Wyndham Hotels & Resorts Inc Q1 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Lizzie Dove - Goldman Sachs & Company, Inc. - Analyst : Hi there, thanks for taking the question. First off, Geoff, I just wanted to say a big congratulations on the new addition to your family last week. It's exciting news.

Question: Lizzie Dove - Goldman Sachs & Company, Inc. - Analyst : That's awesome. So on the question, I appreciate all the comments around the range of outcomes for RevPAR Outlook. Super helpful, I guess looking at the US specifically, could you share a little more about what you've been seeing and just put a finer point on what has changed? I think last quarter the makeup of the outlook of 2% to 3% in the US was about 150 basis points to 200 basis points infrastructure, then another 50% on leisure, 50% on pricing power. So when you think of that makeup now, I'm just curious how that build up is different today.

Question: Michael Bellisario - Robert W. Baird & Co Inc - Analyst : Thanks. Good morning everyone.

Question: Michael Bellisario - Robert W. Baird & Co Inc - Analyst : No, number three is next quarter, so I'm doing my part to doing my part to catch up to you. Just, you didn't talk about your longer-term outlook and I go. I don't think that slides in your deck anymore, so maybe you can just help us frame what that outlook would be in the current environment, what changes and so what are the sensitivities that we should be thinking about there, looking out to 26 today.

Question: Brandt Montour - Barclays Capital Inc - Analyst : Good morning everybody. Thanks for taking my question. So I was, I wanted to talk a little bit about the development backdrop. The net unit growth in the first quarter was just, I mean when we calculated it's just a touch below the range for the year, and so that you guys refirming that it implies a little bit of a lift as you go through the year wondering if that's sort of plan what you guys expected to happen as you go through the year and second. Maybe Geoff, if you could just talk about, the your 70% of your opens or conversions, if you just talk about the puts and takes of the conversion. Business and that that momentum as it pertains to the current backdrop, i.e., cost for furnished goods going up, but of course we've got this potential counter cyclicality effect of slowing RevPAR, potentially helping. Hope that all makes sense, but any thoughts that would be helpful.

Question: David Katz - Jefferies LLC - Analyst : Hi, good morning everybody. Thanks for taking my question. Well, I was just going to leave it right there. I wanted to talk about, I wanted to talk about your development engine, and sort of the development process, right? Easy to get sort of sucked into the near term RevPAR and demand, etc. Which is relevant, but taking the long term view on, how you're one sort of allocating resources, driving, building a pipeline. I'd love some geographic updates on how you're doing in different areas. There's been a lot of concern about, what might be going on in Asia or elsewhere. With it and if you could, Michele, just talk a little bit about sort of key money and key money strategies, it's another area that you know we're all quite interested in. Thank you. Okay.

Question: Stephen Grambling - Morgan Stanley & Co. LLC - Analyst : Thanks. So this is just a follow up on that question. I guess sometimes what we see now is the output of several years of efforts as we think about what might happen going forward and the major changes you see in the development environment, maybe if you can just elaborate on how the terms of the structure of agreements may have changed over the past few years of higher interest rates. And then just to clarify, I think the loan advances you cited there were up a little bit is that and that's just that related to moving upstream or is that new markets and then what's the typical I guess payback that we should think about on those thank you. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 01, 2025 / 12:30PM, WH.N - Q1 2025 Wyndham Hotels & Resorts Inc Earnings Call

Question: Stephen Grambling - Morgan Stanley & Co. LLC - Analyst : Got it. And I guess are those kinds of standard terms or do we see that get paid back over, a typical length of time, or do we assume?

Question: Dany Asad - Bank of America - Analyst : Hi, good morning, everybody. Just a follow up question on your change in outlook comments, Michele, you talked about the low end-run rating at down three, the top end of the guide being up one for the balance of the year. Can you maybe break that down for us by, what's changing in your outlook by region? So what, what's changing in the US and then how is your outlook, in the rest of the world changing?

Question: Steve Pizzella - Deutsche Bank Securities Inc. - Analyst : Hey, good morning, everyone. I just wanted to follow up on the encouraging recent trends comment again. Maybe you could expand on where you are seeing that and if you think they are sustainable, and if these recent trends were to continue, would that get you to the bid point of the EBITDA guidance?

Question: Patrick Scholes - Truist Securities - Analyst : Great, thank you. Question here on, the ancillary revenues. I believe last quarter, you had called out an expectation for low teen growth for this year. Certainly, since, last quarter, I believe it was in February, we've seen declining consumer confidence. Is your expectation, still the same for low teen and ancillary revenue growth? thank you.

Question: Patrick Scholes - Truist Securities - Analyst : Okay. Could you just, give a little bit of explanation exactly what a contracted, sounds like that's something that's locked in no matter what happens here. What exactly is that? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 01, 2025 / 12:30PM, WH.N - Q1 2025 Wyndham Hotels & Resorts Inc Earnings Call

Question: Ian Zaffino - Oppenheimer & Co., Inc. - Analyst : I agree that thank you. Maybe talk about like the trends you're seeing in infrastructure right now. Have you really seen any impact from macro, do you expect to see any, softening there or is it kinda just steady as she goes? Thanks.

Question: Alex Brignall - Redburn Atlantic - Analyst : Good morning. Thank you for taking the question. On the German deal, could you just give us some more detail on the terms of that, on the nature of the 3,000 rooms, if they're already existing on new construction, and whether there are any similar deals that you have in the pipe that could come through later down the line.

Question: Dan Wasiolek - Morningstar, Inc - Analyst : Hey, good morning guys. Yeah, just wondering, your commercial team seems to be leading the industry and innovative technology solutions. What opportunities are you providing owners in this environment to lower costs and increase top line growth?