Wyndham Hotels & Resorts (WH) 16 Feb 222021 Q4 Earnings call transcript

Welcome to the Wyndham Hotels & Resorts Fourth Quarter and Full Year 2021 Earnings Conference Call. At this time, all participants have been placed on 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, Senior Vice President of Investor Relations.

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

Exchange statements. Form subject Before in are Commission we cause the measures those and and at remarks website recent forward-looking expressed our any most on subsequent remind our detail you be filed statements to XX-K get in started, differ with Securities report with These of of annual to investor.wyndhamhotels.com. measures I and reports filed are in today want available provided our actual Corresponding results or will our our materially that implied. SEC. referring Investor risk discussed non-GAAP factors the metrics to a reconciliation to GAAP to also earnings that These on Relations We'll GAAP may is non-GAAP release, are from a contain number factors measures. risk which

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

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

segments. XXXX since franchisees hotel. this select year the Thanks, the and experienced again owning and and benefits resiliency traveler Matt, our leisure reported they've morning. the economy once the the strength service of best everyone, us joining their our ever mid-scale of for demonstrated the of brands, thanks, Many of

were was domestic improvement the a saw with openings. XXXX. demand we year. $XXX over in the we than And We XXXX's picking than sales and quarter, below free in positioning $XXX quarter conversion asset transaction fourth increased to throughout year the with and importantly, the full XXXX. which room $XXX and at X% significant for fourth with over significant openings In over room single XX% progress as Room and last XX% felt opened year up, restrictions room XXXX. the X,XXX XX% year, only generated the openings delivered for million our net flow, success. million of We million expectations progress future outstanding openings results, last million growth as the higher levels, States, rooms, more was Our throughout also United and markets versus closed more year adjusted the of ran travel for XXx we domestically. opened We than and our opened business In EBITDA line owners year XX% team's levels in rising fourth contributed accomplishments International rooms more $XXX these and full XXXX XXXX the were X%. in of of throughout year we as XX% confident year our about accelerating in the In quarter, did the X.X%. XXXX more cash back did they we of the owners growth demand. than internationally lifted net

Quinta our growth. new growth countries franchising net XX with territories, first the Arab Hotel into room in foundation XX X% way net China brands Latin We XX Panama, and in regions, hotels collection the America followed registry Our for by trademark our in Fiji at led direct our and double-digit our Mexico growth first hotels in of including La United room future Zealand and first and business our Emirates. strengthening introduced franchise New those

our back and up XXXX. back United retention in retention rate target, last XX% internationally. XXXX. improved improvements XX% up XX% we front, States, we retention both and XX%, and the Internationally, in year up from our last from saw XX% domestically also achieved from year the In line to On with

improving and retention the in to more too fourth XX% compared room throughout than of last United fourth year our we In quarter the As awarded in awarded and rates contracts year, development improved openings the more so globally the signings. did We States, we X% XXXX. XX% our With contracts signed what in quarter deals the in domestic signings full versus fourth new service showed solid in more more to continued developer signed select fourth quarter than our the XXXX, construction and XXXX. team XXX XX% fundamentals executions the year bringing increasingly quarter. strength confidence, or

strength XXXX, XXXX. the contracts Sol, We construction del be than year of the our XX% launching and outperformance in our stay stay consultation team XX% for extended our and sales been strong past several saw year Moda in Suites market Our first of spring the economy share signed have increased in new franchise the the segment, more state over demand and we product, XXX La will developers. Economy Quinta given last Acknowledging brand prototypes industry's this brands. efficiency of the Hawthorn extended was later U.S. a recognizing we experienced consumer Microtel extended with affordable for for designing new construction space the brand their which our than and construction more demand our most

rooms XXXX. of record direct size. development including than system or franchise for by a rooms, it the we over representing XXXX, ahead. more we management than current year, about grew our more prospects over and pipeline excited look in XX,XXX agreements, We XX% agreements months for basis, XXX new for and about this more forward our throughout a to the to nearly brand, On XX% global hotels signed the sharing X% full XXX And are XXX,XXX very X,XXX

a competitive saw by stronger quarter prior. basis X%, levels. industry Our month RevPAR travel sector to to the points basis XXXX points X,XXX and recovery, fourth their U.S. growth and pre-pandemic outperforming of versus In sets led compared RevPAR brands XXX grew overall month quarter, growth the in by outpacing each the by

