Wyndham Hotels Plans to Issue $650 Million Senior Notes
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy WH?
Source: PRnewswire
- Financing Plan: Wyndham Hotels intends to issue $650 million of Senior Notes due 2033, aiming to repay existing loans and credit facilities, thereby optimizing its capital structure and reducing financial costs.
- Use of Proceeds: The net proceeds from this offering will be used to repay all outstanding borrowings under its term loan A and revolving credit facility, covering related fees and general corporate purposes to ensure financial flexibility.
- Compliance Statement: The Notes and related guarantees have not been registered under the Securities Act of 1933, meaning their sale in the U.S. will be strictly limited, ensuring compliance to avoid legal risks.
- Market Position: Wyndham Hotels is the world's largest hotel franchising company with over 8,300 hotels, maintaining a leading position in the economy and midscale segments through its extensive brand portfolio and loyalty program.
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Analyst Views on WH
Wall Street analysts forecast WH stock price to rise
8 Analyst Rating
6 Buy
2 Hold
0 Sell
Strong Buy
Current: 83.100
Low
76.00
Averages
89.88
High
99.00
Current: 83.100
Low
76.00
Averages
89.88
High
99.00
About WH
Wyndham Hotels & Resorts, Inc. is a hotel franchising company. The Company operates through one segment: Hotel Franchising. The Hotel Franchising segment consists of licensing its lodging brands and providing related services to third-party hotel owners and others. The Company operates approximately 9,300 hotels across over 95 countries on six continents. Through its network of approximately 903,000 rooms appealing to the everyday traveler. The Company operates a portfolio of 25 hotel brands, including Super 8, Days Inn, Ramada, Microtel, La Quinta, Baymont, Wingate, AmericInn, ECHO Suites, Registry Collection Hotels, Trademark Collection, and Wyndham.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Wyndham Hotels Plans to Issue $650 Million Senior Notes
- Financing Plan: Wyndham Hotels intends to issue $650 million of Senior Notes due 2033, aiming to repay existing loans and credit facilities, thereby optimizing its capital structure and reducing financial costs.
- Use of Proceeds: The net proceeds from this offering will be used to repay all outstanding borrowings under its term loan A and revolving credit facility, covering related fees and general corporate purposes to ensure financial flexibility.
- Compliance Statement: The Notes and related guarantees have not been registered under the Securities Act of 1933, meaning their sale in the U.S. will be strictly limited, ensuring compliance to avoid legal risks.
- Market Position: Wyndham Hotels is the world's largest hotel franchising company with over 8,300 hotels, maintaining a leading position in the economy and midscale segments through its extensive brand portfolio and loyalty program.
See More
Wyndham Hotels to Issue $650M Senior Notes Due 2033
- Financing Plan: Wyndham Hotels has announced plans to issue $650 million in Senior Notes due 2033, aiming to optimize its capital structure and reduce financial costs through this initiative.
- Repayment Purpose: The net proceeds from this issuance will be used to repay outstanding borrowings under its Term Loan A and revolving credit facility, ensuring the company's financial stability and reducing interest expenses.
- Expense Coverage: In addition to debt repayment, the proceeds will also cover related fees and expenses, further enhancing the company's liquidity and financial flexibility.
- Strategic Goals: Wyndham targets a net room growth of 4% to 4.5% in 2026 while advancing AI and credit card-related innovations to enhance customer experience and market competitiveness.
See More
Tourism Chaos in Mexico Following Drug Lord's Death
- Travel Warnings Escalate: The U.S. State Department has broadened its travel warnings across multiple regions in Mexico, advising tourists to shelter in place in popular destinations like Cancun and Puerto Vallarta, indicating a direct threat to the tourism industry due to escalating violence.
- Cruise Line Route Changes: In response to the violence, Carnival and Norwegian Cruise Lines have canceled planned stops in Puerto Vallarta, reflecting the industry's heightened sensitivity to safety risks and their operational adaptability in crisis situations.
- Hotel Brand Exposure: Analysts highlight that Hyatt has 8.5% of its total rooms in Mexico, while Marriott has 3.3%, indicating significant financial exposure for these brands amid the current unrest and potential impacts on occupancy rates.
- Insurance Policy Limitations: As the violence is now classified as a foreseeable event, many travel insurance providers are no longer offering coverage for cancellations related to this unrest, leaving travelers facing greater uncertainty and potential financial losses when planning their trips.
