Wyndham Hotels & Resorts (WH) 24 Oct 242024 Q3 Earnings call transcript

Welcome to the Wyndham Hotels & Resorts Third Quarter 2024 Earnings Conference Call. [Operator Instructions].

I would now like to turn the call over to Matt Capuzzi, Senior Vice President of Investor Relations. Please go ahead.

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

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

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

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

evening, and investor may continue posted last channels We supplemental on information In an provide our website. supplemental website social future. our presentation information our in media Relations to addition, we on on Investor the containing

investors website social channels releases, and addition monitor we media any press to the filings to calls our our SEC, with or webcast. Accordingly, in submitted and encourage conference our public

I turn the will that, With call over Geoff. to

of earnings our XX%, adjusted team's all ago against we us and illustrates with strong respectively. with yet QX X execution year today. growth another we morning, and growth joining success EBITDA Last Thanks, this for Good of in thanks comparable night, you EPS Matt. our and everyone, strategy, reported X% of quarter week. outlined long-term which

million XX,XXX sustained we ancillary both system rates, of X%. our adjusted and shareholders. flow, grew rooms we've the total to strong million momentum rooms, cash $XXX than bringing we've returned development more ago. $XXX We fee XX% our We a compared significantly U.S. year-to-date and over generated to royalty opening We XX,XXX our over Year-to-date, grew free our to year on increased globally, our international up nearly front, streams. and

We rooms. an the also year-over-year. by signed more pipeline, year, nearly improved sales Notably, the impressive deals States our our global retention XXth basis than in teams XX contributing XX% development points here they United increased global did consecutive in our of rate the year-over-year X% quarter in to quarter record which to XXX,XXX last growth franchise a franchisee

like by X% Churchill with net near room Domestically, brands, rooms driven America sequentially Bloomington Garden Wyndham and adjacent in to Mall growth the above year-over-year, new Derby. and the conversions net a of home East solid the and Kentucky our Louisville Wyndham midscale grew in the the Minnesota Downs, of

technology such quarter, Texas, in fast-growing America presence expansion new North Center. investments the we Frito-Lay's and Wells X,XXX headquarters. The also Fargo second jobs the new Hotel located a This that's construction economic Plano's which and of Plano, of to as growing create attracted new is Suites expected Toyota opened over ECHO our corporate hub Medical campus, Children's

and this North hotels Suites dozen South contracts Huntsville, construction markets Suites quarter Raleigh, We Alabama, the under ECHO awarded another in country. across Greensboro a ECHO Myrtle we XX And and Carolina, over have new like currently Carolina. Beach,

set last first in just pro levels XX% over occupancy welcome telling ahead are and Our its ECHO Spartanburg competitive guests expectations hotels The their to Suites after quarter opening, formas. ECHO owners us while stabilized Suites ADR. reached these are the performing of outperforming that weeks property, of

day one. to stay, indicator occupancy for generate average a strong with promising from our product occupancy more Extended this finished length with XX-night of at was key September in along which demand metric a of it's Even clear this ability rate, XX% that Stay segment, a corporate-negotiated a business the

by Internationally, X% prior sequentially grew year. by net we X% rooms versus and

EMEA team by Resort Days Penedès new Wyndham airport. Spain's destinations new Dolce Our Istanbul's near Wine the renowned stunning several Wyndham, net Arnavutkoy international by by the adding Barcelona in Inn and like main XX%, Country rooms grew outside of

team introduce and the to with we new next have this a to several Microtel XXXX, EMEA India, over hotels net in represents eighth plans multi-unit double-digit room XX signed brand also deal years. the India our brand Our Wyndham by Microtel XX to growth currently open hotels where expect

fee the average EMEA XX% current and Our represents grew development above portfolio. now pipeline year-over-year PAR an XX%

team Latin rooms an higher current development net now by by with America added its quarter average XX% several XX% new increased the XX% fee our PAR its grew similar It team Our pipeline nearly destinations. and portfolio. EMEA in to third than

the members Mazatlan Reward visit, including Garden Coast. located Wyndham construction, Marina spectacular on will want Mexico's Wyndham to new Pacific hotel Our

Southeast Samsung Hotel, to Rim net resort a Wyndham the headquarters collection like in Hwaseong-si, five-star and with trademark Dor La region the Our of Asia in by new adjacent rooms entering and and Indonesia several tourism Korea. grew upscale the hub Pacific additions luxury Vie XX%, markets Hyundai's Batam South Panbil

fee to franchise bringing on openings, X% at Hainan XX%, as nearly Tian system. direct direct across a the pipeline new and as increasing island. China hotels XX% district China China, our than region's Wohu in with activity system well Development another direct In franchising awarded franchise West with XX agreements that current including of nestled PAR booming Mountain, Wyndham of a XXX our business higher quarter, China's remained at the this robust, new La new grew the La foot Quinta Quinta

of expected Overall, they these luxury in largest Malaysia, approximately in came to hotel Colorado Romania importantly, country's Transylvania here is that and renovated And previously, expanded Wyndham X XX% debut Garden the newly heart a Collection presence higher in current Mining historic the additions to Hotel and brand the first Exchange with we the the the Wyndham-branded of Registry with average the hotel collective the fee be across system. where States United brand Cluj, existed lifestyle the PAR second adding system in the globe, including city. QX Springs, our new brands hadn't the into first than markets

quarter RevPAR while normalize, share basis States, economy of first XXX In points of XX the compared half XX RevPAR. quarter. market to this up to this year, from points declined basis United gaining year, basis continues RevPAR this points prior turning the to Now

gas infrastructure to we're Mexico. points states Importantly, year-over-year infrastructure-related basis seeing California, date, performance and about outpaced weekends and positive growth our momentum in higher point growing by New of in oil Texas, an New business. RevPAR the improvement This with funding that significant received Illinois sustained driven includes Weekday XXX York, X have and X markets, across demand.

