Wyndham Hotels & Resorts (WH) 28 Oct 212021 Q3 Earnings call transcript

Welcome to the Wyndham Hotels and Resorts Third Quarter 2021 Earnings Conference Call. At this time, all participants have been placed on a listen-only mode. And the floor will be open for a question following the presentation [Operator Instructions] I would now like to turn the call over to Matt Capuzzi, Senior Vice President of Investor Relations.

Thank you, operator. Good morning, and thank you for joining us. Geoff CEO; are our Michele today CFO. me Ballotti, and our Allen, With

SEC. started, remind are want remarks we from our I Before get differ to to factors may contain materially Exchange are statements. filed expressed actual results risk on with filed today Form forward-looking you factors detail Commission any our reports discussed and These subsequent and to implied. statements subject the or those risk that most in cause with XX-K the in will our that These recent report Securities annual

We Relations of earnings a our will GAAP at website metrics also reconciliation be measures. and in Investor referring provided release, to investor.wyndhamhotels.com. which GAAP a measures to are non-GAAP number is of available measures non-GAAP our Corresponding on

on certain basis unable to We measures non-GAAP without efforts, metric. impact GAAP comparable future discussing we a unreasonable providing provide are because only are the

to posted on provide website. presentation we In investor containing evening, last encourage information on I'll information to the supplemental our to may we calls We the our addition press that, releases, webcasts. with investors website supplemental Geoff. conference future. addition, in in the SEC With public Relations website Accordingly, an continue Investor submitted filings over our to and monitor call any or our turn

thanks, joining Matt, us for everyone, Thanks, and this morning.

XX,XXX increasing was million XXXX. was by and recommencing tracking We XXXX $XXX global to the in XX% with quarter XX% XX% rooms, to With than cash performance. quarter With quarter delivered year, cash new terminations in domestic contracts of additions dividend has X.X% and the quarter of than in million now our year which more XXXX. net ahead addition than than of XXXX last X% more XX% And X% what another EBITDA, the now flow, last more share XX% of in expectations, of strong to our of trending QX or Board of and quarterly restored in X% are of ever. year, our earlier nearly buyback of outperformance drivers quarter are in at and levels rooms awarded We third XX% more continued our we surpassing XX% program guiding adjusted which opened were our XXXX. opened we over we last room pre-pandemic generated opened We full year-to-date X%, key X% with than the highest our versus all Year-to-date third last flow RevPAR levels free very share quarter delivered XXXX, brands, our more our our RevPAR pleased We third quarter. in the $XXX higher year. nearly to XXXX market we below and with growth. below year signed globally we XXX we than

versus were United the par domestic conversion X% XXXX, is we construction XXXX in the more while States, XXXX, activity we which levels. development contracts consistent with Here to level now awarded activity is our in year-to-date did than on Global with efforts a bringing XXXX. new in quarter up XX

Latin projects with New deals X% pipeline interest including this night our in intent our stay The to onset and bookings length Domestically, hotels our where XXX flexible work-from-anywhere new this strengthen. a to time Association our our year. quarter continues XX% of concentrated record. States, world XXX million X% our Sunday companies first nights almost United to Asia-Pacific our so we see are our continue in to continued to talent, pleased percentage XXX and our pipeline the upscale than on forgo compared higher-RevPAR high Internationally, approach, travel. points pipeline levels. increased XXX,XXX travel highest rebound year. generate estimated occupancy segments Sunday added American of bookings largest back since last for X-night this many The time days to now X,XXX climbed the in to has consumer average Weekend Middle increase Thursday the our base construction Africa, perform retain were with Travel began travel to in region, and be in since breaks a we're by markets East among leisure surpass to to in rooms were leisure X,XXX beginning number was the Americans their of seeing up. continue and and visit as followed of Same-day a continue pipeline expected, living in we over to to continues hybrid in the and region, are Multi-night heavily over region, unused X the and friends. to and continues that non-holiday leisure signed around the to better our grow XXXX U.S. restrictions a travel seeing in basis XXXX family short occupancy pandemic lifted construction with company's versus domestically summer customer per increased our drop. In pipeline and of with long taking XX% strong and brands, each is the internationally space, history. Eurasia vacation brands development open historic mid-scale weighted With development and growing with growth significantly towards rooms. Europe, our along

