Q2 2024 Wyndham Hotels & Resorts Inc Earnings Call

Operator: Show, make sure you mute. Please stand by; we're about to begin.

Please standby we're about to begin.

Operator: Make sure you're on mute. Please stand by, we're about to begin. Good morning, everyone, and welcome to the Wyndham Hotels and Resorts second quarter 2024 earnings conference. At this time, all lines have been placed on hold. Prevent any background noise, and later the floor will be open for your questions. If you would like to ask a question at that time, please press star 1 on your telephone keypad. If at any point your question has been answered, you may remove yourself from the queue by pressing star 2.

Speaker Change: Good morning, everyone and welcome to the Wyndham hotels and resorts second quarter 2024 earnings Conference call.

Operator: Good morning, everyone, and welcome to the Wyndham Hotels and Resorts' second quarter 2024 earnings conference call. At this time, all lines have been placed on mute to prevent any background noise, and later, the floor will be open for your questions. If you would like to ask a question at that time, please press star one on your telephone keypad. If at any point your question has been answered, you may remove yourself from the queue by pressing star two. Lastly, if you should require an operator to call to date, please press star zero.

Speaker Change: At this time all lines have been placed on mute to prevent any background noise and later the floor will be opened for your questions.

If you would like to ask a question at that time. Please press star one on your telephone keypad. If at any point. Your question has been answered you may remove yourself from the queue by pressing star. Two lastly, if you should require operator called.

Speaker Change: Call today, Please press star zero.

Operator: Lastly, if you should require an operator... To call today, please press star zero. And now, at this time, I would like to turn the call over to Mr. Matt Capuzzi, Senior Vice President of Investor Relations. Please go ahead, sir.

Matt Capuzzi: And now this time, I would like to turn the call over to Mr. Matt Capuzzi, Senior Vice President of Investor Relations. Please go ahead, sir.

Matt Capuzzi: And now at this time I would like to turn the call over to Mr. Matt <unk> Senior Vice President of Investor Relations. Please go ahead Sir.

Matt Capuzzi: Thank you, operator.

Matt Capuzzi: Thank you, operator. Good morning, and thank you for joining us. With me today are Geoff Ballotti, our CEO, and Michele Allen, our CFO and head of strategy. Before we get started, I want to remind you that our remarks today will contain forward-looking statements. These statements are subject to risk factors that may cause our actual results to differ materially from those expressed or implied. These risk factors are discussed in detail in our most recent annual report on Form 10-K filed with the Securities and Exchange Commission and any subsequent reports filed with the SEC.

Matt: Thank you operator, good morning, and thank you for joining US with me today are Jeff <unk>, our CEO and Michele Allen, our CFO and head of strategy before.

Matt Capuzzi: Good morning, and thank you for joining us. With me today, Jeff Blotty, our CEO, and Michele Allen, our CFO, and had a strategy.

Matt Capuzzi: We'll also be referring to a number of non-GAAP measures. Corresponding GAAP measures and a reconciliation of non-GAAP measures to GAAP metrics are provided in our earnings release, which is available on our investor relations website at investor.wyndhamhotels.com. We are providing certain measures discussing future impact on a non-GAAP basis only because, without unreasonable efforts, we are unable to provide the comparable GAAP metrics.

Matt Capuzzi: Before we get started, I want to remind you that our remarks today will contain forward-looking statements. These statements are subject to risk factors that may cause our actual results to differ materially from those expressed or implied. These risk factors are discussed in detail in our most recent annual report on Form 10-K, filed with the Securities and Exchange Commission, and any subsequent reports filed with the SEC.

Speaker Change: Before we get started I want to remind you that our remarks today will contain forward looking statements. These statements are subject to risk factors that may cause our actual results to differ materially from those expressed or implied.

Speaker Change: These risk factors are discussed in detail in our most recent annual report on Form 10-K filed with the Securities and Exchange Commission and any subsequent reports filed with the S E T.

Matt Capuzzi: We'll also be referring to a number of non-GAAP measures. Of course, finding gap measures and a reconciliation of non-gap measures to gap metrics are provided in our earnings release, which is available on our Investor Relations website and investor.windemhotels.com. We're providing certain measures discussing future impact on a non-GAAP basis only because, without unreasonable efforts, we're unable to provide the comparable GAAP metric.

Speaker Change: We will also be referring to a number of non-GAAP measures corresponding GAAP measures and a reconciliation of non-GAAP measures to GAAP metrics are provided in our earnings release, which is available on our Investor Relations website at Investor that Wyndham hotels Dot com.

Speaker Change: We are providing certain measures discussing future impact on a non-GAAP basis, only because without unreasonable efforts. We are unable to provide the comparable GAAP metric.

Matt Capuzzi: In addition, last evening, we posted an investor presentation containing supplemental information on our investor relations website. We may continue to provide supplemental information on our website and on our social media channels in the future. Accordingly, we encourage investors to monitor our website and our social media channels, in addition to our press releases, filings submitted with the SEC, and any public conference calls or webcasts. With that, I will turn the call over to Geoff. Thanks, Matt.

Speaker Change: In addition last evening, we posted an investor presentation containing supplemental information on our Investor Relations website we.

