Wyndham Hotels & Resorts (WH) 25 Jul 242024 Q2 Earnings call transcript

Good morning, everyone, and welcome to the Wyndham Hotels & Resorts Second Quarter 2024 Earnings Conference Call. [Operator Instructions]

Now at this time, I would like to turn the call over to Mr. Matt Capuzzi, Senior Vice President of Investor Relations. Please go ahead, sir.

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

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

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

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

thank us and everyone, joining Good today. Thanks, Matt. for morning, you

strong and shareholders. $XXX million we've in over to X% rates our X%, comparable cash EBITDA our respectively. grew and growth both with ancillary adjusted and Year-to-date, increases streams. generated release of EPS million system royalty reported earnings and returned meaningful quarter this with our over of $XXX saw adjusted strong we've our fee and free you XX%, We in growth saw last international night, As our U.S. flow we

opened room last XX,XXX franchisee in to we the more improve over rooms domestically quarter, than front, rate. XX% the On retention development year and our continued openings

years, new like Pacific Spa Wyndham our Semiahmoo the Oceanfront in Collection. the by the projects in X sales XXX and Suites jobs. billion rooms our joins in XXth quarter more versus than last Importantly, development grow in quarter grew here net year-over-year our United & prior consecutive they fastest-growing America Spartanburg, we impressive deals investment X% that XXth year, economic development South Carolina, award-winning franchise team pipeline States development driven past currently in a with ECHO more record for rooms. Domestically, XX% additions by has brands, above the by our basis $X nearly over creating XXX,XXX and capital than Golf sequentially a which an did XX resort and county points room Northwest, opened signed our recruited the And year helped in totaling net first to trademark new in the which global the growth midscale X,XXX

versus Our attracting increased we into stay. have room infrastructure welcoming teams hotel, and sales the net who local sequentially up of Internationally, X-month have and by workers been lengths year. to been with X% checking prior

by adding year, Wyndham and on and Sea. the again, the our in new Aegean sequentially XX% of second and destinations stunning the Reward Cesme vacation Dolce Versailles and Hotel the Wyndham XX% Our did prior versus like important grew EMEA new Quinta Turkey La to members Turkey, the several United will by by at that Wyndham want with Spa the Dolce rooms along luxurious they room & over of France; shores in team, which net opened than Arab once quarter in more Emirates 'XX,

EMEA by pipeline current also XX% year-over-year RevPAR higher than development average represents our that portfolio. is X% Our now and over an grew

rooms by Caribbean, XX% Ramada which team prior to Panama and America across X fee Latin and net Our XX% region. brands X% an grew hotels resorts sequentially Mexico, PAR represent our to the versus year, premium the trademark and adding

Our development by Caribbean, increased portfolio. the across RevPAR Latin average America pipeline and higher current that than representing is X% XX% an our

beautiful net Wyndham Highlands XXst franchising new by rooms team are region, and direct Malaysia. And openings, Our newbuild net XXnd and Southeast year for sequentially markets XXth, with Pacific choosing in in including hotels, sequentially the entered China, some several new last with our Asia opportunities. XXX-room X% developers by both Microtel XX% and and X% basis and hotels Rim year, by Majestic increased which Genting rooms on versus XX% a like grew our conversion versus by prior luxurious which

the industry, have trends brands. you point chain many lodging in in majority performance basis year said, indicating vacation New growing PAR of up of service makes the RevPAR for across development especially current now system. RevPAR RevPAR about XXXX. agreements, Occupancy the with year, a XX% is the internationally looks grew of situations that across occasional was select which increase back year domestic projecting for XXXX to XXXX. RevPAR nature. scale many a was Latin America and strong QX in basis driven environment in it in accelerated strong a Middle both Spain, pipeline similar RevPAR improvement increased European with in QX to XXX and Greece, fee and an by were prior prior compared our to a peak XX%, to perspective from by the and double be service very the Historically, activity cycles, representing respectively, our that and country, growth grown the tailwind XX currency basis along from the for across franchise signing outlook, historically. International system confident for our awarding U.S. sequentially points nearly of of demand through believe, team before, this QX. U.S. ahead East, inquired constant segments. quarter, another Smith the nearly as behind bounce where we're RevPAR the month, start always latest downturn. Last year, service We've the to XXX at XX% prior Caribbean new strength a segments, and been X strong of in with RevPAR the the a XXX of remainder finished of lower China to points RevPAR pipeline and Turkey, summer hotels, year-over-year year importantly, current remains occupancy through was transitory when X% will X% direct U.S. has over XX since a and continent. reaffirmed has, is QX the over in select prior Travel points We EMEA the U.S. CAGR and which the it despite their what our Domestic improving X.X%, to X.X% season. That this XXXX increasing select by

