In reporting the company’s fourth-quarter and full-year 2025 results, Wyndham Hotels & Resorts President and CEO Geoff Ballotti noted downturns in revenue and earnings and growth in both system size and pipeline.
Performance
Fourth-quarter global revenue per available room decreased 6 percent in constant currency compared to 2024, reflecting declines of 8 percent in the U.S. and 1 percent internationally.
In the U.S., fourth-quarter results included approximately 140 basis points of unfavorable hurricane impacts; excluding this, RevPAR declined approximately 610 basis points year-over-year reflecting a 360 basis-point reduction in occupancy and a 250 basis-point decline in average daily rate.
During the earnings call with investors, Ballotti highlighted strength in both Midwestern and “industrial” states like Missouri, Minnesota, Michigan, Wisconsin and Oklahoma, but acknowledged that this was offset by “softness” in Texas, California and Florida. These three states, he said, account for a quarter of the company’s domestic room count and, excluding hurricane impacts, reported revenue declines of 11 percent.
Internationally, constant-currency growth of 7 percent in the Europe, Middle East and Africa region and 6 percent in Latin America, each reflected both improved demand and pricing, while growth of 1 percent in Canada was driven by pricing power, partially offset by lower demand. The growth in those regions was more than offset by softness in Asia Pacific, including China where RevPAR declined 10 percent.
For the full year, global RevPAR decreased 3 percent in constant currency compared to 2024, in line with the company’s outlook, reflecting a 4 percent 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.
Net income decreased 33 percent to $193 million compared to $289 million in full-year 2024, reflecting higher impairment and other related costs, higher interest expense and the absence of a benefit in connection with the reversal of a spin-off related matter, which were partially offset by higher adjusted earnings before interest, taxes, depreciation or amortization and lower transaction-related expenses in connection with defending against a takeover attempt. Adjusted net income was $353 million compared to $347 million in full-year 2024, approximately 2 percent on a comparable basis.
The company generated a net loss of $60 million compared to net income of $85 million in the fourth quarter of 2024, reflecting impairment and other-related costs, lower adjusted EBITDA and higher interest expense. Adjusted net income was $71 million compared to $82 million in the fourth quarter of 2024.
For the quarter, adjusted EBITDA decreased 2 percent to $165 million compared to $168 million in the fourth quarter of 2024. This decrease included a $7 million unfavorable impact from expected marketing fund variability, excluding which adjusted EBITDA grew 2 percent on a comparable basis. This growth primarily reflects increased ancillary revenues and cost containment measures, including both operational efficiencies and one-time variable reductions, partially offset by lower royalties and franchise fees and elevated costs associated with insurance, litigation defense and employee benefits—all of which are reflective of the broader operating environment.
Adjusted EBITDA grew 3 percent to $718 million compared to $694 million in full-year 2024. This increase included a $2 million unfavorable impact, as expected, from marketing-fund variability, excluding which adjusted EBITDA grew 4 percent on a comparable basis, primarily reflecting higher revenues and cost-containment measures, including both operational efficiencies and one-time variable reductions, which were partially offset by lower royalties and franchise fees, along with elevated costs associated with insurance, litigation defense and employee benefits—all of which are reflective of the broader operating environment.
Unit Growth
The company’s global system grew 4 percent year over year, including 1 percent growth in the U.S. and 7 percent growth in the company’s higher RevPAR EMEA and Latin America regions. “We opened a record 72,000 rooms, the largest number of organic room additions in Wyndham's history, and 13 percent more than last year,” Ballotti said during the call.
Wyndham awarded 870 development contracts globally in 2025, an increase of 18 percent year-over-year and an all-time high. “Development timelines are faster than ever as construction costs moderate,” Ballotti said.
As of Dec. 31, the company’s global development pipeline increased 3 percent year over year to a record-high level of approximately 2,200 hotels and 259,000 rooms.
- Approximately 70 percent of the pipeline is in the midscale and above segments, which grew 3 percent year-over-year.
- Approximately 17 percent of the pipeline is in the extended stay segment.
- Approximately 42 percent of the pipeline is in the U.S.
- Approximately 77 percent of the pipeline is new construction and approximately 36 percent of these projects have broken ground; rooms under construction grew 3 percent year over year.
Revo’s Impact
In January, European white-label hotel operator Revo Hospitality Group filed for insolvency proceedings under self-administration for most of its operating entities. The company, formerly known as HR Group, is to be restructured under self-administration by the summer.
As a result, Wyndham evaluated the recoverability of the carrying value of assets associated with Revo as of Dec. 31 and has recorded charges of $74 million within operating expenses and $48 million within impairment on the Consolidated Statements of Income (Loss) to reflect the net realizable value on the company’s balance sheet.
"While our balance sheet exposure to Revo was secured by certain collateral and guarantees, the scope of these filings has unfavorably impacted the value of our security and our expected recovery," Ballotti said during the call.
Additionally, as a result of Revo’s insolvency proceedings and in the process of performing its quantitative assessments for impairment on its intangible assets, the company determined that a portion of its Vienna House trademark and related-franchise agreements were impaired. Accordingly, the company recorded impairment charges totaling $38 million to reduce the carrying value of those assets to their estimated fair values.
Starting in the fourth quarter of 2025, the company began deferring all revenues related to Revo due to uncertainty around collectability. These revenues will continue to accrue and will only be recognized as revenues following a period after which collections from Revo are deemed probable.
Looking Ahead
After a challenging year, Ballotti noted reasons for optimism looking ahead. Q4’s decline of 6 percent improved to down 4 percent in January, and has further improved in February, he told the investors. “Leisure and corporate bookings are beginning to pick up, as reflected in our booking backlog, and as we approach the month of March, we'll lap the beginning of when our RevPAR significantly decelerated in 2025 and when our domestic comps become meaningfully easier.”