Wyndham Hotels & Resorts (WH) 27 Apr 222022 Q1 Earnings call transcript

Welcome to the Wyndham Hotels & Resorts First Quarter 2022 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. 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

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

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

to value which and quarter, a more and bring by XXXX. to we with contracts brands cash than $XXX first record year We We demand grew in XX% to year development X% we million sequentially, and at in occupancy, a $XXX strong achieved free than internationally, XXX rate year. we our contracts EBITDA last And owners, than contracts quarter of of what nearly what RevPAR. We XX% the very what levels versus year, again first as rooms. adjusted are leisure awarded of start hotels QX report more double once XXX,XXX XX% flow, more than in domestically domestic demonstrating to economy unconstrained our the in We million XX total domestic delivered the nearly new generated than a pleased pipeline delivered a XXX% XXXX. we than record the of the last we more results and The and prior traveler our our X% generated more awarded in last for more was rooms. account we what awarded year, new and XX,XXX number strength

XX to extended for Importantly, that stay positive we later been ultra-cost-efficient will overwhelmingly model. operating construction its Developer this hotels reaction first hotels awarded our the has new contracts given brand and develop begin to break prototype, ground year.

a in QX growth solidly rooms to XXXX, track were resulted last on of to months. our results retained over XX than over with These QX we line in which retention achieve expectation XX% more year of we X%. our basis growth of the And growth. of net overall of XX For quarter with room than basis globally, was first fifth sequential grew quarter, and closing system nearly which XXX than year-over-year we points XX% and in X% did has net us position line XXXX. our with rate room full in and the opened We X,XXX last year, more QX consecutive rooms the sequentially, more in points outlook XX,XXX

we've the opened quarter year-over-year our XXX XX by in in by points, United the X,XXX any year most the rooms we and opening points sequentially, States, system since Here first in quarter, size basis the of grew XXXX. basis nearly

by Internationally, over points the XX QX prior net last basis grew Our XX sequentially. U.S running retention over rate rooms by year during was consistent levels versus XXXX X% months. and with XX%

and America net franchising room the both our led Southeast Asia Rim growing business at Pacific direct double-digit with way X%. followed the China and Our Latin growth, regions, by

first and the our simplify service to by We in in our of our launch Holdings. they've our brands first to first made resulting in agreement significant never no our to We business. continuing previously acquire including progress by exit communicated before, the to operated Brazil, Wyndham completed Wyndham hotels underlying Ecuador. many Howard franchise Wyndham transferred countries change Quinta CPLG's Johnson Dolce in and by We the business, management for Highgate of select La in terms in continued China, our

full of we're sell In owned at Creek Grand in XX-year Orlando, executed close Wyndham under in also in May be keep remaining last of Bonnet fees. Rico, beautiful Puerto franchise subjected expecting hotel at expect which our that hotel, transaction our and to agreement our owned addition, Wyndham to resort full sale long-term the a we now closed sell year. last a fees. will we Grand And this to We're remaining Rio also our agreement this on hotel franchise to franchise the system in to contract Mar this

Our currency, RevPAR global which XX% of levels. year-over-year XXXX XX% constant is increased in

signed strong to to summer with nearly to our quarter travel segment in March. XXXX, approximately new Americans includes be represent driven leisure which this see to business infrastructure everyday $XXX by majority $X.X of that a our infrastructure select infrastructure recent that core by brands next season. in in in grew United more of RevPAR outpaced revenue X% been Association will spending. meaningful our government every teams first trillion the of in for of States, impact demand. And the And in over by growth Congress, on by our continued industry XXXX roads, levees, exceeded Travel are have invested points. overall XX%, gas XX projects about already in are at organizations once contracting strong to XXX see focused passage the occupancy billion the price steady which domestic franchisees uptick hotels waterways. again gasoline the Here with bill business in years, consistent of the are construction ever increase rising brands infrastructure continued throughout XX dams, in Rewards than U.S accounts our we accounts accounts. encouragingly bridges, the the travel that higher as in and XXXX. five did enrollments and reporting pickup and increase And seeing levels growing basis spending out XX% negotiated XX%, ports expecting quarter. segments we levels after With than the of types also quarter. more steady contracts franchisees. program contributed than see approximately program's over overall teams to is two drive RevPAR by before stands which domestic quarter, contributes now leisure million Weekend of continued to the members. out our for at business these and our from XXXX made up X and continues one not sales half weeks we We The of And service share U.S that remained And this check-ins Wyndham every our our loyalty the nearly of X% of more demand summer, from occupancy than award-winning costs Demand the the XX% by the grow newly for any these expect And our

