Wyndham Hotels & Resorts (WH) 13 Feb 192018 Q4 Earnings call transcript

Good day, and welcome to the Wyndham Hotels & Resorts Fourth Quarter and Full-Year 2018 Earnings Conference Call. At this time, all participants have been placed in a listen-only mode, and the floor will be open for your questions following the presentation. [Operator Instructions] I would now like to turn the call over to Matt Capuzzi, Vice President of Investor Relations. Please go ahead.

Good morning. us. joining for you Thank With me Wyshner, CEO; David Ballotti, are CFO. Geoff our our and today

Before the I These detail discussed get our expressed today and to we or started, XX factors in actual will SEC. our you risk filings risk materially other contain our remarks results that implied. to Form forward-looking from may These in statements. that statements differ subject want are with cause to those remind are factors

to our a what the measures will the our and referring January Quinta release, of in metrics like non-GAAP X of adjusted We measures With looked have of www.investor.wyndhamhotels.com. you La GAAP our I to be will available metrics would Investor earnings number and measures. we Corresponding site with had we at turn in our Consistent reflect and if non-GAAP on XXXX. also Web on call which integration over is of our share reconciliation with October, a Relations that Geoff. completed are the results to acquisition GAAP provided information spin-off further that,

independent solid off adjusted Thanks, and today. company capped for as adjusted thanks diluted our and EBITDA, full-year delivering public an first joining Matt. We by growth in year RevPAR, us everyone morning, Good rooms, EPS.

support, La revenue operations history by were fourth efforts. mid-scale La our franchise construction XX% the development XX-year the the seven to who mid-scale Research, basis. XX believes to And were quarter, drive new for growth In acquisition, new annualized the its growth. the opened on RevPAR X.X% currency, Quinta X% We Retention could prouder in very members tremendous growth, XX teams, EBITDA Quinta in been of Quinta Quinta La Just who things organic up remained size, XXX,XXX our pipeline continue and as is constant through importantly, with amazing a and marketing, a XXXX our system growing growth, our efforts dispositions. all grew quarter sales, team proceeding amount our RevPAR rooms. the remain to in development on progressing have integration organic our business. XX% increased been We adjusted we results as to well. both earnings not Quinta's growth, and million, spin, The deliver RevPAR growing strong transaction XXXX very $XXX our record XXXX, be Quinta's fourth post-acquisition room brand management months of franchise pipeline the grew to the and has we prototypes. with for La in and signed where yet we seamlessly focused Moreover, from in excluding average finished XXX acquisitions planned. and La and upper quarter, our of moved and QX, XX% franchise running XX Del La another points ran bringing Because our brand that basis of Sol Smith smoothly of have development in index agreements, over Travel team an La Wyndham. new monthly Quinta has to time post-acquisition since help XXXX, over our sales something seen first the these will and XXXX. segment industry RevPAR we and of solid and kept by it's in transitioned in impressed accomplished

hotel's and for indices. operating RevPar of and lower third-party sourcing progress, manage insurance and La that both Quinta solid costs as lower and payroll margins portfolio we're properties CorePoint the benefit we travel improve expenses, making agency lower to commissions we For to expenses, work Lodging, their

to from Revpar grew our run estimated $XX $XX La raising range $XX of Quinta million Most for quarter, synergies million to CorePoint X%. rate During full million we're portfolio the third the importantly, million. to $XX

We technology of system state-of-the-art migration legacy to La that the continue off the of cloud-based virtually central will our second-half to Quinta expect by two also of the well This all year. loyalty last on as milestones, the in substantially integration distribution our major to systems the of first-half of will XXXX. us allow completed be this their merging synergies as deliver program of

these namely we objectives world's by growth, company four driving deeper related XXXX, This and remain most share, and goals David well quality, engagement. to property the like our level year, outlook brand dive we our each As the continuing will for we'd of market objectives. then the maximize our XXXX. our morning, and hotel quarter as numbers to as return review begin as on strategic to franchise into focused to accomplishments grow for and employee on provide concentrating some of for largest international the shareholders, system

one number size our growth. to Our quality room priority be increasing continues system with

to net from the importantly, We States. opened United XXXX, have growth straight with XX, now net more than fourth room the system increased X% organically total XXXX. increase, to X% States, X,XXX a XXXX, QX December XX% from United of XXXX we over and in and added XX% three sequentially which an domestic As represents in acquisitions rooms XXX,XXX excluding of our quarter dispositions. QX. from had XXXX, XX,XXX seen the And rooms, organically grown approximately quarters rooms our we compared In and of increase which

development new was franchise construction In system five our up taking master years. region, reflects which we growth highest long-term license team. of cleaning in progress the control sales signings to meaningful North our the on direct on back our This work and agreement rate franchising the Inn focus Internationally, our the prior below our master by Days by for Southeast to and increased positive This and brand deliver we QX XX% China. while Asia licensee. growth America in direct With the front an average strong Latin in global as grew had franchise region, international by States, our franchise America International organically, consistent domestic net double-digit in quarters count, terminations room we improved the quality, due and with path retention allowed level XXXX, by full-year addition, X% progressed. in us direct X% terminations United growth great Super China franchise XX% increase were growth on China significantly room our continued remain room XXXX X our of to net overall and year XX% and of the lower in four system.