our these positioned. an select when sales chain demand And the additional during with well the efforts markets points by our service properties key basis coupled are share weekday Wyndham XXX in of Our team quarter. scales captured across

XX% We're throughout by and ADR at the the we're be quarter pricing pricing which Domestic real continue these pre-pandemic years also power. that still to maintain held ahead. can encouraged encouraged suggesting in trails inflation steady flexed results, levels, our that brands above to continue growth,

momentum XXXX. believe continue will the infrastructure third We fourth we favorable we quarter exit ahead domestic the positive more to strength quarter, coupled RevPAR as comparisons saw provide the with in in

quarter. Turkey when accelerated over to increased driven and America a prior and region's EMEA X% grew of Caribbean well were XX% Spain Argentina, Greece, in Mexico QX and X% by across strength compared which result as Latin hyperinflationary Latin Brazil, both as currency and America growth. X,XXX points impact as accounted for RevPAR basis to the grew EMEA year-over-year, constant versus RevPAR from RevPAR the points strong XXXX. in Internationally, and year XX this the in QX strength especially of

out year, around towards rates at varying tailwind stands at close XXXX. we XX% look was recover and in the we to a continuing significant XXXX globe, where while and it behind Occupancy now remains as this

Wyndham the the year-to-date of increase our is strategy process all booking Business co-branded has traction, this our a our growth year, of card gained double-digit in initiative Earlier travel. of from of we accounts. key drivers One aimed credit streamlining at driving business infrastructure-related corporate for This expansion products. significant the business direct suite types fee of contracted ancillary launched

to Earner Rewards of in a has the at do. commitment, everything very quarter. is owner-first Card year-over-year of We're forefront lift and increase Business part this also contributing seen accounts Wyndham's technology ancillary growth a we In our volumes XX% which our leveraging addition, XX% in as purchase Wyndham new fee

made Our Adobe Amazon, recently launched by guest our partners an was technology is Canary. possible and best-in-class like stack engagement with leading that platform, initiative Wyndham Oracle Connect Sabre, Ideas Salesforce, and

engagement Our before experiences late in. enables platform scores. Franchisees bottom while boost guest upselling the they're staff automatically digitally upgrades check-ins amenities and and checks guest intervention various improving now without room are preselling interim also checkouts, and franchisees' technology and early lines online guest to personalized

XX% we're about labor-intensive than this in continue guest-facing North as increasing the Wyndham in drive More generating to monthly members more incremental simplifying of of guests over Moreover, $X,XXX properties to reducing bottom service furiously of and at Wyndham million of adopted million offloading Connect at from with X is hotels process than in over XXX we're while them satisfaction. America revenue. tools AI platform those quarter this quarter have helping franchisees allowing their same end. focus lines, guest to to their and costs, we're services, our we implement our tasks X,XXX new on and time, an globally enrolling guest the members Rewards, increase

thrilled dedication want through our their and take to places Newsweek and moment us testament record of list members And at a of This that it we've a world. the recognize the to steadfast been a success spot hard our team's commitment around we support. Before to consistently do. incredible team fourth our The we're commitment in owner-first achievement levels America's very Michele and owners of year takes Workplaces a the top engagement the center is that row, work the owner in financials, Most we named for everything philosophy operating the our XX. reflects Loved earning that our to is

robust to period rate and this consistent sustained growing infrastructure our continued growth closing, including our In early on long-term ability of of results a the key growth ancillary algorithm, royalty quarter's of capture. momentum, innings very execute fee underscore expansion the development pillars

Our proposition our and for strategy come. stronger significant shareholders, ever, teams years create powered is around value than our for the full our globe world-class our value and will many franchisees have members guests, that to team conviction by our our we

the over turn now Michele? call I'll that, to with Michele. And

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

me Before marketing get impacted that fund comparability the let timing spend. started, we briefly is results of by the our financial everyone of remind our

a by by fund $XX expenses revenues a exceeding the better to impact. the last comparable third understanding of $XX the I our quarter revenues on ongoing million as will this basis, results marketing provide year. the million be quarter transparency which In of operations, fund results of of highlighting exceeded year, neutralizes marketing To expected enhance in and compared expenses third our

In in from rates of our of by growth higher franchisee the revenues. fees. revenues and increased fees absent September of driven our Prior quarter, driven $XXX other adjusted PAR our and and X% higher international X% system royalties growth, in conducted and million pass-through a included fee-related and reflects of $XX global strategy revenues franchise royalties increase fee increase and X% other we royalty $XXX our which, growth period million other third expansion franchise million generated fee-related global other The in and in fees fee-related XXXX, revenues and and EBITDA. by franchise global ancillary domestic, conference revenues

by Our from meaningfully outperformed these was the first industry increased growth credit where partnership card higher primarily This year driven ancillary half fee RevPAR to as continues levels. as of and fees. well streams revenue trend fees growth license this

opportunities momentum Looking have fee streams. on that on exciting enhance we build horizon these will ahead, and further new the ancillary our

royalty primarily higher by EBITDA grew as franchise ancillary increased and operational revenues, fees and improvement comparable which largely well quarter. on as basis, was X% Adjusted a expansion, reflecting driven margin this our