retention to best partnering With highly with auto our the strategies. and focus when franchisees experience, labor and hotels routing them helping moving training we're our move check-in like costs with practices check-out combine digital improve franchisee to opt-in we're out staffing services And identify requested shortages, call and technology, our them operating margins. hiring of to fixed their their that on tools continue you and recruiting,

sourcing past the new business initiative holds months than new reduce Wyndham's strategic X room Over cross-country on highlighted during Summit Executive further our Meetings, owners digital our designed greater key. for costs. property perhaps operating programs we've to guides promise But and operating small no

rated introduce and the app, surpassed highly launch has economy X we into hotel million scale our at reduce to keys franchisor room embedded which the to Wyndham staffing downloads, check-ins levels. expedite With digital now of app to segment, allowing our the became first franchisees further consumer booking

their key altogether. to having door Wyndham's allows our to solution those locks franchisees door locks Importantly, mobile replace versus upgrade existing

from number checks one and also checks guest adoption door room our aim industry in our mobile past out and guests segments the service their front opens guests weeks experience. with economy that select the standpoint, of that in into in texting have over app lead with desk and early room, the months several solutions without them, the from expressed we franchisees them check-in leading communicate we're of the provides While with their or the hundreds mid-scale interest detracting continually to meetings an this technology to labor-saving and our of

further Program Level by One quarter Green to was of of recognition messages Certification we to compliance, reduce and awareness of will XXXX attain drive Certification part which while we Wyndham standard consumer this believe them delivered their as who met the costs, requiring all operating sustainable globally building owners franchisees, our something environmentally our minimum brand from to X practices Core help major revenue conscious a April and travelers. incremental with help

and is We posted published our report, week, ESG this our efforts, now websites. and ESG Corporate just we advance continue our to which XXXX to Investor

disclosures commitment as and Delaware, Force on Sustainability environmentally highlights furthering that business Colorado, We Our report for a finally contracts the recommendations has in operational socially, and way and enhanced by and the around awarded proud in commitment management. of hotel with ownership March, Oklahoma Accounting providing report integrates our our women History ethically capital projects Task we the in hosting disclosures. Florida. Reporting celebrate support the and new operating Initiative risk women climate Virginia, to Month financial enhanced several includes Global were support. advancing Board events women hotel throughout accordance the standards on very been Standards development to our in Texas, room to prepared responsible and The in related And Women's by developers is training, to

Forbes who pleased integrity, caring our to the for on support not that diversity, recognized to best Our economy valuable our dedicated extremely which the pride this be month possible diversity, franchisees, meaningful identified around by were impact being I'll would and over as accountability, our of most list And on to inclusion. all Michele? on the and equity with built on to a Michele. Magazine ongoing its turn members to we and on the without highlights culture them. that, employers on of lives of And now to team end, XXXX making fun, those call be industry, companies themselves of inclusiveness,

XXXX detailed other fee-related year-over-year and I'll revenues to quarter and by of of sheet, results. RevPAR a first reflecting of XXX% followed global materially today our the our review U.S., our XX% levels, and grew good a again levels an update ADR, In also on my XX% by basis. of led our remarks brands by We generated XXXX then flows year-over-year consecutive quarters. a of XXXX everyone. for and XX% driven begin currency million, cash though now outlook. balance increase growth Geoff, Thanks, with morning, economy $XXX occupancy review constant exceeded RevPAR four I'll to