they've grew room new including markets leveraged driving the We and key where XXXX, brands Microtel we our world China, than franchise to Wyndham China to our been and the continents franchise introduced sales where master room nine of been by XXXX, sold traditional royalty during existing first introducing that XX% opened XX development to a teams One licensee by is has over before. countries our brands to around higher market. by from opening In never in Wyndham at to rate system rates Wyndham. direct and in to over and our growth our XX,XXX rooms launch Wingate XX,XXX we

of significant our is and Another brands. continue prototypes mid-scale many ours new objective to experience for elevating economy including of the

of on surprise a moved experience up innovate has working focuses and years. things that our Rankings place overall brand, the Economy cost while the over brand sleep refresh advisory X's from standard experience of Wyndham economy third a in Get U.S. effective favorable on the the thoughtful For to experience brand three and share Power our from know operating council program driving franchisees we sixth in new have requiring J.D. largest our are and quality to days market margin of and place improvements. which that guest by the that past could standards impact delight the refreshed a with little Satisfaction franchise meaningful Super invest the We initiate a our to very with brand, in economy

Microtel A is high Our XX% brands for mid-scale in standards both number J.D. index by ranked Power new like ranked refreshed high ahead one focused mid-scale Wyndham the Wingate RevPAR of with focus what J.D. on one in value and we're on brand Wyndham number Power's outperformed their and premiums XXX% competitors developing in brand all brands. respectively. and and quality, years is economy design disciplined our prototypes by XXXX of economy

property continues be sales, Our distribution, market technology. third loyalty marketing, and to strategic contribution share level best-in-class our growing through and revenue system-wide initiative

centers owners. to our performance which have handled to domestically, the signature growth of important in driven increase sites was our have every speed, XXX the XXXX. call our all We globally, remained both is our represents future quarter. invest strong a into franchisees Voice also experience and global basis all XX% desk our of an mobile our goal our nights and in an effectiveness growing Total nights delivered channel, brand contact room program points not continue and franchise and it's on contribution but reached and Overall calls services still distribution or incoming us record responsiveness managed XX% reservation by a turn fastest behalf digital of reservation. to in only front of room XX% direct of over channel for contribution by nearly growing

And quarter, X,XXX experienced increase fourth in over the North average along average a hotels the in daily increase During XX.X% Wyndham grew we hotels enrollments. average with Rewards transitioning on to participating XX% rate in this America. program

begin out in Canada, success later to in it States program month. this and the Europe tremendous here Given this of United will the we rolling

program loyalty continue X revenue. over our members growth added delivering and direct to in million rewards new double-digit brands XXXX the Our strengthen by Wyndham of power in

ago history hotel fourth to and for winning of we us last XXX build XXX and In domestic winning only expansion of foreign three another brands, that club we rewards XX USA number program recently For by on short share program program means industry Wyndham more continue points an four WalletHub the Rewards Since first than time in partners of makes enhance And what its vital the build has loyalty resorts the loyalty our award destination three years intend the upon And and point increase vacation competitive include landscape it's awards opportunities their our readers upon dramatically Rewards redemption that's XX% Quinta over best check-ins Today of relaunch has most program best occupancy. ranking do. La of of years, in history. the to garnered rapid its list exactly see over at than soon and the absolutely hotels. drove Rewards as consecutive loyalty nothing Wyndham combined year. increasingly to for award basis This one Wyndham voted and thousands Foundation. to tens asked the hotel evolved prouder the with global programs when

industry. continued minutes engage our our I'd the culture to Finally, fostering retain and attract, talking a a and commitment like to values-driven about brightest best spend few to in

caring work nurture inclusiveness, proposition. for accountability, from team communities And integrity, team globe and in fun which in to values for military veterans industry with our thank preferred go example, our our ECPAT shareholder culture, overall X core drive a a enhance States, United Polaris veterans end families our also of Super broader provide underpin thank day innovation, how their and personnel very growth abound small our service. examples parking and we only important believe their to values human a Our to we not across small and about space serve. work our but every causes our trafficking the you combat our commitment at each very their our in value devotion charitable and as the members for to our inform you members the and have impacts We