Matt Capuzzi: In addition, last evening, we posted an investor presentation containing supplemental information on our Investor Relations website. We may continue to provide supplemental information on our website and on our social media channels in the future. Accordingly, we encourage investors to monitor our website and our social media channels. In addition to press releases, filings submitted with the SEC, and any public conference calls or webcasts.

Speaker Change: We may continue to provide supplemental information on our website and on our social media channels and the future. Accordingly, we encourage investors to monitor our website and our social media channels. In addition to our press releases filings submitted with the SEC and any public conference calls or webcast.

Geoffrey Ballotti: With that, I'll turn the call over to Jeff. Thanks, Matt. Good morning, everyone, and thank you for joining us today. As you saw with our release last night, we reported strong earnings as quarter with comparable adjusted EBITDA and EPS growth of 6% and 12%, respectively. We grew our system 4% saw strong increases in both our U.S. and international royalty rates. And meaningful growth in ourcillary fee streams. Year to date, we've generated over $107 million of adjusted free cash flow, and we've returned over $250 million to our shareholders. On the development front, we opened over 18,000 rooms in the quarter, 16% more remote openings domestically than last year, and continued to improve our franchisee retention rate.

Speaker Change: With that I'll turn the call over to Jeff.

Jeff: Thanks, Matt Good morning, everyone and thank you for joining us today.

Geoffrey A. Ballotti: Good morning, everyone, and thank you for joining us today. As you saw in our release last night, we reported strong earnings this quarter with comparable adjusted EBITDA and EPS growth of 6% and 12%, respectively. We grew our system four percent, saw strong increases in both our U.S. and international royalty rates, and meaningful growth in our ancillary fee stream, year-to-date. We've generated over $170 million of adjusted free cash flow, and we've returned over $250 million to our shareholders.

Jeff: As you saw with our release last night, we reported strong earnings this quarter with comparable adjusted EBITDA and EPS growth of 6% and 12% respectively.

Jeff: We grew our system, 4% saw strong increases in both our U S and international royalty rates.

Jeff: And meaningful growth in our ancillary fee streams year to date, we've generated over $170 million of adjusted free cash flow.

Jeff: And we've returned over $250 million to our shareholders.

Geoffrey A. Ballotti: On the development front, we opened over 18,000 rooms in the quarter, 16% more room openings domestically than last year, and continued to improve our franchisee retention rate. Importantly, our franchise sales team here in the United States signed an impressive 33% more development deals in the quarter than they did last year, which helped grow our global development pipeline for the 16th consecutive quarter by 740 basis points year-over-year to a record 245,000 rooms.

Jeff: On the development front, we opened over 18000 rooms in the quarter, 16% more room openings domestically than last year and continued to improve our franchisee retention rate in.

Geoffrey Ballotti: Importantly, our franchisee health team here in the United States signed an impressive 33% more development deals in the quarter than they did last year, which helped grow our global development pipeline for the 16th consecutive quarter by 740 basis points year over year to a record 245,000 rooms. Domestically, net rooms grew sequentially in versus prior year, driven by a 3% net room growth in our mid-scale and above brands, with new additions like the award-winning Oceanfront Semiyamo Golf and Spiresort in the Pacific Northwest, which joins our Trademark by Wyndham Collection. And we opened our first Echo Sweets in Spartanburg, South Carolina, currently the 12th fastest growing county in America that has recruited 80 economic development projects over the past three years.

Jeff: Importantly, our franchise sales team here in the United States signed an impressive 33% more development deals in the quarter than they did last year, which helped grow our global development pipeline for the 16th consecutive quarter by 740 basis points year over year to a record 240.

Jeff: 5000 rooms.

Geoffrey A. Ballotti: Domestically, net rooms grew sequentially versus the prior year, driven by a 3% net room growth in our mid-scale and above brands, with new additions like the award-winning Oceanfront Semiamu Golf and Spa Resort in the Pacific Northwest, which joins our trademarked by Wyndham collection. And we opened our first Echo Suites in Spartanburg, South Carolina, currently the 12th fastest growing county in America, which has recruited 80 economic development projects over the past three years, totaling more than $5 billion in capital investment and creating nearly 6,000 new jobs.

Jeff: Domestically net rooms grew sequentially and versus prior year, driven by a 3% net room growth in our midscale and above brands with new additions like the award winning oceanfront Semiahmoo golf and Spa resort in the Pacific Northwest, which joins our trademark by Wyndham collection and.

Jeff: And we opened our first echo suites in Spartanburg, South Carolina currently the 12th fastest growing County in America that has recruited 80 economic development projects over the past three years totaling more than $5 billion in capital investment and creating nearly 6000 new jobs.

Geoffrey Ballotti: Totally more than $5 billion in capital investment and creating nearly 6,000 new jobs. Our sales teams have been attracting and welcoming local infrastructure workers, who have been checking into the hotel with up to 7 months' lengths of stay. Internationally, we increased net rooms sequentially and by 8% versus prior year. Our immediate team, which opened over 20% more rooms than they did in the 2nd quarter of 23, once again grew net rooms sequentially and by 12% versus prior year, adding important new LeQuintas in the United Arab Emirates and in Turkey. Along with several stunning new destinations that our Wyndham Award members will want to vacation at, like the luxurious Dolce by Wyndham Hotels and Spire and Versailles, France.

Speaker Change: Our sales teams had been attracting and welcoming local infrastructure workers who've been checking into the hotel with up to seven month lengths of stay.