was the have ADR brands domestically. Our gained December XX% of midst the pricing start the Omicron surge demand the power nearly hotels have XXX pandemic. month been strongest growing leisure-oriented the quarter, top points of index of basis of that RevPAR our in experiencing, overall the On since the of

enhancements introduced increased and gains pricing ahead, competitive revenue our in year confidently to price latest new how how achieve the every tools chain algorithms. And forecast management the how franchisee across new driving we've accurately, more portfolio. on system greater in technology, education and new index to and to in with more software automated As revenue shopping we're our will management rate we mobile rate intelligence, and scale upgrade profitability,

quarter web OTA app fourth to from from which highly to XX% brand of continue XXXX, compared bookings direct mobile our third-party rated bookings Our versus over increased XX% channels. digital Revenue saw channels higher-cost, quarter benefiting increase app, XXXX. success outpace Wyndham fourth the

that growth. award-winning market promotions, investments guests. loyalty is significant over of occupancy X even partnerships every Wyndham program's we're million the Wyndham of domestic Our to members points program at more XXXX another making basis grew share overall out of and share XX From nearly demand X stands Rewards generous. business to Rewards driver and make versus direct now XXX

XX% from and of generation a Our millennial demand up travelers Z, generation make now X largest standpoint, all growth arrivals. segment

and right customer platform via these our accustomed We the and them reaching their by the trip recency, to preferences guests message we're in booking continue at new them that for Ampere, the to right to, with powered they're time, our way with next right the and trip nurture after us ensuring that. keep for younger communication database relationship the the the using with that channel frequency, the

segments. domestic recent Infrastructure as the made XX% more our Just last in given majority so negotiated XXXX from sales that leisure of which to year, the business accounts, the of hotels represent business infrastructure fourth signed continue demand to revenue half our business expect bill. our contributed domestic up $X.X everyday XXXX demand team year. trillion that the and travel to It's passage of segment, newly we outpaced nation's our in a than our quarter this the trend over accounts

to staffing demand. hotels slowly housekeepers in are for remaining franchisees position most Our acquired their needs, levels with the seeing recover their

our from Travel and increasingly visit survey, driving people revenue nearly With reveals Wyndham's to XX% hotel at friends a year months, XX% the generate significantly work as industry, Weekend select economy percentage front our consumer, spring continued the of services flow franchisees. family to with begin help by to space weekend labor guests longer short can portending indicating demand levels professionally travel and like intend In with length we busy efficiencies Intent leisure traveler continues in and of are drive surpass our out checkout, personal and best to of the traveling XX% Sunday an among leisure X home. of of franchisees' by distances operations it hotels. check-in our U.S. generated in continue labor continue travel digital survey travel travelers While routing, And tools Survey our service of ahead, for nights largest positioned strengthen for to further offices QX moving domestic room to and levels. reduce of increase their and outsized travel owners ahead. more their for as nights call runs remain our to for hotels. after and to combined next nearly intent continue at book drive-to bullish car MMGY's auto and move the XX% runs run by lower and where the the operating our franchisees to XXXX an their in to in call of travel mid-scale surveyed, the a overall their #X trips around stay their over Leisure breaks break extend we space, very share average services plans consumer, hit and remaining capture In leisure costs bottom travel historic X-night again, QX desire leisure Thursday preference occupancy introduce travel. lines. to will followed demand year Consumer to and revenue new with their customers to percentage centers,

business interest and As negotiate were we leisure resort service with Wyndham business, deals. our Resort exit very buyers quarter management updating be from from we further at progress you look significant the Orlando of the strategic real fourth the to the of our Bonnet in simplify ahead, X Puerto of Grand Wyndham the months lower-margin pleased to Rio we select estate, those will our Creek in We'll the Grand in coming We Rico. exploring owned continue the same resource-intensive, model. in time, and Mar on the began hotels, sale

the on member proud last to its and Best our diversity Forbes to and Georgetown, X Magazine being past Texas. by the members commitment Responsible followed franchise ranked years. like List just initiative incredibly also first proud to hotel moment be dual-branded been XXXX practices. call breaking over Quinta Room handing Before have were Magazine's ownership, our past we Women very will those environmental thank ever Michelle, of honor on This social superior recognized Most #X Employers. a prototypes which month, our who La and we earlier we this over XXX week, than Workplaces, team among with on to X Newsweek's of Furthering more take and Austin Hawthorn Wyndham be Newsweek to advancing I'd named entrepreneurs Most women Suites to our productive welcome ground were among the loved responsibility And Companies, in October, America's

