TRENDING : Q1 REPORT
and 37 %, respectively . Around two-thirds of this improvement was aided by stronger pricing power , while the rest was driven by higher occupancy levels .
The company returned $ 87 million to shareholders through repurchases worth $ 56 million and a quarterly cash dividend of $ 0.35 per share .
“ We outperformed our adjusted EBITDA expectations , leading us to raise our full-year outlook as a result . With our seasonally strongest summer season on the horizon and no signs of slowdown in our middle-income guests ’ desire to spend on travel , we ’ re enthusiastic about the opportunities that lie ahead and our ability to deliver outstanding value to our shareholders , guests , franchisees and team members ,” said Geoffrey A . Ballotti , president and CEO of Wyndham .
This was the 11th consecutive quarter of sequential growth in the company ’ s development pipeline .
FINANCIAL RESULTS The comparability of Wyndham ’ s Q1 results was affected by the sale of its owned hotels and the exit of its select-service management business , which took place in 2022 .
Fee-related and other revenues stood at $ 308 million compared to $ 316 million in Q1 2022 , which included $ 38 million from the selectservice management business and owned hotels . On a comparable business , fee-related and other revenues jumped 11 % YOY , reflecting global RevPAR growth of 9 %, higher franchise fees and incremental license fees .
Adjusted EBITDA was $ 147 million , compared to $ 159 million in Q1 2022 , which included a $ 15 million contribution from the company ’ s select-service management business and owned hotels . On a comparable basis , excluding the marketing fund variability , adjusted EBITDA rose 10 % YOY , reflecting increased higher feerelated and other revenues .
Wyndham generated net income of $ 67 million , or $ 0.77 per diluted share , against $ 106 million ($ 1.14 per diluted share ) in Q1 2022 . The decreased net income was mostly due to the sale of the company ’ s owned hotels and the exit of its select-service management arm , partially offset by increased adjusted EBITDA in the company ’ s franchising segment .
The company ’ s fund expenses surpassed revenues by $ 4 million , compared to exceeding expenses by $ 7 million in Q1 2022 .
DEVELOPMENT Development pipeline increased 11 % YOY to 226,000 rooms and signings rose by 7 %, barring ECHO Suites Extended Stay by Wyndham . The company awarded 123 new contracts for its legacy brands , increasing 7 % YOY .
Wyndham also awarded 35 new construction projects for ECHO Suites Extended Stay by Wyndham , bringing the total figure to 205 since the extended-stay brand was launched in March 2022 .
As of March 31 , Wyndham ’ s global development pipeline comprised 1,800 hotels totaling 226,000 rooms , an 11 % YOY rise which includes growth of 28 % in the U . S .
About 72 % of the company ’ s pipeline is in the midscale and above segments , while 57 % of the development pipeline is international . About 80 % consists of new builds , of which 35 % has broken ground .
Wyndham Reef Resort Grand Cayman in Cayman Islands .
Wyndham Boca Raton in Boca Raton , Fla .
26 hotelsmag . com June 2023