ancillary upgrades corner guests, upselling check-in our upselling industry travel Our expensive are month, late for leverage labor personalized to process hotels more our the while to we're and bottom guest Wyndham by preselling best-in-class further early help elevated to brands check-in across to in models connected franchisees that guests of check-ins and our that advance support seamless overall engagement revenues into we front rooms additional enable foundation value service both the are Earlier amenities room our up for our AI-driven North new than guests X,XXX America and and making embracing and provide, from be substantial information guests the Wyndham views checkouts mobile in to and of mobile-centric deliver various other franchisees for and already hotels our curate this helping in desk to the snacks, our driving travelers. To better reducing experiences verify Franchisees arrive. ancillary satisfaction. Smart beverage room ever. guest higher hotels. Nearly agents, drive placed speeding before tools most chargebacks large owners lines franchisees effortlessly the Connect, personalized needs. protecting the to these food, platform, revenue increasing by language to one and experiences to enhance to is are increased rollout more announced everyday floors guest and

strategy, $X,XXX the and deliver and and Wyndham. In and revenue business AI-generated during messaging their Our new in we're creating and And repeat monetization seeing and pillars this pipeline the many we to that allowing results bringing of closing, on upscale more segments and quarter beginning offered monthly increased ease generated hotels speed businesses opportunity key via Suites upwards strong expansion, of on stay that communicate guests of proud manage the helping service increased ancillary extremely long-term meaningful, efficiently and resulting growth luxury early happier our fees hotels rate this including their matters including respond our franchisees in in checkout select in message franchisees more to growth, stays first system alone. our to make to ability franchisees opening infrastructure guests, guest our are year. hotels, of of for royalty is ECHO with the before, and technology late check-in experiences of capture, more typically development and with consequently, stays. We're after ancillary text extended our

we're public company a that year more sixth position in before. than than our enter other, stronger we a franchises As ever any as hotels

in the X which open substantial marketing, the Our highlights and the strength ability long and years, in confident value in the more ability we operating strength franchise our across term the in leadership both and of hotels differentiated than the of countries and term. our else the XX in growth world sales, past to technology to short operate. We're brands anyone create for Wyndham's our strategy

want who such call details great make I'll Resorts place Michele? on around & that, to dedicated now the our our work. And turn a the to we Michele always, more thank Wyndham for world team continue performance. with over members Hotels to financial As to

today begin Geoff, by everyone. sheet, with our and Thanks, remarks outlook. quarter detailed of our results. our good I'll followed second a I'll cash review flows review and morning, balance my then

better Fee be fees we and were fee-related adjusted $X the related global million a results domestic, revenues recovery. as where marketing $XXX our other and quarter, year-over-year, quarter of rates. highlighting as the RevPAR. million on decline reflecting we ancillary ongoing fees system $XXX of and impact. In base. This will our of and higher to revenues operations, quarter insurance generated as well expected fees, by fee a second expenses fee cost we understanding franchise million franchise international an growth me along results and neutralizes reflecting recent growth provide and Rewards we revenues, by outperform fund I with partially driven higher royalty continues is financial increased the fees first given royalties meaningfully and in transparency EBITDA. global harness increases the comparability management trend credit our revenues primarily These and streams. Royalties revenues year. of RevPAR second expenses by started, disciplined the exceeded marketing by as $XX as gains in impacted To that increased year, and of revenues second revenues Before our on everyone the as was our briefly RevPAR marketing basis, EBITDA in Wyndham global front grew streams exceeding let last well loyalty this our of quarter enhance and reflect million of the revenues marketing results to by remind in license offset compared million the increase saw get $X ancillary the comparable X% which fund basis, level. partnership a Adjusted X% the these environment The card power spend. In industry of other other fee-related of our and marketing from comparable timing the in increases

a our quarter. points EBITDA XXX to adjusted margin XX% improved basis result, this As

year-to-date interest the reflecting X% spend second a our share Second to effective quarter rate flow current trading from were and from comparable quarter, levels, million lower higher partially adjusted free $XX on million our well million. with in of the Development $XXX XX%. and our repurchase EPS by which as over quarter EBITDA a XX% adjusted highest from spend $XX million EBITDA the up rate, offset tax diluted was was our year-to-date adjusted as in conversion lodging $XX expense. Adjusted free $X.XX, a of was cash cash activity benefits second bringing basis, our is At yield advanced sector. flow growth