none franchisees all on this to on Campaign's call to built our score on the our fourth equality. community. for And workplace meaningful of receive culture and that economy recognition around we of continued pride to LGBTQ over on XXXX our making Michele? and the lives among Index accountability, has Equality measuring themselves team consecutive without responsibility members team Rights inclusive on of built impact on Human built Our the delighted be were ownership social caring resonate them. our And I'll those Corporate know valuable perfect on year, Michele. personal our with another that, We possible who the a will on turn industry, and

following in a third nearly mid-scale by to during XX%. fourth the U.S. XX%, grew from experienced Outside improve Recovery X% up other sustained destinations $XXX improved and of XXXX X/X bode occupancy again and Beijing in as RevPAR U.S. up generated the moderate their January region begin third by to to levels quarter. quarter, grew despite in I'll of versus COVID continue while and adjusted including fourth continued quarter recovered I'll $XX XXXX X%, results. XX% of review to were levels XXXX; lockdowns, XXXX fee-related XX%, year goal. of detailed also improved ADR recovered by $X.XX Park EBITDA my last trend year $XXX our RevPAR restrictions our variants. continued surpassing balance followed which and Thanks, XXXX in XX% National fourth XXXX and followed levels, million XXXX, to of domestic Atlantic exceeded Notably, EBITDA regions occupancy year, today full review XXXX of XX% with quarter. XXXX above and million system our our our XX%. system Geoff, that until our the we well puts a XX% fourth rate X% sheet, from levels by retention was and of quarter Full and XX% adjusted in Full $XX a and and all recovered fee-related was RevPAR is million of third of $XXX cash XXXX flows remarks other up everyone. quarter. good sequential X%. anticipate We XX% quarter client revenues continued fund from recovery. quarter, Olympics. schedule line morning, of where RevPAR surplus XX%. the significant This outpaced and $X.XX outlook. of revenues this National fee-related included this by China a sequential the led new million, up and EMEA surplus adjusted bringing other X-point result XX% South concentrated constant and about to XX% better both of our X%. internationally. marketing grew XX%, where what then surplus than our our and XX% marketing billion, the which and Versus year-over-year adjusted by markets our the expectations. and to year Canada led China, a exceeded expected, EBITDA from throughout is and other XXXX the to XXXX, year. expectations year's a of of to RevPAR continue by to EBITDA spikes Fourth quarter beach above in openings us year and of improvement way. was up destinations full million, the were of global revenues grew reflects recovery year. in billion on currency XX% XXXX as XX% our continued above RevPAR up The XX% investment, third $XXX which XX% located our brands, levels, with trends fee-related economy at to from ahead RevPAR basis, stated increased generated revenues we brands, well the to RevPAR are benefit XX% Internationally, in XX% and lifted U.S. to with on will which to once The at XXXX, prior as XX% Versus was X% the at economy fund million. our RevPAR global outperform XX% in the Global international levels partial Park

adjusted both improved XXXX. and EBITDA Our margins franchising versus

from cost Our margin basis made adjusted XXX from basis the primarily reflects our surplus. point XXX EBITDA points, benefit and fund increased basis we year points last a the which changes structure to XXX marketing

XXXX diluted our free initiatives. which generated marketing XXXX of and repurchases. notes as flow million to franchising calculated interest XXX same to levels, higher well August the as reflecting to of reflecting again long-term Our further EPS interest improved $XX expense our as note Adjusted compared effects XXXX subsequent a call share points XXXX. of the our of and margin peers, million XX% savings in year the of impact on increased We basis as $XXX the of cost lower basis million funds, $XX the the issuance XX%, the result XXXX in last excludes cash

cash stock. convert the in of acquisition have, to EBITDA We adjusted the our deploy. significant expected to to us, common returned $XXX of $XXX through $XX over over Xx. have of our in and materialized. of ended We XX% generation XXXX in flow We behind of our year. dividends range repurchase in generated $XXX $XXX from over our integration the of with free payment to X.Xx, as payment the model million be Xx leverage fully able the million million net Quinta our cash free into Lodging, year million shareholders XXXX, combined CorePoint flow capabilities million cash and to of With million La our ratio of and $XXX cash over target this was over total million within promised, were flow liquidity, $XX now With the business termination stated well of will we with

priority the is in business. first Our always to invest

We in will money net and key continue growth. to increase development support advances of room

see our franchisees continue And overall expect new launch prototype We in to earlier. we new referenced brand, brand to Geoff incentivize the to equity. invest economy extended to will stay brand of improve certain designs

to regular expect dividend to be naturally also subject a to payer Board continue We approval.