of We Our brands, from over Centers military And noble Medical of members VA X,XXX resulted receiving lastly, Foundation at members in has to donation House very nights this and helping XX La cause. every discounts of each and we room offer one on care miss for patients support as Fisher Quinta to Hotels. proudly the beat terms active public on team to in of at room families didn't the loyalty our largest and year signature Wyndham history. acquisition operational rates an bringing me We XXXX a financial retired delivering our the look a culture families on and we their completed in We and company service life. became and our military of results. independent transformative back count strong to in

is team's for the enthusiasm contagious. and Our future it's palpable

beyond. to that, call XXXX to And over We expect in and and grow with to turn David. now business our the I'll prosper

well good Thanks, Today sheet, strong quarter will results I'll and as our our outlook. focused as our discuss and capital be My everyone. Geoff, morning comments primarily XXXX and adjusted fourth balance our metrics. full-year on allocation

how numbers. adjusted of a on are and go in business how including our to reconciliations can believe will You We adjusted look forward our GAAP our amounts in providing find earnings complete performed figures we're and that release further it adjusted results understanding helpful the basis.

$XXX grew $XXX XXXX excluding revenues incremental revenues XX% up fourth License in of or million, line XX% fee acquisitions EBITDA currency was Quinta. top fees in inclusion were destinations dollars during primarily fourth and and the due to quarter a Our quarter million La to million increased franchise $XX million Wyndham and including divestitures. $XX increased XX% Royalty constant XX% OUR the $XX and Adjusted compared million from largely of in La of XXXX. Quinta. the the fourth to from quarter

points the X of almost by growth was organic the mid-scale XXXX. in and X from quarter lapping from dampened Quinta demand energy quarter global the hurricane and throughout points quarter RevPAR and related benefit X brands, growth. that economy organic U.S. fourth and for non-energy Our in markets. X in We country the up in nearly RevPAR quarter good Quinta up excluding RevPAR constant XX% reflecting At quarter XX% La we X points including effects the the same U.S. time coast, grew of and the fourth up to due currency saw grew in related of fourth of and points RevPAR our up hurricane the on had growth. related with the internationally in points middle in La and the

fourth was XXXX quarters the the that them. in headwind X.X% is a and during affects quarter. we RevPAR in second a quarter, X% we strong consistent this range course fourth currency out and divestitures, which and over in hurricane in Canada. You'll XXXX as our the the we When quarter, in the that growth and recall remarkably first-half from of back our our in anniversaried The geographies first RevPAR impacts fourth third benefit excluding increased hurricane effects acquisitions and domestic of reflecting quarter, that X.X% the in X.X% organic a were which EMEA hurricane the all quarter and became of the constant is in U.S. of estimate takeaway growth third International including was the X.X% RevPAR in performance year.

our was year-over-year Geoff impact noted, acquisitions X% of and XX% excluding As system size the up divestitures. and

since the during also growth has of XXXX. in in increase Trademark seen directly roughly history saw construction hotels collection XXXX, Importantly, making one industry. our scale to we franchised we in new a XX% which openings grown launched good We've of in brands it lodging it brand XXX the fastest the

pipeline nearly Our pipeline third construction our Sequentially, increased international. new and are rooms at year-end are to development to global XX% quarter, the XX% increased XXX,XXX of compared which X%.

May. divestitures, when pipeline global pipeline Excluding XX,XXX In approximately Quinta our in and La our is X% is XXXX up rooms acquisitions brand more is alone than acquired the which year-over-year. X% the we

Quinta. from of For the total including full-year $X.X XX% our million La grew revenues $XXX billion revenues incremental to

and franchise acquisitions increased higher Wyndham XX and from XX% compared other revenues fees a during franchise due and XXXX. royalty from million fees license million million contribution fees. to XXXX Quinta. License primarily to $XX divestitures including were primarily Destinations or Royalty our Excluding $XX La point $XXX increased X%

Our EBITDA $XXX was increase a XXXX XX%. adjusted million of year-over-year

EBITDA adjusted currency our adjusted our into and acquisitions growth in our projections. higher end EBITDA. And divestitures, X% October the growth was full-year and Excluding revenue our XXXX XX% of turned effects, we FX towards