Jeff: Internationally, we increased net rooms sequentially and by 8% versus prior year.

Geoffrey A. Ballotti: Our sales teams have been attracting and welcoming local infrastructure workers who've been checking into the hotel with up to seven-month lengths of stay. Internationally, we increase net room sequentially and by 8% versus prior year. Our EMEA team, which opened over 20% more rooms than they did in the second quarter of 2023, once again grew net rooms sequentially and by 12% versus prior year, adding important new La Quintas in the United Arab Emirates and in Turkey, along with several stunning new destinations that our Wyndham Reward members will want to vacation at, like the luxurious Dolce by Wyndham Hotel and Spa in Versailles, France, and the Dolce by Wyndham Chesmé Turkey on the shores of the Aegean Sea.

Jeff: Our EMEA team, which opened over 20% more rooms than they did in the second quarter of twenty-three once again grew net rooms sequentially and by 12% versus prior year.

Speaker Change: Adding important new law teachers, and the United Arab Emirates and in Turkey.

Speaker Change: Along with several stunning new destinations that our Wyndham reward members will want to vacation at like the luxurious Dolce by Wyndham Hotel and Spa in Versailles, France.

Geoffrey Ballotti: And the Dolce by Wyndham Chesmei, Turkey, on the shores of the EGNC. Our EMEA development pipeline also grew year over year by over 6%. And now represents an average RevPAR that is 10% higher than our current portfolio. Our Latin America team grew net rooms 6% sequentially and by 11% versus prior year, adding 9 resorts to our trademark in Ramada Brands across Mexico, Panama, and the Caribbean, hotels which represent an 85% fee par premium to the region. Our development pipeline increased by 16% across Latin America and the Caribbean, representing an average RevPAR that is 7% higher than our current portfolio.

Speaker Change: And the Dolce by Wyndham Chaz made Turkey on the shores of the at GNC.

Geoffrey A. Ballotti: Our EMEA development pipeline also grew year-over-year by over 6% and now represents an average REV PAR that is 10% higher than our current portfolio. Our Latin America team grew net rooms 6% sequentially and by 11% versus the prior year, adding nine resorts to our trademark in Ramada brands across Mexico, Panama, and the Caribbean. Hotels that represent an 85% fee-par premium to the region. Our development pipeline increased by 16% across Latin America and the Caribbean, representing an average REB PAR that is 7% higher than our current portfolio. Our Southeast Asia and Pacific Rim region, which increased net rooms by 3% sequentially and by 11% versus last year, entered several new markets with hotels like the luxurious 850-room Wyndham Majestic Genting Highlands in Malaysia.

Speaker Change: Our EMEA development pipeline also grew year over year by over 6% and now represents an average revpar that is 10% higher than our current portfolio.

Speaker Change: Our Latin America team grew net rooms, 6% sequentially and by 11% versus prior year.

Speaker Change: Adding nine resorts to our trademark and ramada brands across Mexico, Panama, and the Caribbean hotels, which represent an 85% fee part premium to the region.

Speaker Change: Our development pipeline increased by 16% across Latin America, and the Caribbean, representing an average revpar that is 7% higher than our current portfolio.

Geoffrey A. Ballotti: Our Southeast Asia and Pacific Rim region, which increased net rooms by 3% sequentially and by 11% versus last year, entered several new markets with hotels like the luxurious 850-room Wyndham Majestic Genting Highlands in Malaysia. And in China, our team grew net rooms by 3% sequentially and by 12% versus prior year on a direct franchising basis, with some beautiful new openings, including our 20th, 21st, and 22nd MicroTell hotel, which developers are choosing for both new build and conversion opportunities. New signing activity was strong across the country, with a team awarding another 34 new direct franchise development agreements, growing our pipeline to nearly 400 hotels, a 9% increase over prior year, and importantly representing a pipeline with nearly double the fee par of our current China system.

Speaker Change: Our South East Asia, and Pacific Rim region, which increased net rooms by 3% sequentially and by 11% versus last year entered several new markets with hotels like the luxurious 850 room Wyndham Majestic Genting Highlands in Malaysia.

Geoffrey A. Ballotti: And in China, our team grew net rooms by 3% sequentially and by 12% versus the prior year on a direct franchising basis with some beautiful new openings, including our 20th, 21st, and 22nd Microtel Hotels, which developers are choosing for both new build and conversion opportunities. New signing activity was strong across the country, with a team awarding another 34 new direct franchise development agreements, growing our pipeline to nearly 400 hotels, a 9% increase over the prior year, and importantly, representing a pipeline with nearly double the fee par of our current China sales.

Speaker Change: And in China, our team grew net rooms by 3% sequentially and by 12% versus prior year on a direct franchising basis with some beautiful new openings, including our 20th twenty-first and twenty-second microtel hotels, which developers are choosing for both new build and conversion opportunities.

Speaker Change: New signing activity was strong across the country with a team of awarding another 34, new direct franchise development agreements growing our pipeline to nearly 400 hotels, a 9% increase over prior year, and importantly, representing a pipeline with nearly double the fee part of our current China system.