weekend for and mid-scale fueling and the while We our expect ahead, the providing incremental more U.S. days affordable economy unused vacation getaways brands. In and that in brands will to long internationally, August, fall demand domestically both our months years

owner Vacasa. marketing hotel during villas voted cottages our globally readers hotel given the redemption homes, strategic early again Rewards for Awards. consecutive through the members. vacation Report Playa dedicated its ability Rewards Rewards including million World the to provided number loyalty versus first this by Wyndham Hotels basis this clubs, scope leisure members resorts points travel along X to Choice October Best our another Wyndham out over And fast-growing & Caesars a Wyndham once domestic to and our the Mexico XX,XXX direct like via a our very by leading quarter grew of third power entirely vacation developer developer breadth stands with & Today segment drive X flexibility, Wyndham Rewards Caribbean. of in contribution News with XX the all-inclusive overall and XXX program over benefits fourth basis hotels opportunities, our owners share Wyndham of the Altra, by redeemable to and nearly the we month, added XXX and year, by period aspirational at every the and in XXX Overall, unique guests one distribution declined strategic simplicity, with up check-in. XXXX, points in Rewards of business XXX number and loyal and and its partners and another program's grew basis, USA one with to and important domestically leisure a year-to-date to the asking now for On announced nearly for hotels Readers Wyndham enrolled channel OTA selected hotel its another franchisees as loyalty and million of vacation compared to and X XXXX to us team the The at our the program nearly their brand over while XX domestic XX% new alliance occupancy of globally launch directly opportunity points Entertainment agreements points our Wyndham industry. contribution XXnd another basis same Resorts, basis Earlier quarter points. Rewards brand,

members X develop Cancun El and in provides Altra entirely our in Wyndham locations prime franchisees With for Reward redeem beachfront for Playa midscale their Karma, and new to both to resorts and the points. Wyndham earn vacation brand an our first

continue We weekends in the incentives direct promoting stays long channel Wyndham our build franchisees leading to program work success Rewards. from to nonmembers by a longer midweek with for and enroll of to reservation as loyalty our on anywhere

While retirees net our the and we've marketed million marketing a attract to strong partnerships United and to teams much retired the media are traditional unique on free consumers. our increasingly are now wider through written newly more marketing nearly about who with AARP, there's States who channels consistently than travel, younger to casting been so X in ever focused

and and to fastest-growing also introducing video is million of to continues new We're these app each arrivals franchisees. program our we're of bookings Z of them loyalty deliver. up are, to users XXXX. right and are grown #X to teams brands while Our year-to-date, the which nation's with about and and price our are consumers advanced the it's to preferences travelers using trends, insights frequency, segment through loyalty direct of driving our XXX differently, our app and An to to now from we're preferences display shop points mediums standpoint. provide for Gen channel. flexibility providing has right recency, members XX% focused XX% our demographic, guests beat It's our more to that of example which the communication arrivals our rising be award-winning in reframing continually reach bookings on and millennial travelers marketing more to our superior significant Gen XXXX at demand valuable across channel that the the app, QX. to mobile message. at right a this XXX represent them and next-gen X booking and innovating another new better basis point book and brands they search, end can't perks Downloads, meet from in These experience direct a more expectations, automation the compared value that guest with reaching and time, and from the where Google be way offers the up XX% can a growth ensure our

through marketing the more is acquisition, than spend more also members enrollments are customer and than audience data this marketing higher campaigns benefit able while cost rate we're at funds platform. platform a generating reward XX% deriving targeted nonmember driving leveraging drive from Wyndham new example our further deploying tremendous more to new efforts, Another We're a digital our XX% of strategy, a conversion have incremental that stay bookings stretching lower dollars before. ever we and our often we're guests. who launch By member acquisition direct to new

demand as segments Just so QX demand from the is XXXX, domestic did business travel outpaced everyday road. our leisure office too QX whose

which vast business points, growing by increasing Our representing X% and travelers the work of continued and of group by driven transient, business segments outperform nearly our is business our versus about X% white-collar the overall Corporate the franchisees coast. to to quarter of growth XX% sequential less coast from XX represents activity, majority transient XX% Transportation broader revenues, to demand our and than by only of Infrastructure domestic down utility trucking added and total segments since travel and construction project XXXX. XX% XXXX, segment compared of XX% another now last