net Beyond priorities, cash available. flow look repurchases, to will depending that to accretive share the to each to strategic opportunities with to going the these earnings acquisitions growth are that we are amount largely and room and on both and allocate

Board Our return continued its $XXX shareholder of repurchase increased week strength to last ongoing the business. share authorization commitment our and reflecting by million, our

X% we to net expect of XXXX, In X%. rooms global outlook. to turning growth Now

relatively which the increase to importantly, of internationally. in continued and continued assumes XXXX. For improving RevPAR, XX% are projecting strong we This U.S., trends year-over-year, an results flat XX% to is

to billion $X.XX billion. $X.XX other and fee-related of expect We revenues

$XXX EPS at of adjusted line share be expected XXXX diluted million, to to We diluted $XX.X and income excludes with million, which is projected $XXX to Adjusted $X.XX levels. a count net are is in projecting potential $X.XX million on repurchases. based adjusted to $XXX million million, share any of $XXX EBITDA

from EBITDA than true-up license minimum. expecting conversion benefit points of payment XXXX, from free the related flow XX a approximately the and Finally, adjusted collection cash fee fee from we're onetime less COVID deferrals of which to annual reflected XX%, about a T&L

March. encourage we adjusted XXXX, night. million As Slide following includes are of the only of remind you back last outlook includes license business The million. at from website is fees expected included largely $XX and Platinum investor you recovery of this License CorePoint from levels internal bridge in our on XX% date T&L to stream the review XXXX This of to XXXX levels our projected sales is to fee outlook presentation of vacation T&L. its XXXX, recovery and to through is sale projection ownership and XX this posted correlated their In EBITDA both or Equity to in fees this we based at $X we estimates. as the

will mind, we to process assumes implies when sales. T&L interest X% ownership. update provides marketing our of and sale as owned versus X XX% the ownership outlook change in our core the X% We Outlook assets, in to appropriate if are versus XXXX adjusted XX% in vacation for growth the of XXXX. Keep Geoff an no EBITDA for of and estimate while as mentioned, business

that you update process will XXXX performance. as [technical further difficulty] We

and adjusted recovered levels. EBITDA have pre-pandemic substantially leverage dividend Our to profile

and improved operating are our franchisees brands investments with providing in sets. the to to innovation continue margins. outperform drive superior competitive digital our technology need support and And their Our they demonstrate value

which to are simplify flow is Our putting that we continue generating for significant our shareholders. free business, to work cash we

lie your and take the our about and be Operator? building With Geoff in to enthusiastic would on that questions. that, are capturing We I ahead opportunities XXXX. successes happy

Joe take Greff [Operator JPMorgan. of from We'll Instructions]. a question

about to bit brand Blackstone and more be talk extended detail can you Geoff, I choice. little price just positioned brand, now a with of Can us stay that guess bit extended that, will hoping more you launch. I on hotel how versus owners. what little a And the point, was owned please? this give Barry value this proposition kind America with

Sure. Thanks, Joe.

And be know I positioned has upper absolutely mid-scale I that mean XX% a demand I that recession the will and demand just our the Suites, brand demand we proof. be stay stay out economy year. growing. right an is in pandemic extended alongside. pipeline And seen proven with know is over in we've there brand. extended Hawthorne we think for extended last to it increase our mean stay

that that You in very referenced . brands doing well are space.

brand, asking Our keeping for see, workers are that up economy workers industry-wide daily out pick mean to up. XX we travel These every and coming assignments asking are more that rate an I our essential And we franchisees stay relocation road of that for our for our XXs it. extended accounts. And know going there We're are And it. importantly, continue extended customers. we feel, that over Bill to construction with XX% also occupancy week. to high the the millions going the know most there are developers are are business in asking long-term accounts range. million and hitting Infrastructure stay average and these corporate our are

del Hawthorn over with prototypes and the Moda extended Suites Sol prototype new stay Quinta approach. past XXX want year, last inherited developers few to think our the Quinta. new built many La of extended be the with we assembled before many that and us the our build architecture and will from counsel prototype have with already mean worked and this operational our with economy prototype mean developers we themselves. over to They've top nation's they of processes help we opened same help developers through designed the design, a other Microtel I know and ours. years happier is design and of counts, really that's room La these that a couldn't a construction that to designed the state who us award-winning they I prototypes design work team construction So will new team

