WYNDHAM HOTELS & RESORTS, INC. (WH) Business
This page reproduces the company's own Item 1 Business text from the linked SEC filing. It is filer text, not grepcent analysis, scoring, or investment advice.
Informational only - not investment advice. See Disclaimer.
Item 1. Business.
Wyndham Hotels & Resorts, Inc. (“Wyndham Hotels”, the “Company”, “we”, “our” or “us”) is the world’s largest hotel franchising company by number of franchised properties, with over 8,300 affiliated hotels and approximately 869,000 rooms located in approximately 100 countries and welcoming approximately 138 million guests annually worldwide. We operate a hotel portfolio of 25 brands. Our 25 brands are primarily located in secondary and tertiary cities and approximately 80% of the U.S. population lives within ten miles of at least one of our affiliated hotels. Our mission is to make hotel travel possible
2
Table of Contents
for all. Wherever people go, Wyndham will be there to welcome them. We boast a remarkably asset-light business model dramatically limiting our capital needs.
Our widely recognized brands with select-service focus offer a breadth of options for franchisees and a wide range of price points and experiences for our guests. We are a global leader in the economy, midscale and upper midscale chain scales where our brands represent approximately 19% of branded rooms in the United States.
The following charts illustrate our system size (by rooms) as of December 31, 2025:
______________________
(a)Royalty contribution by geography for 2025 was as follows: U.S. 77%, Canada 6%, EMEA 8%, LATAM 3%, and Asia Pacific 6%.
(b)EMEA is representative of Europe, the Middle East, Eurasia and Africa.
(c)LATAM is representative of Latin America and the Caribbean.
Beginning in the second quarter of 2025, we revised our reporting methodology to exclude the impact of all rooms under the Super 8 China master license agreement from our reported system size, RevPAR and royalty rate, and corresponding growth metrics. Our financial results will continue to reflect fees due from the Super 8 master licensee in China, which contributed approximately $2 million to our full-year 2025 consolidated adjusted EBITDA. All system size, RevPAR and royalty rates presented for prior years have been recasted throughout this Annual Report to exclude the impact from all rooms associated with our Super 8 master licensee in China to conform to current year presentation.
3
Table of Contents
As of December 31, 2025, our brand portfolio consisted of the following:
| Global Full Year RevPAR | North America | Asia Pacific | ||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| U.S. | Canada | Greater China | Rest of Asia | EMEA | LATAM | Total | ||||||||||||||||||
| Economy | ||||||||||||||||||||||||
| Super 8 | $ | 39.32 | Properties | 1,344 | 113 | — | 1 | 12 | 1 | 1,471 | ||||||||||||||
| Rooms | 80,837 | 7,345 | — | 50 | 1,911 | 50 | 90,193 | |||||||||||||||||
| Days Inn | $ | 36.91 | Properties | 1,201 | 108 | 136 | 9 | 54 | 13 | 1,521 | ||||||||||||||
| Rooms | 85,205 | 8,557 | 17,303 | 1,138 | 3,238 | 1,017 | 116,458 | |||||||||||||||||
| Travelodge | $ | 39.64 | Properties | 320 | 94 | — | — | — | — | 414 | ||||||||||||||
| Rooms | 23,333 | 7,439 | — | — | — | — | 30,772 | |||||||||||||||||
| Microtel | $ | 44.27 | Properties | 280 | 27 | 31 | 14 | — | 8 | 360 | ||||||||||||||
| Rooms | 19,784 | 2,368 | 3,420 | 1,034 | — | 955 | 27,561 | |||||||||||||||||
| Howard Johnson | $ | 26.17 | Properties | 133 | 17 | 98 | 8 | 7 | 41 | 304 | ||||||||||||||
| Rooms | 10,119 | 1,082 | 26,456 | 2,752 | 790 | 2,799 | 43,998 | |||||||||||||||||
| Dazzler Select (a) | NM | Properties | 4 | — | — | — | — | — | 4 | |||||||||||||||
| Rooms | 368 | — | — | — | — | — | 368 | |||||||||||||||||
| Total Economy | $ | 37.06 | Properties | 3,282 | 359 | 265 | 32 | 73 | 63 | 4,074 | ||||||||||||||