See More
Wyndham Hotels Reports Strong Q4 2025 Earnings with Record Development
- Performance Growth: Wyndham Hotels achieved a 4% net room growth in Q4 2025, with adjusted EBITDA and EPS increasing by 4% and 6% respectively, demonstrating the company's resilience and stability in a challenging environment.
- Development Achievements: The company signed 870 new agreements, setting a record with 72,000 new rooms, and the global development pipeline is nearing 260,000 rooms, indicating Wyndham's proactive strategy to expand market share and enhance long-term economic benefits.
- Cash Flow and Shareholder Returns: Adjusted free cash flow reached $433 million, with $393 million returned to shareholders, including $127 million in dividends and $266 million in share repurchases, reflecting the company's commitment to shareholder value.
- Future Outlook: Management projects global net room growth between 4% and 4.5% for 2026, despite facing the loss of approximately 3,000 rooms in Q1, with expectations for growth to resume in Q2, showcasing confidence in future market conditions.
See More
Wyndham Hotels Q4 2025 Earnings Highlights
- Earnings Beat: Wyndham Hotels reported a Q4 2025 non-GAAP EPS of $0.93, exceeding expectations by $0.12, demonstrating resilience in profitability despite a slight revenue decline.
- Slight Revenue Decline: The company's Q4 revenue was $334 million, down 2.1% year-over-year, yet it surpassed market expectations by $7.28 million, indicating a relatively stable revenue performance in a competitive market.
- Strong Cash Flow: In 2025, Wyndham generated $367 million in net cash from operating activities and $433 million in adjusted free cash flow, showcasing robust cash generation capabilities that support future investments.
- Dividend Increase: The Board authorized a 5% increase in the quarterly cash dividend to $0.43 per share, expected to be declared in Q1 2026, which not only enhances shareholder returns but also reflects the company's confidence in future cash flows.
See More
Wyndham Hotels Increases Quarterly Dividend by 5% and Provides 2026 Outlook
- Dividend Increase: Wyndham's Board of Directors has approved a 5% increase in the quarterly cash dividend to $0.43 per share, expected to be declared in Q1 2026, reflecting the company's confidence in future cash flows and commitment to shareholder returns.
- Global Room Growth: As of December 31, 2025, Wyndham's global system reached 868,900 rooms, marking a 4% year-over-year increase, with the U.S. market growing by 1% and EMEA and Latin America regions seeing 7% growth, showcasing the success of the company's global expansion strategy.
- Strong Financial Performance: In 2025, Wyndham achieved a 4% increase in adjusted EBITDA to $718 million and a 6% rise in adjusted EPS to $4.58, despite facing RevPAR pressure in the U.S., maintaining profitability and stable cash flow.
- Optimistic 2026 Outlook: Wyndham anticipates global RevPAR growth of -1.5% to 0.5% and room growth of 4% to 4.5% for 2026, projecting revenues between $1.46 billion and $1.49 billion, indicating confidence in market recovery and ongoing growth potential.
See More
Wyndham Hotels Plans to Issue $650 Million Senior Notes
- Financing Plan: Wyndham Hotels intends to issue $650 million of Senior Notes due 2033, aiming to repay existing loans and credit facilities, thereby optimizing its capital structure and reducing financial costs.
- Use of Proceeds: The net proceeds from this offering will be used to repay all outstanding borrowings under its term loan A and revolving credit facility, covering related fees and general corporate purposes to ensure financial flexibility.
- Compliance Statement: The Notes and related guarantees have not been registered under the Securities Act of 1933, meaning their sale in the U.S. will be strictly limited, ensuring compliance to avoid legal risks.
- Market Position: Wyndham Hotels is the world's largest hotel franchising company with over 8,300 hotels, maintaining a leading position in the economy and midscale segments through its extensive brand portfolio and loyalty program.
See More
Wyndham Hotels to Issue $650M Senior Notes Due 2033
- Financing Plan: Wyndham Hotels has announced plans to issue $650 million in Senior Notes due 2033, aiming to optimize its capital structure and reduce financial costs through this initiative.
- Repayment Purpose: The net proceeds from this issuance will be used to repay outstanding borrowings under its Term Loan A and revolving credit facility, ensuring the company's financial stability and reducing interest expenses.
