Wyndham Hotels & Resorts, Inc. (NYSE: WH)

Wyndham Hotels & Resorts, Inc. is the world’s largest hotel franchising company by number of franchised properties, with over 8,300 affiliated hotels and approximately 869,000 rooms located in approximately 100 countries and welcoming approximately 138 million guests annually worldwide. The company operates a portfolio of 25 hotel brands primarily focused on economy, midscale and upper midscale segments, with an asset light business model that limits capital requirements.

Wyndham Hotels & Resorts, Inc. generates revenue primarily from franchise royalties and fees based on gross room revenue. Franchisees pay a royalty of approximately 5% of gross room revenue and a marketing and reservation fee ranging from 2% to 4% of gross room revenue. The company also earns interest income from development advances or loans provided to franchisees and collects contributions from its Wyndham Rewards loyalty program to fund member redemptions and program expenses.

The company operates through the following segments:

• Hotel Franchising: This segment licenses the company’s 25 hotel brands to over 6,200 franchisees worldwide, collects royalty and marketing fees, provides development advances or loans, manages the international full service managed business formerly reported as the Hotel Management segment, and supports the Wyndham Rewards loyalty program.

Wyndham Hotels & Resorts, Inc. holds a leading position in the global hotel franchising industry as the largest franchisor by property count. It competes with major hotel franchisors such as Marriott International, Hilton Worldwide, Hyatt Hotels Corporation, and InterContinental Hotels Group. Competitive advantages include its asset light model, diversified brand portfolio across price points, extensive global footprint, award winning loyalty program, and a highly diversified franchisee base that reduces reliance on any single owner.

The company serves over 6,200 franchisees ranging from sole proprietors to institutional investors such as public real estate investment trusts, and welcomes approximately 138 million guests annually worldwide. Its Wyndham Rewards loyalty program has over 122 million enrolled members who earn points for stays at participating properties.