| Rooms | 219,646 | 26,791 | 47,179 | 4,974 | 5,939 | 4,821 | 309,350 | |||||||||||||||||
| Midscale | ||||||||||||||||||||||||
| La Quinta | $ | 61.14 | Properties | 864 | 3 | 7 | 3 | 8 | 8 | 893 | ||||||||||||||
| Rooms | 81,793 | 182 | 1,324 | 550 | 1,144 | 899 | 85,892 | |||||||||||||||||
| Ramada | $ | 37.19 | Properties | 247 | 77 | 156 | 70 | 271 | 35 | 856 | ||||||||||||||
| Rooms | 27,577 | 7,164 | 30,287 | 12,853 | 35,288 | 4,525 | 117,694 | |||||||||||||||||
| Baymont | $ | 40.43 | Properties | 547 | 8 | 2 | — | — | 1 | 558 | ||||||||||||||
| Rooms | 40,710 | 501 | 226 | — | — | 118 | 41,555 | |||||||||||||||||
| AmericInn | $ | 56.71 | Properties | 230 | — | — | — | — | — | 230 | ||||||||||||||
| Rooms | 13,895 | — | — | — | — | — | 13,895 | |||||||||||||||||
| Wingate | $ | 53.12 | Properties | 194 | 9 | 18 | — | — | — | 221 | ||||||||||||||
| Rooms | 16,646 | 951 | 2,534 | — | — | — | 20,131 | |||||||||||||||||
| Wyndham Alltra | $ | 134.59 | Properties | — | — | — | — | — | 3 | 3 | ||||||||||||||
| Rooms | — | — | — | — | — | 1,305 | 1,305 | |||||||||||||||||
| Wyndham Garden | $ | 39.47 | Properties | 77 | 4 | 58 | 21 | 32 | 26 | 218 | ||||||||||||||
| Rooms | 11,108 | 696 | 10,657 | 4,252 | 4,559 | 3,556 | 34,828 | |||||||||||||||||
| Ramada Encore | $ | 28.19 | Properties | — | — | 37 | 10 | 30 | 8 | 85 | ||||||||||||||
| Rooms | — | — | 4,698 | 2,709 | 3,501 | 1,114 | 12,022 | |||||||||||||||||
| Trademark Collection | $ | 64.27 | Properties | 102 | 17 | — | 25 | 155 | 43 | 342 | ||||||||||||||
| Rooms | 14,194 | 2,242 | — | 3,219 | 20,503 | 8,985 | 49,143 | |||||||||||||||||
| TRYP | $ | 57.43 | Properties | 9 | — | 3 | 5 | 24 | 17 | 58 | ||||||||||||||
| Rooms | 941 | — | 351 | 712 | 3,429 | 1,997 | 7,430 | |||||||||||||||||
| Total Midscale | $ | 48.21 | Properties | 2,270 | 118 | 281 | 134 | 520 | 141 | 3,464 | ||||||||||||||
| Rooms | 206,864 | 11,736 | 50,077 | 24,295 | 68,424 | 22,499 | 383,895 | |||||||||||||||||
| Upscale | ||||||||||||||||||||||||
| Wyndham | $ | 43.87 | Properties | 67 | 2 | 65 | 29 | 29 | 42 | 234 | ||||||||||||||
| Rooms | 14,324 | 459 | 17,810 | 9,569 | 4,901 | 7,845 | 54,908 | |||||||||||||||||
| Wyndham Grand | $ | 51.60 | Properties | 9 | 1 | 55 | 10 | 16 | 3 | 94 | ||||||||||||||
| Rooms | 2,920 | 405 | 15,915 | 5,005 | 3,532 | 1,021 | 28,798 | |||||||||||||||||
| Dazzler | $ | 63.99 | Properties | — | — | — | — | — | 15 | 15 | ||||||||||||||
| Rooms | — | — | — | — | — | 1,870 | 1,870 | |||||||||||||||||
| Esplendor | $ | 51.60 | Properties | — | — | — | — | — | 11 | 11 | ||||||||||||||
| Rooms | — | — | — | — | — | 884 | 884 | |||||||||||||||||
| Dolce | $ | 75.70 | Properties | 4 | — | — | 1 | 14 | 1 | 20 | ||||||||||||||
| Rooms | 817 | — | — | 342 | 3,521 | 341 | 5,021 | |||||||||||||||||
| Vienna House | $ | 69.33 | Properties | — | — | — | — | 47 | — | 47 | ||||||||||||||
| Rooms | — | — | — | — | 6,753 | — | 6,753 | |||||||||||||||||
| Total Upscale | $ | 50.05 | Properties | 80 | 3 | 120 | 40 | 106 | 72 | 421 | ||||||||||||||
| Rooms | 18,061 | 864 | 33,725 | 14,916 | 18,707 | 11,961 | 98,234 | |||||||||||||||||
| Luxury | ||||||||||||||||||||||||
| Registry Collection | NM | Properties | 2 | 1 | — | — | 17 | 16 | 36 | |||||||||||||||
| Rooms | 210 | 279 | — | — | 3,634 | 7,117 | 11,240 | |||||||||||||||||
| Extended Stay | ||||||||||||||||||||||||
| ECHO Suites | NM | Properties | 18 | — | — | — | — | — | 18 | |||||||||||||||
| Rooms | 2,207 | — | — | — | — | — | 2,207 | |||||||||||||||||
| Hawthorn | $ | 46.59 | Properties | 82 | — | 20 | — | 5 | — | 107 | ||||||||||||||
| Rooms | 6,126 | — | 2,183 | — | 551 | — | 8,860 | |||||||||||||||||
| WaterWalk | $ | 90.42 | Properties | 11 | — | — | — | — | — | 11 | ||||||||||||||
| Rooms | 1,502 | — | — | — | — | — | 1,502 | |||||||||||||||||
| Total Extended Stay | $ | 50.61 | Properties | 111 | — | 20 | — | 5 | — | 136 | ||||||||||||||
| Rooms | 9,835 | — | 2,183 | — | 551 | — | 12,569 | |||||||||||||||||