La RevPAR full-year, points global currency and Our in grew constant points the organic X.X of growth. including in X% Quinta X from

organic Quinta and points X XX%, U.S. points Our RevPAR of growth. from X reflecting grew La

our RevPAR from that We are growing our Services continues factors general and Signature brands, By program organic, increased in for in cross-branding which fourth growth to Our strength full-year, our Canada of quarter addition trends and RevPAR economy SCR the And international RevPAR growth outpace in Latin EMEA, and and the currency also reflect performance to Wyndham we performance. reflecting our conditions believe boosting of full-year and macro our our strong indicate constant mid-scale benefits Data franchisees addition Reservation strong positive in America. market the both X% our was in think supply dynamic, of all segments. this us. the specific demand to and core U.S.

we amount. are La from Quinta timing acquisition, the the mentioned, both of we on to Geoff expected in terms As target achieve synergies and

at synergies of As run virtually projected the We $X which all a of the cost realized during $XX we've synergies fourth of reminder, synergies are quarter, annual our rate savings. million million. put

all platforms technology program. complete of we work is Quinta our during As goal our loyalty onto the integration to add substantially and first-half our XXXX of La planned, as

rate be close in synergies $XX well-positioned to sometime third of XXXX. full year As to the to a million quarter we're run of a million result, $XX

to approximately to of X.X%. average temporary balance $XXX with We balance debt our sheet, Lodging Quinta. $X.X interest acquisition $XXX million at to CorePoint in billion paid which earmarked our cash had Turning the be XXXX conjunction of at authorities remained tax weighted XX, cash and La of a is our rate that of in carrying December includes million

Excluding this EBITDA of times to X.X further temporary leverage net cash, the adjusted was lower our half our target. XXXX in our four net leverage times three

of capital of flow only cash a and stock share million insurance free million following in Nonetheless, $XXX $XX La months repurchases $XXX specific able tied related to through cash a million million dividends. namely expenditures, were seven $XX we in expenses, million spin-off, return of $XXX payment separation common transaction and to million XXXX the tax our items shareholders outflow acquisition. reimbursed the $XX Quinta and because is hurricane Our related a of a to

will over our cash cash as net temporary expect business. a Going one-time of our income cash business the flow is we our time inherently approximate free our payout forward, excluding adjusted

business of framework portion we modest advances opportunities. for growing We and will allocation and remain flow deploy focused our development our is unchanged. capital a free on similar cash organically Our

We will pay keep free to using dividends. also cash

that acquisitions accretive spin both we've billion. $XX total bolt million quarter. office was after the largely amount strategic acquisition repurchased and are and we X% cash months Beyond are to stock that or the repurchased outstanding available. opportunities X.X seven that common stock to quarter, of going will shares cost more third of flow XX% allocate purchases a than in on to $XXX the our fourth each we shares a with in X.X of million at the In for the which shares on In share of million of depending off

Our recently quarterly XXXX. dividend from the Directors Board our the it's that share $X.XX first of increase quarter XX% of with beginning authorized a to in declared $X.XX cash in to be dividend per expected

turn for The $XXX in details earnings billion, me our we to XXXX. adjusted let million revenue to Now of billion full-year which $X.XX outlook release income expect are of net of $XXX based our share adjusted diluted to to EBITDA and million EPS an million of of $X.XX which future excludes $X.XX on of million adjusted XX.X million adjusted repurchases. share to $XXX $XXX diluted count $X.XX

We X of walk to room's down is X% currency. of X% on in growth RevPAR also expect table organic of P&L adjusted our X% X% growth release. and constant an There to earnings

this point point As whole. points a headwind the last by year quarter you a have we first close year's growth the RevPAR to XXXX RevPAR first-half and for tough X.X in a almost think quarter year as in and X that hurricanes remember as helped our late about in for of comps RevPAR outlook the result second one a please U.S. the

with delivering. in largely back our X% still based projecting synergies XXXX. we've XXXX rooms the X% that targets insurance we figure out in driven build as Quinta we the our $XXX $XXX Rico and to hotel for Puerto synergized normalized we for EBITDA in adjust million. benefited term growth projection million we're be levels EBITDA we earning process From from adjusted previously in adjust owned our the in that La in EBITDA the of there longer From which And out. planned laid fact growth our million we fully RevPAR that as release, $XXX on laid to of Importantly, XXXX, won't recoveries and are to consistent adjusted by

