Systemwide second-quarter revenue per available room at Wyndham Hotels & Resorts properties declined 3 percent year over year, the company announced.
CEO Geoff Ballotti said on a Thursday earnings call that "higher-for-longer interest rates, persistent inflation and uncertainty around immigration and trade have created an environment of ongoing economic volatility for economy and midscale guests who remain especially sensitive to these dynamics."
U.S. RevPAR declined 4 percent, a figure that Ballotti said was a 2.3 percent decline on a normalized basis, excluding the effect of the Easter shift into the second quarter this year and the April 2024 total solar eclipse in the United States. That figure is up from the March year over year RevPAR decline of 2.9 percent, he said.
Wyndham in an investor presentation noted some bright spots among the infrastructure-related spending that makes up the substantial majority of its business travel clientele. According to the presentation, Q2 normalized—absent Easter and the eclipse—RevPAR in Illinois, Michigan, Minnesota, Pennsylvania, Ohio and Wisconsin each increased from 2.4 percent to 5.6 percent year over year, and it increased in 11.7 percent and 10.7 percent in Oklahoma and Missouri, respectively.
Ballotti said that increase reflects an increase in infrastructure spending in Q2 after the Trump administration temporarily halted some disbursements in Q1, although the level is not yet back to where it was in the fourth quarter of 2024.
"The administration's focus is on getting the balance of those allocations out and spent. And the priority now appears to be certainly faster highway projects starts, faster bridge and transportation starts," Ballotti said. "And then on the flip side of that, we continue to see very strong public and private data center construction starts, energy construction starts, semiconductor investment starts. And that's giving our teams a lot to go after."
Infrastructure-related travel bookings made up 22 percent of Wyndham's 2024 gross room revenue, according to a presentation for investors, with "logistics and other" adding another 6 percent and corporate transient accounting for 2 percent.
Wyndham Q2 Metrics
Wyndham's second-quarter systemwide RevPAR dropped to $47.55. U.S. RevPAR was $53.32.
Second-quarter net revenue increased 8 percent year over year to $316 million. The increase was driven by increased marketing fees from franchisees, higher credit card and partnership fees and higher franchisee fees, offset some by RevPAR. Net income was $87 million, compared with $86 million one yar prior.
Wyndham held its projection for full-year 2025 RevPAR for to range from a 2 percent decline from 2024 levels to a 1 percent increase, the same projection it issued last quarter.
Wyndham at the end of the second quarter had about 846,700 rooms in its system globally, up nearly 4 percent year over year, with total U.S. rooms up nearly 1 percent to 499,400.
Wyndham's development pipeline at the end of Q2 included about 2,150 hotels and 255,000 rooms, the latter figure up 5 percent year over year.
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