share cash at range. among business investment in market our stock to of $XXX ratio and/or We million best-in-class to be during continue second highlighted, million. the leverage secure our able XX% only to demand of the of year, to the this our expect deploy available from approximately closest in below half end repurchases midpoint of competitor. We are openings be which share second fee result, of the the C-Corps of global has be intrinsic in shares shareholders with net total back we our the through the to thrilled on we higher this returned far the segment. agreements, continue nearly significantly approximately through the increased or of our which million quarter, we for option X.Xx have to see quarter repurchase and returned a We level, in our quarter. Year-to-date, of shareholders, for have quarter. of been and for PAR repurchase is the At as $XXX our we compelling. second we see roughly $XXX capitalize million the lodging we're is brands million opportunity amount repurchased end markets of where $XX that up year, dividends. At nearly repurchases above this to first the as $XXX these price some through our X.X excess to million end to bought the the common capital our deem majority and we leverage X.Xx with stock this of and value, closed so to and which quarter was Geoff stock And well our which allocated more million year, of target even a shares long-term $XXX liquidity cap And we we XXXX XX%

loan we carries Term generated than the second upsizing. rate of the million. by XX matures was and approximately also upsizing quarter, is term successfully billion by $X.X on $X lower approximately the our in basis facility X/X plus points The XXXX was B and total The existing an new offset be the of This repriced million, $XXX which of debt Loan prior of our refinancing SOFR May B variable. interest X.XX%, interest interest quarter, the savings which will annual facility. of fixed incremental X/X At while end

Now outlook. turning to

year-over-year represented than a improved RevPAR more previously Geoff the as second global gradual While return sequentially, to anticipated. quarter trends, mentioned, growth

decline year essentially XXX $XXX from to RevPAR for our prior our of be midpoint outlook full X% of approximately and points basis and This $XXX net flat of for room now improvement a our growth, margin impact implies billion. roughly has million our changes million year-over-year. Consequently, spread savings the to or split which in no XXXX increase As $X.XX for B billion to at $X.XX from million to the revenues reflect EBITDA. There result, which due we're are to and Term outlook. We're interest remains between fee-related of which on in upsizing at adjusted expense our net and $XXX year-over-year net and a adjusted is our our updating other growth of income remains to X% outlook to EBITDA million Loan evenly loyalty EBITDA, $X.XX revenues, of the the to to $XXX to latter $X.XX billion adjusted reduction. revising outlook the at fees an is franchise down royalties billion, reservation no outlook outlook our marketing

offset free based assumes EPS share net however, expense activity, slight changes We decline incremental on and of no usual, X.Xx. There outlook. This which outlook leverage interest as conversion, approximately our to by shares, to associated to to or borrowing any be of repurchases no with in lower a diluted $X.XX repurchase our are, for our to quarter range adjusted diluted share additional expected share adjusted potential maintain XX.X still flow expectations account count income is to our activity projection $X.XX second million the at a are cash XX%. increasing is for $X.XX our adjusted by partially

$XX $XXX system, highly deals adjusted our high-value no expect advance our reduction, squarely approximately attracting our of on back are marketing for still cash-generative we increasing overspend. In in account shine. are higher continues target. $XX this we to million by our the to segments. There year, as PAR half RevPAR the success the track by in markets changes the remain to the the for planned, expenses RevPAR also million approximately model for with development fee continued However, expectations million million business of environment fund revenues $XX Despite will about we and spend and quarter, offset in expectation to which resilience fund half fund. will particularly the deliver EBITDA to our to closing, a softer year Despite nature per first outpace

value. With X% as continuing our to to these and of and RevPAR Our posted adjusted to deployment. ability royalty see count, industry, Operator? view we even net our to to questions. grow of XX% a that, for committed I rates potential adjusted an presentation we X% and significantly that take expected. In would we business performance outlook the than after domestic a including evening, room in propel X%, happy operate will we business XXXX, our manner capital your our are environment revenue streams of CAGR last the to our We ancillary you our growth softer through adjusted that initially reaffirmed CAGR Geoff in EPS mid-teens best-in-class a our levels EBITDA organic also and enhances EBITDA in to multiyear shareholder be

[Operator Instructions]