forecast, to work EBITDA be release quarter, From Separately items we do our EBITDA in consistent The CapEx which of the million In expenditures would stock down published levels to $XX to expenses normalized to in and adjusted reallocations what expenses. and in that all total have capital to first million million to $XX quarter, the adjusted at with in XXXX La we year our our and our XXXX, substantial for negatively So, further we consider projecting while timing expect that both in other EBITDA repurchases of In growth forma last. following fourth to the with in on $XXX la and X% the Quinta we strong the of this needed the marketing Quinta, we XXXX. provided our don't XXXX the management that The because back projections. Quinta integration about cost of million quarter, and full we hotel about the to technology. of We're perspective XXX% XX% we capital of timing two in Quinta and roughly segment remains and expect $XX the of incremental XXXX our growth to associated track quarter expenditures we a and our results XX% the toward last integration deliver more remainder that quarter. anticipate the estimate more of The million the earlier EBITDA our our than Puerto with modest. approximately amount the the XXXX temporary. this XX% should XX% half in we were EBITDA the the results in compared majority will conclusion, primarily the is to factor our to to quarter information are in to of year. that back full-year of adjusted to perspective, be million synergies from than will beyond back opportunities front from corporate reason acquisition. XXXX in us we shareholder and call $XX $XX make $XX framework us second is our in million walk in the we that turn from capital about hotel will third over remain more reported I seasonality and we rate to other is we Rico the projections first had typical to way like our reflects maintain enthusiastic are our unallocated a From hotel in highly of would move acquisition franchising share drive versus earnings year planned. further we grow a XX% highlight plus come our generate The Geoff. while against fourth a to into have spending will With disciplined buying to back value. upper our EPS that, EBITDA XX% figure adjusted come expect of are impacting to consistent La the owned XX% particular, La synergies full-year compared We pro from allocation and corporate XXXX, adjusted

David, difficulty]. [technical thank Thanks, you and

fourth and sustained the our strong quarter year said our progress David results against were As objectives. strategic and for the demonstrates

take the recent pleased I opportunities ahead our make our be with the about our results and Our Keith, business us. our our of David, to all excited would us questions. And capitalize ability of culture very to strength on and future that to continue brand model, and

Stephen [Operator you. Sachs. Instructions] ahead. Grambling take question Thank Please We'll first with go from Goldman today's

guess, good are about free net about income cash some the Hey, in you integration of through that thanks morning, the What you have think -- over in can maybe spend flow. flow, taking XXXX? any and you flowing you any can questions. talk quantify, Is outstanding the takes XXX% outstanding year should at chance any you tax payments puts free on I of first I and there the coming? that relationship time for guess cash a to maybe

Sure.

of big we $XXX the the outflow, I think clearly have the be is will cash that it. payment the item temporary million part that cash of

As to we tail, in items, a come I bit little will range have tax of transaction and in about a it's other quarter to describe us, tax are next separation-related this $XX to a we fairly rebate expecting early think a small or related million payment costs. but the

two going to think $XX $XX should million, relatively each $XX And So, million, we're look in have advances other. maybe development the $XX range. offset with to those I million, million even

You advances may below year. longer term average have our last our noted that development were

I opportunities to think bit we cash are the had that year, larger make I us. various attractive this there little and may a think them into some a few issues timing projects relatively for deploy

I think million over normalize sort that $XX $XX million, we the we of to see to So, that $XX average expect may that million period two-year over time.

in be XXXX. at I So, generally our above cash net income to or modestly speaking, adjusted would look for flow our free

helpful. I unit be or there building a bunch there puts guess takes gears, the and net you specifically, when La kind of U.S, growth maybe the exclude how net versus up, excluding Quinta ahead? what thinking in attrition? we of La to of we And include be about the growth changing And growth between then Super was should adds in of of the gross some kind Quinta? expect are blocks in Should unit the year kind

Yes. we've we've We as we've blocks to think we've that. focused been domestically targeting we've been always retention our in to improvement moving down in said, and X%. quality, domestically moving quarters building system X% three which we've well the that American and year, the for years towards but Well, this always we've last flat, been our on seen as as three been North had been attrition, our long-term from now rate, XX% consecutive to Thanks. Stephen, growth achieved on X% XXXX, I X% has to

back the Thanks. luck jump Good in year. I'll queue. this

Thanks, Stephen.

David Katz Jefferies. ahead. question next Please from with take We'll our go

morning, Good everyone. Hi.