handing on take without months. to to both call of to places And named a members that team in just be work workplaces. call field XX last to I'll Jersey like team with than world. would the the in possible And and named turn were that, our Magazine's proud the none our loved to for the New among week, over at been I'd number incredibly members, in Michele? now productive year most second Michele. this be who know Michele, around XXX over best moment more four recognition the a we row. past valuable we And the Before We Newsweek have were to over ever thank the corporate

followed Geoff, with cash morning, I'll results. balance my Thanks, quarter third XXXX $XXX and and good remarks revenues by of and million our updated then begin EBITDA. the fee-related We I'll flows review generated outlook. of and other adjusted sheet, review our today in million detailed of third everyone. quarter a our $XXX

has levels, up now XX% recovered and Third to XXXX domestically a down of constant on currency quarter internationally X% basis. XX% RevPAR

the occupancy lead our for RevPAR U.S., to mid-scale this surpassing levels continue while U.S. RevPAR with XXXX by exceeding levels their sequential third climb the quarter the also by XX% quarter. in continued recovery here brands strongly recovered economy brands X%. Our XXXX In

only trailing XXXX Now by X%.

In economy XXX% of drove levels. to XXXX fact, brands our occupancy

our XX%. scale were averaged concentration at XX%, brands a higher-end Our and heavier with chain urban mid-scale brands

second higher improved at month-to-date China locations by system XX%, and EMEA economy than led National XX%. results where up Our franchisees rate. quarter. of strength XX% since continued Recovery XXXX Atlantic month-to-date into but XX% South from above is the up surpassed international improved third the XX%, X% saw weekend recovery the during XX% U.S. vacations now economy Apart XXXX travel particular stalled again capitalized the over pent-up XX% fall. and levels, improved leisure demand Park Sunday XX% as XXXX. X% from system demand is XX% sequential bled only leisure Canada to by yielding result drove trends where Overall, U.S. October and again our EMEA region quarter. of indicate of a in in the experienced is rates where outdoor improvement to second in destinations, in drove of levels XXXX regions National to RevPAR RevPAR of is the by and from our in XX%. ADR up has and XX% quarter. XX% levels. and with brands our The the October, grew mid-August. lifted as improved quarter U.S. over nights. of Canada into in travel now this XXXX XX% concentrated, the third second Asia-Pacific, quarter significant demand second and and RevPAR on steadily from These from Similar is all our Internationally, and by as the summer XXXX month-to-date into restrictions continued mid-scale XX% were located, quarter to October quarter, second up of lockdowns, at well grew levels, we RevPAR XXXX Park mid-scale

X.X% brand's royalty to our up coming rate of this quality into domestic system. improved the new proposition versus reflecting and XX strength value XXXX, points quarter, of the our basis Our deals

exceeded international including basis levels greater up pre-COVID rate million global our quarter in business. increased third million marketing spend. basis Our our quarter profitable $XX back of XXXX, improved to from royalty rate due EBITDA the in RevPAR points third compared Marketing XX XX compared million expenses on to impact more direct favorable $X X% royalty Adjusted up focus performance XXXX. also quarter, Overall, this $XX revenues XXXX, timing points franchising the to in a from better-than-expected reflecting XXXX. by is

organizational to reduce $XX last the cost was adjusted fees leisure. decreased we million made million the reflecting partially marketing offset effects the of and X% funds, RevPAR global lower Excluding from license $XX of EBITDA This or X% versus structure. decline and XXXX, overall by changes travel year our

improved EBITDA Our versus margin and our margin XXXX. both adjusted franchising

structure the Our well points XXX the margin funds. from to timing approximately favorable basis adjusted we benefit XXX EBITDA of made impact basis which XXX points, our as increased included approximately basis year as of the cost changes related marketing another improvement to last points from