Arizona, as ski quarter, well states This particular and destinations in Montana. Utah such we Snowbird as and such Florida saw strength Colorado, Louisiana as as

season, the strength with in our As levels government up saw the XX% strongest bit QX fourth XXXX March RevPAR to QX we spring from China, by of XXXX we level the levels, caused its with XX%. Canada from at up improved to RevPAR since levels, through ahead up pandemic, XXXX, Latin levels, to up the month-to-date soften improved and XX% break X% America exceeding In XX%. economy XXXX of are brands in start slightly of results RevPAR QX. with continued was April versus recovering in down to economy XX% XXXX Internationally, move quarter. at XX% a RevPAR XX% results from lockdowns XX% of the including from

the zero-tolerance preliminary Shanghai However, XX% now early more in are RevPARs levels. in had of where during meaningful lockdown period April the XXXX repercussions at indicate about policy has results

few nature as to are years. are lifted In recovering this with fourth the has XX% moderated on situation temporary QX the EMEA, normalize the as XX% restrictions throughout also RevPAR quarter. once again once XXXX We from improvement numerous been occasions levels, in government optimistic are will and past slightly experienced in case down viewing the of that demand the

reversal good slight monitoring tracking to to in November, Russia exposure above month-to-date but with material, something closely. not seeing and concerns. in XX%, than trend at October we we're a less did April are in Ukrainian XX% region bit our continent Omicron back was February which is we lower the pre-Omicron Clearly, divergence the however, see of March, due throughout now. recovered there's that to While of and region levels demand results a slightly in the

our EBITDA As from operations. a reminder, over XX% of generated U.S. our is

the in about RevPAR For of million every point to impact a U.S., $X to EBITDA. expect see we change

While versus in $XXX,XXX. million in includes marketing would about $X Marketing ago, quarter, revenues $XX million be first EMEA a expenses expenses XXXX, fund. $XXX by year. and China the exceeded million from year which benefit EBITDA million only timing Adjusted revenues $XXX,XXX was quarter a while the first up XX% exceeded by $X marketing last

EBITDA RevPAR primarily growth the impact, increased adjusted basis currency XX% margin this have would and points of Excluding of reflecting expansion. XX% constant XXX

Our EBITDA last versus improved franchising and adjusted margins both year.

interest points the to in for basis share Free on adjusted the margin points the the basis Our and as same increased of cash funds, from generated was increased which $XXX points Adjusted well our the which quarter XXX net marketing calculated the effects franchising adjusted improved lower basis twice XXX% EBITDA funds, EBITDA XXX the while than $XX XX%. increase included impact marketing peers, basis the EPS as excludes last margin XXX reflecting of as flow million, year. more to million expense diluted $X.XX, we repurchases. our

exited service business in select receiving management our with In $XX Geoff mentioned, as million addition, CPLG, proceeds. we

to the May also EBITDA, the renewed Based $XXX facility. extending Grand terms multiple similar Creek adjusted price this Earlier have credit of mentioned, Wyndham Bonnet the XXXX revolving facility, we from as for prior inclusive million. $XXX XX.Xx expenditures. maturity month, on Resorts sale Orlando XXXX a represents in million Resort sold We capital planned the the XXXX approximately April our on

through increase we the B We effectively and the on Loan facility from transactions, interest Term years existing used these X-year of facility. a by We additional maturity XXXX. repay Pro secured Proceeds a A the either X net share with stated received during was million the in X.Xx, proceeds million any our of rates is CPLG billion of $XXX B inflated liquidity, leverage by closed years well $XX maturing XXXX million in forma repurchases Bonnet X shareholders in March term extended this facility. $XX our on portion This below range. facility in Xx additional dividends. our to Xx the and to the Term of ended new and senior as unusually issuance also for stock We is due to cash of common ratio quarter million approximately Creek ending revolver new were we target balance low loan quarter a the to from our total quarter first without transactions. our and $X.X returned $XX of Loan

of with we items, generate be will cash to net we X.Xx. a deploy. our Together is consistent strategy. just free deployed, year, $XXX We have that expect the these Excluding to cash ratio capital in leverage with essentially over so allocation flow to our will which million cash was do stated this manner plan

the is Our business. first in to always, invest as priority,

both accretive external to of an organic are portfolio. room brand strategy from growth and core for our be M&A our and deals exploring actively standpoint tenets and net The to existing are complementary We earnings growth opportunities.