| Affiliated properties (b) | ||||||||||||||||||||||||
| Properties | 189 | 3 | — | 11 | 52 | 3 | 258 | |||||||||||||||||
| Rooms | 50,533 | 44 | — | 47 | 2,910 | 77 | 53,611 | |||||||||||||||||
| Total | $ | 44.12 | Properties | 5,934 | 484 | 686 | 217 | 773 | 295 | 8,389 | ||||||||||||||
| Rooms | 505,149 | 39,714 | 133,164 | 44,232 | 100,165 | 46,475 | 868,899 |
______________________
(a)This is a brand extension and not a stand-alone brand.
(b)Affiliated properties represent properties under affiliation arrangements with former Parent or other third parties.
NM - not meaningful. These represent newer brands that are still in their ramp up phase.
4
Table of Contents
The following table presents the changes in our portfolio for the last three years:
| As of December 31, | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2025 | 2024 | 2023 | ||||||||||||||
| Properties | Rooms | Properties | Rooms | Properties | Rooms | |||||||||||
| Beginning balance | 8,178 | 835,700 | 8,068 | 803,700 | 7,972 | 775,900 | ||||||||||
| Additions | 578 | 71,600 | 428 | 63,400 | 427 | 60,800 | ||||||||||
| Deletions | (367) | (38,400) | (318) | (31,400) | (331) | (33,000) | ||||||||||
| Ending balance (a) | 8,389 | 868,900 | 8,178 | 835,700 | 8,068 | 803,700 |
______________________
(a)2024 and 2023 amounts have been recasted to exclude the impact from all rooms associated with our Super 8 master licensee in China to conform with current year presentation. Prior year reported properties for 2024 and 2023 were 9,286 and 9,178, respectively and rooms for 2024 and 2023 were 903,000 and 871,800, respectively.
In addition to our current hotel portfolio, we have approximately 2,200 properties and 259,000 rooms in our development pipeline throughout 63 countries. As of December 31, 2025, approximately 42% of our pipeline was located in the U.S. and 58% was located internationally; 77% of our pipeline was for new construction properties, of which 36% have broken ground and 23% represented conversion opportunities. Approximately 70% of our pipeline is for midscale and above hotels and 17% is in the extended stay segment.
Our pipeline is typically only a subset of our development activity in any given period as some of our hotel additions are executed and opened in less than 90 days and therefore may never appear in our pipeline. However, we use the pipeline to gauge interest in our brands and our continued ability to drive our net room growth projections.
Our franchise sales team consists of approximately 170 professionals throughout the world. Our sales team is focused on growing our franchise business through conversions of existing branded and independent hotels and partnering with developers to brand newly constructed hotels. In addition to a regional presence in the United States, we currently have sales teams located in Turkey, United Arab Emirates, Egypt, China, Singapore, Canada, India, Mexico, Brazil, Argentina, Colombia, Germany, France, Spain, Georgia, Greece and Australia. Our international presence in key countries allows us to quickly adapt to changes in the increasingly dynamic global marketplace and to capitalize on new opportunities as they emerge.
In 2025, our sales team executed 870 contracts representing an increase of 18% year-over-year and an all-time high.
Our Guest Loyalty Program
Wyndham Rewards is our award-winning guest loyalty program that supports our portfolio of brands. The program generates significant repeat business by rewarding guests with points for each qualified stay at our participating properties. Members can use points for stays at thousands of hotels, vacation club resorts and vacation rentals globally as well as experiences, merchandise, gift cards, airlines, charities, and tours and activities. Affiliation with our loyalty programs encourages members to allocate more of their travel spending to our hotels.