growing the These million million flow XXXX. reflection as last $XX results third on ever capital well our result for working on and basis XXX to $XXX share expense collections the X% compared million calculated Free reflecting same the was as of compared as XX%, Our from Adjusted changes. improving interest cost was cash million year, outflow to flow activity year. to approximately franchising benefit to which the $XXX of increased approach disciplined a in of earnings lower our as cash April $XXX million management. funds, as are structure excludes margin cash our senior an XXXX. the of was marketing in per third $X.XX, and $XX quarter the XXXX, of the highest again, $XX last this of peers, notes points and of basis in year $XXX a quarter cost share million reflecting million effects strong well free the repurchase diluted as redemption Year-to-date in quarter the record,

invest is cash times our we Year-to-date, advances, and deployed first both X.X period priority business always, which the same development support to of our million future As growth. excess into the to we've during XXXX the spent $XX amount in XXXX. about is

by below the million our was the million We to leverage times times We the credit at agreement. times our of liquidity, target limit beginning with annualized X X.X net earmarked $XXX are ahead we the the where track is we $XX times, approximately deploy our be at this X imposed ratio at X range, Total the year. well lien to expected to first of in year. point within which X.X quarter leverage times on of stands and ended

that of Geoff As to and management dividend quarterly $X.XX with dividend, a increase our to is to restoring the recommended mentioned, expected fourth our quarter. pre-pandemic approved share Board level quarterly be another the declared in cash the payout per

at paid third price returned common activity, shares share our the $XX repurchase returned In average dividends We combined share weighted and while of during program million million stock recommenced we've addition, of year-to-date, purchasing a with to we in quarter shareholders, $XX this quarter, repurchase million. $XX $XX million our $XX.XX.

now In business continued our and outlook model the outlook. third we as stronger-than-anticipated are outperformance XXXX to XXXX quarter, follows. Moving our updated raising light of of our

X% X%, prior We growth to of X%. X.X% expect up from our guidance to of room

For increase approximately XXXX, XX%, from RevPAR, up to a basis points projecting our are decline Versus we translates guidance. this prior a of year-over-year approximately of XXX XX%.

Fee-related Our assumes U.S. billion. with trends expected are strong billion, fourth to and now $X.XX a $X.XX importantly, seasonal billion to in billion be outlook recovery typical other quarter to continued $X.XX $X.XX up pullback and revenues from continued overseas. the

now is from to As no as guidance outlook from have to represents $XXX XX% levels. expected This XXXX Adjusted excluded be million. to million XX% now, to $XXX of practice EBITDA. revenues our adjusted on is have up million, cost these we impact $XXX revenue $XXX reimbursements million our EBITDA

in loyalty have and exceeded the $XX third funds we Year-to-date RevPAR recovery, will by our approximately accelerated reservation expenses by underspend we the revenues million million. $X through marketing Given XXXX. anticipate quarter, now

is XXXX $XX fourth a during adjusted expecting basis. the We're revenues as less cost $X.XX EBITDA expenses XX repurchase significant driving flow share we $XXX With expect cash resiliency year fourth expectations, program the $X.XX approximately from our diluted coming still recommencement XX%, license leisure net the our is expect model. quarter, to at flow the investor to this from $XXX million. share website. pre-pandemic assumes up based past and of about XX%. on third million quarter adjusted cash conversion in can offset Note business For we period, our as of minimum our to restored meaning million quarter full from presentation and of to to the recovery by $X.XX and strong that $XXX And In our closing, exceed on we from of million, in RevPAR our have record million posted lower that free up repurchases. well now we demand demonstrate outlook share shareholder ahead will $XXX dividend the fourth a XXXX, from projected of approximately revenue outlook Adjusted tracking higher. typically the period found variances income to our of level as in generation $X.XX, up excludes which return million of prior build be of track EPS results the to more XXXX on levels, detail capabilities fees travel quarter versus continue other to diluted quarter, our continue count of

that, Operator? questions. and trends happy Geoff XXXX. take continue confident throughout to be are With would We I your will these

