Wyndham Hotels & Resorts, Inc. (WH)
Fair ValueFundamental
60
Price
$72.42
Market Cap
$5.61B
Part 1 · What the company is worth
Overview
Wyndham franchises hotels rather than owning them: it licenses brands such as Days Inn, Super 8, Ramada and Wyndham to independent and small-chain hotel owners around the world, who pay to use the name, the central reservation system and the Wyndham Rewards loyalty program. It operates through more than 6,200 franchisees and is concentrated in economy and midscale hotels rather than luxury. It owns almost none of the real estate its brands appear on.
How it makes money
Franchisees pay Wyndham a royalty of roughly 5% of their room revenue for the right to use its brand, plus a separate marketing and reservation fee of 2-4% of room revenue that funds the shared booking system and Wyndham Rewards program rather than flowing through as profit. A smaller stream is a licensing fee from Travel + Leisure, its former parent, under an agreement dating to its 2018 spin-off — revenue tied to a legacy contract rather than to hotels Wyndham operates today.
Revenue by segment
Core brand-licensing income, roughly 5% of a franchised hotel's room revenue, the most direct measure of Wyndham's franchise business.
Fees that fund the shared reservation system and marketing; largely pass-through spending rather than pure profit for Wyndham.
Ancillary revenue from other services Wyndham provides to franchisees and hotel owners beyond core royalties.
A contractual licensing fee paid by Travel + Leisure, the vacation-ownership business Wyndham spun off in 2018, unrelated to hotel operations.
Fees tied to running the Wyndham Rewards loyalty program, funded by participating hotels and partners.
Competitive moat
Switching costs · NarrowFranchise agreements typically run 10 to 20 years, and switching a hotel's brand mid-agreement means new signage, systems and lost access to Wyndham's reservation pipeline and loyalty members — a real cost for the franchisee. That keeps existing hotels in the system, but it does not stop Wyndham from having to win every new franchise deal against Choice, Best Western and other economy-brand rivals.
What drives demand
CyclicalFranchise and marketing fees are calculated as a percentage of franchisees' room revenue, so they rise and fall with hotel occupancy and room rates, which the company itself ties to economic conditions such as inflation, interest rates, employment and discretionary income — travel spending is one of the first things households and businesses cut in a downturn.
Key risks
- Franchisee performance drives fee revenue — Royalties and marketing fees are a percentage of franchisees' room revenue, so a weak year for individual hotel owners — due to location, competition or local conditions — reduces Wyndham's own revenue.
- Economic and travel-demand downturns — The company names recessionary pressures, inflation and reduced discretionary income among the economic factors that can cut hotel demand and therefore franchise fees.
- Brand and reputation risk — Franchisees' and guests' perception of a brand affects every hotel flying that flag; cyber incidents or reputational damage at the corporate level can hit revenue system-wide.
- Dependence on a legacy licensing agreement — A meaningful slice of revenue is a fee from Travel + Leisure under a contract tied to Wyndham's 2018 spin-off, a revenue source outside its own hotel-franchising operations.
The case for
Buyers argue that Wyndham's economy and midscale focus is more resilient than luxury hotels in a downturn since travelers trade down rather than stop traveling, that long franchise agreements and a loyalty program give it recurring, high-margin fee income with almost no real-estate risk, and that the model scales without Wyndham having to fund new hotel construction itself.
The case against
Sellers worry that franchise and marketing fees are ultimately a percentage of what individual hotel owners earn, so a broad travel slowdown hits Wyndham indirectly but still meaningfully, that competition among economy-brand franchisors for the same hotel owners limits pricing power, and that a slice of revenue depends on a legacy contract with its former parent rather than the core franchising business.
Written by the editors, published on August 18, 2026
Direct competitors
Who this company fights with for the same customers
No editorial profile for this company yet
No competitor list for this company yet.
Balance Sheet & Liquidity
Revenue
$1.42B
Trailing 12 months (through 6/30/2026)
Net Income
$208M
Trailing 12 months (through 6/30/2026)
Free Cash Flow
$321M
Total Equity
$468M
Total Liabilities
$3.71B
Current Ratio
0.99
Interest Coverage
3.01
Debt/EBITDA
5.77
Earnings Per Share
Revenue & Net Income
Free Cash Flow
Income Breakdown
Historical statement
Margins over time
Debt over time
How heavy the debt is
Growth grid
Growth — Revenue
Fair Value Estimation
Fair Value
$82.14
Current Price
$72.42
Margin of Safety
+11.8%
Fair Value Range
$53.39 - $110.89
Spread across the valuation methods used, not a statistically calibrated confidence interval.
Estimation Methods
Valuation Metrics
P/E Ratio
26.33
ROE
41.2%
P/B Ratio
11.20
P/FCF
16.64
Gross Margin
-
ROIC
8.8%
Profitability Radar
Value Creation (Economic Moat)
ROIC
8.8%
WACC
6.8%
ROIC − WACC
+2.0 pp
ROIC exceeds the cost of capital — the company is creating value for shareholders.