These activity. our offset on as up reflecting adjusted from growth were Third share by benefit quarter was diluted $X.XX, comparable XX% as basis, a adjusted well benefits our EBITDA expense. partially higher interest the repurchase EPS

flow third $XXX conversion in cash million rate from free $XX and was EBITDA year-to-date, adjusted of with Adjusted million XX%. a quarter

to yield cash adjusted flow lead over At We the XX% continue of adjusted cash flow to lodging levels, current trading EBITDA. at to free our approximately expect full year X% of free adjusted continues sector. our convert

strategy allocation capital unchanged. remains Our

with Our in disciplined first to growth activity. balancing preference opportunities business, invest the is organic M&A

growth are through While are focused equally pursuing as to growth organic committed from remain accretive we on well additive scales underrepresented in development driving earnings both to an we net transactions perspective, portfolio, as and chain that investments. our room

To that quarter, to end, further is investment as our third year-to-date strong in increased spend $XX million. portfolio. higher-value our attracting demand properties, million reaching for bringing our with development This spend advance brands mentioned, the remains strengthening Geoff $XX

our C-corps target among well and our during XX% of ratio remains million to third million. million returned through our common million as closest $XXX range. the $XX continues in lodging be million shares at of third with to X.Xx of our the best-in-class stock our total returned expected $XXX we shareholders XXXX market of to we repurchases share of the cap Year-to-date, We dividends. end stock X.X quarter, closed which of From $XX approximately quarter quarter above competitor. and shareholders, leverage liquidity, million We $XXX for through the our net and midpoint have the of repurchased

quarter. with this year either invested net to or to of excess support the expire capacity rate leverage rate executing took business opportunistically shareholders growth in $XXX future leverage level X-year or facility. the we September, swaps swap XXXX. in we capital interest successfully finish this In fixed interest continue B with As These and agreements a highlighted, Term we on in environment at to to expect fourth be X.X% existing the any Loan of carry our advantage to return of rate previously million by

carries we of and portion result at of expense continued execute certainty an around at our rate affords interest the of this ended to fixed cuts to the should variable. us our coming transaction, third XX% benefit attractive The incremental very rate while providing blended a approximately rate X.X%, fixed capture of a quarter with XX% of our As debt total the a remaining XX% majority the rate a the quarters. over opportunity Fed further debt

to any XX.X of to by of interest other no year additional no as the leverage based incremental are for diluted quarter lower outlook. increasing X.Xx. our EPS outlook. share $X.XX account our to range million changes or assumes borrowing remainder projection outlook our to Finally, is There $X.XX of share shares, activity to repurchase on full potential count We're a a adjusted our $X.XX This with repurchases third associated turning to usual, diluted and and our share maintain at activity. expense

this in modest We dynamic. declined that X% select the outlook X% domestic service in decline With starting more comparisons RevPAR are space, expecting fourth the XXXX which Wyndham's stronger our concentration decrease recall gradually year-end. favorable in quarter, and a second in the reflects then you'll a with RevPAR quarter, deepened to by

this support effect our We the mentioned fourth Geoff though lap And even coupled which infrastructure-related performance business. expect quarter, with the trends month-to-date recent doesn't positive the to here. October shift year-over-year trending in and year-over-year weeks of occur until through better should when in is easier this first X% only the from XX the up last days U.S. get comps RevPAR X especially

RevPAR expanding remain fee sustainable capitalize royalty growth ability and our best closing, expansion and capital from In We priorities, system our confident to quarter results deliver the create to move pipeline rates returns in allocation. a to particularly we and opportunities out we opportunities and about the as shoots, into look the for With momentum meaningful excited building robust XXXX. forward this green infrastructure to year shareholders. on our close side, the on we strategic our disciplined strong value investment as third across execution steady on reflect are ancillary and ahead

to With that, take would be your I Geoff happy and questions. Operator?

first will Joe from with Instructions] question JPMorgan. [Operator Our Greff come

you brand to be a end that ECHO next think, from perspective, would seen composition we've stronger rate confident think growth then this up growth last year, a how And Geoff, is thinking could year's doing for next exceed the I this what net year. than How than you're next and just composition year. question How geography in different year? years? when you of are a growth couple would rooms obviously, want ask next you the I net what about about rooms about room year's

and Joe. believe question, at We're most most room happening industry, countries. metric mean driving to been net in franchise pipeline selling than net And forward. the what's how been the in XX seeing sales I year, just, franchisees in talented driven. When growth we in I for -- out into again, the the have will our we about anyone room into we're experienced directly next team the terms look longer confident us growth that translate pipeline at pipeline coming they've execution. record of what's terms for there our a has Thanks and been record over we where these is that else look the think to very of breakdown important is

hotel quarter. which where Stay XXX up got and basis back is were That's this XX% globally, the above in of which pipeline So record a or of points we've contracts rooms, we And XXX Extended XXX,XXX midscale awarded versus pre-COVID. the segments.