Geoffrey Ballotti: U.S. RevPAR grew 30 basis points to prior year, which was an improvement of over 500 basis points sequentially from Q1 to Q2. Domestic occupancy finished a point ahead of prior year, indicating improving demand trends for the peak vacation season. That said, many of you have inquired about U.S. RevPAR performance in our lower chain scale brand. We believe, along with many in the industry, that the current rev-par environment is transitory in nature. Historically, since 2000 and through four lodging cycles, US Rev-par for the Select Service segments, which makes up the majority of our domestic system, has grown at a cager of 2.6 percent, despite the occasional downturn.

Speaker Change: U S. Revpar grew 30 basis points to prior year, which was an improvement of over 500 basis points sequentially from Q1 to Q2 domestic.

Geoffrey A. Ballotti: U.S. RevPAR grew 30 basis points to the prior year, which was an improvement of over 500 basis points sequentially from Q1 to Q2. Domestic occupancy finished a point ahead of the prior year, indicating improving demand trends for the peak vacations. That said, many of you have inquired about U.S. RevPAR performance and our lower chain scale brand. We believe, along with many in the industry, that the current RevPAR environment is

Speaker Change: Occupancy finished a point ahead of prior year, indicating improving demand trends for the peak vacation season.

Speaker Change: Yeah.

Speaker Change: That said many of you have inquired about U S Revpar performance and our lower chain scale brands, we believe along with many in the industry that the current Revpar environment is transitory in nature historically since 2000 and through for lodging cycles U S. Revpar for the select service segments, which makes up the majority of our domestic system.

Geoffrey A. Ballotti: Historically, since 2000 and through four lodging cycles, U.S. RevPAR for the select service segments, which make up the majority of our domestic system, has grown at a CAGR of 2.6 percent despite the occasional downturn. Last month, Smith Travel reaffirmed this perspective in their latest outlook, projecting 2.7% U.S. RevPAR growth in 2025 for the select service segment. We've been through similar situations before, and we're confident that the Select Service REBPAR will bounce back, as it always has, historically.

Speaker Change: <unk> has grown at a CAGR of 2.6% despite the occasional downturn.

Geoffrey Ballotti: Last month, Smith Travel reaffirmed this perspective in their latest outlook, projecting 2.7 percent US Rev-Par growth in 2025 for the Select Service segments. We've been through similar situations before, and we're confident that the Select Service Rev-Par will bounce back as it always has historically. International Rev-par increased 7 percent to prior year in constant currency, and accelerated 250 basis points from Q1 to Q2 when compared to 2019. Occupancy internationally remains a tailwind for the remainder of the year and is now 13 percent behind where it was in 2019. Emia and Latin America Rev-par were both especially strong this quarter, increasing year over year by 15 percent and by 37 percent, respectively, driven by strength in Greece, Spain, Turkey, the Middle East, and across the Caribbean.

Speaker Change: Last month Smith travel reaffirm this perspective in their latest outlook projecting 2.7% U S. Revpar growth in 2025 for the select service segments.

Speaker Change: We've been through similar situations before and we're confident that the select service Revpar will bounce back as it always has historically.

Geoffrey A. Ballotti: The international REP bar increased 7% to the prior year in constant currency and accelerated 250 basis points from Q1 to Q2 when compared to 2019. Occupancy internationally remains a tailwind for the remainder of the year and is now 13% behind where it was in 2019. EMEA and Latin America RevPAR were both especially strong this quarter, increasing year over year by 15% and by 37%, respectively. Driven by strength in Greece, Spain, Turkey, the Middle East, and across the Caribbean, and the start of what looks to be a very strong summer across the European continent.

Speaker Change: International Revpar increased 7% to prior year in constant currency and accelerated 250 basis points from Q1 to Q2 when compared to 2019.

Speaker Change: Occupancy internationally remains a tailwind for the remainder of the year and is now 13% behind where it was in 2019.

Speaker Change: India, and Latin America, Revpar, with both especially strong this quarter, increasing year over year by 15% and by 37% respectively.

Speaker Change: Driven by strength in Greece, Spain, Turkey, the middle East and across the Caribbean.

Geoffrey Ballotti: And the start of what looks to be a very strong summer across the European continent. Our franchisees are the foundation that enable wind them to deliver elevated experiences and service to our everyday travelers. To further enhance the value our brands provide, we're making travel to our hotels more seamless and more connected than ever. Earlier this month, we announced the rollout of our new Windham Connect guest engagement platform to help our franchisees curate personalized experiences for guests and drive increased ancillary revenue for our hotels. Nearly 2,000 hotels across North America are already embracing these best-in-class, mobile-centric tools that leverage one of the most substantial AI-driven, large language models in the industry.

Speaker Change: And the start of what looks to be a very strong summer across the European continent.

Speaker Change: Our franchisees are the foundation that enable wyndham to deliver elevated experiences and service to our everyday travelers.

Geoffrey A. Ballotti: Our franchisees are the foundation that enable Wyndham to deliver elevated experiences and service to our everyday travelers, further enhancing the value our brands provide. We're making travel to our hotels more seamless and more connected than ever. Earlier this month, we announced the rollout of our new Wyndham Connect guest engagement platform to help our franchisees curate personalized experiences for guests and drive increased ancillary revenue for our hotels. Nearly 2,000 hotels across North America are already embracing these best-in-class, mobile-centric tools that leverage one of the most substantial AI-driven large language models in the industry to support their bottom lines while increasing guest satisfaction. Smart Mobile Check-In is speeding up the check-in process for both our guests and front desk agents, helping to verify guest information in advance and protecting owners from expensive chargebacks and reducing overall labor needs.