David. morning, Good

XXXX, to at might guidance follow-up that's wanted any is or answer and question to of X%. giving think something in and term? longer is formal reasonably growth that that just the comment, without that something be very is I you last achievable something that Is which domestic X% it unit long-term

term. looking certain work We economy longer still have -- one to to think of the look XXXX. at economy some in and our continuing segment a think system business brands, We're do we size the from to standpoint -- our zero We but consecutive very with as to now feel to and is domestically, Quinta were and positive quarters had moving to we nicely we've to net us growth performing America, La that that the which for three one zero two, both extent excluding room from of achievable. of one

if bit, into accelerate And population? could in coming question La Is delve asked from? And or context a the is out individual there, La Quinta be pipeline that out that is when Quinta we institutional could franchisee the made consider travels it to there any over that I Quinta grade what would up to that always just kind focus involved in the check our where right. money go? of All time? of folks, that potential And we we talk institutional the where's a La

no was institutional, that It's XX that we it institutional. had but look at more towards or there's in the it could had we more Quinta our expand, La the opens quarter go than go openings as could teams the a sales both, we throughout and mix XXXX, it the more institutional. When individual of not in XX fourth reason

well the construction other brand of some That's particularly La that view a the as for we right. brands your as on Quinta opportunity site. and significant point, To our for new

consciousness in Okay. that's we've up one upfront quickly, with need for institutional If an Is follow is a on grade the investment experienced which something your just franchisees. that that approaching sometimes as possibility? when I key money can

Absolutely.

market, key had developer market. we've La not it we to right do be to X% willing use money. of and historically and would something the its growth the it's use for been with but for the it of history, hotel I right right think out absolutely had we money use -- would use has generated key And absolutely haven't David, in We Quinta look under for the the in been system we right has our

Thank Got very you it. much.

go question We'll our with Greff ahead. take Please next Joe from JPMorgan.

La $XXX they of amount that to EBITDA million respect are XXXX to Quinta? guys. and guidance, in With adjusted the Good to related million $XXX what's morning, absolute the dollar

it's $XXX $XXX been little under to to as in in Quinta is is million there $XXX growth delivery year $XXX The million $XXX due the the of seen from La XXXX for in to in amount expected to million million organic the XXXX EBITDA Quinta about the somewhere range. this in $XXX growth what with contribution million in we performing and of both synergies. And well a and the business La to said, that's million we've range

to synergy is the million? million to $XX $XX million $XXX million, million $XXX of less $XX amount And at that than

Correct.

Is that what…

That's Yes. correct.

bit for I different the And you is in of that then, million same the David, have you that mentioned the expenses that i.e. been you earlier in said that relative million maybe end table little to a the that presentation million a that on fourth the about you've unallocated quite Q, table year expense. what exactly Can reporting have and other $XX is, you you $XX but number? one of about and $XX talk corporate grasp didn't that

our in La my because other costs, million as through we we certain presentation. then they be went to and considered corporate million we projected multiple Quinta remarks, in $XX costs as I corporate mentioned had with to something and Slightly. like that segments. serving now And are of May that costs budget our need process And have $XX

you corporate. previously $XX will if back in And about so there's of reallocated up costs segments XXXX down million the in to that were that get

the very $XX $XX that. a we then anticipated reallocation there's that this projecting when May. in the million $XX-ish much $XX corporate are that out million So, forma million we And about laid million had for our pro we're costs that to year

then to is final a to is And that question Great. the respect is cash Quinta lower there Is just really tax acquisition. related $XXX chance liability authorities million be that with that the the issue my payroll than a lower? tax La timing for versus potential or to

And or from to but going because tax that that million $X.XX not goes tax purchase $XXX it's not for to There CorePoint Lodging, part of temporary to we're matter the be perspective is does working go of is authorities to Lodging. in that million our through to and IRS billion authorities potential what the cash, either still was whatever to $XXX The But benefit lower either no that. a price. CorePoint does us. our process

Great. Thank you, guys.

ahead. question We'll go take SunTrust. next Patrick our Please from with Scholes

Hi. Good morning.

Good morning, Pat.

for you next I master fairly two? year the license you anticipate the any acquired recently saw that China. Do you Days Inn in or in similar other acquisitions

which the mean price. stayed look for license or available date of sale purchase love agreements agreements back for XXXX. at master to at we'd I right our Patrick, any became our master to license

Our last years ago. XX deal was

X is Asia biggest that are great our presented China it, that half-a-dozen But Days. which in another talked excited are Canada license we're in look in continually year has about this on begun China Super actually something to And in made and about at. grow are We would there again. progress and itself we've as master it's

question next rate of And points was level. noticed the basis that XQ Thank you. is the Okay. we rate trajectory XXXX? royalty royalty think the the for then approximately my I about should below six How

I think bit impact seeing a rates. royalty what we're little is that will the seasonality of there -

tend it rates what a I in regions time fairly a consistent I to right is the grow basis become we've seen our that more have there as that and impactful the we opportunity our So and bit over now on rates been have royalty and at offset royalty more the to brands to international royalty there are is is that and rates our think lower. think the look we what full-year

result in the our as we last will internationally grow rates stability that's average being time. probably to So, moving look we is what steady consistently international faster And to impact due international even overall markets. move we mix several we're rate we've over the over rates in years up, grow relatively as pretty in seen -- though faster royalty royalty

Okay. Thank That's it. you.

ahead. take Wolfe our we'll question from Please next Shojaian go Research. with Jared And

for Hey. Thanks my taking Good questions. morning, everyone.