Greff today JPMorgan. first go Joe to We'll with

First rooms on growth. question is

just for the in the pipeline, answer -- why quarter given X% growth? continued to in is respect capital rooms no, for to existing the support, about developer increase and this with and increasing year-over-year trying a them of it? row development is new into net and if is pipeline openings? Or mean notes get And out that for of floor isn't advancement is growth deals? I the the in rooms that the pipelines Second and growth then

let advanced no, I'll about developer not notes. it's Joe. Michele And Thanks, floor. the talk

million out openings, lots by there deals pipeline has what of in guidance key growth and are money. on a We which is taken seeing saw the Michele which horizon, phenomenal the $XX and excited the up why execution is us We has quarter. the on

more with X think down receptive owners much sitting is now I your are questions behind uncertainty that calls, us. and last to first the us

Jared our Amit be and Development I Wilner I'm sitting David and Chief openings. X a country, Senior Presidents, development and us not start down with they'd are sure with Vice several let's Next across Meabon that with ago. But our have signed the week, deals or that not yet Officer, Tripathi, quarter prospects meetings X

up. domestic system. openings. board, year-over-year. into and Our second best was good script, We had really and in conversion XX% solid came growth the year, XX% the we've above those coming are to midscale QX and conversions on said the openings rooms had we solid, new X,XXX was And driven really quarter in rooms with in segments, openings openings international It across that XX,XXX which was XX,XXX openings, the the It up X% last strong of rooms by record as open pleased by. running we're were around

said, think front. I X% We've X% always not longer to X% floor. is term, the what's we're execution on happening why is the

being our We've teams those a world. proud around our big are transaction year-to-date sales leadership Joe. teams down, incredibly of about the and talked and volumes a We driver, so are franchise lot

still despite the construction up where was And XX% conversions of well. they below were And terms are for that by In They're of where same below we domestically, continuing new that, brands to executed back more were still last XXXX. But deals which amount last in year. all year. prototype about XX% are us, XX%. we they XX than about sell XX have internationally they're deals our year-to-date

pipeline rooms optimistic forward. But and deal what a So up [ we going of upon you'll countries, question. this touch very to room net was XX like XXX,XXX about the Michele, ] sequential growth looks are XXth consecutive record across quarter maybe growth. the We're

to. Happy Sure.

for we're system? investment system. higher free that Or pipeline in about, increase you the specifics come are and sharing business our in the represents in recently is flow these especially the is priority something seeing positively. fact increase forward and for to always it Joe, number is of presented million very markets for top think, view We've we of we an the pipeline as a themselves that came mentioned excited opportunities to brands, markets that RevPAR have demand in our said look it really the for first really cash deals is into that we're hotels I invest $XX deals? into incremental the and There

question relates, Great. Michele, RevPAR updated outlook. to And follow-up your then my

range. then And conservatism what's the bridge keeping, economy a you're half, growth prior that's second the U.S., of versus How yet maintaining cushion, China? quarter in you much the all fees? maybe, How incremental prior reduction specifically, And growth EBITDA can again, a ago? in me. for mid-scale EBITDA prior the ancillary the is Specifically, now more it generation of RevPAR for assumed the and then between specifically to and much this is RevPAR outlook,

sure. Yes,

of with unpack. first. now maybe economy from the So about seeing July section a to in to modest up. which points. In expecting X In another that be what performance. in RevPAR the is improvement, China, the flat we also question similar of mid-scale some last to coming getting infrastructure I'll That point would X expecting are up are and weeks consistent U.S., lot the X we inclusive with take we're trends is to ramp

Second toughest the was comp. quarter

what we all So are drivers here, which up half. I really EBITDA we meaningful there a points pretty the to reduction, similar on the our respect RevPAR in add in couple a improvement And saw QX. With maintaining to hundred say, of basis of amount. second rest see guide then the Joe, is would X to international, of there

type leveraging new the We've next-gen efficient, our third-party our First, commercial partners technology business side. solution. more organization. on is We're getting particularly just and integrated

in so we're our contributing that's places. then So EBITDA. revenue, And It's benefits in item. really the X is our more up also some line to non-RevPAR G&A this boosting seeing showing

margin So here. there's expansion real

discretionary been saw in budget. we've the RevPAR as investments those investment with growth, able to were our not expected. with materialize RevPAR match growth spend expected disciplined Next, when We and we our we we costs had initially reprioritize

few we're of And extra And getting boost then that, million. top an on from insurance a so that the recovery. helped

when So put it we all together...