Speaker Change: To further enhance the value of our brands provide we're making travel to our hotels more seamless and more connected than ever earlier. This month, we announced the rollout of our new Wyndham connect guest engagement platform to help our franchisees curate personalized experiences for guests and drive increased ancillary revenue for our <unk>.

Speaker Change: Tells.

Speaker Change: Nearly 2000 hotels across North America are already embracing these best in class mobile centric tools that leverage one of the most substantial AI driven large language models in the industry to support franchisees bottom lines, while increasing guest satisfaction.

Geoffrey Ballotti: To support franchisees' bottom lines while increasing guest satisfaction. Smart mobile check-in is speeding up the check-in process for both our guests and front desk agents, helping to verify guest information and advance and protecting owners from expensive charge backs and reducing overall labor needs. Franchisees are driving additional ancillary revenues by effortlessly upselling early check-ins and late check-outs to guests. By upselling personalized room upgrades to higher floors, to corner rooms into better views, and pre-selling various snacks, food, beverage, and other amenities to be placed in room before guests arrive. Our hotels are seeing upwards of $1,400 monthly in monetization opportunity on early check-in and late check-out alone.

Speaker Change: Smart mobile check in is speeding up the checking process for both our guests and front desk agents, helping to verify guest information in advance and protecting owners from expensive charge backs and reducing overall labor needs.

Geoffrey A. Ballotti: Franchisees are driving additional ancillary revenues by effortless upselling early check-ins and late check-outs to guests, by upselling personalized room upgrades to higher floors, corner rooms, and to better views, and by pre-selling various snacks, food, beverages, and other amenities to be placed in the room before guests arrive. Our hotels are seeing upwards of $1,400 monthly in monetization opportunity on early check-in and late check-out alone. And our new AI-generated Messaging That Matters is allowing franchisees to communicate with and respond to guests via text message with ease and speed before, during, and after their stay.

Speaker Change: Franchise ease or driving additional ancillary revenues by effortlessly upselling early check ins in late checkouts to guests by Upselling personalized room upgrades to higher floors to corner rooms into better views and pre selling various snacks food beverage and other amenities to be placed in room before guests arrive.

Speaker Change: Our hotels are seeing upwards of $1400 monthly in monetization opportunity on early check in and late checkout alone.

Geoffrey Ballotti: And our new AI-generated messaging that matters is allowing franchisees to communicate with and respond to guests via text message with ease and speed before, during, and after their stays. We're bringing technology typically offered in luxury and upscale segments to select service hotels, helping franchisees manage their businesses more efficiently, and creating guest experiences that make stays more meaningful, resulting in happier guests, increased repeat business, and more ancillary revenue for our franchisees and consequently, wind them.

Speaker Change: Our new AI generated messaging that matters is allowing franchisees to communicate with and respond to guests via text message with ease and speed before during and after their stays we're bringing technology typically offered in luxury and upscale segments to select service hotels, helping franchisees manage their businesses more efficiently.

Geoffrey A. Ballotti: We're bringing technology typically offered in luxury and upscale segments to select service hotels, helping franchisees manage their businesses more efficiently, and creating guest experiences that make stays more meaningful, resulting in happier guests, increased repeat business, and more ancillary revenue for our franchisees and, consequently, Wyndham. In closing, we're extremely proud of the results we generated this quarter and our ability to deliver on the key pillars of our long-term growth strategy, including strong system and development pipeline growth, royalty rate expansion, increased ancillary fees, and the beginning of infrastructure capture, including the opening of our first of many Echo Suites extended stay hotels this year.

Speaker Change: <unk> and creating guest experiences that make stays more meaningful resulting in happier guests increased repeat business and more ancillary revenue for our franchisees and consequently Wyndham.

Geoffrey Ballotti: In closing, we're extremely proud of the results we generated this quarter and our ability to deliver on the key pillars of our long-term growth strategy, including strong system and development pipeline growth, royalty rate expansion, increased ancillary fees and the beginning of infrastructure capture, including the opening of our first of many Ecosweets extended stay hotels this year. As we enter our sixth year as a public company that franchises more hotels than any other, we're in a stronger position than ever before. Our ability to open more hotels than anyone else in the world for the past two years highlights the strength of Wyndham's differentiated brands and the strength of our franchise sales, marketing, technology, and operating leadership across the 95 countries in which we operate.

Speaker Change: In closing we're extremely proud of the results we generated this quarter and our ability to deliver on the key pillars of our long term growth strategy, including strong system in development pipeline growth royalty rate expansion.

Speaker Change: Increased ancillary fees in the beginning of infrastructure capture including the opening of our first of many echo suites extended stay hotels this year.

Geoffrey A. Ballotti: As we enter our sixth year as a public company that franchises more hotels than any other, we're in a stronger position than ever before. Our ability to open more hotels than anyone else in the world for the past two years highlights the strength of Wyndham's differentiated brands and the strength of our franchise sales, marketing, technology, and operating leadership across the 95 countries in which we operate. We're confident in our growth strategy and in our ability to create substantial value both in the short term and in the long term.

Speaker Change: As we enter our sixth year as a public company the franchises more hotels than any other we're in a stronger position than ever before.