Wyndham Rewards is recognized as one of the simplest, most rewarding loyalty programs in the hotel industry, receiving more than 125 awards and accolades over the last decade. For the past eight consecutive years, it has been named the #1 “Best Hotel Loyalty Program” in the USA TODAY 10 Best Readers’ Choice Awards and for the past 11 consecutive years, one of the “Best Travel Rewards Programs” by US News & World Report.
Wyndham Rewards has over 122 million enrolled members. Our members accounted for over 37% of check-ins at our hotels globally and over 53% in the United States. Total membership grew 7% in 2025 and 24% since the end of 2022. Our franchisees benefit from the program through repeat stays and members benefit through free night stays, as well as other redemption options for their points, such as gift cards and experiences. The program is funded by contributions from eligible revenues generated by Wyndham Rewards members and collected by us from hotels in our system. These funds are applied to reimburse hotels and partners for Wyndham Rewards points redemptions by loyalty members and to pay for administrative expenses and marketing initiatives that support the program.
5
Table of Contents
OUR FRANCHISING BUSINESS
We license our brands and associated trademarks to over 6,200 franchisees globally, which provides for a highly diversified owner base with limited concentration. Our franchisees range from sole proprietors to institutional investors such as public real estate investment trusts. Our franchise agreements are typically 10 to 20 years in length, providing significant visibility into future cash flows. Under these agreements, our direct franchisees generally pay us a royalty fee of approximately 5% of gross room revenue and a marketing and reservation fee of 2% to 4% of gross room revenue. We also strategically provide financial support in the form of development advances or loans to help generate new business.
Hotel Franchising Segment Net Income and Adjusted EBITDA (a) ($ in millions)
______________________
(a)See Part II Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations for our definition of Hotel Franchising adjusted EBITDA.
(b)The reconciliation of Hotel Franchising net income to Hotel Franchising adjusted EBITDA is as follows:
| Year Ended December 31, | ||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (in millions) | 2025 (a) | 2024 (a) | 2023 (a) | 2022 | 2021 | |||||||||||||
| Hotel Franchising net income | $ | 490 | $ | 628 | $ | 606 | $ | 583 | $ | 503 | ||||||||
| Depreciation and amortization | 57 | 62 | 67 | 63 | 60 | |||||||||||||
| Stock-based compensation expense | 25 | 27 | 25 | 21 | 18 | |||||||||||||
| Development advance notes amortization | 32 | 24 | 15 | 12 | 11 | |||||||||||||
| Impairments (b) | 86 | 12 | — | — | — | |||||||||||||
| Revo-related charges (b) | 74 | — | — | — | — | |||||||||||||
| Restructuring and other-related costs | 16 | 14 | — | — | — | |||||||||||||
| Transaction-related | 1 | |||||||||||||||||
| Foreign currency impact of highly inflationary countries | — | — | 14 | — | — | |||||||||||||
| Hotel Franchising adjusted EBITDA | $ | 781 | $ | 767 | $ | 727 | $ | 679 | $ | 592 |
______________________
(a) For 2025, 2024 and 2023, the Hotel Franchising segment includes the former Hotel Management segment, which is primarily comprised of our remaining international full-service managed business.
(b) For 2025, represents impairments and other charges associated with Revo Hospitality Group (“Revo”) filing for insolvency under self-administration for most of its operating entities in early January 2026.
OUR STRATEGY
Wyndham Hotels & Resorts is the world’s largest hotel franchisor by number of franchised properties with over 8,300 hotels across 25 brands in approximately 100 countries. Our mission is to make hotel travel possible for all while delivering the best value to both our owners and guests. We aim to ensure that wherever people travel, Wyndham is there to welcome them.
Operating under an asset-light, highly resilient, fee-based franchise business model, we generate high margins and significant cash flows, which allows us to invest in growth opportunities, strengthen our competitive position, and return capital to shareholders.
Our mission and vision are supported by the following strategic goals and objectives:
•Grow our system-wide rooms by approximately 4.0% - 4.5% in 2026.
•Invest in high FeePAR (RevPAR + royalty rates) growth by targeting additions with attractive RevPAR and royalty rates, while continuing to establish a market leading position in the extended stay segment.
6
Table of Contents
•Offer a robust loyalty rewards program to drive guest retention and engagement.
•Capitalize on opportunities created through significant public and private sector investment in infrastructure and artificial intelligence.
•Capture ancillary revenue growth opportunities by enhancing co-branded credit card offerings, introducing new products and services, and strengthening strategic partnerships and affiliations, including our licensing partnership with Travel + Leisure Co.
