Wyndham posts a Q4 2025 net loss after a Europe franchise shock

Wyndham Hotels & Resorts reported a $60 million net loss for the fourth quarter of 2025, compared with $85 million net income in the same quarter of 2024. The result follows an earlier warning sign: on October 23, 2025, Wyndham cut its 2025 outlook and said RevPAR was still sliding, guiding for a 2 to 3 percent decline for the year. That context matters because it shows demand and pricing were already under pressure going into year-end. However, Wyndham said the quarter’s swing to a loss was mainly driven by non-cash impairment and related charges, plus other costs that weighed on reported earnings. Management added that the company’s core franchise model continued to expand in 2025, even as reported profit moved in the opposite direction.

Revo's insolvency forced fee deferrals and large one-time charges

The biggest storyline sits in Europe. Wyndham disclosed that its largest European franchisee, Revo Hospitality Group, entered insolvency proceedings, which led Wyndham to defer all revenues tied to Revo because collecting those fees became uncertain. That means the fees can only be recognized later if collections become probable. Wyndham recorded about $160 million in charges tied to the franchisee’s collapse, showing how a single large counterparty can distort quarterly results even in an “asset-light” franchise model.

Room supply is still growing, but pricing power is weak

Wyndham is a major global franchisor, so its numbers act like a read on hotel owner economics and future branded supply. In 2025, Wyndham said it opened a record 72,000 rooms, delivered 4 percent net room growth, and expanded its development pipeline to a record 259,000 rooms—signals that owners are still building and converting hotels. But Wyndham also flagged continued negative US RevPAR pressure, which matters across the travel ecosystem because weak RevPAR usually means hotels fight harder for demand through pricing, promotions, and distribution.

Cautious 2026 guidance, dividend increase, and a Revo overhang

For 2026, Wyndham guided adjusted EBITDA of $730 million to $745 million and adjusted diluted EPS of $4.62 to $4.80. It expects global RevPAR (constant currency) between negative 1.5 percent and positive 0.5 percent, alongside room growth of 4.0 percent to 4.5 percent—a mix of expansion with only modest pricing improvement. Wyndham also approved a 5 percent dividend increase to $0.43 per share, signaling confidence in cash returns even while Revo-related revenue remains deferred.

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