Wyndham Q3 2026 Earnings: Revenue Rises 7% as U.S. RevPAR Grows

Wyndham Hotels & Resorts (NYSE: WH) reported Q3 2026 net revenue of $410 million, up 7% from $382 million a year earlier, while GAAP diluted EPS fell 2% to $1.33 from $1.36. U.S. RevPAR increased 6% and free cash flow reached $100 million, but marketing fund timing weighed on reported profit comparisons.

Core Earnings Data

Revenue growth reflected higher RevPAR, global net room growth, increased franchise fees, ancillary revenue, and contributions from Wyndham’s two owned hotels. Royalties and franchise fees increased 6% to $156 million.

Reported profitability moved in the opposite direction: operating income, net income, adjusted EBITDA, and both GAAP and adjusted EPS declined year over year. The marketing fund comparison was the main reason reported results did not reflect the underlying revenue growth.

Adjusted EBITDA, adjusted diluted EPS, and free cash flow are non-GAAP measures as defined by Wyndham.

Business and Segment Performance

U.S. hotels led the quarter, with RevPAR rising across economy, midscale, and upscale categories as both occupancy and average daily rates improved. International RevPAR declined despite growth in Canada, Asia Pacific outside Greater China, EMEA, and Latin America, as weaker demand in China offset those gains.

The company’s RevPAR and room figures exclude rooms associated with its Super 8 master licensee in China where specified.

Wyndham ended the quarter with 877,400 rooms globally, up 3% year over year. Excluding insolvent Revo Hospitality Group, the system reached 864,400 rooms and grew 4%. U.S. rooms declined 1% overall, although the higher-RevPAR midscale-and-above category grew 2%; international rooms increased 7%, or 11% excluding Revo.

The development pipeline, excluding Revo, grew 4% to a record of approximately 264,000 rooms across more than 2,200 hotels. About 69% of the pipeline was in midscale-and-above categories, 17% was extended stay, and 78% represented new construction. Wyndham said the pipeline carries an approximately 30% FeePAR premium to its existing domestic and international systems.

Marketing Fund Timing Obscured Underlying Profit Growth

Marketing fund revenue exceeded related expenses by only $1 million in Q3 2026, compared with an $18 million surplus a year earlier. That $17 million unfavorable comparison explains why adjusted EBITDA declined by $6 million on a reported basis even as net revenue increased by $28 million.

After neutralizing marketing fund variability, adjusted EBITDA increased by $11 million, or 5%. Comparable adjusted net income rose approximately 7%, while comparable adjusted diluted EPS increased about 9%. These gains reflected higher revenue and share repurchases, partially offset by variable-cost timing and the comparison with one-time cost reductions recorded in Q3 2025.

Diluted weighted-average shares fell to 74.3 million from 76.9 million. That reduction partially offset the effect of lower net income on GAAP EPS, although reported diluted EPS still declined.

Profitability, Cash Flow, and Balance Sheet

Wyndham generated $93 million of operating cash flow and $100 million of free cash flow during the quarter. Under the company’s definition, free cash flow adds back $18 million of net development advance note payments and subtracts $11 million of capital expenditures from operating cash flow.

Quarter-end cash was $71 million, with total liquidity of $988 million. Total debt was $2.73 billion and net debt was $2.66 billion. The net debt leverage ratio stood at 3.6 times, compared with 3.5 times at the end of 2025 and within Wyndham’s stated target range of 3 to 4 times.

The company returned $123 million to shareholders during the quarter, consisting of $91 million in share repurchases and $32 million in dividends. It repurchased approximately 1.2 million shares at an average price of $73.39 and paid a quarterly dividend of $0.43 per share. The board also increased the share repurchase authorization by $400 million.

Full-Year 2026 Guidance

Wyndham raised the lower ends of its global RevPAR and adjusted EBITDA ranges and moved the adjusted EPS range higher. The room-growth forecast narrowed to approximately 4%, while revenue and free cash flow conversion guidance remained unchanged.

The guidance assumes fourth-quarter domestic RevPAR is roughly consistent with Q3 performance. Wyndham estimates that each 1% change in RevPAR affects net revenue by approximately $10 million and adjusted EBITDA by approximately $4 million. Excluding Revo fee deferrals and the effect of one-time variable-cost reductions in 2025, the company expects comparable adjusted EBITDA growth of approximately 6% to 7%.

Recent Insider Transactions

The supplied Yahoo Finance summary reports 90,416 shares in insider purchases across 22 transactions and 64,280 shares in sales across four transactions over the preceding six months, resulting in net purchases of 26,136 shares. The detailed history includes stock awards and derivative exercises, so the transaction type is important when interpreting the aggregate; all 10 records below were reported as direct holdings.

Risks Investors Should Watch

• China remains a drag on international RevPAR. Greater China RevPAR fell 10% as softer travel demand, particularly in Tier 2 cities, outweighed growth elsewhere internationally.
• Revo’s insolvency affects reported operating metrics. Fee deferrals pressured royalty rates, while the room-growth outlook excludes room terminations associated with Revo.
• Marketing fund seasonality can distort quarterly profit comparisons. Wyndham expects marketing fund revenue and expenses to roughly balance for the full year, but quarterly timing materially affected Q3 adjusted EBITDA.
• The outlook is sensitive to travel demand. Wyndham estimates that a 1% RevPAR change would affect revenue by about $10 million and adjusted EBITDA by about $4 million.
• Leverage remains within, but above the lower end of, the target range. Net debt leverage of 3.6 times leaves Wyndham near the midpoint of its 3-to-4-times target while it continues repurchases and dividends.

Summary

Wyndham’s Q3 2026 results combined 7% revenue growth, improving U.S. hotel demand, system expansion, and positive cash flow growth with lower reported earnings caused largely by marketing fund timing. Comparable profitability increased after removing that timing effect, and the company raised several full-year guidance ranges. The main issues to monitor are whether U.S. RevPAR holds near Q3 levels, whether China stabilizes, and how Revo-related fee and room impacts develop.