Speaker Change: Our ability to open more hotels than anyone else in the world for the past two years highlights the strength of Wyndham is differentiated brands and the strength of our franchise sales marketing technology and operating leadership across the 95 countries in which we operate.

Geoffrey Ballotti: We're confident in our growth strategy and in our ability to create substantial value both in the short-term and long-term.

Speaker Change: We're confident in our growth strategy and in our ability to create substantial value. Both in the short term and the long term as always we want to thank our dedicated team members around the world, who continue to make Wyndham hotels and resorts such a great place to work and with that I'll now turn the call over to Michele for more details on our <unk>.

Geoffrey Ballotti: As always, we want to thank our dedicated team members around the world who continue to make Wyndham Hotels and Resorts such a great place to work.

Geoffrey A. Ballotti: As always, we want to thank our dedicated team members around the world who continue to make Wyndham Hotels and Resorts such a great place to work. And with that, I'll now turn the call over to Michele for more details on our financial performance.

Michele Allen: And with that, I'll now turn the call over to Michele for more details on our financial performance. Michelle? Thanks, Jeff, and good morning, everyone. I'll begin my remarks today with the detailed review of our second quarter results. I'll then review our cash loss and balance sheet, followed by our outlook.

Michelle: Actual performance Michelle.

Michele Allen: Thanks, Chuck and good morning, everyone I'll begin my remarks today with a detailed review of our second quarter results. I'll, then review of our cash flow and balance sheet, followed by our outlook before.

Michele Allen: Thanks, Jeff, and good morning, everyone. I'll begin my remarks today with a detailed review of our second quarter results. I'll then review our cash flows and balance sheet, followed by our outlook. Before we get started, let me briefly remind everyone that the comparability of our financial results is impacted by the timing of our marketing fund spend. In the second quarter of this year, marketing fund expenses exceeded revenues by $5 million, as expected, compared to expenses exceeding revenues by $15 million in the second quarter of last year.

Michele Allen: Before we get started, let me briefly remind everyone that the comparability of our financial results is impacted by the timing of our marketing front spend. In the second quarter of this year, marketing front expenses exceeded revenues by $5 million, as expected, compared to expenses exceeding revenues by $15 million in the second quarter of last year. To enhance transparency and provide a better understanding of the results of our ongoing operation, I will be highlighting our results on a comparable basis which neutralizes the marketing front impact. In the second quarter, we generated $360 million of fee related to another revenues and $178 million of adjusted EBITDA.

Michele Allen: Before we get started let me briefly remind everyone that the comparability of our financial result is impacted by the timing of our marketing spend.

Michelle: In the second quarter of this year marketing expenses exceeded revenues by $5 million as expected compared to expenses exceeded revenues by $15 million in the second quarter of last year.

Michele Allen: To enhance transparency and provide a better understanding of the results of our ongoing operations, I will be highlighting our results on a comparable basis, which neutralizes the marketing fund impact. In the second quarter, we generated $366 million of fee-related and other revenues and $178 million of adjusted EBITDA. Fee-related and other revenues increased $8 million year-over-year, reflecting increases in royalties and franchise fees, marketing revenues, and ancillary fee streams. Royalties and franchise fees, as well as marketing revenues, reflect our global system growth, along with increases in our domestic, international, and global royalty rates. These gains were partially offset by a 1% decline in global REBPAR.

Michelle: To enhance transparency and provide a better understanding of the results of our ongoing operations I will be highlighting our results on a comparable basis, which neutralizes the marketing impact.

Michele Allen: The increase in ancillary revenues was driven by higher credit card and partnership fees as well as increased license fees as we harness the power of our Wyndham Rewards loyalty base. This growth continues the trend from the first quarter, where we saw these fee streams meaningfully outperform industry reptile levels. Adjusted EBITDA grew 6% on a comparable basis, primarily reflecting higher fee-related and other revenues, disciplined cost management given the recent red-par environment, and an insurance recovery.

Michelle: In the second quarter, we generated $366 million of fee related and other revenues and $178 million of adjusted EBITDA.

Michele Allen: The related and other revenues increased $8 million year over year, reflecting increases in royal peace and franchise fees, marketing revenues, and ancillary peace stream. Royal peace and franchise fees, as well as marketing revenues, reflect our global system growth, along with increases in our domestic, international, and global royalty rates. These gains were partially offset by the 1% decline in global rep part. The increase in ancillary revenues was driven by higher credit card and partnership fees, as well as increased license fees as we harness the power of our wind and rewards loyalty base. This growth continues to trend from the first quarter where we saw these fees streams meaningfully outperform industry rep tar level.

Michelle: The related and other revenues increased $8 million year over year, reflecting increases in royalties and franchise fees marketing revenues and ancillary fee stream.

Michelle: Royalties and franchise fees as well as marketing revenues reflect our global system growth along with increases in our domestic international and global royalty rate.

Michelle: These gains were partially offset by the 1% decline in global Revpar.

Michelle: The increase in ancillary revenues was driven by higher credit card in partnership fees as well as increased license fees as we harness the power of our Wyndham rewards loyalty base.

Michelle: This growth continues to trend from the first quarter, where we saw these fee streams meaningfully outperform industry revpar level.