Goldman [Operator Sachs. Instructions] our from Grambling take will We Stephen with question first

the discussing? the XXXX moving pieces then net -- could strength recovery detail whether business where love the the across growth maybe and just also growth think some know as off to there, beyond think trends, it's leisure And to your early I of I'd the to even some initial of point? the trends and start at the of be trends some what are some thoughts acceleration that of whole in I'll through different lot hear maybe sustainability about in XXXX, to a really but you be you've it with been giving relates about unit probably and Maybe major

see I And trend, of with up just it first mid-week us saw Travel throughout I been I'll year. points infrastructure XX% -- into and chugging that and to up strength at picking was from script, the we our Michele being 'XX, not that STR RevPAR, XXXX so this XXXX. week reported I midweek Stephen, think economy out just last that X mean Wyndham I as was Smith keeps up I going and the occupancies as XX%, at see occupancies Well, ending along, expect all week to all out look business in to leisure to back continues talked that leisure season just economy better. speak piece kids near down and to school. And we come XX%. October the start, Hotels month-to-date. about of fall And of transportation surprised that, despite Resorts construction, of the far question. levels keeps we October demand that our peak continue industry, were there slow as in our the XX% economy on, all. is is just the keeps the the that and think think to Yes, Michele mean quarter is continue travel demand. up I But a went to look, continue. getting it and guess, next over the XX. now industry. ADRs, ahead do to out And it's to mean midweek as certainly We standpoint, positively business demand economy

more great gives more pipeline. X% they internationally world in think XX% our net did unit added we just quarter, development than that 'XX pleased sales us different on in a many and just rooms mean especially they quarter to fronts franchise conversions. XXX% our domestically executions, the over comes as around on what monster I when the On in 'XX happened as mentioned so it in awarded with than just the to did growth, more, conversion strength teams so we're Michele and

unrelated an maybe follow-up. And

different is of and mobile I bookings where leverage consumer How drive to compare the now? types mobile to how partnerships are up you XX%. penetration across incremental that in that And guess future? perhaps does trying customers? mentioned You engagement

our Well, we're what are mean, with that partnerships critical Rewards. us. doing. have And partnerships Wyndham the to I we

about moving all them and improve to booking of mean Google, And time. a and doing of almost and now I investments I -- mean younger communications couldn't Chrome the had that on into better more team that us, third-party younger front is to And really been Vegas the consumers before use the meeting with with into In at out cut we've excited we get program. our to marketing those we're now as important. they're going Caesars attracting and those our our that front, that talk we with we're strategic fact, in the is our relevant offers. is book conversions see marketing, It come with in really what your our I who point, we our about haven't chrome is one take Las the consumers have we're with is XX% provide to of to ROIs today I most thing there in driving digital our on, sub-XX% where costs able precision a on digital improvement hotels. from more in and is front mobile look, pressuring Google think real we're social their for half. the staying know on and coming partners over from. just cookies to mean, the what's

question next our from Dany of take America. with will Asad Bank We

is Your line open. now

NUG My question follow-up is unit just on the piece on growth the a piece. net

some ripple effects So the around or been any side your developers could concern any for the on that you Wyndham? for front. development on there's just on Are seeing with and China, development headlines all the the causing issues hotel ground be end your

in to new new no, pipeline seeing mean I and numbers on reporting. mean the return the us I has are that on we're numbers all construction mean construction especially explode. Dany, front China, normal. continue the In developers I our Elena China ground to for

Wingate, new construction increased new continuing Our in brands introduce the Wyndham quarter. pipeline X% like We're Garden. to

seen unit You development. digit. release is growth net in hotels might new is have going XX have China franchising that double side look, under Microtel the direct on our the running to And

overall, it's it we're year. single-digit XX% to was that in think high where And our back with blended I last year-to-date in, masters range.

maybe or whether that like looking topic okay, either kind trends you're going of X data well, legs macro it or some on being of of you're this that leisure that at there confidence it's points then at, not, just that for, or sustainability the months keep coming X the something consistently is you will trend looking give And that that more for strength, to a coming is has and keep like, will but quarters?

to grow conversion times and gives that that mean, our Well, space. and on for X% biggest trend I the in again, think of rooms more XX% X toward internationally. is pipeline the confidence us just, conversion that the happened domestically what front number I the execution

continue no in the throughout I XXXX, X to teams that talked I completed XX,XXX our are. XXX%, that that. reported at over April, days and lot reported value momentum point to a new of XXX% like grow to gives that going noncompliant impress, moving great them. retention we've publicly the a something do back issue Super think to I proposition forward I of confidence we're brands for unprofitable our we confidence our than think about I we've franchise our finally, the indices be X% FTD And our continuing I mean, rooms share, restructuring get that add piece franchisees we talked moving we how third puzzle. to longer as to given is of up then, in that the continues us we which would how of the shown is mean, with fair And in X% just NUG. think, about last terms guess, where RevPAR us I moving stronger, on just that moving other to the happy market support sizable terms at are in would to XXX% our Quinta an important gives as we are never see or great moving engagement another they we've really been what as data ever our forward, had then point of discussed, La us we've mean, to in X% brands calls, X is is we X% be it's

from take with will question Joe next We our Greff JPMorgan.

