Wyndham (WH) Is Down 8.6% After Cutting 2025 Outlook and Updating Capital Allocation Plans

• Wyndham Hotels & Resorts recently reported its third quarter 2025 results, with revenue falling to US$382 million from US$396 million in the prior year, alongside the announcement of lowered full-year earnings guidance and updates to its share buyback program and credit facility.
• Despite higher net income and earnings per share, management flagged consumer caution and operational pressures in key markets as reasons for trimming earnings guidance, highlighting ongoing headwinds for the business.
• We’ll explore how Wyndham’s reduced full-year outlook and cautious consumer demand may reshape its previously optimistic investment narrative.

The end of cancer? These 29 emerging AI stocks are developing tech that will allow early identification of life changing diseases like cancer and Alzheimer's.

Wyndham Hotels & Resorts Investment Narrative Recap

If you’re considering Wyndham Hotels & Resorts as a potential holding, you need to believe in its ability to drive sustained fee-based growth through international expansion and technology upgrades, despite periodic headwinds in core U.S. markets. The latest earnings update, which included trimmed full-year guidance on weaker consumer demand, adds to near-term uncertainty but does not appear to fundamentally alter the company’s ongoing strategy; the biggest immediate risk remains continued softness in U.S. leisure travel spending. Among the recent announcements, the extension and expansion of Wyndham’s revolving credit facility stands out. Increasing the facility to US$1.0 billion and lengthening maturity to 2030 strengthens financial flexibility and could help address operational pressures, but does not directly resolve the challenge of moderating RevPAR in price-sensitive regions. Yet, for investors, it’s important not to overlook the risk that if U.S. RevPAR remains persistently weak...

Read the full narrative on Wyndham Hotels & Resorts (it's free!)

Wyndham Hotels & Resorts' outlook anticipates $1.8 billion in revenue and $445.9 million in earnings by 2028. This is based on a projected 6.8% annual revenue growth rate and a $109.9 million increase in earnings from the current $336.0 million.

Uncover how Wyndham Hotels & Resorts' forecasts yield a $103.37 fair value, a 41% upside to its current price.

Exploring Other Perspectives

Six community members on Simply Wall St estimated Wyndham’s fair value from as low as US$76.94 to over US$80,000. These diverse views highlight how the risk of declining U.S. RevPAR can create wide uncertainty about the company’s future performance, so consider exploring several perspectives before deciding for yourself.

Explore 6 other fair value estimates on Wyndham Hotels & Resorts - why the stock might be worth just $76.94!

Build Your Own Wyndham Hotels & Resorts Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Wyndham Hotels & Resorts research is our analysis highlighting 5 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Wyndham Hotels & Resorts research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Wyndham Hotels & Resorts' overall financial health at a glance.

Ready For A Different Approach?

Right now could be the best entry point. These picks are fresh from our daily scans. Don't delay:

• Uncover the next big thing with financially sound penny stocks that balance risk and reward.
• Trump has pledged to "unleash" American oil and gas and these 22 US stocks have developments that are poised to benefit.
• This technology could replace computers: discover 28 stocks that are working to make quantum computing a reality.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com