[indiscernible] insurance recovery the second in half?

it's about million. Yes, Sure. $X

now next with David go We'll to Katz Jefferies.

of in then looking fees through this thinking appreciating and and context growing in of some room at Just the your which X if long-term the morning to to minute, room in you look X% growth are and degree and pages it's deck growing? But respect us the your And room, frankly, just degree business sort with fully you ancillary of labeled right, the of clear digest algorithm the understand a about fees drivers you or per drivers core to just it the an I sort per which those in CAGR. have us ancillary per think help adding the the are of would. business fees the growth. them help Can pretty the for business is as that

initiatives. up fee currently and to X% get year to of and Sure. a includes long-term model tracking basis, growth are in XXXX growth we is different full With ancillary our -- that a and number about X%, X% to about expecting on are fees, respect we projecting at in that

international a royalty U.S. improvement average. rate, point on in basis seen we've the On X the and

that continued side on of the we business. to see expecting so are improvement And

about Over long XXXX, should and in the points $XX we think to incremental it XX term, basis million an accumulate that EBITDA. generate would in

Right.

the is -- part what it rate just that right, we seems when right, acceleration to is fees RevPAR. we it's one on It than the so accelerate to you that next that think higher accelerating, faster going years X%, depend of right? business, actually core same assumption, Or the And So growth right? [ your also though core will ] ancillary at other? it the be to of XXXX. But is because averages CAGR, progress Is going as when this than similar, rate? about the of I'm fees, through few right? business the is, getting at as sort these the get XXXX, growing are to Obviously,

as Well, faster because have a do ramp fees definitely and impact. start initiatives ancillary to growing compound get different we larger the the they are plan through and

dynamic with royalty year. compound see every fees, right? They We also same of that kind

in top increase X of we were on we just year, increases, then as So building that.

that's And compounding. are growth So we some net then expecting also acceleration. room

there over the well be then... plan ancillary fees. increased in will core So business as the as growth And the in

Truist. next now go to Scholes of Patrick We

about Slide bit XX, in A more little questions on that talking the increases royalty rate.

center. it's be going think color, discussed that have that on on do of I more ever little and more to and very not Is Or new or much as really an bit A what's contract raising to something renewals you seems royalty rate? there. see little be you bit entering that interesting. brands? brands yourselves color front was above-average rates legacy such it royalty A Historically, contract ECHO by primarily rates combination driven now royalty on to more that. please, driving

and rate period planned our and royalty that our really fee and seeing The deals the we're seeing domestically world bringing reflects in sales for around franchise over the in expect still Sure. see today brands, the pipeline as and here great higher the we're work well. both development improvement teams, to

average rate region on slide and few As the deals the brand to and our the since quarters, to a that this seen we that royalty growth are for effort. is sure the testament seen we're signing goal really that accretive we've that XXXX is said we've make or quarter to to last growth the

to continue expect signed. being see should you deals to in So improvement new

Pizzella go with Bank. Deutsche We'll to next Steve now

go noted You've to value money. What incremental the target the you the stock to returns you of the key leverage? see and potential do towards see end from the high need in

something a within either us repurchase within given is that So does long decision, point, say. plan X.Xx M&A, above which some business. give shares is further trading. so the If Board a we've investment X.Xx investment been against a opportunity. where as for But the always get range ] said at the to in the or really absent a target, the amount we're comfortable would compelling any I back this invest looking were compelling of we is the XX to a And as good going stock really to of [ we XX sizable X.Xx macro at opportunity, that end months. Certainly, year, then are it's backdrop, had this capital leverage leverage we see targeting we to

And you then we What's driving how think improvement to high as continue you rates, has the historicals. And now? the been Okay. that were retention right can that in do nice to get? compared note pretty which

and we points always way look certainly is and internationally. basis to it, portfolio, to way. last XX think when we're that get as said spun. our go manage our were had system movement globally. at XX-ish moved continue we is we've has goal XX%, Steve, we it the XX%, which can We We grow We Yes. we moving and I improved that to number our retention some quality at a longer-term to up. On XX.X%. basis, that XX-month And good

at them direct swap both can exciting Xx license domestically lower coming successfully we rooms progress with to about and in lower license is the countries replace ability think what's that really And continue to rooms the those with franchise royalties master international and the I make in fee. are growth internationally. out valuation

to higher. we So to focus We're our going that, it we're think on could continue continue with go and to happy progress.

now We'll go Brandt of next to Barclays. Montour

maybe and comment comments put Michele, I really on you second your -- thought helpful on U.S. just point implying I finer outlook on the just to growth, what back half you're guidance Jeff, RevPAR Michele could want it for circle if gave. was a or you and the

some implied are qualitative there there, at point put in of on consumer U.S. you any baking the a just maybe is sort it's Or all? tough rebound at behavior the there? could can get assumptions if think But year much I us really there. with our for of a -- basis because on comps X-year own We you in easier. conservatism terms of -- looking make you this kind do

expecting seeing expecting of top July. spend. what improvement are point are ramping And that then infrastructure We the we're occupancy the now in reflect in another of consistent some to we on U.S., continued with