now open. is line Your

we some to next heading what EBITDA don't expect be that is point were these next sensitivity puts incremental what 'XX year differences, X When the think and versus or XXXX with year, it into equates I your to had problems questions say relationship terms sensitivity of if the of fees? the operator. are XXXX? then think I that would EBITDA you is And RevPAR in asked. what about sort in RevPAR takes RevPAR to in there would of fair in

you're material I differences I No, be there likely fashion think there. for real don't RevPAR any right. hold XXXX sensitivity to will absolutely The XXXX. expect

But it X when increases the years EBITDA puts have would beyond headwinds some will inflationary and fee license with as we then we some to course, expect hold. move line, some about takes, Of XXXX the cost talking levels. cost otherwise, and I we're the respect maybe

elongated development then, room is and construction positive EV almost and that year much beyond some And health and on addition accelerating what or going that delayed extent how a low-risk into next all XXXX these the rooms mentioned cycles data you net gross headwind XXXX points you from Geoff, gives To front. or growth? there

Yes.

what give opens another the great in that mean of a new question, see teams we terms our confidence to just again, I I being able great think opens mean new construction this are continue and continue. to to pipeline new looking we're to I construction at. Joe, our adding us, construction hotels XX continues the it's opened quarter.

we was third executed, awarded think I we believe, same the opened these level we are contracts I over the about And deals new -- opened XX, of awarded of construction new about right XXXX. half existing we on that back signed quarter -- about with that or franchisees. being XX in which in

hotels, X,XXX up time the hotels to script, year. in your from point, the first in mentioned construction or over we XX our had As new it's pipeline. X% we've last That's

in there mean they can is believe, I real construction. in there projects reporting out to confidence more to new significant there's open And that where a I in last uptick mean, And their franchisees this just seeing we're 'XX I this same in than it's going that planning our 'XX. hotels year. in quarter, I XX% 'XX. that stages. I was construction in not from back XX, number, is China country, believe, open there's broke to Another the reporting, initiate which ground early there new among Elena also belief is in up is think

the where Quinta, do possibly service and we're at can I with how happening and where they're La build growth. So select that's as owners I our as a franchisees prototypes at is finding highest construction and we're daily small ROIs and conversations seeing new business hotel like efficiently looking the Microtel

right half ground the would we in XX,XXX have about to I we about would Yes. that in Joe, we rooms just XXXX. would half open now expect that and of -- expect add, And

line from your our will David question Katz. active. next And David now we is And take

you Can hear me?

Sorry sorry Yes, the for David, delay.

And the net Is takes love of to and can growth. view I longer-term domestic a But level? to Not occur? can, you perspective happen talk I if you fair for just getting there all. higher in a markets. to mid-single-digit and kind level, what that to take in farther And little vision a United go it of domestic unit long-term a a the specifically -- you've get NUG has right? talked that know mean that about amount, a but puts the about at And to on I wanted to just I'd

of Great because of Sure. course, us. very profitable We question, those the we have goal always our -- Yes. that room growth improving higher for U.S. the and rooms particularly in David. net driving are

And driving to our then have X% rate a goal. that. beyond talked We then annual about higher X% That to X%. X% of to even is returning that and still to

XX% showing goal to the And So in restore toward goal in we our we we show of beyond. that levels to about toward momentum improve tracking continue need We to and edition then XXXX, our and to in expect side. we what that and now, things. need XXXX great are retention are need X rate, Right we're to do momentum XXXX XXXX.

kind to talking thing a little some side. in specifically international of incremental growth, we and more want the potentially we a mid-scale than to maybe very And there, the But brands larger domestic would much above would large get bit be even flattish. back about expect same XXX% we is of growth XXX%. then and our on our and So large you're portfolio, this scale. that the since side economy incremental of of expect coming out chain would system And brands legacy bunch

the chain So through about when about portfolio, above really domestic those we the mid-scale driving scales. development it's talk activity and