XX,XXX mean, popular fourth economy year-over-year. our signed construction in more new quarter that Moda. grew construction our now alone. know we the have over there. So demand a economy other and We dozen will there's And pipeline than out brand there executions XX% new this we the I Microtel our pipeline, in that rooms prototypes, think out be We in

So it to think being talk developers the right in going coming about have asked weeks we developer a strong We're very We're we'll sites. to now. And about more it. seeing be by popular. more those is interest already lot for

Great. And about normal or for maybe this you past then XXXX? growth how, similar I years? talk my loaded rooms cadence Is follow-up, or Michele is Matt. Or guess, of back-end net the Can not it to be. throughout be it might

If would you us. can give us some commentary help there, that

Sure, Joe.

As net to back-end any the is to and move see that wouldn't growth as weighted, know, you throughout I room XXXX. expect typically changes we

we're the on to what coming is the quarter is really see typical largest we're we're every but I growth our posting you'd fourth sequential think I of for expect -- posted as quarter, making sure think room that net focused in business.

than in one year-to-date, quarter, and you've just there, was from what stronger the is what Geoff. all is December fourth about October was thought And I December seen squeeze so than stronger interesting other the from me. Can in far November, could And stronger impact Omicron. you Great. quarter-to-date? talk one I that's if November despite

XXX is are heading I Yes. -- No, XXX Monday really or franchisees. to Michele Orlando resort our in impressive, Joe. on meeting and the and with it's down demand

and XX%, above weekend us Easter in that, XX% our see could seeing the told of Smith. other our for it what good to one on the executive demand, demand was every versus average XX Grand led it's by books night what we've not rates we were at year, and the been Texas. spring fifth, team and at Saturday are top last only same will What that really it but was looking in through We've the the our Xx week sold chart I the time has through at what break that Friday comes summits, that seen, like for Next seeing running it say in same for daily be We're was over, Florida. hotels markets, out business the And off California. 'XX. out the Clearwater. Wyndham We're hotel, interesting in told at

softness what January double was a economy a seen this think was the of just, weekend. strong year, through you'll see again, in where think bit ending Xnd X our the was Week also earlier last of is running we've mid-scale President's X week the up I see RevPAR, XX% demand X But really weeks up last space, the because continued little February XX%. was and RevPAR last XXXX. you'll and But week of the ahead last demand. of strong our In ahead February February is running digits. X% was was week economy it our through week, XXXX, in months, RevPAR where XX, it I

is going midweek, opportunity be lower seasonal this where think And which the and we to had expected so the in been look, in weeks ahead. months real the but there we quarter, occupancy we've the seeing for occupancy and increasing growth us is increasingly occupancy

Our question of next is Katz Jefferies. David from

Where of in of right, this, unit ask progress lot wanted for there's line growth, about of I the numbers. trend a the as net sort to long-term kind noise through we all think your value kind we do recurring stock, settle as Wyndham on of international how basis? right, growth to unit for numbers in about domestic the net a you long-term and think

a was the that. 'XX, XX% was with grew X,XXX in same it was in that opens to great XXXX. back impressed 'XX accelerated. over XX year how last it our basis rooms, domestically, 'XX. David. we were points which opened XX,XXX level That's really Domestically, than We and question, more system in Thanks And domestic for and

in growth. start -- we we're and segments above the as expect room expecting year we'd segments target QX growth So We to strong would were and growth those growth increase expect to midscale with positive domestic as to domestic in the to increase in X% domestically year start and And thrilled it's 'XX we'll XXXX. see further the been. net in continue with . the

growth point of I those we're economy our to our question, talked were we've right from And another growth. X% like we're optimistic fourth to retention business as growth as net to room your hotels rates we'll with a We best in extended increase X% think international in domestic have term, really XXXX. to then our about to growth. we're we that had XX%, in were -- and achieve over direct move the That, new and able stay add very we've brand, looking to in in do to would strong move about, franchising hotel at in brands that of And XXXX. launches we net strong the looking now be to course, that XX%. continue segment new We -- like overall up segment, room seen internationally, long that. able quarter, expecting

