Dive Brief:
- Wyndham Hotels & Resorts saw global RevPAR decrease 5% year over year in the third quarter of 2025, reflecting declines of 5% in the U.S. and 2% internationally, according to an earnings report published Wednesday.
- During a Thursday earnings call with investors and analysts, Wyndham CEO Geoff Ballotti said the declines came amid “continued consumer caution in an uncertain economic environment, especially within the select-service segments here in the United States, where our guests are more price sensitive.”
- On the heels of softened RevPAR in the quarter, Wyndham lowered its full-year RevPAR outlook, though Ballotti remained optimistic about demand and booking fundamentals as well as portfolio growth.
Dive Insight:
Wyndham downgraded its full-year 2025 global RevRAR outlook to a range of down 3% to down 2%, a reduction of 100 and 300 basis points from its prior forecast, CFO Michele Allen said on the call.
The new outlook assumes fourth-quarter global RevPAR will be down from 7% to down 4%, with U.S. performance “continuing to lag meaningfully behind our international region,” Allen said.
In Q3, Wyndham saw softening across the Sunbelt states, in particular, while parts of the Midwest experienced performance gains. Meanwhile, several international markets saw strong RevPAR growth, including Europe, the Middle East and Canada.
“In Canada, which continued to impact U.S. leisure drive-to markets, RevPAR increased 8%, as Canadian travel domestically remained strong,” Ballotti said.
At The Lodging Conference earlier this month, Hotel Association of Canada CEO Beth McMahon said the country saw record-breaking occupancy in August, with summer travel strong across all of its regions.
Despite Wyndham’s Q3 declines, Ballotti said there is nothing structurally wrong with the economy segment. He is encouraged by daily booking lead times, which are up 2% year over year, as well as average length of stay, which is consistent with last year, he said on the call.
Wyndham also saw strong momentum on the development front in Q3, growing its pipeline 4% year over year in the U.S. and 4% internationally. Q3 was Wyndham’s 21st consecutive quarter of pipeline growth, “led by solid conversion activity,” Ballotti said.
Following the quarter’s close, Wyndham launched a pure-conversion economy lifestyle soft brand, Dazzler Select.
Hilton CEO Christoper Nassetta said during a separate earnings call Wednesday that “the conversion opportunity is immense, globally.” Hilton also posted systemwide RevPAR declines in Q3.