seeing In we're up deals strong domestically, XX%. quarter, really this growth, terms of XX executed

construction new brands prototype very are well. very, selling Our

basis pipeline We're new up La coming of and X,XXX what seeing awarded an seeing out We of the be points to the years. Our we'll quarter. globally. many had terms at Quintas It is all-time XXX coming in high. up ground nearly the construction hotels new in was in growth

up pipeline year-on-year. for La Our Quinta is X%

Our selling well. dual-brands very are

pipeline up. Our is Hawthorne Suites

of be is us. They're And getting Garden like course, Suites. new started. going brands next. of new just prototype Those Our strong and into been ECHO going this very remainder throughout up. us Conversions strong for year hotels Wyndham have very are to for the

conversion pipeline was up Our XX%.

be all we algorithm continue we signed drive long-term Hospitality, the India, net week upwards, -- about great at improvements deals we X% feel need in we're progress basis, regions across single-digit this And very, really and XX around we're to high like retention the room do NILE that confident that internationally, on existing to rate is who a XXX growth great growth. came developers X% for And world the the with new ahead. quarter, Microtels very in look net room to believe continued we making, this to growth in with global making could all year

versus then, in is the quarter? is X%, from what basis RevPAR growth noting midscale Michele, up maybe to specifically the Smith that And the get Travel suggest, your it's and being RevPAR in for fourth would XX the about like which month-to-date points And embedded which performance XX the looks comments great. easier the data U.S. do U.S. economy comparisons here, what

-- guess by declined X down U.S., would I the in And would during year it I quarter, start Sure. third last our I X%. the RevPAR quarter. saying the in then point fourth was

compared concentration down So to which, due which That's heavier last in a year swing, business much our fourth from to down a for we bit this moved X%. quarter the in fourth points X does This the unique to a by quarter. X% comparison year XXX-basis is the to our down third point create only easier the down was X economy, in way, to quarter.

here some swings for and necessarily the us peers. for large of not other really So

That is built guide. now year right the for case base our is predominantly full what into

the it outlook in and leisure In in year. the this infrastructure We calendar addition corporate increased leisure have those again, over extra we that the business demand the And X quarter contrast particularly, calendar in tighter in a holiday as quarter. built it to the expected between group a should year. -- momentum on and we travel fourth bit obviously half quarter, outlook the the have windows days period a is always have reflected I'd where of are from in Christmas more travel reliant drive -- perspective, third which fourth well, holiday there into to say the we for back favorable the saw saw

the states. have moved not There hurricanes. only potential impacted no are the we occupancy reflected much What's of the up October, and material September. impacted the with most larger week hurricane, upside benefits in impact But third impacts see from the as given yet it seen in outlook, we we're quarter seeing the as recent last into over the XX% we was in

basis probably you and basis it's a point there of depending the remember, now, already all quarter potential But global the quarter out which, points XX-basis relief impact, the that our on we the on ongoing. benefit a at RevPAR translates as level. fourth points XX when is more about XX for Right to basis wait full efforts, fourth know, duration are year

it's be the -- additive, be be So it going outlook materially but -- would to what to implies. it's be it's what's than to not different -- going going currently current

Stephen come next Grambling Our Stanley. question with Morgan will from

be So mentioned love back to to XXXX net EBITDA. the X have might Slide the but buckets that running consider on behind room trend X% sounds a number? RevPAR to you're where scorecard factors of X% there's other march for other like this you the get confidence know X% some on in range, of would impact walk you I deck, feel on any you that X% XXXX building where ahead line the that you growth of to may that to XXXX for that to

loaded that's Gosh, question. a

saying we're our Page X, for us by system confident for in on continued early guidance it's respect me the assumptions to and with giving XXXX. retention growth particularly still specific to in RevPAR, improvement. driver out process be budgeting start Let very

expect exit quarter, we that just point positive gets about momentum to going given the and discussed. I February call we're third the see to the increase we year and economy. to in see that, starting And as have continue but it's more for for out quarter, fourth in capture with when happen the spend infrastructure, just do to quarter the wait to inflection that think You'll we going the the to continue to fourth into

to at point our on X%, wanted about What we're have a where front. lot plan in great we're that be happening year-to-date, we this of up really revenue things ancillary excited exactly opportunities, we the is

our we feel continue in to deliver to confident growth rate. so ability that And highly

to We perspective, all to everything. favor, to it realization, reaffirmed bring of have initiatives and in long-term way, this which, this not be need from a X. able plenty And a of planned to we 'XX but by guidance work to just Page not So X-year the a 'XX. of 'XX, bunch need things hit. was We plan, on capturing our

Awesome. maybe sales then was team of unique ramp the unrelated demand of development there drivers And ECHO team Project here for investments the things follow-up. from like for there that needed segment? Are a any a bit one to or and/or front-loading

Yes.

We did..

