024 grew 2% year over year, reflecting flat growth in the United States and growth of 8% internationally.

The adjusted EBITDA of $694 million was up 5% from last year.

WH’s Balance Sheet

As of Dec. 31, 2024, Wyndham’s cash and cash equivalents were $103 million compared with $66 million at 2023-end. As of the fourth quarter of 2024, the company had total liquidity of $765 million. The total debt was $2.463 billion, up from $2.201 billion at the end of 2023.

In 2024, the company repurchased approximately 4.1 million shares of its common stock worth $308 million.

Backed by the quarter’s performance, the company’s board of directors hiked its quarterly dividend payment by 8% to 41 cents per share (or $1.64 per share annually).

Unit Developments of WH

In 2024, Wyndham Hotels opened 68,700 rooms globally, up 4% year over year, including about 28,000 rooms in the United States. The global retention rate reached a record level of 95.7%, up from 95.6% in 2023.

As of Dec. 31, 2024, the company’s global development pipeline comprised approximately 2,100 hotels and 252,000 rooms, indicating 5% year-over-year growth.

Wyndham Unravels 2025 Outlook

For 2025, WH estimates fee-related and other revenues to be in the range of $1.49-$1.51 billion. The adjusted net income is expected to be in the range of $369-$379 million. Adjusted EBITDA is expected to be between $745 million and $755 million.

Wyndham expects adjusted EPS to be in the range of $4.66-$4.78.

Management anticipates global RevPAR to increase 2-3% year over year. Room growth is estimated to be between 3.6% and 4.6% year over year.

WH’s Zacks Rank & Recent Consumer Discretionary Releases

Wyndham currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.

Marriott International, Inc. MAR reported fourth-quarter 2024 results, with adjusted earnings and revenues beating the Zacks Consensus Estimate. The top line increased year over year while the bottom line declined from the prior-year quarter.

Marriott posted strong results in 2024, driven by steady global travel demand and strategic portfolio expansion. The company’s development momentum remained strong, with the signing a record number of new deals and its development pipeline reaching 577,000 rooms. Given its vast global footprint, a loyalty program comprising nearly 228 million Marriott Bonvoy members and an asset-light model, MAR remains well-positioned to capitalize on travel demand and drive growth in the upcoming periods.

Hilton Worldwide Holdings Inc. HLT reported exceptional fourth-quarter 2024 results, wherein adjusted earnings and total revenues surpassed the Zacks Consensus Estimate and grew year over year.

The company's performance was backed by strong demand for leisure travel, with continued growth in business transient and group travel. These robust trends supported growth in occupancy and average daily rate, thus, resulting in increased revenue per available room. Furthermore, favorable net unit growth compared with last year and the continuous efforts in expanding the portfolio globally added to the uptrend. HLT expects the robust travel trends to continue into 2025, positioning it to deliver strong results in the near term.

Mattel, Inc. MAT reported fourth-quarter 2024 results, with earnings beating the Zacks Consensus Estimate and revenues missing the same. The top and bottom lines increased on a year-over-year basis.

In 2024, Mattel repurchased $400 million worth of shares and further improved its leverage ratio. The company remains ahead of schedule in achieving its $200 million cost-savings target by 2026. For 2025, Mattel projects continued revenue and earnings growth, increased investments in digital gaming and a $600 million share repurchase program, underscoring its commitment to long-term shareholder value creation. MAT anticipates adjusted EPS in 2025 to be between $1.66 and $1.72 compared with $1.62 reported in 2024.

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