Perfect. my to I follow-up, interesting. okay, I'm sort if it's as things because in think of they're X And going there, wrap

that Just to in the of is the it key extended, capital commentary brand, potentially economy back of with wouldn't boundaries normally of And the of options, as launch going which just prospective I size allocation, consider terms bit or classify immediately that. is help consume of other capital boundaries could there are Would with be you or any seriously? if that potential inducements money And today, go of Michele's part acquisitions, accretive little or scale with allocation range terms or type some it? accretive? you in a around to would of or us they

David. Sure,

work brand, of look good a On there. we related question the to put your the capital part to will extended to economy of first amount stay

We long-term will outflows will coming year, and interested With respect brand your look those hear from in of We accretive our globally, thought weeks. look markets or yes, for committing net but absolutely commitment in immediately portfolio. room where like those much earnings that some for the in regions you'll what more high-growth in about this would us say in to we pick we both are I would XXXX and . M&A very in gaps more question, particularly expect growth. -- And up beyond. success. the outflows opportunities meaningfully have in to to

brands, value nothing if again, and, smaller You'll likely is see bolt-ons the a table of fit accretive. it's but strategic off

of Our question of Dany next from is Asad America. Bank

XXXX, the to for also that kind walk unpack year? us if Can the of expect expectations international kind of we help of Can kind and Geoff, were through global help through to your bit? your either expectation it, can kind a us think you of help about through progression through you year you RevPAR how 'XX? versus out break if we little that you kind recover of of U.S. us the kind the versus maybe state

we Hi, RevPAR the still flat It's And of down finished and down international year XX% the the though. with XXXX regions, down evenly guidance at for What our U.S. only XX%. we're midpoint growth. see was Dany, you'll for distributed not business X%, projecting sure. across our globally

versus the way So to up get clearly. U.S. going and even in to segment, all the is way, we levels. Internationally, expect XXXX up year-over-year back or do economy XXXX, to lead the we're they'll expecting finish particularly the not though,

couple I in wouldn't the with I back we a As would to other see think we cross-border and get RevPARs with And first we through the move U.S., surprised and or opening the Olympics as throughout levels. behind travel easily regions a expect think XXXX the year. I meaningful the -- be of quarter year. the half year Omicron at China could above of and the we China up, improvement XXXX end surpassing us

though, of European still Southeast and below particularly Asia XXXX, in regions So, some some Continent. the parts

you're bit we've That now the been a we scales, above. as -- growth of that kind dynamic? affect would quarters -- was a that the of royalty kind Like dynamic on, royalty little lot makes the that you of but change U.S. the that at upscale But time, has some that also. in unit of your end pattern kind affect how like how had and it. of several Got continues growth and globally categorize goes at if higher how to If for look healthy the quarters years? through coming would kind coming in unrelated, follow-up rate what sense. contribution rate more My

Yes.

see room you'll think midscale and category. that separately it international. And X% rate domestic growth So for XXXX, domestic improved was in royalty our the rate, the about between back in of on and net X%, and above we

each expect the improvement So world. royalty I in But XXXX. domestic see And in the the of -- we hold the system of some that's categories, improvement really within that direct should rates to the rate higher-end than a trend franchising some really to in global grow royalty depend faster Internationally, on rate. the continue completed grow continued overall improve really franchising and those this that the for would as year, masters, continue would we goal saw terminations steadily will we see as strategic strategy to a expect we China region impacts as as weighting there XX% our some China royalty that direct growth. to our regional and overall benefits depend we of and long-term in more reflecting well we in how rate the business will opportunities focus improvement on from that's in we the to is would that faster the

from Grambling Sachs. is of Stephen question next Goldman Our

there I like I'd extended think that is this a on Joe's or there. force? stay existing leverage or is up investments on launch to whether largely you follow start any To up, ramp and questions segment sales -- a revenue Are the it's the teams? vision Or management this upfront for expenses

type now Sure, there our majority the dedicated some a be than to costs already serving to of those costs hotel. because in different be teams are But guidance. a will are upfront reflected right going customer transitory these

performance in sensitivity RevPAR give we second XXXX Great. influence point XXX any geographies And I into sensitivity? or you question maybe guess, might every the maybe dovetails guidance, that basis was across can about just change think my RevPAR which EBITDA as to how that

internationally. EBITDA would changes RevPAR Sure. growth definitely Clearly, $X around in a basis About it's higher sensitive than to see would point domestic and it of sensitivity is impact, million is you internationally. more change than for RevPAR domestically faster you XXX