U.S., up from And So be first expected expected in really that occupancy by expectations. our half think, is is be second is the improvement to half, the driven to guide X%. I the and

helpful. if really maybe they're That's of incremental on directly curious the at sort pipeline. any stay looking any just me an might the a And with answer. But necessarily it's is seeing just Or that hesitation a not not franchisee follow-up brands. since signing It's some peers quarters competitive owners you're the few be your out then not extended now rolled with, you're -- those seeing you'll just pressure larger ECHO competing different And tell table which and of developers are I'm brands? at there? been

are of not looking are -- new economy, extended product, an out in not today for. competition what developers We construction there's which in these that stay terms there much for this is

Suites Frankfort, and markets We significant airport ECHO Kentucky. Louisville, Downtown; Kentucky; progress and for our signings have Clarksville, new both executed this Indiana; Lexington, quarter, at the like and

not were Spartanburg that built will So South the first our pick developers council with product. those from mid-scale breaking see back only very Most up. we upper signing in of soon happy us, ] we And the economy, we very and ground products, And be [ Carolina. who thrilled or finished had we were who've they the of hundreds the have in in competitive beginning we either ground. They're And IP, mid-scale, to absolutely with broken of had extended-stay new looks with is were opened entire very, attendance The that the looks back are attendance. this development better prospective something first reported prototype, as prototype. page developers developers that than feel happened. the ECHO not rarely the commentary build, coming like product. only It was they it but from new finished they

rooms our now So of development our is remains in community pipeline, growth it there was up. and sense the commitment and and brand, a over XX,XXX confidence renewed among fastest-growing optimism with picking and

with Asad now Bank go to next of We'll Dany America.

side, the are I is insight to what as still have there like domestically there's of of level, country if another? not just as of can we how differently, Why a the we're seen up, super performance domestic but start Or on occupancy. any on is direction or what's you've points -- that behaving there front? you behaviorally just some showing outsized Michele, actually are kind in to pockets that people want one lot that on, ground insight qualitative give us the any and Jeff moderating, on high quantified RevPAR, going you've on --

Dany. Thanks,

seeing are teams demand Our improving.

growth, positive the up XXX seeing are noted, trends. we points quarter from first basis the to basis XX as second. improved points We RevPAR in

continue strong still continued can pointing that on booking continued our know in gain Pricing in our we domestic power the in our Look, in we're teams of strong. share with to ground States. see market the brands here to infrastructure with that strength United confident accelerate the gains pace. pickup increased and Our recovery share is midweek segments

up was XX% quarter to XX%. Second

up but just which the year, Michele domestic XXXX where for X% versus first in was improved from it second it the 'XX also is prior noted, important. As quarter. since quarter was X%, the occupancy was versus time up Domestic of first occupancy

is points Michele I industry So first ever in and up brands if need few first economy the very that the the the XX as the and in year. next will basis quarter, was COVID, the week, has half. the you next over cycle XX down to in know growth noted, were the that of was in to occupancy seen it peak about we the from was second down X% We XX% think in continued years industry only back to industry in demand that 'XX remember our it demand recover all quarter. And think and come that longest-running with saw projecting that mid-scale, it, we continue the growth, and being back last the

XXX grown as we X noted to a cycles, in we has points will basis, back it's domestic or RevPAR growth economy lodging materialize. in on eventually basis think RevPAR and service of that think And the select last 'XX. to I CAGR mid-scale XXX X% the script,

It's important checking points the consumer end it basis all into terms to not of up at last seeing we our In June. now to leisure any travel was of indicators improve. XXX leading continue from that continues sentiment at, where look of who's hotels. difference our in We're

both are more guests and they employed back middle-income than still had on wages Our savings higher in XXXX.

and of states Our to Texas, was booking to continue and windows did to some like We're other West that Dakota, Ohio, the destination we and year, last Colorado, question many saw which a year. And now in we're where Virginia seeing back we and normalization see important in to these longer country, the recover second RevPAR. But are which continues of back come or for to in with it states double-digit like peaks. to like half. terms mid-single or North continue beach were in And down lengths markets part Florida we natural were across up. seeing to up recover digits expect of growth they up to gas in the first us, back gas their where demand in would continue Mexico those your those stay. in Louisiana, at New increase X% into crews markets. And mountain markets California To production of growth markets little bit. all were last and saw oil They're back