I if And that? Is follow I to all right. up, just is a just X-, that than follow time that. reasonable sooner that I to it? can a you happen can aspirational horizon If way like feel to is get Or levels. -- appreciate those X-year X-, think All about that could that something

step into think over I X to goals years. aspirational we the will our X next way those

you momentum some expect towards see to goals. So those should

take And question Bellisario we Baird. will our from with next Michael

is line open. now Your

where XX% don't asking the sort you question, of looks back turn few made algorithm think prior that maybe and you should picture that pre-pandemic X% clock post-spin, want big like the A your you're puts it a here now prior points and the you've portfolio, for are XXXX, to a through the do pandemic, that a not unless to questions. together one. growth, what go here to growth I tying provided expectations? you algorithm guys want But takes do maybe settle you you basis? and in going forward? EPS growth you forward-looking What But rate growth give that number picture that out And the versus on think your then big to back made of

sure. Yes,

which simple scale as a from particularly maybe I higher, on RevPAR point our think growth model, focus and royalty effects in royalty EPS carries the international, higher of do. relationships then as brands master dropping than a room U.S. the we driving as business we And well rate Michael. from net pretty business, much plus and the franchising right, cash midscale line, growth than to direct well It's the would it's the the the the a and a more little apply deployment. rate as bit above

can item. we compelling So share through come it would would repurchase drive And that to extent it the a to the to the we business extent find obviously invest, we line can't, through opportunity EBITDA. that

committed improve. So low-teens rate to obviously, we're room our still to high as continue to EPS I growth that can can time. net growth, we continue And think single-digit, over improve algorithm that

is operating a do And kind X think targeted then to is as follow-up, of range X just midpoint mean of range of had what you've pandemic been more appropriate pre-pandemic given and the sensitivity flow learned doing of cash the model? now business that maybe half the upper times. leverage times you still I the versus you closer everything the to your in from

Yes.

support during felt also be to We our level a have And X leverage right relationship times flexibility evaluated of perspective. then maximum franchisees right, from did able pandemic and was range bank to to way times we us the necessary. the the security, X this provide

that investment we're times. the period X within to be of for with within back time. that range of short the able in midrange, to And comfortable step So perfectly a a the even I range course, yes, say expectation would high end of that opportunity, of I'm somewhere willing that times we out get X to in would compelling

We will Patrick Scholes our next Truist. question with take from

is Your open. line now

in couple of repurchase [Indiscernible] wondered quick the questions. a Just in share I Were active if market so far XQ? you

Yes.

on the October. month XXbX-X for we our were of So plan

growth that was the attributable Or a was all-inclusives? so then the mostly to room in a discussed it of more Or of there little just And the specific? everything kind you've Was for just increase net specifically anything on combination bump-up far? small the year.

Little as of higher in been it's that and the been saw segments, really mean, we've openings concentrated the reflective we're seeing And combination and of pipeline. a going our inclusive, continued what all obviously, you into everything. but talking growth I of certainly was about, revenue-generating

Stump our Capital. will We next take with Alton question from Loop

line is Your open. now

continue of forward? the if going 'XX. And beat a what that, much everything key the Congrats lower that that given year-over-year, parts particular, across how deletions the Certainly, I quarter. on, lot on as mentioned what pandemic. to a great down pretty I expectations of surprised you of even moving fact going is there's XQ much versus could trend guess obviously was your I think driver upcoming of was obviously board. and dilution were in that

that We so quarterly the don't to points basis year-to-date a from be at not XXXX. at resetting tracking look Retention in about some COVID connection is one of driving to with can the there XX it as on it better rooms basis we XXXX would we out I were compared than quarter our because noise much know and look portfolio. some next. system of year kind

our mostly level our about our XXXX, all basis interacting proposition of the XX% investments franchisee team, value a now. with the points and That in field base, baseline we're favorable. making for the at right that's which and really owner would really XX -- which is be rate we're reflects running is So satisfaction,

school to And about growth, how couple count then kind to story? that think the just get year? of that kind Or Any of like algorithm? more I years? long-term unit is obviously, just 'XX playing could do next kind Or happen next is over it that you timing of of a your for out XXXX see