•Improve franchisee profitability by optimizing top-line performance, lowering on-property labor and operating costs, and elevating the guest experience through continuous digital innovation.
•Maintain a disciplined approach to capital allocation by investing in strategic growth opportunities, including M&A, and returning capital to shareholders.
Our strategic priorities extend beyond near-term objectives and reflect our commitment to our shareholders, franchisees, and guests to drive sustainable growth, operational excellence, and long-term value creation across our business.
CORPORATE RESPONSIBILITY
We are committed to operating our business in a way that is socially, ethically and environmentally responsible guided by our approach to corporate responsibility which includes the pillars of environmental stewardship, social responsibility and strong governance. Now more than ever, we must help ensure the future remains bright for travelers around the world. As the world’s largest hotel franchising company by number of franchised properties, we have a unique opportunity to make a meaningful impact on the world while advancing our mission to make hotel travel possible for all.
As a hospitality company, service and volunteering is deeply rooted in our history and corporate culture. Our teams and franchisees around the world actively engage in their communities, generously giving in ways that enhance the lives of others. We support various charitable programs, including youth and education, military, community and environmental programs. Our philanthropy captures the dedication of our team members, leaders and business partners who have pledged to make lasting, important contributions to the communities in which we operate.
HUMAN CAPITAL
As of December 31, 2025, we had approximately 2,000 employees, consisting of approximately 900 employees outside of the United States.
Culture
As a leader in hospitality, we recognize the critical role that service plays for our company. At Wyndham, our values underpin our inclusive culture, drive our growth, nurture innovation, and inspire the great experiences we create for team members and the people we serve. Our signature “Count on Me” service culture encourages each team member to be responsive, respectful, and deliver great experiences to our guests, partners, communities and each other. Our Count on Me promise aligns with our core values – integrity, accountability, inclusiveness, caring and fun – and is embedded and celebrated at all levels of our organization.
Ethical leadership starts with our Board of Directors (the “Board”) and is shared by senior management with every team member across every brand and business at Wyndham Hotels & Resorts. Our Business Principles guide our interactions and set the standard for how every one of us should approach our work in service to our mission. All team members are expected to embrace our shared values and principles and do their part in maintaining the highest ethical standards and behavior as we grow in communities worldwide. As a result, we were recognized as one of the World's Most Ethical Companies® by Ethisphere for 2025, marking the fifth time overall, and third consecutive year, we have been recognized for this award.
Career Development
Our team members’ career development is key to our ability to attract, reward, and retain the best talent and a top priority at Wyndham. We actively seek to identify and develop talent throughout the organization and maintain a long-standing practice to support the growth and development of all our team members at every stage of their careers. We develop and curate various learning content in partnership with external providers to ensure that team members maintain the knowledge, skills and abilities they need to succeed. These experiences include on-the-job practice, coaching and counseling, effective performance appraisals and honest, timely feedback as well as a vast array of formal leadership programs. Wyndham
7
Table of Contents
University, our global learning system, provides our team members with access to a robust learning library that is flexible and accessible to help our team members learn, grow and thrive.
Team Engagement
We engage our team by fostering a supportive values-based culture and workplace. Our core values, grounded in caring, respect and fundamental human rights, infuse different perspectives that reflect our distinct customers, team members, and communities worldwide. While we continue to be recognized for our high level of engagement, we consistently encourage open communication, collaboration and mutual respect among all team members. We bolster our efforts to recruit, retain and promote top-tier talent– all to inspire our people to contribute to meaningful change in our company, our industry, our communities and the world.
Wyndham has eight global enterprise resource groups. These groups serve as supportive networks, driving talent and leadership development and empowering team members to support the business, the communities in which we operate and each other. Members of our executive committee and senior leadership serve as sponsors of the enterprise resource groups.
Our company was named to the Newsweek 2025 Global Most Loved Workplaces for the third consecutive year and named one of the 2025 Best Places to Work in New Jersey by New Jersey Business Magazine for the sixth consecutive year. These accolades build on our growing resume of workplace awards.
Throughout our value chain, from team members, franchisees, partners and suppliers to the community and our guests, together we strive to create an environment where everyone feels valued, inspired and highly engaged.
Wellness: Our “Be Well” Program
We are committed to offering programs that focus on the total well-being of all our team members. We also understand that nutrition, exercise, lifestyle management, physical, mental, and emotional wellness, financial health and the quality of the environment in which we work and live are also critical priorities for each of our team members. We believe that health and wellness promote both professional and personal productivity, achievement, and fulfillment, ultimately making us stronger across the organization. To encourage all our team members to lead healthier lifestyles while balancing family, work and other responsibilities, we offer several resources under our Be Well program, including both virtual and in-person wellness services, an onsite fitness facility and a Wyndham Relief Fund to help employees globally who are facing financial hardship.