So about feeling the we're good second half.

you how and scoreboard. putting ] you're to long growth what up seeing of X% rooms takes to full property we're growth fee to us has how it follow-up, That's X% for and accelerated. to that typically think does take pipeline stabilize? about for [ how that great. thinking nicely about today translate a our trying the just think a We're fee about just to X% to rooms And for X% my long kind But growth help the can it on

property our Yes. and the during in full year Once opens months. the system, first during it's X really typically ramping the first

come can I would within expect full the there to So for when us. see system, a production they a royalty into be think you year,

Grambling go We'll Stephen Stanley. of Morgan next now to

question as trends. Maybe follow-up a to on RevPAR Dany's

You taking there And more seeing most the within premium Is share like brands gains. to quantify any any leading there typically there share? specifically index gains? that the Are on are development RevPAR these actions are are you maybe brands? that mentioned ones development way those going is meaning

the now we in There over. in it our basis in It's La XXX is are And in up Super from is, what's developers us well occupancy was and points it's XXX are which stronger XXXX. like nearly But competitors basis where Days up. for X, disclosure during was quarter that all Rewards brands do to our pick they're driving April our program points share are believe share April it Wyndham we drive that mind. The who is well the that million your is these franchise up recognizable And of brands performed a and good contracting large especially publish over-indexing. well X.X is, brands. To important share. we that Days domestic very infrastructure and it's their the in looking Quinta, of to maintained, brands are very that that and could companies important every developers Inn, those La our Stephen, documents. as midweek. that, brand fair Suites markets continue market downturn gain, opportunities, perform very clean for Hawthorne to transaction are Microtel why looking where one the is, continue those for conversion performing is Inn are that workers globally, point, well Quinta

taking operating then time a we back to a of little maybe those RevPAR will and relative expectations, there the maybe there? you should bit that things think And Or reaccelerates that is some some come longer put clarification expenses. Great. if lead Are projects off were quickly? one those I on costs RevPAR anticipate Michele, mentioned out slowed.

I investment really spend. the think -- discretion, discipline, have we it we have the our and it reprioritized -- at respect really with is what cost of to

just growth, do to So determine is it fits pillars strategic that in. again at we look we time, this at the point not if in and would and it need long-term that's our what of something invest or whether

are eliminating So a we small it's can you of line in hard would item. at no projects to bunch go that call them point bullet by this silver There's in There's type line exploratory of time. say. We just there.

guess is there's there it. Got the I takeaway flexibility.

go with now Baird. We'll to next Michael Bellisario

spending thing on seeing year? cash-on-cash the key First $XXX the and are And during of of be How hotels to much for return? development? you wanted ECHO opening pre money, you're the this right just you'd those for funding Michele, some or are immediate key million an when one I then up those Or clarify money. is away dollars

opening. funded at million year, about Yes, key is generally money ECHO for $XX this and

So immediate to improvements would we see royalty P&L. the

picture just bigger then, segment. it. for And on a kind broadly Got of economy question, you, Geoff, the

of Maybe yours there, the how that room of U.S. much ton how is introductions, much growth more rooms older, thoughts count of your Over of would long of economy has to included, -- due brand is new not downward. product your economy trended run, domestically, on feel there broadly? longer-term becoming just more that is the the and economy chain your kind appreciate trajectory obsolete? sort Just thoughts a of

Thanks, Sure. Mike.

of Days experienced the in uses Stephen cash-on-cash we that those legacy in X% last since the economy of out if of it's we before began I X highest hotels the terms I it's downturn system, returns. X% about, in older of of downtown public, A them out over the years, went think you legacy repurposed and down economy between was at and are as look, move at of in the look that few rate. of older Inn areas. But economy of the the again, being brands XXXX those the those urban asking more latter have for hotels and COVID. to coming many were because statement lot point think And Super supply other you of how add that that just well COVID really performed

over of in the best space. for terms we quarter running were second economy retention additions if XX% are up rates and of the XX%, industry are X%, now in look the about right at that pushing you in gross class Our really

opportunities economy rate. are that We higher XX economy So pleased us present know basis. up we're be volumes will economy we're transaction XX-month points It's to retention pleased very that experiencing rate that return, our there as and going those a add last to for basis continues themselves. the that improve. grow on We're to

the a isn't is the trend. I X% a projected mentioned, over new for today, or to to portion many grow per years. year extended limited supply segment Geoff has And But is growing add the new would that. just -- supply grown been had that next surprise with course, focused This mid-scale X% our rooms growth than our that's segment of several has years, strategy that in And the economy segment for then, above pipeline. has the focused where more XX,XXX and and with we're portfolio on year-over-year.

