US RevPAR grew 2% year-over-year, system-wide rooms grew 4% year-over-year, excluding insolvent Revo Hospitality Group rooms and development pipeline grew 4% year-over-year, excluding Revo, to a record of approximately 261,000 rooms. Carrying a FeePAR premium of approximately 30% to existing domestic and international systems.

• Net income increased 17% year-over-year to $102 million; adjusted net income increased 8% year-over-year to $111 million, or flat on a comparable basis.
• Diluted EPS grew 20% to $1.36 and adjusted diluted EPS grew 11% year-over-year to $1.48, or 3% higher on a comparable basis.
• Adjusted EBITDA increased 9% year-over-year to $212 million, or 3% higher on a comparable basis.
• Net cash provided by operating activities increased 30% to $91 million and adjusted free cash flow increased 19% to $105 million.
• Returned $86 million to shareholders through $54 million of share repurchases and quarterly cash dividends of $0.43 per share.

"Our solid second-quarter results reflect the continued strength of Wyndham's asset-light, fee-based business, bolstered by system expansion, higher ancillary revenues and accelerating U.S. RevPAR growth that exceeded our expectations — delivering comparable-basis adjusted EBITDA growth of 3%," said Geoff Ballotti, President and Chief Executive Officer.

"Record second quarter openings focused on higher FeePAR hotels in the midscale and above segments, demonstrate franchisees' continued confidence in our brands and Wyndham's compelling 'Owner First' value proposition. As domestic RevPAR trends, net rooms growth, global pipeline development and ancillary revenue streams continue to strengthen, we remain confident in our ability to deliver sustainable long-term growth and create meaningful value for our shareholders, franchisees, and guests."

System Size and Development

During the preparation of its year-end 2025 financial statements, the Company learned that Revo, a large European franchisee, had filed for insolvency proceedings under self-administration for most of its operating entities. The Company removed all Revo-related revenue recognition from its 2026 outlook and reported results given the uncertainty on expected outcomes and collectability.

In addition, the Company's 2026 net room growth outlook also excluded any impact associated with Revo's ongoing insolvency and, as such, the Company's global net room growth metrics are also presented excluding Revo-related rooms.

The Company's global system, excluding Revo, grew 4%.  The Company's U.S. system grew 10 basis points sequentially and was flat year-over-year.  International growth of 10% year-over-year, excluding Revo, included 12% direct-franchised growth in the Company's Asia Pacific region and 11% growth in the Company's higher RevPAR EMEA and Latin America regions. 

As of June 30, 2026, the Company's global development pipeline increased 4% vs. prior-year, excluding Revo, to a record-high of approximately 261,000 rooms and over 2,200 hotels.  Key highlights of the Company's pipeline include:

• 2% growth in the U.S. and 5% growth internationally, excluding Revo
• Approximately 69% is in the midscale and above segments
• Approximately 17% is in the extended stay segment
• Approximately 42% is in the U.S.
• Approximately 78% is new construction and approximately 35% of these projects have broken ground; rooms under construction grew 4% year-over-year
• Approximately 30% FeePAR premium compared to existing domestic and international systems

RevPAR

Second quarter global RevPAR decreased 1% in constant currency compared to 2025, reflecting 2% growth in the U.S. and a 6% decline internationally. 

In the U.S., RevPAR improved 2% both year-over-year and sequentially, reflecting improved occupancy and ADR levels. Overall, U.S. RevPAR results were primarily driven by continued strength across the Midwest and both sequential and year-over-year growth in Texas, Florida and California.

Internationally, constant currency growth of 2% in Canada reflected sustained pricing power, while growth of 5% in Southeast Asia and the Pacific Rim primarily reflected improved demand. Growth in those regions was more than offset in Latin America, which declined 7% year-over-year primarily due to lower U.S. cross-border demand in Mexico, EMEA, which declined 6% year-over-year largely driven by the geopolitical conflict in the Middle East as well as softness in the performance of Revo hotels in its insolvency, and China, which declined by 5% year-over-year primarily due to continued deflationary pricing pressure.

Operating Results

The comparability of the Company's second quarter results is impacted by marketing fund variability.  The Company's reported results and comparable basis results (adjusted to neutralize these impacts) are presented below to enhance transparency and provide a better understanding of the results of the Company's ongoing operations.

• Net revenues declined 6% to $375 million compared to $397 million in the second quarter of 2025, reflecting the absence of pass-through revenues due to the Company's global franchisee conference in May 2025.  In addition, the decline reflected lower other franchise fees and the deferral of fees from Revo, which was partially offset by higher ancillary revenues, EBITDA-neutral revenues from the two Revo hotels the Company took possession of and global net rooms growth, excluding Revo, of 4%.
• Net income increased 17% to $102 million compared to $87 million in the second quarter of 2025, primarily reflecting higher adjusted EBITDA and lower restructuring and other-related costs, partially offset by increased interest expense.  Adjusted net income grew 8% to $111 million compared to $103 million in the second quarter of 2025.
• Adjusted EBITDA increased 9% to $212 million compared to $195 million in the second quarter of 2025. This increase included a $11 million favorable impact from marketing fund variability, excluding which adjusted EBITDA increased 3% on a comparable basis, primarily reflecting lower general and administrative expenses driven largely by insurance recoveries, the timing of variable costs and higher ancillary revenues, partially offset by a decline in other franchise fees and the deferral of fees from Revo.
• Diluted EPS grew 20% to $1.36 compared to $1.13 in the second quarter of 2025, which reflects higher net income and the benefit of a lower share count due to share repurchase activity.
• Adjusted diluted EPS increased 11% to $1.48 compared to $1.33 in the second quarter of 2025.  This increase included a favorable impact of $0.11 per share related to marketing fund variability (after estimated taxes).  On a comparable basis, adjusted diluted EPS increased approximately 3% year-over-year primarily reflecting a comparable basis increase in adjusted EBITDA and the benefit of share repurchase activity, partially offset by increased interest expense.

Balance Sheet and Liquidity

The Company generated $91 million of net cash provided by operating activities and $105 million of free cash flow in the second quarter 2026. The Company ended the quarter with a cash balance of $69 million and $1.0 billion in total liquidity.

The Company's net debt leverage ratio at June 30, 2026 was 3.5 times, at the midpoint of the Company's 3-to-4 times stated target range and in-line with expectations.

Share Repurchases and Dividends

During the second quarter, the Company repurchased approximately 657,000 shares of its common stock for $54 million. 

The Company paid common stock dividends of $32 million, or $0.43 per share, during the second quarter 2026.

Outlook

The Company is updating its full-year outlook as follows:

The Company expects marketing fund revenues to roughly equal expenses during full-year 2026 though seasonality of spend will affect the quarterly comparisons throughout the year.

The Company is providing certain financial metrics only on a non-GAAP basis because, without unreasonable efforts, it is unable to predict with reasonable certainty the occurrence or amount of all of the adjustments or other potential adjustments that may arise in the future during the forward-looking period, which can be dependent on future events that may not be reliably predicted.  Based on past reported results, where one or more of these items have been applicable, such excluded items could be material, individually or in the aggregate, to the reported results.