HUMAN RIGHTS
Human rights are a basic right entitled to all. We remain committed to the well-being and safety of our team members, guests and all those that connect to our industry. In 2025, we continued to donate and encourage our team members and over 122 million enrolled Wyndham Rewards members to support humanitarian causes around the world.
We continue to partner with the American Hotel & Lodging Association (“AHLA”) and support the 5-Star Promise, a voluntary commitment to enhance policies, trainings, and resources for hotel employees and guests. We are dedicated to our team members’ safety and security, and we are proud to unite with our industry in support of a shared commitment to the incredible people who help make our guests’ travels memorable.
We, along with other leaders in our industry, remain committed to supporting our industry’s efforts to end human trafficking. We have worked to enhance our policies and mandated training for all our team members and franchisees to help them identify and report trafficking activities.
We are proud to work with a number of organizations including PACT, an organization whose mission is to protect every child’s human right to grow up free from the threat of sexual exploitation and trafficking, and Business Ending Slavery and Trafficking (BEST), which offers training and support to help stop human trafficking.
We also support Polaris, a non-profit organization that spearheads the effort to fight against human trafficking and operates the U.S. National Human Trafficking Hotline, to which Wyndham donates Wyndham Rewards points to provide victims with temporary safe housing. As part of our giving efforts, Wyndham Rewards and its members have donated over 225 million points since inception to various non-profit organizations, including organizations supporting humanitarian causes to redeem for travel and other related goods and services.
8
Table of Contents
ENVIRONMENTAL IMPACT
As the world’s largest hotel franchising company, we have the opportunity to make a meaningful impact on the world and we take that opportunity seriously. We are committed to operating our business in a way that is socially, ethically and environmentally responsible. We engage team members, owners and operators worldwide to embrace our core values, enabling them to think globally while taking action locally.
Our core values and the UN Sustainable Development Goals serve as a strategic guide for our approach to sustainability, which helps advance our company’s mission of making hotel travel possible for all. Our focus remains:
•Embarking on a journey to help our franchisees reduce their greenhouse gas (“GHG”) emissions in alignment with efforts to limit the rise in global temperatures.
•Promoting best practices around water conservation at these hotels; supporting the access to clean water through our community partnerships; and reducing single-use plastics to promote clean waterways and oceans.
•Sharing best practices around waste diversion to reduce waste sent to landfills and the environmental impact.
•Promoting and expanding best practices for biodiversity protection across Wyndham’s franchised hotels; engaging with suppliers to make a meaningful impact to protect forests and biodiversity.
Through the Wyndham Green Program, we support franchisees by helping them to reduce operating costs through efficiency measures, drive revenue from environmentally conscious travelers, and remain competitive in the market, while increasing brand loyalty. The Wyndham Green Program consists of a sustainability guide with best practices to address energy and water conservation, waste diversion, responsible purchasing, as well as guest, team member and franchisee education and engagement and other operational best practices, and an online environmental management tool that tracks, measures and reports environmental performance data to help franchisees improve energy efficiency, reduce GHG, emissions, conserve water, and reduce waste – thus minimizing environmental impact.
We remain committed to helping our franchisees reduce the energy, water and carbon footprints of their hotels as we work towards achieving our environmental targets. We continue to encourage and share opportunities to increase efficiencies and the usage of renewable energy where feasible with franchisees as we update our decarbonization plans with longer term targets in alignment with climate science.
We continually monitor and prioritize climate-related risks based on the financial and strategic impacts on our business. Enterprise risks, including those related to sustainability, climate and energy, are identified and assessed on an ongoing basis.
We review climate-related risks using the TCFD recommendations on an annual basis, which include both physical and transition risks. Some risks that we consider include:
•Acute physical risks (extreme weather events), including hurricanes and wildfires, are increasing in frequency and can impact travel demand in specific markets, supply chains and cause physical damage to a franchisee's assets.
•Chronic physical risks, such as rising sea levels, rising mean temperatures, changes in precipitation patterns (including droughts) and extreme variability in weather patterns, could impact travel demand generally, lead to supply chain interruptions, cause damage to franchisees’ physical assets, or adversely impact the accessibility or desirability of travel to certain locations.
•Current and emerging regulations, including those pertaining to climate-related risks and opportunities, energy efficiency, energy and GHG emissions reporting and green building codes and standards at the local, state, and national levels, which can pose a risk to our franchised properties, managed properties internationally, and suppliers.