Go go ahead. No, ahead, Michele.

earmark and 'XX, are did get of and properties. started operating, We in teams million we're which place, $XXX ramp going is to We But and the about some deploy and on more and XXXX, what of are capital that sales deployed. is open think the in -- capital are deployment Geoff teams the the to of was I more the over capital ground teams will that comment in the 'XX that we will in place, get out place. the of operating

is investment reflected our that EBITDA. already in So

nothing continue Exactly. Stephen, to And them, Obviously, we've we that support we'll on all given design but money our spent, the to the prototypes support operationally franchisees. new incremental. and

question next Bellisario come will Our Baird. from Michael with

North. a you a of there's that the was she there And to the dress theme That Wicked house as your wanted Aurora. that up Matt that's Sleeping as is -- from not understand Beauty. up wants as of X on -- Witch thought in going to father girls, you We witch and Annie dress a the Cinderella

last Well, was it Yes. me. for Maleficent night,

aside. of there questions a days So Two couple on for unrelated development. more set you

those just there? composition your signed. are Are are that ECHO? the understand you Or that to they with Just of to Wyndham, Trying more deals franchisees deals developers are first that the now. original on to are new new deals doing signings the where ECHO XX

with as in now. our dozen it's Yes. No, out done they not are institutional new great development this deals until to we called just signed see those some markets, script, the that previously who new And quarter. so construction groups us of we have or

it. Got

So hear. on like talked about historically it a to then, note spending. infrastructure I broadening. then it's And related mean, you've That's good sounds just

all and oil few fit Where a mentioned the centers that? times do into couple of quarters. data You've last gas

over build AI there, how the you've and out spending incremental is outlined unit And and is hit the term? that previously all what might RevPAR intermediate growth to that and

when look, center as energy, as of Yes, just There infrastructures, their data. But Amazon, AI primarily is what exploding. Meta, across comes private. as we're centers seeing Wow. Google, data the it just, required, infrastructure amount increasingly is, to as are we is data know, overlap. And construction all U.S.A. obviously, all vast expand some

centers Significant RevPAR new markets today area. question, where the the in like, pickup to concentrated especially in are states major Texas, Worth construction around Dallas-Fort

our sales Georgia. secondary markets so Lodging. data of exciting mean, with think what's corporate We're there hotels in in AHLA's we for our seeing if in over states our to us #X franchise for are you I out like I don't Show. now, many is I you're I tipped But Hospitality there. teams, that and sales saw ECHO construction our this contracted Annual think know headed GSOs XXX Texas. team Sunday under all at expansion state. these It's going be new center We constructions

over You think to franchise where fiber And our in are about being Georgia we sales and all Georgia. routes, teams all proximity have XXX built. the hotels centers those are

for centers where data largest especially state, our of It's terms close have got AI. for the we markets and York a Florida, important second pickup really hotels. Latin and Jersey, we're there. increased XXX to financial XXX in the the we're In obviously, gateway a Florida. market around New in demand Miami New hotels to We've area, seeing America seeing

be will from. starting that over And Arizona we're state from supply, to which allocated. got believe, to XXX we the question, just the some energy We've actually benefit infrastructure another hotels miss. of renewable centers, spending people I Arizona. your data that Arizona, abundant that's seeing in mean often infrastructure bill

new sales think, to gains, and lodging construction those lack quarter. because Joe's this those pipeline just pick prototype these it into market development built starting construction-wise, much especially sites and continue, centers. believe, brands question, drive being new just XXXX, said, really there's to we what's as share record saw our We around with accelerate of So, teams our so could and Michele teams attracting a franchise up brands' weekday of GSO to will we what's which to our fuel

will with question from next David Our Katz Jefferies. come

know, XQ. just the worked little way some about wanted in go to Firstly, I of I further. talked your comp a benefits Michele, that you

of yesterday One little about 'XX a down. flat talked peers your or leisure being for maybe

leisure know I created part, that's not that, but important all equal. And is an

what all would and that a you your talk to leisure place how about kind expectation broadly just relates could good system to of start. is your If be

-- beneficiaries, way, to that, wane demand the seeing Yes. any as in not if we're look, certainly We leisure we've the we're past. in were and been

significantly about lodging always those gaps broader strengthen. in trade-down to David, as or we've slowdowns. seeing chain outperformed as market, But significant softness between the have not any we the continue any brands scales are Our talked

about mean been -- to we between remain any upper economy the grown gap segment, all indicators discounting no is there and to I hasn't now the think or $XX. that $XX. midscale upper the increased it, positive. segment, $XX look the midscale now between has yet ADR gap There upscale has upper at compression. And of That leading the signs $XX

September It's everyday priorities. shifted workers who and continuing it's personal creating these credit now. disposable employed, to their travel points. from resilient backdrop, sentiments where tick We're blue-collar more continue to And wages leisure are windows to up higher. up, booking XX seeing to basis year, We're are strong longer income data seeing spending very very year-to-date length card for XXX and their savings among days up stay. a last X% Our they've XX of improve driving employment

right normalization, in are growth coupled worry moderating was than economy. do down, QX, improve. flow lower momentum. than has quarter continued come should continues better drive to That When domestic RevPAR cash all interest in ahead payments mean, improved, around vacation. spending of for economy the point We're essential mortgage seeing normalize. QX We're things Each to XXXX. trend. QX. the RevPAR the if And RevPAR And of rates consumers and I a on we was economy XXXX to of QX our seeing -- full better growth the improvement overall is with

we franchisees. XXX the QX And flex as it to comparable, a basis that only up XX% points we economy to quarter-to-date when up is trailing continue XX%. think the to we'll year-on-year as and next share XX% We're continue coupled midscale, power midweek, could not brands head the our said, see through up, And for midscale pricing talked be continue about. into market we during think, the and infrastructure at pick that we -- being at believe travel inflation. and So more QX business economy positive It's up Michele basis think a to and for was power still I gain points, X quarters, look as on with we I XXXX, throughout No versus that as our XXX first momentum. leisure for favorable weeks, we and waning we especially X continue pricing the QX strong. but into for demand

mature just with wanted seen And to a little as those are, my they outgrowing follow-up, I industry even more than fees. those we've that the the that be ancillary fees. we touch know the are them be -- RevPAR-driven across Should may on you I for fees,