far While nothing this criteria. we've been tracking opportunities year, has our met some actionable so investment

in M&A continue and to investment pursue deals our However, DNA, will is that criteria. aggressively fit we our

allocated the redeploy and The is the the will allocation see in proceeds spent repurchase the XX% toward the million the into do will, repurchase. we repurchases to We mid-XXs. the way attractive EBITDA. payout with remainder million volumes as throughout dividend from to dividend split income the to we subject business hotel of an to means and integral the fund strategy. CPLG And share right opportunities $XX owned to course, and our in year also will opportunity back allocation repurchases. while be of us additional capital QX replace the to to the the sales compared a business Absent as will maintain that, we would see now net payments, investing in heavier a of share ratio share rest element share $XXX also approval This about gives about of that we're Board expect thinking usual, be the

Now turning outlook. to

our We our of for to are adjust the hotels. year outlook updating XXXX full owned sale two

is for As our EPS we two at expenditures expect share count now then outlook, sale $X XX.X on $XX any removal actually no adjusted so $XX to income flow from million removal we $X.XX fee-related per increases there global CPLG $X related February hotels room the date. to cash expect owned need the Adjusted growth, post million million We of usual our the two to is excluded for depreciation RevPAR share business transaction. as of And EBITDA, increase billion, outlook $X.XX projected a due adjustments potential net the to no down February's the repurchases. conversion maintain by reduction results diluted were or capital $X.XX from reminder, expense. post-exit to management share million, outlook, million hotels. which excludes that million a global needed $XXX diluted are based no to revenues of to longer Adjusted already $XXX to net prior and changes reflecting other million, $X.XX There are billion of of $X.XX a for these rate. free of

B. changes any repayment we the Finally, the or the of the the new credit revolving A Loan do Loan issuance facility, renewal from expect not of of Term the Term

business significantly our resiliency on result with profitable raise and once highly our of In fixed. in our We quarter would closing, balance a of a results and our brands potential the of debt first Operator? franchising your XX our focus demonstrated gross With the variable long-term steadfast where in interest are We've every growth simplified direct basis would interest allocation and business to the for our strong disciplined strength of rates multiple XX% in that, versus gross point sheet both we model. increase are capital our be today, year. intention $X in to is expense. structure, our process. in effectively increase again all delivering greater the we confident Accordingly, remain times rates However, strengthened throughout considerably interest framework ahead. allowing Geoff are questions. our business the our in happy remainder take I in and aware the annualized Fed's another they year million Approximately and

[Operator from of Instructions] Our question comes first Katz David Jefferies.

Hi, though Thanks morning. everyone. we all information. capital sounds some an some went the parameters as on Good And continuing but I interfere like stock of for annual pay Michele, have at buying you looking It that potential you allocation. with want on least not make are through and to also acquisitions, to should just straight. back dividends. sounds actively at sure it those basis

so just that bit Is that of gives interpretation? magnitude. And a us little of order sense fair a for

morning, would on business. I we Good David. say that interpretation. Yes, is focused think growing are I a Thank you. fair our

our is always are for we invest growth, future to be to going So, to preference yet first going be disciplined.

not the deal. reasons. one just laid We've are right has our We criteria. and deal out right for a to do be to It do a going investment to the

Slide and deck deck last February our on in XX. think then I night's in

portfolio. to are So really growth deals and manageable and and earnings both looking to aside complementary existing asset-light leverage, impact to from net room our franchise that net for then we to a accretive are

today and continue and a remain we if But would the it. for those right in market criteria, does, us, to that are it to deal approach. it's not green we then the disciplined are hit going a if pursue aggressively then doesn't So, we on light, one

to that. our to expect potential $XXX have plus over this on year, of find give leverage to some So deploy we prospects. time teams ample We top want million to opportunity do

the today's today able find haven't that So, probably capital throughout But yet shareholder attractive criteria. commitment opportunities we naturally would a to would higher market all we can what return even X% moment, are not making based on And on or I this which anything is repurchase, of cap. year, be event a weren't significant to that hits share we specific in the buybacks. our say the then seen remainder represent allocated

Understood. to think have may And accretive, as right, my earnings. you said follow-up, I

accretive bit, if or a accretive, you Now reasonably or could accretive are talking X just X? elaborate immediately in something immediately about year like we

first We want be it the months. XX to accretive within

Perfect.