- Expense Coverage: In addition to debt repayment, the proceeds will also cover related fees and expenses, further enhancing the company's liquidity and financial flexibility.
- Strategic Goals: Wyndham targets a net room growth of 4% to 4.5% in 2026 while advancing AI and credit card-related innovations to enhance customer experience and market competitiveness.
See More
Tourism Chaos in Mexico Following Drug Lord's Death
- Travel Warnings Escalate: The U.S. State Department has broadened its travel warnings across multiple regions in Mexico, advising tourists to shelter in place in popular destinations like Cancun and Puerto Vallarta, indicating a direct threat to the tourism industry due to escalating violence.
- Cruise Line Route Changes: In response to the violence, Carnival and Norwegian Cruise Lines have canceled planned stops in Puerto Vallarta, reflecting the industry's heightened sensitivity to safety risks and their operational adaptability in crisis situations.
- Hotel Brand Exposure: Analysts highlight that Hyatt has 8.5% of its total rooms in Mexico, while Marriott has 3.3%, indicating significant financial exposure for these brands amid the current unrest and potential impacts on occupancy rates.
- Insurance Policy Limitations: As the violence is now classified as a foreseeable event, many travel insurance providers are no longer offering coverage for cancellations related to this unrest, leaving travelers facing greater uncertainty and potential financial losses when planning their trips.
See More
Wyndham Hotels Reports Strong Q4 2025 Earnings with Record Development
- Performance Growth: Wyndham Hotels achieved a 4% net room growth in Q4 2025, with adjusted EBITDA and EPS increasing by 4% and 6% respectively, demonstrating the company's resilience and stability in a challenging environment.
- Development Achievements: The company signed 870 new agreements, setting a record with 72,000 new rooms, and the global development pipeline is nearing 260,000 rooms, indicating Wyndham's proactive strategy to expand market share and enhance long-term economic benefits.
- Cash Flow and Shareholder Returns: Adjusted free cash flow reached $433 million, with $393 million returned to shareholders, including $127 million in dividends and $266 million in share repurchases, reflecting the company's commitment to shareholder value.
- Future Outlook: Management projects global net room growth between 4% and 4.5% for 2026, despite facing the loss of approximately 3,000 rooms in Q1, with expectations for growth to resume in Q2, showcasing confidence in future market conditions.
See More
Wyndham Hotels Q4 2025 Earnings Highlights
- Earnings Beat: Wyndham Hotels reported a Q4 2025 non-GAAP EPS of $0.93, exceeding expectations by $0.12, demonstrating resilience in profitability despite a slight revenue decline.
- Slight Revenue Decline: The company's Q4 revenue was $334 million, down 2.1% year-over-year, yet it surpassed market expectations by $7.28 million, indicating a relatively stable revenue performance in a competitive market.
- Strong Cash Flow: In 2025, Wyndham generated $367 million in net cash from operating activities and $433 million in adjusted free cash flow, showcasing robust cash generation capabilities that support future investments.
- Dividend Increase: The Board authorized a 5% increase in the quarterly cash dividend to $0.43 per share, expected to be declared in Q1 2026, which not only enhances shareholder returns but also reflects the company's confidence in future cash flows.
See More
Wyndham Hotels Increases Quarterly Dividend by 5% and Provides 2026 Outlook
- Dividend Increase: Wyndham's Board of Directors has approved a 5% increase in the quarterly cash dividend to $0.43 per share, expected to be declared in Q1 2026, reflecting the company's confidence in future cash flows and commitment to shareholder returns.
- Global Room Growth: As of December 31, 2025, Wyndham's global system reached 868,900 rooms, marking a 4% year-over-year increase, with the U.S. market growing by 1% and EMEA and Latin America regions seeing 7% growth, showcasing the success of the company's global expansion strategy.
- Strong Financial Performance: In 2025, Wyndham achieved a 4% increase in adjusted EBITDA to $718 million and a 6% rise in adjusted EPS to $4.58, despite facing RevPAR pressure in the U.S., maintaining profitability and stable cash flow.
- Optimistic 2026 Outlook: Wyndham anticipates global RevPAR growth of -1.5% to 0.5% and room growth of 4% to 4.5% for 2026, projecting revenues between $1.46 billion and $1.49 billion, indicating confidence in market recovery and ongoing growth potential.
See More