My take at that case, in those. much you're stage earlier a of is your

RevPAR and a when long-term at kind core think context? any rate what the help. those, valuing should of terminal fair we a growing color ultimate the growth about at. be Is grow so that it than those, higher on valuing fees much would would And And you

model. will term expect of the our longer in short term the and the term, do rate over the longer franchising over the We -- the outpace for ancillary fee rate growth growth compounded Yes. streams

will Ian Oppenheimer. question next Zaffino with from Our come

wanted that. to just the that projects? states also, around were, function is anything the and share location maybe traction? best talk of to Maybe there? which down on the kind a being Just the maybe Are which And of brands us those infrastructure doing gains, of saw market on drill different about congratulations you

And AAHOA this it spend sort maybe is has to numbers ] the also been what than this, in less of ] think? [ least [ sustainability one dispersed. as of do to topic you another as At half slam relates seen, we've of the the

there? So kind of bone could color or provide or meat you on comments any the

lot there to a Ian. Yes, unpack,

were coming we markets, Texas X%, digits. Dakota we terms where North I bit oil just gains Louisiana, -- markets oil about X%, our and being talked have being strong double We up by in up about of talked up back, strong saw Alabama a and state strong RevPAR,

expecting positive. days to early side, into ramps. were And And to the the said much we're infrastructure absolutely back infrastructure crews for is, all on talked always states come gas that continue growth and on we've as pretty before, as we certainly that have us. oil continue It such and about markets as these infrastructure the side

leads contracting share corporate is infrastructure And increase from our that sales a with what seeing growing has in Wyndham uptick double-digit accounts bidding the with. in XX% companies federal been are that are teams work that our on contracted gain. We

was infrastructure is, been including really But again, Less terms and domestic lifted points. RevPAR bill demand it, by days. $X.X basis the Combined not than of trillion how overall of incremental, weekday everywhere. Occupancy it's, it in most XX% early XXX of has is allocated. early that our

at to is actually billion $XXX has billion only $XXX or been outlaid billion been and $XXX allocated, but date of of $XXX So to announced billion that least has it date. only

think So is of Only out. paid the $X.X about X/XX that. billion

not is a our driver incremental. still ongoing, the we're next meaningful teams. it beyond which that, of that franchisees is infrastructure investment for our share $XXX years. annual spending another And technology an there's the So multiyear and and over And capturing given even in very of outside billion XX-plus tools

of strongest, in points; points; gained points another And most Days specifically question, share being all Inn, against over-indexing has largest Inn screaming basis XXX% Microtel, La another market been and having brands from domestically, sets, XX Days to XXX% basis like XX their competitive market our XX fair in Super Inn Quinta, your jumped share. just the X, market FDD To share. the basis really another our Days STR X quarter, filings, recent Super

Okay. or maybe of the about making rethink it on you Great. And here? a et of maybe mix that upside How recent cetera? of follow-up drivers kind comments economy, kind drivers Just ECHO is have given just up, any popped to midscale, Suites, of kind new them then So these between as call lot that. of you that a do there's that. sources other think

certainly, segment, there's economy, is out that economy not the stay just the ECHO from construction new us a in is margin. extended-stay out of existing lodging upside there of there. outpacing another demand mean standpoint, is I lodging a Suites for an X:X lot in extended-stay terms Well, extended by supply

another it's stay right at STR look no economy, surprise is you And extended-stay supply that was you higher the when pipeline industry. domestic if XX% than extended the look of QX And economy XXX points RevPAR now really report. the overall basis STR at

at as So we're looking that certainly incremental.

will Our Truist from come Securities. with Patrick next question Scholes

retention getting Geoff, international? with that? the that Michele, Are then XX%? can versus Is you can that believe, close of of there beyond target opportunity your breakout rate? you continued you to, what And give an give within retention rate, further on like I progress us U.S. looks update a

Sure. Yes. with made continue we've and expect to retention we improve on We're pleased thus do the far, it. really progress to

You well proposition a is our can as it value reflective number really increasing philosophy. and now, as see steady improvement owner-first our years of over of

the XX% said base kind to there higher. was first once stop, continue always push room And to We've get first the we maybe there's around. of

breakout, dependent including many on default of the cures I'd timing, ], contractual all many, of notice is terms say, upon terminations the terms, factors, [ those periods, things. In

of system as And bring the time higher-value necessary properties. from time, is to especially culling we in some

to has measured measure as on We've progress primary our on again, made our these higher-value So into our don't improving is while overall retention we especially front. it quarterly. And over focus Domestically, portfolio, net segments. on It's retention that our remains room continue great a growth priority global focus we time. been push this across rate. year

U.S. I the is we've this consecutive in the positive now XXth think growth quarter seen

been new in limited what market. are teams Our really supply proud of a has especially that,

about follow-up. just do percentage rate, that? if out of a we does I can roughly think retention blended U.S. you international, guess versus how bit When that XX% a share break

from an that guide definitely don't level to don't I -- of outlook we perspective, detail.

