Wyndham raises 2026 adjusted earnings forecast to $740–745 million
Key Facts
Wyndham Hotels & Resorts raised its 2026 adjusted earnings before interest, taxes, depreciation and amortization forecast to $740–745 million, according to its third-quarter earnings statement, as its U.S. business improved. The group had set the forecast at $735–745 million following its second-quarter results, meaning the latest revision raised only the lower end while leaving the upper end unchanged. The company also raised its adjusted diluted earnings-per-share forecast for the current year to $4.84–4.92, compared with its previous range of $4.71–4.83. The earnings-per-share revision thus raised both ends of the range, while the adjusted EBITDA forecast range narrowed. The annual outlook update came despite a decline in this earnings measure in the reported quarterly results, compared with growth on the comparable basis the company uses to neutralize marketing fund volatility.
Adjusted EBITDA totaled $207 million in the third quarter of 2026, according to Wyndham's disclosure. That represented a decline of 3% from the same period a year earlier, despite the increase in full-year estimates. But the company said in its statement: "On a comparable basis, adjusted EBITDA increased 5%," after neutralizing marketing fund volatility. The group reported quarterly net income of $99 million and net revenue of $410 million for the same period. Investing.com reported quarterly earnings per share of $1.43, against an analyst estimate of $1.31. The gap between the result and the estimate was $0.12 per share, according to the website, putting earnings per share above expectations in the quarter in which the company announced its revised annual estimates.
On the operating front, U.S. revenue per available room grew 6% in the third quarter from the same period a year earlier, according to the company. Wyndham attributed the improvement to "improved occupancy levels and average daily rate," combining higher room occupancy with better pricing in the U.S. market. By contrast, revenue per available room outside the United States fell 3% year on year in constant currency. The results thus showed a divergence between revenue per available room growth in the United States and a decline in international markets during the same quarter. Alongside that divergence, room growth expectations for the current year stood at about 4%, compared with a previous range of 4.0% to 4.5% announced by the group following its second-quarter results. Both the current and previous estimates exclude the impact of room terminations associated with Revo's insolvency, maintaining that treatment in the comparison of expansion forecasts.
Against the backdrop of the updated room growth outlook, Wyndham's development pipeline reached a record of nearly 264,000 rooms at the end of September 2026, excluding Revo, according to the group's disclosure. That figure covers rooms under development, while the annual growth forecast concerns expansion of the room network during the current year. On the capital front, the board announced in September 2026 that it had approved a $400 million increase in the share repurchase authorization. The company said in its announcement that the board "approved a $400 million increase in its share repurchase authorization," a move concerning the size of the authorization granted for buybacks. The ratio of net debt to adjusted EBITDA stood at 3.6 times at the end of September, according to the quarterly results.
Wyndham scheduled its third-quarter earnings call for October 22, 2026. The call is set to begin at 8:30 a.m. Eastern time, according to the company's earnings date announcement. A webcast will accompany the call. The discussion will cover the group's announced outlook alongside its quarterly results. The presentation follows the update to earnings and room growth estimates for the current year.