Increases Quarterly Dividend by 9%
Reiterates Full-Year 2024 Outlook
PARSIPPANY, N.J., Feb. 19, 2024 — Wyndham Hotels & Resorts (NYSE: WH) today announced results for the three months and year ended December 31, 2023. Highlights include:
• System-wide rooms grew organically by 3.5% year-over-year, a record high.
• Opened a record 66,000 organic rooms, representing a year-over-year increase of 3%.
• Global retention rate – including all terminations – improved another 30 basis points to a record 95.6%.
• Development pipeline grew 1% sequentially and by 10% year-over-year to a record 240,000 rooms.
• Grew ECHO Suites pipeline nearly 60% year-over-year with 98 new contract signings.
• Signed 766 contracts for legacy brands, an increase of 8% year-over-year.
• Fourth quarter diluted earnings per share of $0.60 and net income of $50 million; adjusted diluted EPS of $0.91, adjusted net income of $75 million and adjusted EBITDA of $154 million.
• Full-year 2023 diluted EPS of $3.41 and net income of $289 million; adjusted diluted EPS of $4.01, adjusted net income of $341 million and adjusted EBITDA of $659 million.
• Net cash provided by operating activities of $376 million and free cash flow of $339 million for the full-year.
• Returned $515 million to shareholders for the full-year through $397 million of share repurchases and quarterly cash dividends of $0.35 per share.
• Board of Directors recently authorized a 9% increase in the quarterly cash dividend to $0.38 per share beginning with the dividend expected to be declared in first quarter 2024.
“We are tremendously proud to report fourth quarter results that demonstrate the continued success of our global strategy and our accelerating momentum,” said Geoff Ballotti, president and chief executive officer. “Despite the distraction, uncertainty and misperceptions caused by Choice and their slanted and constant communications to our franchisee base, room openings accelerated and our global development pipeline grew by 10% to an all-time high of 240,000 rooms. Our team opened 27% more rooms than last year in the fourth quarter and we welcomed 500 new hotels to our system in 2023. This, when combined with our improving franchisee engagement and record retention rate, drove the best organic system growth we’ve ever achieved. We grew comparable adjusted EBITDA by 6% and returned over half a billion dollars to our shareholders through dividends and share repurchases. We are confident in the continued effectiveness of our growth strategy and see exceptional value-creation opportunities in the years ahead.”