not now? you but I'm sorry, currently a where at are Oh, guide,

XX.X%, Yes. Patrick. We're at currently

successfully Our for I teams retention new basis Michele's up XX on a swapping lower-value was to rooms. higher-value they're these think most points. important the termination thing, global point, rooms -- And basis our

basis over saw that XX it's look mean to license Pacific, since we've growth in room how I which fee. to example, And points double-digit this we net XX.X%. able we Asia Xx XX% the XX%, is to over spin, XX% at to XX for last another in that XX%, at the coming move months, been the globally,

Brandt question will Montour next Our come from Barclays. with

and to order the you the -- hurricane way And relief Irma. one's the because and become if the in those basis pretty into more the to reason of aftermath is you lift for on large XXXX and points into And efforts had no Harvey XXX obviously, season or a relief of the U.S. just trailed XXX on hurricane ask the drag objectively from compare all related with second I impact. wanted the rooting that speaking, I in But this quarter XXXX, this here. to Hurricanes the effort egregious to devastation could of double-click

sort us you of understand, could just help maybe two compare So and contrast situations. the

a select-service in they Yes, emergency and workers. accommodating our families provide hotels, displaced do vital you're XXX% right, absolutely. And role

significantly region. our so in storm RevPAR vary the can the And the on then footprint though scale depending impact on and affected

that were hotel about impacted. that Asheville. X But XXX our Here, in have closed, only I hotels remains Super think it's X we we had currently

crews earlier. I So XX families. the that really the what's open, increased emergency hotels basis are and operating is that's and points -- really displaced they're And accepting demand driving discussed

If had hurricanes our and states you hit XXXX, Texas. of look we X X largest specifically footprint at Florida major

now XXX as to personnel into XX deployed shorter of X- to only. many occupancy for cases, hotels impacted that much points X-quarter large cases, greater and got range did running a we are the basis other impact are other FEMA over XXX not period. basis has XXX the a X right over And XX%. quarter impacts X,XXX are than the We've in to region. month-to-date duration, But in typically see XXX nearly point

hotels we our and large So pieces lots of a business. of seeing lot crews filled are of with

$X.X was for million one there Yesterday, vendor. booked specific

And in so that's new today. coming business

So think long for. to is continued how benefit. be last going we hard to just do that's there to going It's say really

presumably, -- out, out call talking different called to you I home of swing greater Yesterday, at leisure guys. really where affect election election had from and of about in people have at question. baking they heard making helpful. travel of then Geoff other than whatnot. might we're that for were they well, the super and specifically, know have do smaller I you doesn't we in probably That's keeping assume group they Hilton doesn't all -- distraction home a getting states sort impact sort and you a of curious, that point industries you're them and the sort expected. or group, the Michele, the operators November in But was keeping commercials distraction originally in? follow-up -- well, you And depressed people don't Any the or I anything think have sort there's now be if visibility. Okay. with visibility on

what and business, would differences. be And those see a is referenced in we -- you number I would of say to there the because our impact these expecting are to in one some particularly Hilton different going of presidential say are of election the specifically, I the dynamics between more fourth just of quarter brands. business-oriented we're

up So conference often in not business, group overall and reduces few travel. weeks. but it's just It corporate coming a

But our wearing traveler business hard work hats is and boots.

have So an it to business. on have we're impact typically not would not it expecting our --

be Now not election, seen. a so is still to remains typical this

travel period second see to going business but leisure windows windows. where, longer that travel is tighter The again, Christmas you're holiday

and going of fourth shift that's for be us peers. unfavorable quarter So favorable some the for to be a may in the

Our come next from Dove Lizzie with question Goldman will Sachs.

an Curious those over green from extent chain like the in cyclical see you brands improvements impact premium like with for segment a the in It something It's last what do been more of and as quarter. example. seen, economy economy some has especially a seeing kind of comps? a a shoots taking any Spark, economy fourth months you you're have nice to challenges seen XX share, newer Or in really you've the any function the some that segment the the laggard. in scale of sounds

accelerating and midscale none more above been comp. are according in a or Yes, launches been and have to say development of our there really and slowing pipeline, years, playing function it's in Travel. that these X out of segments I I'd really cyclical especially mean brands the brand new NRG our Smith the

growth domestic several able of And above midscale since our the we've plus over handful. been room view don't X%, accelerate their and last reflagging we quarters introduction, Lizzie, net to the to where the

of any XX hotels our incremental in it's our think over is X,XXX I way activity. term to normal

chunk something China decent follow-up That's or that that just meaningful a in How that you so. a month last which, is Does one think your announcement I on of China, guess, And got helpful. then does -- international have change your the We is rooms. outlook obviously stimulus impact for all? can at XXXX?