Fundamental Analysis Criteria
Passed (16)
- EPS shows upward trend
- Price CAGR 5.44%
- ROIC 8.8%
- P/FCF 16.64
- Operating margin 30.2%
- Positive free cash flow
- CapEx intensity
- Current ratio
- Interest coverage
- Debt/EBITDA
- Return on tangible assets
- ROE 42.1%
- Earnings surprise, average 2.5%
- Earnings quality (operating cash flow / net income) 1.78
- Share dilution -3.6%
- Piotroski F-Score 5/9
Failed (8)
- EPS CAGR 3.98%
- P/B ratio 11.20
- Debt/equity ratio
- Low reliance on intangibles
- Price below Graham Number
- DCF valuation (Overvalued)
- Revenue growth 5Y 1.9%
- Net margin trend 14.7% vs 23.2%
Unavailable (3)
- Gross margin –
- Dividend payout –
- PEG ratio (needs P/E > 0 and growth > 0)
Piotroski F-Score
Mixed signals: some areas need attention
Earnings Quality
High quality: earnings backed by cash
Share Dilution
Buying back shares. Shareholder friendly
Institutional Holdings
Governance
Executive Team
| Name | Title | Age |
|---|---|---|
| Mr. Geoffrey A. Ballotti | President, CEO & Director | 63 |
| Mr. Paul F. Cash | General Counsel, Chief Compliance Officer & Corporate Secretary | 55 |
| Ms. Monica Melancon | Chief Human Resource Officer | 57 |
| Mr. Scott R. Strickland | Chief Commercial Officer | 54 |
| Mr. Amit Sripathi | Chief Financial Officer | - |
| Mr. Christopher Androski | Senior VP, Controller & Chief Accounting Officer | 51 |
| Mr. Matt Capuzzi | Senior Vice President of Investor Relations | - |
| Mr. Dimitris Manikis | President of Europe, Middle East, Eurasia & Africa | - |
| Mr. Joon Aun Ooi | President of Asia Pacific | - |
| Mr. Shilpan Patel | Executive Vice President of North America Franchise Operations | - |
Audit Risk
5
Board Risk
4
Compensation Risk
7
Shareholder Rights Risk
1
Documents
- View document
Annual Report (10-K)
A yearly overview of the business, its financial results, and the risks it faces.
Filed on 2026-02-19
- View document
Quarterly Report (10-Q)
A snapshot of financial performance for the most recent three-month period.
Filed on 2026-10-22
- View document
Current Report (8-K)
An announcement of a major event, such as a leadership change or big news.
Filed on 2026-10-21
via SEC EDGAR
Income History
via SEC EDGAR
Part 2 · The price and its context
This part shows how the price has behaved, not whether the company is worth owning. Inside: technical analysis, potential, historical drawdowns, gamma exposure.
Market Reaction Profile
How much WH moves, measured on its daily prices.
More volatile than 30% of the tracked stocks (90-day volatility).
- Volatility 30d
- 27.7%
- Volatility 90d
- 28.5%
- Beta vs S&P 500 (1y)
- 0.57Correlation 0.24
- Max drawdown (12m)
- -25.3%
- ATR (14d, % of price)
- 3.34%
Earnings reactions
How WH moved around its past quarterly results.
Next earnings release
No upcoming release on the calendar.
What usually happens
- Over the last 12 releases the stock moved a median of 3.7% the next day, up or down.
- Next-day moves: up 7, down 5 (out of 12).
- Of the 4 releases that beat estimates, the stock fell the next day after 3.
Release history
| Date | When | EPS est. | EPS actual | Surprise | Gap | 1 day | 5 days |
|---|---|---|---|---|---|---|---|
| Oct 21, 2026 | After the close | 1.31 | 1.43 | +8.9% | +1.2% | -4.2% | n/a |
| Jul 22, 2026 | After the close | 1.45 | 1.48 | +2.2% | -1.5% | -2.9% | -0.1% |
| Apr 29, 2026 | After the close | 0.89 | 0.96 | +8.0% | -0.7% | -3.2% | -0.9% |
| Feb 18, 2026 | After the close | 0.92 | 0.93 | +1.3% | +2.8% | +5.6% | +4.6% |
| Oct 22, 2025 | After the close | 1.48 | 1.46 | -1.5% | -7.5% | -5.5% | -8.6% |
| Jul 23, 2025 | After the close | n/a | n/a | n/a | +3.2% | +3.1% | +2.6% |
| Apr 30, 2025 | After the close | n/a | n/a | n/a | -2.0% | +0.1% | -2.4% |
| Feb 12, 2025 | After the close | n/a | n/a | n/a | +0.1% | -1.6% | +2.6% |
| Oct 23, 2024 | After the close | n/a | n/a | n/a | +5.5% | +10.6% | +9.2% |
| Jul 24, 2024 | After the close | n/a | n/a | n/a | +1.2% | +8.8% | +7.5% |
| Apr 24, 2024 | After the close | n/a | n/a | n/a | -0.9% | +4.7% | +1.3% |
| Feb 14, 2024 | After the close | n/a | n/a | n/a | +0.3% | +1.6% | +2.4% |
Release dates from SEC 8-K filings.
Updated 10/24/2026
Historical statistics for educational purposes only. They are not forecasts and not investment advice.
Price reaction to the news
Latest news on WH and what the price did next.
Return of the stock minus return of SPY over the same days. A news item close to a price move did not necessarily cause it. Historical data for educational purposes only, not investment advice.
Latest News
Recent headlines for WH.