Michele Allen: Adjusted EBITDA grew 6% on a comparable basis, primarily respecting higher fee-related and other revenues, disciplined cost management given the recent rep tar environment, and an insurance recovery. As a result, our adjusted EBITDA margin improved 350 basis points to 85% this quarter. Second quarter adjusted diluted EPS was $1.13, up 12% on a comparable basis, reflecting our adjusted EBITDA growth, as well as benefits from our share repurchase activity and a lower effective tax rate, which were partially offset by higher interest expense. adjusted three cash flow with $69 million in second quarter and $171 million year to date with a conversion rate from adjusted EBITDA at 54%.

Michelle: Adjusted EBITDA grew 6% on a comparable basis, primarily reflecting higher fee related and other revenues disciplined cost management, given the recent revpar environment and an insurance recovery.

Michele Allen: As a result, our adjusted EBITDA margin improved 350 basis points to 85% this quarter. Second quarter adjusted diluted EPS was $1.13, up 12% on a comparable basis, reflecting our adjusted EBITDA growth, as well as benefits from our share repurchase activity and a lower effective tax rate, which were partially offset by higher interest expense. Adjusted free cash flow was $69 million in the second quarter and $171 million year-to-date, with a conversion rate from Adjusted EBITDA of 54%. At our current trading levels, our free cash flow yield of over 6% is the highest in the lodging sector. Development Advance Spend was $33 million in the second quarter, bringing our year-to-date spend to $64 million.

Michelle: As a result, our adjusted EBITDA margin improved 350 basis points to 85% this quarter.

Michelle: Second quarter adjusted diluted EPS was $1 13 up 12% on a comparable basis, reflecting our adjusted EBITDA growth as well as benefits from our share repurchase activity and a lower effective tax rate, which were partially offset by higher interest expense.

Michelle: Adjusted free cash flow was $69 million in the second quarter and $171 million year to date with a conversion rate from adjusted EBITDA of 54%.

Michele Allen: At our current trading levels, our free cash flow yield of over 6% is the highest in the lodging sector. Development advanced spend was $33 million in the second quarter, bringing our year-to-date spend to 64 million. We continue to see increased demand for our brands, with global openings up 11% so far this year, and we're thrilled to be able to deploy some of our excess cash to secure these long-term agreements. The majority of which, as Geoff highlighted, are in the higher fee per market and/or segments. We returned $162 million to our shareholders during the second quarter through $131 million of share repurchases and $31 million of common stock dividends.

Michelle: At our current trading level, our free cash flow yield of over 6% is the highest in the lodging sector.

Speaker Change: <unk> spend was $33 million in the second quarter, bringing our year to date spend of $64 million.

Michele Allen: We continue to see increased demand for our brands, with global openings up 11% so far this year, and we're thrilled to be able to deploy some of our excess cash to secure these long-term agreements, the majority of which, as Geoff highlighted, are in the higher fee-per-market and or segments. We returned $162 million to our shareholders during the second quarter through $131 million of share repurchases and $31 million of common stock dividends

Speaker Change: We continue to see increased demand for our brands with global openings up 11%. So far this year and we're thrilled to be able to deploy some of our excess cash to secure these long term agreements the majority of which as Jeff highlighted are in the higher fee part markets and or segment.

Michelle: We returned $162 million to our shareholders. During the second quarter grew $131 million of share repurchases and $31 million of common stock dividends at a stock price that we continue to be well below our intrinsic value, we see the option to repurchase our shares to be even more compelling and as a result, we capitalized on the SAP.

Michele Allen: At a stock price that we continue to be well below our intrinsic value, we see the option to repurchase our shares to be even more compelling. And as a result, we capitalize on this opportunity and repurchase nearly two and a half times the amount we bought back in the first quarter. Year to date, we have repurchased 2.6 million shares of our stock for $188 million. And from 2019 through the end of the second quarter, we returned nearly 45% of our market cap to shareholders, which is best in class among lodging sea corks and significantly above our closest competitor.

Michele Allen: At a stock price that we continue to deem well below our intrinsic value, we see the option to repurchase our shares to be even more compelling, and as a result, we capitalize on this opportunity and repurchase nearly two and a half times the amount we brought back in the first quarter. Year-to-date, we have repurchased 2.6 million shares of our stock for $188 million. And from 2019 through the end of the second quarter, we returned nearly 45% of our market cap to shareholders, which is best in class among lodging C-Corps and significantly above our closest competitor. We closed the quarter with approximately $820 million in total liquidity, and our net leverage ratio of 3.5 times was at the midpoint of our target range.

Michelle: Whats unity and repurchased nearly two and a half times the amount we bought back in the first quarter year.

Michelle: Year to date, we have repurchased two 6 million shares of our stock for $188 million and from 2019 through the end of the second quarter. We returned nearly 45% of our market cap to shareholders, which is best in class among lodging C Corp, and significantly above our closest competitor.

Michelle: We closed the quarter with approximately $820 million in total liquidity and our net leverage ratio of three five times was that the midpoint of our target range.

Michele Allen: We close the quarter with approximately 820 million in total liquidity, and our net leverage ratio of 3.5 times was at the midpoint of our target range. At this leverage level, which is where we expect to end the year, we have approximately $500 million of capital available for investment in the business or share repurchases this year. Only roughly half of which has been allocated through the end of the second quarter. This quarter, we successfully reprised our existing term on B, while also exercising the facility by $400 million. The new term on B of 1.5 billion matures in May 2030 and carries an interest rate of silver plus 175, which is 60 basis points lower than the prior facility.