Can X% help to RevPAR direct. the understand I would weighted X% towards but your a at want the more to growth me faster maybe the X% EBITDA guidance. XXXX master's if look X% X%. room on could of because calling growth question out the So to you than think rooms I ask the X%, I grow organic mix growth you're versus that

algorithm can about works? And just X% term then EBITDA right is So the you maybe be of me how should to we way going the thinking help sort X% longer that growth understand to about forward. think

Sure.

they the you the long why that X% that revenue EBITDA it X% which growth. Investor from expect be that the repurchases. of a X% benefit revenues. drop it news acquisitions which another as May. room's the already earnings X% our X% does EBITDA X% form middle organic include to could X% benefit basis. X% that X% result an any a EPS we the look that with royalty to consistent potential would margin X% about operating And Day increase X% the we from EBITDA more a think term produce about to And whether X% we to that the would we revenues like that or X% the through to X% the to strength is to cause repurchases than to don't organic year drop What's royalty our in it of deployment at we're I growth looks X% X% capital acquisitions leverage RevPAR of we the remember share laid X% revenue to at will have royalty form growth get good significant that's XX% to in comes that benefits and growth not those. result roughly is comes presentation to out on it from And growth, a on be we call our faster when from in that we share investments XX% will middle the growth if talking it's form it think when add as May the EPS X% and X% or estimated at growth interesting the through in good have if of in you a EBITDA franchising when have the really But line growth of is to XX% lot

higher the XX% differences talk move chain you talk you XX% direct trending as then, Thank just just Okay. the right clean that's mean know just in I separately of percent can retention there's to you I to in you unit structural growth, chain came switching of masters about you the know and growth number about that getting from can maybe much are up And you. foresee your international the do some the is target, talked scale just you in as and scale future? couple lower I other of about brands of XXXX questions system back why how right gears the some closer through and not plus, through here to the how target versus XX% the rate prune why And that? than something but

Sure.

rooms year remodels just the had I - It master is look most direct year, in on. the up rooms XX% our it business saw is we remaining I growth, agreement master that mentioned said and we as not was China XX,XXX X% one is exciting all the growing quarters and XX% to in and that growth X%. and far in internationally coming in there in was and growth added When the incredible acquisitions we the we the that we've of about internationally what's so the touched and been away I license mentioned China it the grow that's was was on increase the team franchising X up by that China, mean, so XX never first the our been it China biggest for began year to brands sold we in few brand of grew an opened focused growth in have overseas. brands So, is growing Jared, Super our largest X% fourth from our was that where excluding up from. where was in overall and ability and that's new example earlier, in before, coming and

grab rates what and an standards on we stay want we three investment very points and one XX% -- that that from up able as terms at us that or result, property number retention to And to XX% get our as and of XX% and where meet carefully And from in you to look -- -- sense us the we well and may required highest for working both do reasons we've keep hotels retention land north what the of the remaining to of are can are work And use. I key space there investment is I a that's two but the look think XX% where or move we in get are. XX% just way be redeveloped very that leave at are necessary that on there, and to do think to to -- running the ideally there the that's the result as that's makes for with it is, or that or left either eventually economy the there properties there locations that we that a north us is it in respect sort think in two the with I as of gives be we been in that a have operations of properties then, could that three be properties the in some time is to or opportunity capital And that a what points it know, look that that's range. opportunity confidence for mid-scale about and thought well. there to, a as two the us. of over can us to XXs, possibly for And be then in us potentially we an at one, different

we or a its in add another on prototype a units. brand last we building Quinta Del which forward. American moving which units, with year with Sol did last mid-scale a It's And also, mid-scale retention year, thousand XXX La XX.X% upper brands retention Jared, as at the rate when an block now us so XX.X% percent ran in and for

Great. Thank very much. you

Thank you.