Okay. Thanks lot. a

Thank you.

of question next Joe Greff JPMorgan. from Our comes

guys. morning, Good

Good morning, Joe.

And nice Geoff, you guessing see on I'm grow the most about macro less pipeline from better it it uncertain? new was then in when thus XQ how both Did much and as of March? down the contract the are quarter, front-loaded pipeline you that Can first talk to And it in seeing maybe got was the sequentially, U.S. China? it's the pace about expectations you far we was than X% of slow people what probably can with through call. in the then signings? signings this talk

was expectations. Echo Sure. that. rooms, very out. XX% of XXXX. strong over of yes, ahead a a It was XX,XXX quarter, was, last you Joe, We year piece XX% pointed and as big over domestically It which signed was

Our in U.S. little the in was the low X,XXX and strong year-over-year last overall, signings. without X% a stronger. mid pipeline over was X% but we which it year was rooms, But Internationally, bit digits -- in low it signed the XXXX growth X% single over Echo, U.S., still grew

quarter, about quarter direct China. the in actually deals franchise did signed of first the asked QX in for China more than they back You surprisingly, XXXX.

both that. side our we on improved the new were conversion new the And with So, on -- it side. and pleased construction

bit Echo the obviously, a new construction in did Our U.S. with internationally. also but here signings increased quite

you're that at? at the of back to the million can have and capital then balance $XXX guys on cash mean the M&A, of looking the And you excess of about you M&A, talk the return of Great. sort size XQ. the end I going things sheet

available revolver. million under the to you $XXX have You

size $XXX about one at of greater Thank some of going made And and words in Can buyback on your to You putting get leverage another this XQ. activity sort resuming that comment all forward, M&A million are have Michele, prepared then of And mouth understand, you. that for your that made of you year I'm at? in guys the the back part of a remarks? comment to sort in to elaborate of you just maybe capacity. pace just that's turn the me. looking relative some you Is you that

Sure. brands Sure, step can it's think or I our you hits to for respect Joe. I strategic portfolio, where they the What is M&A repurchases, in could investment that are on be will large us of high-growth a gaps regions and or and open our on have should say criteria. nothing smaller look window globally, see markets be opportunities in to volume We table. bolt-ons repurchases. is in we With fit looking we brands immediately if share off up really expect tomorrow they could our the easily then

And great. proceeds us magnitude from then sale, net Okay, that? Rio can of Mar you give

value. book to We net its close to Rio trade Mar are expecting

the book Okay. number And handy, net have that value? you

I it's million. to close believe about $XX

Great. Thank you, guys.

Thanks, Joe.

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

Good but Hi. would any morning, have successful than Echo the versus everybody. build different a of same, been vein, same little question is kind project the a in bit buy does on a past? brand rollout proposition, the it make the My

Danny. Great question,

it buying we and brand this think with popular already a we ourselves become X, year construction more that brand developers, brand new construction launch a economy years has is and new versus the have last buy was I pipeline our from a even X, many our which standpoint. brand X,XXX ago brand, Moda rooms development X, in Xth Microtel became and #X did new our than

Investor talk the brand. had. we've at territory I March. in was Asian Owners booth American of had teams we at it the -- the Baltimore, had the so, trade we And ever Wyndham echo. to largest does. show in ever we've absolute develop The in and seen one we've a Hotel mean had I in had how Atlanta an And to demand significant about ability think in I busiest Association ever We have Hunter where do the the team this interest biggest Conference

We are these. sign another our of tasking XX teams to

XXX open Generally, We are four by time. see. and to looking to in a hotels construction open ground four at But could a our get least next XX to hoping all this pipeline teams next architecture and ground We break that they construction design I year, we dozen already and XX-month would will that have know will those yes, over believe year-end. another year have to next year the are we XX years. XXX two break mean, expect our

when trading I that, Dany, build below just trading then and generally hotels when add to would for And cost, buy replacement to is rule versus to they're buy the build they're above would And costs. replacement the today, which owners in exposure levels toward chain particularly most trading bias many we in the XXXX markets, hotels are to, at above that building. or scales have

Of construction course, we're time. seeing costs rise same at the

versus is deploy say are they're it the owner say attractive look significant hotel real really hasn't other asset they're changed, an estate powder, classes. going wait, sitting to build. also opportunistic and on and in ROIs towards going lean really buying. build the to immediately they're still dry if would if buy space net-net, to we willing versus So, And to I'd

Got Thank you. it.

