Wyndham Hotels & Resorts, Inc. (WH) AI Stock Analysis
WH AI stock analysis summary
AI ResearchWyndham Hotels & Resorts, Inc. (WH) operates as a major global hotel franchisor and hotel management company with approximately 9,000 properties across 95 countries. Over the trailing twelve months, the company generated $1.42B in revenue with an operating margin of 47.7%. While long-term revenue growth has been modest at a 5-year CAGR of 1.9%, Wyndham continues to return substantial cash to shareholders through buybacks and dividends despite carrying $2.67B in total debt.
- Market cap
- $5.61B
- Revenue (TTM)
- $1.42B
- P/E
- 27.4x fwd 12.7x
- 1Y return
- -0.8% S&P 500 16.8%
- Avg. target
- $96.22 27.3% vs last close
Bull case
- Analysts maintain a bullish consensus with 15 Buy or Strong Buy ratings and an average price target of $96.22, suggesting 27.3% upside.
- Shareholder returns remain aggressive, highlighted by a 19.7% reduction in share count over 5 years and $289.0M spent on repurchases in FY2025.
- Wyndham delivered a strong trailing twelve-month operating margin of 47.7% alongside trailing return on equity of 39.4%.
Bear case
- The balance sheet carries significant leverage, with total debt of $2.67B against $69.0M in cash, leading to a debt-to-equity ratio of 5.57.
- Top-line growth has been sluggish, recording a 5-year CAGR of 1.9% and a quarterly revenue decline of 5.5% in the latest quarter.
- Stock performance has lagged broader markets, producing a 5-year return of -0.2% compared to an 83.0% gain for the S&P 500.
What Wyndham Hotels & Resorts does
Wyndham Hotels & Resorts, Inc. is a global hotel franchisor providing lodging brands and management services. It operates through two segments: Hotel Franchising and Hotel Management. The Hotel Franchising business licenses brands to third-party hotel owners and operators, while Hotel Management oversees day-to-day operations and guest experiences across full-service and limited-service properties. Its portfolio consists of 22 distinct brands, including Super 8, Days Inn, Microtel, Howard Johnson, La Quinta, Ramada, and Wyndham Grand, encompassing over 819,000 rooms across approximately 95 countries. The company also manages a loyalty reward program to drive guest retention.
Growth and profitability
Wyndham's revenue has remained relatively flat in recent years, moving from $1.56B in FY2021 to $1.43B in FY2025, representing a 5-year revenue CAGR of 1.9% from FY2020. Annual revenue grew 1.5% in FY2025, but net income declined to $193.0M from $289.0M in FY2024, resulting in a net margin of 13.5%. However, EPS reached $4.58 in FY2025 due in part to share repurchases. For the trailing twelve months ended June 30, 2026, revenue stood at $1.42B with an operating margin of 47.7%. In the latest quarter, quarterly revenue fell 5.5% year-over-year, while quarterly earnings rose 20.4%.
Balance sheet and cash flow
As of June 30, 2026, Wyndham held $69.0M in cash and short-term investments against $2.67B in total debt, resulting in net debt of $2.61B. Shareholders' equity was $480.0M, bringing the debt-to-equity ratio to 5.57 and the current ratio to 0.99. In FY2025, the company generated $367.0M in operating cash flow and $321.0M in free cash flow. Wyndham allocated $46.0M to capital expenditures, spent $289.0M on share buybacks, and distributed $127.0M in dividends. Over the past five years, its share count has decreased by 19.7%.
Valuation and performance
Wyndham trades at a trailing P/E of 27.4x, which sits above the 18.0x median of its US-listed Consumer Cyclical peers. Its forward P/E is 12.7x compared to the peer median of 14.1x, and its EV/EBITDA is 15.6x against the peer median of 11.1x. The stock carries a price-to-sales multiple of 4.0x, above the peer median of 0.7x. Over the past year, Wyndham shares returned -0.8%, trailing the S&P 500 (SPY) return of 16.8%. Over a 5-year span, the stock returned -0.2% versus 83.0% for the S&P 500.
WH dividend
Wyndham pays a quarterly dividend with a forward annualized rate of $1.72 per share, representing a dividend yield of 2.28%. The dividend payout ratio is 35.2%, and the company has paid dividends for 9 consecutive years. Over the last 5 years, Wyndham has grown its dividend at an annualized rate of 24.0%, with its most recent ex-dividend date on September 15, 2026.
What analysts expect
Wall Street analysts hold 11 Strong Buy, 4 Buy, and 3 Hold ratings on Wyndham, with no Sell or Strong Sell recommendations. The mean price target of $96.22 implies an upside of 27.3% over the October 16, 2026 close of $75.60. For the fiscal year ending December 31, 2026, analysts expect revenue of $1.48B and EPS of $4.80. Wyndham has beat EPS expectations in each of the last 4 quarters, with its next earnings report scheduled for October 21, 2026.
Key risks and what to watch
- A current ratio of 0.99 and net debt of $2.61B leave limited balance sheet flexibility if lodging demand softens.
- Short interest stands relatively high at 11.8% of float, indicating notable market skepticism.
- Net income dropped from $289.0M in FY2024 to $193.0M in FY2025, which could pressure cash distributions if earnings do not recover.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this WH AI stock analysis
This page is an AI-written research summary of Wyndham Hotels & Resorts, Inc. (WH). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: WH income statement, WH balance sheet, WH key metrics, WH analyst forecast, WH chart. See the WH stock overview for the latest quote and news.
WH AI stock analysis FAQ
What is Wyndham Hotels & Resorts' dividend yield and payment schedule?
Wyndham pays a quarterly dividend totaling $1.72 annually, which equates to a 2.28% dividend yield. The payout ratio is 35.2%, and the company has maintained 9 consecutive years of dividend payments.
How leveraged is Wyndham Hotels & Resorts?
As of June 30, 2026, Wyndham had $2.67B in total debt and $69.0M in cash and short-term investments, resulting in net debt of $2.61B. This reflects a debt-to-equity ratio of 5.57 and a current ratio of 0.99.
What are analysts forecasting for Wyndham's earnings and revenue?
For FY2026, analysts estimate EPS of $4.80 on revenue of $1.48B. For FY2027, 18 analysts project EPS to increase 11.1% to $5.33, with revenue reaching $1.57B.
How has Wyndham stock performed relative to the benchmark index?
Wyndham has underperformed the S&P 500, with a 1-year return of -0.8% versus 16.8% for the index. Over 5 years, the stock returned -0.2% compared to an 83.0% gain for the benchmark.