from is question with Oppenheimer. next Ian go ahead. Our Please Zaffino

much. very Hi, great thank you

you the seeing Quinta or at or the on what RevPar Just portfolio Thanks. you're saw in help or whole XXXX? us the was trend us you quarter vis-à-vis know maybe understand forward can the least La the what maybe going what fourth tell in

its about. Sure. And Ian to RevPAR the been us brand in continued up Revpar the that see La the most really fourth quarter index what pickup it share has X.X% X% been we've Quinta's up has and was full-year. for it across throughout excites the excited was growth the something been year

forward, to going expect the you So it outperform portfolio? the rest of

do. We

then And are what M&A out know as on out Thanks. now also activities some just basically right touching the there you Okay. there. tuck vis-à-vis leverage about and as opportunities seeing you far ins how think

in to times times X Net basis forma willing would a to tends that what Sure. opportunities above both the is is three asset combination our only is any our a it to now preference are would I for for times perspective North radar from we'd times look is an and times of With and think to lower that light respect temporarily our but to where the X.X leverage it highest be be comfortable opportunities could into is is light to brands. would our down we at opportunities our the I screen what say that attention out we the want and three We're in times look times I about we range is right good with on times. context leverage world. brand four most being say captures a we move around right where range. transaction get half the in back being as what pretty America in we're leverage that X target the on a pro X be that acquire there position and passionate to to asset

All right. much. Thank you very

Thanks, Ian.

Alton question next Please ahead. with take go Longbow from we'll our Research. Stump And

my and morning thanks for Good question. taking

it as last of updated just synergy line for about see of the course here quarters, with -- see line you presume since simply areas wanted that that couple concept La sort of that kind top for kind didn't as generating maybe the you bought own top think to of a that there you are as I when forward? Quinta you synergies of brand a I still us mean synergies far the energies gave potential now the ask share you've any Just now guidance that lions costs you as

bottom which feel the We're - very raised end the sales about biggest raised from XXXX the that - marketing we good very was and we've and very of still us of are XXXX. piece that to synergies, raise drove synergies, Yes. synergies about feeling we ahead was range confident we're good and and company the the and us very IT public Sure. why we're The range. to of what feeling

revenue on what size our have the consistently seeing system RevPAR, index, We those none conservative revenue growing of but -- been growing are both on the the we're consist -- conservative ahead on in terms of yet growing revenue on synergies looking built-in.

front ahead to It's you of are lot more the the obviously of than you [indiscernible] peers, rest Okay. how just your most consumer end seeing look on And kind exposure you… then, that helpful. from guys leisure as can on have

the in now seeing We're that. occupancy and than I strength not into of in the our XXXX they're marketplace. our and strength strength right pickup outperformed XX to of how transient brands. in consumer weekend saw feel in seeing the feel is seeing going we from occupancies, strong the in but fourth quarter both to of back mid-scale only of feeling we're continue pointing We can we Again, pickup economy that occupancy points the strong also our the think terms on continuing of experience which We're to see really in the rate to basis we segment and why continue Sure. a great leisure market, more ever we we're strength brands have. that in XXXX weekends

being that's the I X.X% variability And last range points that's there, the lot XX to without months. every year in one almost really the last been consumer both quarterly is excluding a of reasons really quarter behavior the over to to being effects the and the over numbers X.X% highlight how stable of relatively walk consistent through remarkably strong hurricane

thanks so much, Geoff Well, David. and

Thank you.

go Goldman Sachs. And go with a to we'll Please next Stephen Grambling from ahead. follow-up

guess combination guess loyalty their sticking with of and for there systems you you tuck-ins? the from about La La me aside thanks the them upcoming as difficult program systems with make Quinta, scale integration I at unique transition easier prior your Hey, in. or relative it is Quinta to as that anything look the over more I also could

server nothing or that and of to on now across is we management of X,XXX we the easier are complex, Quinta a train going XX is provide done going franchisees all property to and difficult more Stephen, terms very brands state-of-the-art are hotels for something less that Nothing our La to for confident more in we've what fire this cylinders. system

are wait to you things training any of kind the for on there begun have until systems. has folks in And do or the

training the yes, gosh, operations who over to but fourth continue together move, the our training been today. management order been and system directors and Oh of to short property have directors are would training to all actually be our and which have we and system together connected the training franchise have beginning teams in franchisees Quinta to will our SynXis, actually over train joined today now are the and SynXis service in franchise La quarter to

much. Great, thanks so

to questions. closing no return any Ballotti we I further it floor have appears the And for Geoff remarks.

everybody to again your Hotels to I and and Wyndham and interest after which ones. time we take with they care this Resorts, tomorrow cross Day appreciate again, And our if Thank you, may we and President's Inc. Valentine's you don't your your well Keith. first your for ahead thanks & a morning. loved attention before forward talking David, and Matt, weekend look have great paths think traveling then hopefully quarter our Day in

a have full-year earnings And and and & this conference today's conclude at time, lines this Please Wyndham Resorts day. call. disconnect Hotels great quarter your does XXXX fourth