Dany. Thanks,

Grambling Sachs. Our next from Goldman Stephen question of comes

Hey, thanks investment. being capital And We opportunities. model for on you taking internal particularly follow-up just did Maybe the think investment another generally intensive. of questions. reference don’t the

might like? love look what any could you would opportunities internal color So, investment give other on

Stephen, did -- know opportunities. internal I reference investment don’t I’m not if I

about growth of with little of would to development we And think opportunities, growth M&A. spend make think implied a in which we the brand, hotels to happen when do as for be to something specific we as be, that I a be are we internal looking organic maybe under growth advances large what organic ability or similar a opportunities we opportunities, might well nature. of have portfolio is are that a really saying would and capital bring bit that

Got it.

more key be will money that effectively? So

Yes. That's right.

had sharp any unrelated Okay. we look referenced think this from the But impact? any Joe development That's you And lockdowns the bit. you impact an Are the region? into as to little expecting in construction China, or then on follow-up. maybe that April. slowdown at a helpful. And Has I is alluding

And development the Obviously, our awarded proven same And quarter. did remind And recover opening slowdown X,XXX on side. contracts where we've And Stephen, double-digit who both can of just of course, remarks. some fourth we are in they and But in year see as terms first Michele, there our activity. about we referenced room I as in our is of delivered of signing of in out XXXX. teams operations $XXX,XXX we the a a traveling. in we has It represents that last Michele while rooms, the China ability sensitivity growth, the and her look, back. And setback first net a our and look, point our she room mean teams quarter traveling X% remarks. EBITDA. to bullish. provided still a are we the are time to number bit the the down opened travel did team China everybody while was per step opening seen This XXXX quickly

the direct are franchise rooms open. is in all pipeline as direct, We about country many now. we which have right our rooms as XX,XXX have franchise in direct And just now those

the teams just about our are there in years. the bullish long-term back to look, and out very get prospects itching So, coming

will jump I Thank the queue. you. helpful. That’s back in

Thanks, Stephen.

comes question Bellisario Michael next of Baird. Our from

Thanks. Good morning, everyone.

front, differently. M&A maybe the on asked more one Just

in aggressive would be acquisition If on you capital your as you pursuit have of opportunities? excess this didn’t hand,

flow as of to is Yes, Like I a would think be our deploy generate Michael. to said, year. free our grow free aggressive. do we cash flow preference do cash the amount every substantial and business I we

expect So, us at look opportunities. you first growth should always to

Thanks. it. Got

just then clarify that. to …. wanted And Just

And to also also sorry, -- then add just I would I I'm that. I would -- just would

high shareholder Of an of value a course, place and asset-light we do for on importance business. return

heard think me I there's you’ve both. say before, reason couldn't we no it do

or higher recovery terms or XQ slowdown narrowing then Got on you're prices and from follow-up it a seeing occurred and the question impact in from what we it. that versus Understood. in demand? on you Can quarter in gas on much. hearing the trends the of touched then maybe customers haven't And RevPAR U.S. maybe then about too talk slight fundamentals just since really

measurable but optimism. we as mean are haven’t and hearing really nothing seeing said customers, I is seen we we franchisees -- from what in gas are hearing what we and from results remarks, our our Sure. on impact any we

how In think the trends, are far. upon gains franchisees, And impressive. Mike, weekend gain grown first really quarter We impressed Michelle the us is there. month-to-date. That's I out April are what's touched April terms in XX% has so strong X% and our an strong of 'XX. how been the ADRs, April about giving of great ADR confidence talked of just And to ADR what's