Truist Our Scholes of next is Securities. from question Patrick

High-level visionary your How brand? could that question your big is be? for you. do growth Where strategy, all-inclusive in as And that large a vision? envision in you of a couple new years

got we in several as talked in Tenerife brands. Caribbean, Altra, like del be Costa well going the again, seen makes those it will and Playa. a brand, could internationally. Sol. Europe extended consumer large. it that select I be where our economy America. stay working larger to in and in and And interest in is some right the We've And sense is and the focus now on great places opportunistic space, in domestically Central and mid-scale We're serve the strategic. more be the the certainly, about, interest But is growing. in vision all-inclusive applications Mexico in for our partner We've growth just economy for for as with space Well, think we've us talked in about both

Our next Ian from is question Zaffino Oppenheiner. of

flow bit Just little the a conversion. kind flow statement. the on gave free maybe wanted of looking us cash down to drill cash you here, I'm

other You us gave ranges.

that? to of about $XXX and these like how it cash this, think What then million like [$XX do I'm I think -- do kind kind then don't million. it, bit flow. But over it? if probably, asset other do a in we million, add I call million, number. also $XXX And there's, So $XXX up do million] some $XXX million, that's million, I'll like little a I that's you getting of with million guess, if looks I CorePoint, sales, $XX $XXX things of know, I under $XXX maybe of

Sure, that's way about it, I right. think Yes, the to Ian. think right

future for allocate invest emerged shareholder are the going more it return. we And either in the create both. And on warrants investment model earnings importance in going to to business a the asset-light return. There's no to business and to to eager be do same that the cash while depend largely or we shareholder on heavily reason we place flow. can't we so allocate we're recurring is to time, of the growth high value to reinvest At business, An each do to that. support opportunities amount

I Okay. authorized, think that following? And the increases? a just do you to this, follow-up dividend had How you there rule had about or about arriving Is now golden dividend you of are that? then thinking how if a maybe that you're we subsequent sort

Yes.

to payout to dividend Our income net low policy ratio. is mid-XXs target

Markets. next question is Loop Daniel Our from of Adam Capital

as commendable. And to your follow-up, is then could your for there RevPAR of year, further some what pretty peers, gives to your occupancy down sort neck year willingness and guidance and stick you any XX% between the XX% is break Unlike related a guess there offer way that in rate? full you for I detailed outlook the of year? range the confidence the out

provide produce see an business we split, pretty the in ADR confident what recovering able cash able a our we say to components, its predict will and to feel level think Daniel, individual and perspective. earnings predictable. call. to welcome being With is flow It's but improvement from to from also the occupancy and don't resilience, to the continued XXXX its I a would outlook an and demonstrated levels. high guidance we in would occupancy we respect for ADR . and to -- of business perspective, to expect being closer

is question Baird. of Michael next from Our Bellisario

of sort questions follow-up me. Just from

will enough X% a from what think X% First brand, net target to look typical X% view for introduction initial you time going of this And then brand target? your like? into growth stay to be what's net get to extended longer-term this growth do to X% unit you your your new construction is line unit

us it's think certainly months every that seeing developers demand Sure. us. again, help. there X mean, this or out hotels many could network are I the Mike, have going have growth the from domestically. developing We to last that beginning with been over with X XXX conversations to to add point we're our that side-by-side

be of we that XX planning from in line, same brands, and opening, extended In our to right in of months XX stay think timetable. target on time terms all sort anywhere the break ballpark will between ground terms we of typically of to

it. Got

it's least right? of more impact this at unit point, a So net ‘XX growth to at

yes. Late 'XX, 'XX,

impact any tax just if of then should gross that of when be And hotels? question sales. net and there proceeds asset those receive versus the you we might second it. Is you sell aware Got terms on in

small a tax impact, There yes. will be

for question final we to Geoff Our -- return happy closing no call time. questions actually, I'd this at to further Ballotti have any remarks. be the

appreciate you course, throughout morning great an this to of day. to and on for soon I joining much you, very us thanks, in forward listen, everybody, talking busy for And more Well, Michele, with continued right. a we again, -- Matt many person everyone, hopefully what in day XXXX. We Zooming look you. in importantly, and know your extremely much Leo. of Wyndham. thank All you, have interest, and seeing you, Thanks is

day. Call. Thank Wyndham you. at time, and Full and Resorts Quarter Earnings have does Please conclude This a disconnect Hotels XXXX wonderful & Conference your Fourth lines Year today's this