Our business model is asset-light, which dramatically limits our capital needs and exposure to the effects of climate change while providing us the ability to mitigate and transfer some of the risks associated with physical risks to third parties. Many factors influence our reputation and the value of our hotel brands including the perception held by our guests, our franchisees, our other key stakeholders and the communities in which we do business. The environmental information that we provide is used to inform their purchasing decisions and can directly impact our revenue associated with both franchisee and management fees.
As more travelers are looking for environmentally friendly lodging options, it is critical to position Wyndham-branded hotels optimally to provide environmentally responsible options and to make it simpler for our guests to locate and book stays with these types of hotels. Our 2025 Corporate Responsibility Report, which is available on our corporate website and not
9
Table of Contents
incorporated by reference into this Annual Report, contains additional information regarding our commitment to social responsibility and sustainability.
OUR HISTORY
Our business was initially incorporated as Hospitality Franchise Systems, Inc. in 1990 to acquire the Howard Johnson brand and the franchise rights to the Ramada brand in the United States. It was an integral part of Wyndham Worldwide Corporation and its predecessor from 1997 to 2018. Wyndham Hotels became an independent, public company in May 2018 when it was spun-off from Wyndham Worldwide, now known as Travel + Leisure Co. (“Travel + Leisure”).
COMPETITION
We encounter competition among hotel franchisors and lodging operators. We believe franchisees make decisions based principally upon the perceived value and quality of the brand and the services offered. We further believe that the perceived value of a brand name is partially a function of the success of the existing hotels franchised under the brand.
The ability of an individual franchisee to compete may be affected by the location and quality of its property, the number of competitors in the vicinity, community reputation and other factors. A franchisee’s success may also be affected by general, regional and local economic conditions. The potential effect of these conditions on our performance is substantially reduced by virtue of the diverse locations of our affiliated hotels and by the scale of our base. Our system is dispersed among over 6,200 franchisees, which reduces our exposure to any one franchisee. No one franchisee accounts for more than 2% of our over 8,300 hotels.
10
Table of Contents
SEASONALITY
While the hotel industry is seasonal in nature, periods of higher revenues vary property-by-property and performance is dependent on location and guest base. Based on historical performance, revenues from franchise contracts are generally higher in the second and third quarters than in the first or fourth quarters due to increased leisure travel during the spring and summer months. Our cash from operating activities may not necessarily follow the same seasonality as our revenues and may vary due to timing of working capital requirements and other investment activities. The seasonality of our business may cause fluctuations in our quarterly operating results, earnings, profit margins and cash flows. As we expand into new markets and geographical locations, we may experience increased or different seasonality dynamics that create fluctuations in operating results different from the fluctuations we have experienced in the past.
INTELLECTUAL PROPERTY
Wyndham Hotels owns the trademarks and other intellectual property rights related to our hotel brands, including the “Wyndham” trademark. We actively use, directly or through our licensees, these trademarks and other intellectual property rights. We operate in a highly competitive industry in which the trademarks and other intellectual property rights related to our hotel brands are very important to the marketing and sales of our services. We believe that our hotel brand names have come to represent high standards of quality, caring, service and value to our franchisees and guests. We register the trademarks we own in the United States Patent and Trademark Office, as well as with other relevant authorities, where we deem appropriate, and otherwise seek to protect our trademarks and other intellectual property rights from unauthorized use as permitted by law.
GOVERNMENT REGULATION
Our business is subject to various foreign and U.S. federal and state laws and regulations. In particular, our franchisees are subject to the local laws and regulations in each country in which such hotels are operated, including employment laws and practices, privacy laws and tax laws, which may provide for tax rates that vary from those of the United States and which may provide that our foreign earnings are subject to withholding requirements or other restrictions, unexpected changes in regulatory requirements or monetary policy and other potentially adverse tax consequences. Our franchisees and other aspects of our business are also subject to various foreign and U.S. federal and state laws and regulations, including the Americans with Disabilities Act and similar legislation in certain jurisdictions outside of the United States.
The Federal Trade Commission, various states and other foreign jurisdictions regulate the offer and sale of franchises. The Federal Trade Commission requires us to furnish to prospective franchisees a franchise disclosure document containing prescribed information prior to execution of a binding franchise agreement or payment of money by the prospective franchisee. State regulations also require franchisors to make extensive disclosure to prospective franchisees, and a number of states also require registration of the franchise disclosure document prior to sale of any franchise within the state. Non-compliance with disclosure and registration laws can affect the timing of our ability to sell franchises in these jurisdictions. Additionally, laws in many states and foreign jurisdictions also govern the franchise relationship, such as imposing limits on a franchisor’s ability to terminate franchise agreements or to withhold consent to the renewal or transfer of these agreements. Failure to comply with these laws and regulations has the potential to result in fines, injunctive relief, and/or payment of damages or restitution to individual franchisees or regulatory bodies, or negative publicity impairing our ability to sell franchises.