certain XX%, not Friday where like year, far month, mean night, average last are to And to this La So weekends rate and daily running Saturday running XX% of having brands this past they're but XXXX. XXXX. I upwards we Quinta

hands We many always for how going the back -- those air. remain show in audience than feel had show of with hands did in in than the a So, is summer the the I first they XXXX. I XXXX XXXX with trend most summer they to the keep I them. met than them think of have and occupancy talking to thousands the ask And quarter, 'XX franchisees, better best I And a the higher We've of they what a are our had had that in to feeling hands the year. crisscrossing they of up had senior the be them if replace back hands better of their and believe to as of XXXX. XXXX And quarters the that been certainly saw XXXX Michele country up are franchisees start that that's is they in did ever. our could most the team. of in three

our pointing of rate. surveys as going the small domestic give travel, with the to to owners. continued out opportunity So, there we think our that all continue and business franchisees the to to And we really trend of get believe will to outperform resonate with to continue we that’s into summer, drive drive

just another And let me Geoff's on put to point remarks.

of look that QX at at last was at XXX. at XXXX if obviously, in it levels the you and compare U.S. -- you If XXX% QX to year, look of

XX%. were up did and benefit it up October strong However, X%. December, year from really November QX was last a

is higher QX in So, seasonally the activity November which we are demand line with performance, and the viewing October period.

Thank it. Got you.

Mike. Thanks,

question next Our is Adam from Loop of Capital. Daniel

expect, Michele, about you Thanks above to the XXXX then international we But not Can the you think everyone. and I on X% get this so realize in in And be for might when when RevPAR to remarks, system-wide quarter-to-date? morning, far question. I something talk April. mentioned able question expect tracking may back RevPAR Good prepared tracking taking you domestic Hey. that levels? basis levels is RevPAR where we answer. a global to see XXXX very is and might complicated a

seeing and question, will to -- now quarter XXXX for XX% maybe what I a RevPAR start, the we Dan, internationally the fill -- to When Michele I right first in. QX thanks is was improvement in are XX%. mean levels from ended then could

of little couple optimism almost of being now year-end is Latin from really our hundred to XX% growing XX%. of given where only it there Michele slipped picked bit is coming which about picked region to it of the points. So, back the Europe restrictions travel right back had a lifted. in back the other that It up in improved. mix. where we that XXXX. international was was all that holidays. China, it's levels talked tremendous America they And sort Europe. basis Canada setbacks out with Canada back from the And just But and a XXXX really And up slipped improved, of aside in was

which summer. over also could they're sales remaining of feel happened that important All a we European our reporting that a activity, what with to and are dealing teams ago of capacity at the airports what a on what of We have are outbound growing. the the demand routes. to forward better travel terms this with March all and listen and much is demand to do month of to we Xx of out up commercial optimistic books that they're And tour operators booking increased if in have their in Heathrow, additions year really be look hotels in seeing from they're our is to terms reported so flight summer much in terms being there business which and very March booking seeing like in Europe,

as That’s Geoff. are question, development seeing, rising -- insight just Has them to how your we what of Awesome. used rates interest do at interest to respect they to given [indiscernible]? seen pipeline? have to with guess many impact rates variable helpful, extent then what unrelated they that an And rate if I And the that the all, any the franchisees? extent finance have they and you that rise -- you are have debt in deals,

quarter in piece most it's day a are And believing buy telling sequential Their franchisee XX land, really new start I how that to hotel never our are really last they've of than easier going cycle, that a pipeline, construction financing why in to that there time is sheets you're Sure. much could financing. throughout some the up. like touched better off ever never franchisees to was mean, mean given that had. hotel talked right we are build coming at now mean that been I right strongest a in is select balance down. service of of is consecutive feeling the I shape. you right mean, availability hopefully on Their in terms our ticked I our if of to we a run And that everything are and franchisees beginning to the the pipeline of demand. years, the franchisees are of to has what are us now today, of get I is cycle and what the mean they're another the I there's Michelle and about, cycle going growth better that leverage trade. this seeing points terms been pandemic of think as activity the pricing, a seventh they're strong point our now,

much. so Thanks Great.