Yes.

to provide range. we're see driving our say of prepared longer-term goals toward going yet. continued We're do growth X% for improvement So to not the room to I would not XXXX. can net to But we is above guidance that X% what expect

Oppenheimer. question next Ian take we And our will Zaffino with from

line now open. Your is

into guess doubling given to the down how or A desire you of sticking or greater me our couple here. kind a knitting the those but some kind your to is push done, first that? higher-end would there on know of have questions I deeper mid-range? upper of well just brands one maybe mid-range have I to of of be, kind initiatives,

presentation pipeline our Sure. and that reflected how Ian. I that that to in been see we the knitting in you look that mid-scale will to has we're upscale. just happy see I openings both our have, I and stick if our strong we mean again at growth the Thanks, mean, there. think and you investor really

Grand, in higher-end that right And going that of do the It's and It's in page there. internationally, Wyndham which the see it's Dolce terms for pickup La there talked and a now Wyndham, the we're upscale But those when the growth, we're Quinta our the Wyndham Caribbean upper all both demand as do Playa, about X in call, You while were with developers, also our market. just we where we're XXX X traction it a our is last have starting bit getting launch us. the comes recognizable mean, with then a will see resorts Altra to in with brands, of to to on registry we continents collection, great -- brand. new have referenced grow continue Playa brand. remarkable we actually today, and brand. some with our their segment mid-scale be little I we but thrilled on in that brands to the same of from brand the with We're Mexico and with resorts And world see some some inclusive X-star pipeline. on it's to identity we our starting around think is that most partnership internationally,

believe leisure upscale just poised if the to demand. distribution is this would you new that we in And see during as if to platform to leisure then I from expect be is going really cycle, rates continue our in early the primary benefit Ian, of -- that growth upscale higher also, driver to our think lodging our segment you some stages

about next into still were And we think we're XXXX, and of a but XXXX to look before happened then sort how if year? we kind at if in of think sale about year-end, CorePoint, that I do know

whether transaction be selling not what on to comment fulsome going to and or we that then call, they're information R-XX be will to on provide are when their us to they not on going for Yes. sure a appropriate beyond It on regarding means portfolio. I'm we update CorePoint. status any would and their update potential for have their actually

Morningstar. Dan take Wasiolek And final we from with will our question

Your line open. is now

are demand U.S., we've thinking these demand next the as maybe in guys to for kind that and that the XXXX catch what of recovery expecting wondering of are maybe up in as some ability RevPAR whether next seen supplement the in leisure occur I'm markets you international So guys to the year can that far the year? you sustainable U.S.

Yes.

this levels. America RevPAR of XX it's recent most more nearly of see quarter, points as it's Dan, there I just I than it mean pandemic, quickly. all back if QX. and one restrictions to gaining comes been back great that's since travel true Latin think thing, XX% lockdowns, easing referenced throughout is was Michele are great as improving after to to that up, this opening And see or in RevPAR the Canada steadily Europe, 'XX RevPAR China,

now I out September, of Canada. think down -- in October. to it running I where in example it's it was the and down date there XX% ahead was XX% best It's was think before. October is month It

mean one I great there. quarter really the as for for mean as vacation so in And mean created U.K. back. Germany the saw our in that came came lift demand Europe. just look, added we I European of us big strong I airlines over markets travel. the capacity, have things October. a back

which that great countries Spain, opened the we XX adding week, this Tenerife, for earlier quarter our this just Canaries, about talked Europeans. CLC sun-seeking we fall, this are relationship destinations think I new with like resorts

as those I lifted. think are restrictions us recovery to RevPAR there's to a for see continue real ability

program further time. any over for will Ballotti I additional Geoff line at the on this the We have closing to questions no remarks. back turn or

ahead. Brittany, in everyone, happy forward a again, to Sunday. very of and more your with for importantly, seeing And you, weekend Michele, Matt thanks Have thank you great and many I today. ahead, on Halloween time Well, weeks much speaking hopefully, of you and face-to-face. look the more

call. and Please third quarter lines today's conference Thank you. this This Hotels disconnect a & wonderful your conclude have Resorts day. at earnings does time, XXXX Wyndham