INFORMATION ABOUT OUR EXECUTIVE OFFICERS
Geoffrey A. Ballotti, 64, serves as our President and Chief Executive Officer and member of our Board. From March 2014 to May 2018, Mr. Ballotti served as President and Chief Executive Officer of Wyndham Hotel Group. From March 2008 to March 2014, Mr. Ballotti served as Chief Executive Officer of Wyndham Destination Network. From October 2003 to March 2008, Mr. Ballotti was President of the North America Division of Starwood Hotels and Resorts Worldwide. From 1989 to 2003, Mr. Ballotti held leadership positions of increasing responsibility at Starwood Hotels and Resorts Worldwide, including President of Starwood North America, Executive Vice President, Operations, Senior Vice President, Southern Europe and Managing Director, Ciga Spa, Italy. Prior to joining Starwood Hotels and Resorts Worldwide, Mr. Ballotti was a Banking Officer in the Commercial Real Estate Group at the Bank of New England.
Kurt Albert, 39, serves as our Interim Chief Financial Officer. From May 2024 to November 2025, Mr. Albert served as Senior Vice President, Treasurer and Head of Financial Partnerships & Planning. From February 2023 to May 2024, Mr. Albert served as the Company’s Senior Vice President & Treasurer. From June 2020 to February 2023, Mr. Albert served as
11
Table of Contents
the Company’s Senior Vice President, FP&A. From October 2018 to June 2020 Mr. Albert held leadership positions of increasing responsibility in the Company’s Financial Planning & Analysis group. From July 2009 to December 2017, Mr. Albert served in positions of increasing responsibility for Wyndham Hotel Group.
Paul F. Cash, 56, serves as our General Counsel, Chief Compliance Officer and Corporate Secretary. From October 2017 to May 2018, Mr. Cash served as Executive Vice President and General Counsel of Wyndham Hotel Group. From April 2005 to September 2017, Mr. Cash served as Executive Vice President and General Counsel and in legal executive positions with increasing leadership responsibility for Wyndham Destination Network. From January 2003 to April 2005, Mr. Cash was a partner in the Mergers and Acquisitions, International and Entertainment and New Media practice groups of Alston & Bird LLP and from February 1997 to December 2002 he was an associate at Alston & Bird LLP. From August 1995 until February 1997, Mr. Cash was an associate at the law firm Pünder, Volhard, Weber & Axster in Frankfurt, Germany.
Monica Melancon, 58, serves as our Chief Human Resource Officer. From March 2020 to February 2021, Ms. Melancon served as Group Vice President, Human Resources – Managed. Ms. Melancon joined Wyndham Hotels & Resorts, Inc. in May 2018 and continued in her role as Vice President, Employee Relations following the Company’s acquisition of La Quinta in May 2018 where she had served in the same role from August 2016 to May 2018. Ms. Melancon previously served as Regional Employee Relations Manager of La Quinta from March 2015 to July 2016. Prior to joining La Quinta, Ms. Melancon served 15 years in various human resource positions of increasing responsibility at Target Corporation.
Nicola Rossi, 59, serves as our Chief Accounting Officer. From July 2006 to May 2018, Mr. Rossi served as Senior Vice President and Chief Accounting Officer for Wyndham Worldwide. Mr. Rossi was Vice President and Controller of Cendant’s Hotel Group from June 2004 to July 2006. From April 2002 to June 2004, Mr. Rossi served as Vice President, Corporate Finance for Cendant. From April 2000 to April 2002, Mr. Rossi was Corporate Controller and from June 1999 to March 2000 was Assistant Corporate Controller of Jacuzzi Brands, Inc. Mr. Rossi began his career as an independent auditor at Deloitte & Touche LLP.
Scott R. Strickland, 55, serves as our Chief Commercial Officer. From November 2023 to April 2024, Mr. Strickland served as our Chief Information and Distribution Officer. From May 2018 through November 2023, Mr. Strickland served as Chief Information Officer of the Company. From March 2017 to May 2018, Mr. Strickland served as Chief Information Officer of Wyndham Hotel Group. From November 2011 to March 2017, Mr. Strickland served as Chief Information Officer for Denon Marantz Electronics. From February 2005 to June 2010, Mr. Strickland served as Chief Information Officer for Black & Decker HHI. From 1999 to 2005, Mr. Strickland served as an Associate Partner with PricewaterhouseCoopers.