next go HSBC. Jensen at Meredith We'll now to

in I bit And presentation you fit the know SMEs. wondering managed of solutions. attract alternative might know some companies with that. flagged distinguish more how to might and payment was might I about little a speak I the in a Wyndham sort Wyndham the lot what for the of Business have Wyndham hoping was also sector Connect for Portal. business travel programs added and I

help the and we where together longer the you me go could if in sort and put see term? near might pieces of this just So

their with card, where field combined Rewards Business, of then. your applications, It's global hands to was we asked our sales the out that big for sales -- it important field travel said on owning an a -- tool to seen a selling. last referenced. talking when since sales, it. for to Business SMEs in those those in when was it's with that contact we it driver those especially third Thanks leverage [ last excited Wyndham had now it's right the It's planners business. big to increase Wyndham on really doubled are sellers the needing you we interest those in time, our book last go reported company's have Wyndham ahead what go ] as allowing we pace one-stop are or about across which our to teams that program accounts out, to allowing credit and as to previous solution, they're that account, their you manage our tools, has about hotel after without I who there. And I quarter's XX% contracting Wyndham for and of call, parties America was really new instantly mean they weekly which our allowing RFP them very sort before them Meredith. Sure. to launched has a we're have Business, of needs, help tools know call with April,

So our teams are excited about it.

that early want that up. given in fee. Connect. was before $XX, the in money mentioned we're and of that tell to that served I ECHO that XX:XX just I'll a was extra was all $XX that town, check-in. the into they about to $XX, into And in were no-brainer in it that coming bought coming all upsell pocket. Spartanburg hotel, anybody opening developers Do checked You us Suites Wyndham in you it that case, were think developer's It check-in, the $XX, early checking we

So out go be tools we're teams rolling we going continue like after to that to our as as those. --

spending allocated, of Now around are multiple XX,XXX have X,XXX that where the projects across country that the we are markets. in getting markets the hotels infrastructure those

color auto on inclusive be? and and more wondering and of focus and sector. follow-up as Alltra sort you continue members of points quick continue the I bit roll One might you strategy registry you Rewards trademark in can was could little burn brand a the if there, Super. between terms as sort to of the of provide grow the out to Wyndham those some what

Sure.

with years that top things #X row in the USA Wyndham for Rewards program of a loyalty one U.S. think X -- make I now program TODAY's loyalty

resorts but reports, X,XXX opportunity. with have the aspirational are what over now. hotels free opportunities looking is earn for earn program partnerships opportunity members and as only through rental and the News fastest best heralded burn right we night. vacation it not mean At really that a our because that and you are and opportunities hotels, redemption to I XX,XXX like -- refer check-in we World to vacation and track --

working few PLAYA, by Wyndham the Dominican brand. We join Alltra Republic will and Bridgetown, opened brand with another a that an new grow it's PLAYA the years and available Cancun, on across with that with we the organic ago stages Central to along hotels a ability space that Cana, and the of which executions is over are various Caribbean, we all-inclusive referenced Mexico Wyndham, in You in Freeport, be launched PLAYA, be with resorts a Bay. We've to America. And recently Alltra discussion burn continue -- year had dozen to this will and value earn, Alltra managed which members, members, our great with a of your X% mind what PLAYA, top keeps of Reward those Montego since later question for XXX Rewards in by will year-on-year XX% Punta hotel which for Wyndham XXXX. Wyndham million is up are which which which for resort

it have questions further Ballotti, we appears no Mr. this morning. And

I'll for to comments. any So back turn you closing things

to the Thanks, PGA final Matt tournament I for ahead. before of the season for Championship, Hotels begins today. in coverage hopefully Wyndham all talking great questions summer, Resorts. of the meantime, the Okay. over the Wyndham to & and and X Have channel golf joining the look thank to in all regular you I Bo, again into your would forward and many on your over continues you weekend Michele, And a in tune thanks interest and of to and the [indiscernible] remind Tour's like where in you months and seeing on everyone, us and the playoffs August CBS. weeks

& today's Ms. Goodbye. Ballotti. Earnings day. disconnect your Conference. time, and Ladies Second a Quarter Resorts gentlemen, and Thank Hotels Please at line have this conclude this Wyndham you, wonderful does again,