Thanks, Dan.

Our of is from final Ian question Zaffino Oppenheimer.

maybe the for guys [ph] there the you us impact through? helpful. help Thank it of able on the any maybe Thanks. would be flow color type of bill. other out structure be you. with great. really P&L Hi, bill, And color the would Thanks to kind how maybe infrastructure of Would

and salespeople the more we really the pandemic to our and made sales best teams, We’ve about able a work points versus accounts today of and signed not teams for our it negotiated important touch XXXX, I sales been Well, might will Michele we quarter, be talked Michele upon we what's we've that and we during over actually this, our this same have was coming. prepared about do field infrastructure we the be to great the on goodbye GSO excited related. adding let talk about more P&L more but gaining those share. question, contracting increase not that, getting lot able been business the in XXX over how corporate And what to teams quarter of Michele? of to to And to mean, are more were say in -- why remarks, this year, the it. retain. who sign big to not accounts global of work. of travelers, been was were franchise are think RevPAR sales XX% prior been that basis only flow traction doing impact, will business our have I could franchisees versus teams I more our we Ian. -- the double-digit sure one -- we we our our versus things I field increase to midweek turn that only not sales said bids. half know a but will through. saw It's that first And but winning that from the we index we're as midweek of in We're because we our these piece XXXX grow everyday

Good morning I to over years. to. would billion incremental calling bill next an Sure. Happy is that Ian. X for $XXX say the the

infrastructure federal of I or annual just annualize say, And it literally, that's would you down doubling spend. so, a if break that

generating U.S. spend. today about $XX million infrastructure are federal We royalty from of

spend think reality, In federal local any is we contribution, assume or the opportunity the but labor existing spend spend the So there's state, double displace to doesn’t even limited. would level. that -- at an that new that

expect displacement would discount for some it's reasonable we probably So and think that. to

the that would to spend wouldn't the less it lower further deployed this X years, assume targeted also, extend then amount. could be course, Of incremental the spend could that annually we see total beyond would and mean unreasonable total which

intend take clarity $XX wouldn't how helps least at they risk from So, I but of before opportunity until the spend, magnitude deploy and at least high those think when reflecting to we I think the end million government the further end for day, at us, about the bank at the of very to have I of I the the size the that factors and mentioned. that any

and as there? pricing running -- how Is we you far that’s there really much to about have been maybe -- that a customer Can then availability up or talk talking is at looked the continue as And about rate against feedback? actually can Are And push bumping any great. you’ve surveys how also maybe know of elasticity? Okay, much you higher environment? you ADR. helpful. lot kind I

now that COVID. XX% the of franchisees one destinations will give to And to in to I'd next we highest are saying extreme there ready that the that saw we at are it are are opportunity $XX the consumers I things we that we right think Well, economy get say tracked, surveyed been summer. survey of ever to things And U.S. year, drive on midscale are U.S. seen more that has rate. to trying or are do who gaps It summer to find at $XX midscale gap terms out the end the the we're the and a the have at before. I is there, that's that's looking every this segments recent X and And still been travel Americans are grown drive that to this survey mean, out gap months. that fall. our widened I was between if a spend we’ve never you're the at from alternatives the segments our looking that upscale widened. onset and upper time is upper for outperform actually the between what away $XX. continue the to plan to travel I also of domestic levels most they and what mean the $XX. of it's gap, continue options this your look to upper I seeing again, at MMGY, travel It's mean, since the between believe the travel ever and the to referenced, survey in the vacation in even hotel

So, continue mid-scale in owners hotels. a select is providing they provide service economy raise rates economy it in continue to mean experience by select hotels, midscale I to upscale as more our the to grow, full-service Wyndham service brand -- at ability

you All much Thank the right. very guys. for color,

Thanks, Ian.

does conference. the Geoff to conclude I'd the closing portion our remarks. to call This for of Ballotti happy be any return question-and-answer

seeing of for in everyone's in and Have many someday Leo, this much everyone, your with very everyone. talking and you soon. look and great you a We hopefully interest continued Matt to forward morning. again, appreciate person Thanks, thanks Michele, time Wyndham. day I

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