Yes. But a We view don't and not stimulus bit I China, feel just continued we've always expecting the in coming it in our confident think in. easier. been a bit changed. it little it recovery changes little with has that It makes definitely more outlook.

next with Pizzella Deutsche Steve come from will Our question Bank.

the forward development, this I in believe growth year? new should historical noted room performance. net seasonal expect that pacing rooms? ahead adds a same Slide Is XX on we XQ net of just pull historical of the rooms Or

Yes.

are I where were we of ahead So last XX%. at pacing were we're -- We well think we year.

the to say year, really year. the fourth think the we teams had of large productive about some have in I'd pretty monster But in in been I quarters bringing respect our And last XX%. opens. were deals bringing some teams international earlier with quarter,

as we in full already our think ability deliver to openings up, this fourth lower we the be and a expectations. will line quarter with But captured are year-to-date. those year remain so year will in And last of lot than was be it bit confident in do a

XXXX a solid the driving year? the cost Then we benefits And marketing What Is Okay. continue year-over-year about algorithm? embedded next margins margin think margins growth is to there should any spend. into going the from how ex show perspective? expansion control in

Yes.

then we've business. and perspective the some -- deploying organizational end have growth right enhancements and our now some when the the the created organization gaining So an our the we efficiencies technology house in we're driving revenue benefits from margin are hack of of commercial we our been and -- that combine efficiencies ancillary what's there, back when AI we

All of to contributing those are impact. the margin

Also the $X about a on that we basis have did year, benefit to proceeds a of small on a had insurance year-to-date margin. full million and

rest with Excluding be say get And that the process. the to margin for moving where our budgeting XXXX. insurance through we will hard margin will stick respect benefit, of forward into XXXX, to then the until

HSBC. will question from come with last Meredith Our Jensen

versus the I any bit merchandising there. if your Quickly stack tech kind have that how we technology front, options. of one have was quite competitors the room bookings know that of do the to rebuild on a low about front, those I got have get was may competitors those you I targets [ many -- currently, on you bill like the of they cloud teens based wondering to internal advantage percentage of think sort ] saying being have who spoke some might bookings add some on of of additions.

have if any we sort wondering follow was of I metrics on could So you that.

Wyndham over is really I last standpoint, our is million which has helping Rewards contribution in and the for of the investments made a us that $XXX think, us, much foundation our industry-leading and what drive investments stack laid direct success. Meredith, so from the spend X really a tech a we standpoint years,

points a X up driving guests out through we It's points QX record for is of high occupancy stack. enrollments basis I we've member any QX that's X which in our is that XX%, every had. to to all-time important. check-ins where really franchisees in an directly our our XXX XXXX. coming seeing program, and we're for XXX loyalty our technology And are over It's now mean basis in were up

to, going late in franchisees, and our our also checkout, is helping with and that operation early of their that's execute check-in We're implement our to through to growth. the and technology desks. labor interact those of ability the room as to going drive the that invest We're front manual all net that up really And stack. and all we directly continue said for processes previously, of speed reducing guests it's to which on to continue allow aspects automation offering teams hotel seamlessly the our load

It's out when of franchise teams there one competitor. versus proposition of our sales the selling differentiation believe biggest they're our value points our

ebb that has demand XXX been a the stronger we're and cloud, customer big Money. digital Mad Salesforce's Matt could how Benioff Salesforce, you I data we We're clip, are with ahead huge our it, with teams I as the automating saw supercharging data Mr. that, amalgamating customer on opportunities and And our are endless. every if automation said, about so point delivering believers. technology the really don't flow partners touch CNBC coupled with are can, for much and but you that a innovating. And that strategy think know cloud, mean data. talked we Benioff we envisioned. manual Marc our we're really data and never and tasks level the taking and of send We're building us of

addition. One That's quick very awesome.

the those fees, dig bit ancillary we in important able that mentioned and to Business incredible the to trends to be forward? a look will provide year-over-year jump this ancillary the breakdown of some Is of On sort spend. just going some little of Card growth had XX% you sort you in forward that that of of can going more, --

Yes.

You know what...

Yes.

we're... I think

ahead, Geoff. Go

ahead. Yes. about Michele. Go both excited it. Go ahead, We're

excited largest initiatives, here number due be to will been contributor higher will say our has it of to credit about as in volumes. cardholders in ancillary 'XX. I'd lot as growth. is 'XX, card well a be to helped fee accelerating And program There's purchase very. here. higher are, which Growth be likely We the our generate to a

those his that discussed of Wyndham that we prepared -- Business One remarks. is Geoff in

of ramping just of a base itself And to Business enhance increase international There's opportunities and marketing expansion. there broader to now. number consumers and product the many opportunities our cardholders. reach are new is also Wyndham

drive So to the card, increased we've got Thread purchase continuing with fees we're Blue higher T&L not the of there. see just elevation but Outside credit our cardholders [ to ], there, license that volumes. expecting in the

then sizable just that we're not the for in and are and We back-end but Connect consumers upon that capitalize in who owners earning looking mentioned know are that currency, investments that engaged and a That's -- our on-property opportunities, of that in we're the revenue. franchisees $X,XXX Wyndham those strategic And to to are partnerships. Geoff our of as a about them, opted portion mentioned incremental Wyndham presenting Rewards technology, for value month seeing incremental XX% well. in the

not all and are there the working we're we excited So that on to as we're about. other we'll on to more really front, about. we're have here, things progress talking update about that talk continue we're opportunities And this making numerous

At this time, I Ballotti for would over like Geoff the to floor remarks. back closing turn to

Well, talking many many we'll everyone thanks, us. Certainly, with sorry in seeing so who's at Wyndham conferences ahead of going look and Matt Scott, interest forward the be Resorts. everyone's and But Michele that and and thanks, We're you investor attending. in to for I we & upcoming the of over. weeks to Hotels still appreciate

for Happy ahead, great have us everyone. weekend meantime, the Thanks In Halloween, again today. and a joining

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