In announcing the company’s second-quarter 2026 earnings, Wyndham Hotels & Resorts President & CEO Geoff Ballotti highlighted the opening of nearly 18,000 rooms over the three months, a record for the quarter.
“We drove sequential net room growth both domestically and internationally, and we expanded our development pipeline to a record of approximately 261,000 rooms,” Ballotti told investors during the call. Of note, the Latin America and Caribbean regions grew net rooms by 12 percent, he added.
The company also reported domestic growth in revenue per available room of 2 percent year over year, a full point ahead of expectations, CFO Amit Sripathi said.
“All of the leading indicators that we look at domestically are strong,” Ballotti said during the call. “Our cancellation rates continue to improve. Our booking lead times are holding steady at about 15 days.” Guests are driving farther for their vacations, he said—“despite the gas prices”—and the average length of stay is expanding.
System Size and Development
During the preparation of its year-end 2025 financial statements in January, the company learned that Revo, a large European franchisee, had filed for insolvency proceedings under self-administration for most of its operating entities. The company removed all Revo-related revenue recognition from its 2026 outlook and reported results given the uncertainty on expected outcomes and collectability. In addition, the company’s 2026 net room growth outlook also excluded any impact associated with Revo’s ongoing insolvency and, as such, the company’s global net room growth metrics are also presented excluding Revo-related rooms.
The company’s global system, excluding Revo, grew 4 percent. The company’s U.S. system grew 10 basis points sequentially and was flat year-over-year. International growth of 10 percent year-over-year, excluding Revo, included 12 percent direct-franchised growth in the company’s Asia Pacific region and 11 percent growth in the company’s higher RevPAR EMEA and Latin America regions.
As of June 30, the company’s global development pipeline increased 4 percent vs. prior-year, excluding Revo, to a record-high of approximately 261,000 rooms and over 2,200 hotels.
Among the key highlights of the company’s pipeline:
2 percent growth in the U.S. and 5 percent growth internationally, excluding Revo
Approximately 69 percent is in the midscale and above segments
Approximately 17 percent is in the extended stay segment
Approximately 42 percent is in the U.S.
Approximately 78 percent is new construction and approximately 35 percent of these projects have broken ground; rooms under construction grew 4 percent year-over-year
Approximately 30 percent FeePAR premium compared to existing domestic and international systems
RevPAR
Second-quarter global RevPAR decreased 1 percent in constant currency compared to 2025, reflecting 2 percent growth in the U.S. and a 6 percent decline internationally.
In the U.S., RevPAR improved 2 percent both year-over-year and sequentially, reflecting improved occupancy and ADR levels. Overall, U.S. RevPAR results were primarily driven by continued strength across the Midwest and both sequential and year-over-year growth in Texas, Florida and California.
Internationally, constant currency growth of 2 percent in Canada reflected sustained pricing power, while growth of 5 percent in Southeast Asia and the Pacific Rim primarily reflected improved demand. Growth in those regions was more than offset in Latin America, which declined 7 percent year over year primarily due to lower U.S. cross-border demand in Mexico; EMEA, which declined 6 percent year-over-year largely driven by the geopolitical conflict in the Middle East as well as softness in the performance of Revo hotels in its insolvency; and China, which declined by 5 percent year over year primarily due to continued deflationary pricing pressure.
Operating Results
The comparability of the company’s second quarter results is impacted by marketing fund variability. The company’s reported results and comparable basis results (adjusted to neutralize these impacts) are presented below to enhance transparency and provide a better understanding of the results of the company’s ongoing operations.
Net income increased 17 percent to $102 million compared to $87 million in the second quarter of 2025, primarily reflecting higher adjusted earnings before interest, taxes depreciation and amortization and lower restructuring and other-related costs, partially offset by increased interest expense. Adjusted net income grew 8 percent to $111 million compared to $103 million in the second quarter of 2025.
Net revenues declined 6 percent to $375 million compared to $397 million in the second quarter of 2025, reflecting the absence of pass-through revenues due to the company’s global franchisee conference in May 2025. In addition, the decline reflected lower other franchise fees and the deferral of fees from Revo, which was partially offset by higher ancillary revenues, EBITDA-neutral revenues from the two Revo hotels the company took possession of and global net rooms growth, excluding Revo, of 4 percent.
Adjusted EBITDA increased 9 percent to $212 million compared to $195 million in the second quarter of 2025. This increase included a $11 million favorable impact from marketing fund variability, excluding which adjusted EBITDA increased 3 percent on a comparable basis, primarily reflecting lower general and administrative expenses driven largely by insurance recoveries, the timing of variable costs and higher ancillary revenues, partially offset by a decline in other franchise fees and the deferral of fees from Revo.
Outlook
The company updated its outlook to include second-quarter U.S. RevPAR outperformance and revised assumptions for U.S. RevPAR growth in the back half of the year, increasing from flat to up 2 percent.