Michele Allen: At this leverage level, which is where we expect to end the year, we have approximately $500 million of capital available for investment in the business or share repurchases this year, only roughly half of which has been allocated through the end of the second quarter. This quarter, we successfully repriced our existing Term Loan B while also upsizing the facility by $400 million. The new Term Loan B of $1.5 billion matures in May 2030 and carries an interest rate of SOFR plus 175, which is 60 basis points lower than the prior facility. The refinancing-generated annual interest savings of approximately $6 million, which will be offset by incremental interest on the upside. At the end of the second quarter, approximately two-thirds of our total debt was fixed, and one-third was variable. Now, turning to Outlook.

Michelle: At this leverage level, which is where we expect to end the year, we have approximately $500 million of capital available for investment in the business or share repurchases. This year.

Michelle: Roughly half of which has been allocated through the end of the second quarter.

Michelle: This quarter, we successfully repriced our existing term loan b, while also upsizing the facility by $400 million.

Michelle: The new term loan B of one 5 billion matures in May 2030, and carries an interest rate of sofa, plus 175, which is 60 basis points lower than the prior facility.

Michele Allen: The refinancing generated annual interest savings of approximately $6 million, which will be offset by incremental interest on the upside. At the end of the second quarter, approximately 2-thirds of our total debt was fixed and 1-thirds was variable.

Michelle: The refinancing generated annual interest savings of approximately $6 million, which will be offset by incremental interest on the upside but.

Michelle: At the end of the second quarter approximately two thirds of our total debt was fixed and one third was variable.

Michelle: Now turning to outlook.

Michele Allen: Now, turning to Outlook. The global repart improves the country. The second quarter trends, as Jeff mentioned, represented a more gradual return to year-over-year growth than previously anticipated. As a result, we're updating our full year 2024 growth outlook for repart to be essentially flat year-over-year. Consequently, our outlook for fee-related and other revenues is now 1.41 to 1.43 billion dollars, down from our prior outlook of 1.43 to 1.46 billion. This decline is roughly split evenly between royalties and franchises and marketing reservation and loyalty revenues, the latter of which has no impact on adjusted EBITDA. There are no changes to our outlook for net room growth, which remains at 3-4%, or adjusted EBITDA, which remains at $690 to $700 million, and implies a year-over-year improvement in our EBITDA margin of approximately 130 basis points at the midpoint of our outlook.

Michele Allen: While global REBPAR improved sequentially, the second quarter trends, as Geoff mentioned, represented a more gradual return to year-over-year growth than previously anticipated. As a result, we're updating our full year 2024 growth outlook for REBPAR to be essentially flat year-over-year. Consequently, our outlook for fee-related and other revenues is now $1.41 to $1.43 billion, down from our prior outlook of $1.43 to $1.46 billion. This decline is roughly split evenly between royalties and franchisees and marketing reservation and loyalty revenues, the latter of which has no impact on adjusted EBITDA.

Michelle: Our global Revpar improved sequentially, the second quarter trends as Jeff mentioned represented a more gradual return to year over year growth than previously anticipated as a result were updating our full year 2024 growth outlook for revpar to be essentially flat year over year.

Michelle: Consequently, our outlook for fee related and other revenues is now 141 to $1 $43 billion down from our prior outlook of $1 432 1.46 billion.

Michelle: This decline is roughly split evenly between royalties and franchise fees and marketing reservation and loyalty revenues, the latter of which has no impact on adjusted EBITDA.

Michele Allen: There are no changes to our outlook for net room growth, which remains at 3 to 4%, or adjusted EBITDA, which remains at $690 to $700 million and implies a year-over-year improvement in our EBITDA margin of approximately 130 basis points at the midpoint of our outlook. We're revising our Just a Net Income Outlook to $338 million to $348 million to reflect an increase in interest expense due to the upsizing of our Term Loan B net of the savings from the spread reduction.

Michele Allen: We are, however, increasing our adjusted diluted EPS projection by 2 cents to a range of $4.20 to $4.32 to account for our second quarter share repurchase activity, partially offset by a slight decline in our adjusted net income outlook. This outlook is based on a lower diluted share count of 80.6 million shares and, as usual, assumes no additional share repurchases or incremental interest expense associated with any potential borrowing activity to maintain our leverage at three and a half times.

Michelle: Our leverage at three and a half times.

Michele Allen: There are no changes to our expectation for just a free cash flow conversion, which is still expected to be approximately 60%. However, we are increasing our expectation for development advance spend by approximately $20 million to $110 million to account for our continued success in attracting high-value deals to the system, particularly in higher fee-per-market segments. There are also no changes to our expectations for the marketing fund.

Michelle: There are no changes to our expectations for adjusted free cash flow conversion, which is still expected to be approximately 60%.

Michelle: However, we are increasing our expectation for development advanced spend by approximately $20 million to 110 million to account for our continued success in attracting high value deals to the system, particularly in higher fee part markets and segments.

Michelle: There are also no changes to our expectations for the marketing funds. Despite the Revpar reduction, we still expect fund revenues well outpaced fund expenses by approximately $18 million in the back half of the year with about 10 million per quarter, which as planned we'll offset the first half overspend.

Michele Allen: Despite the REPPAR reduction, we still expect fund revenues will outpace fund expenses by approximately $18 million in the back half of the year, with about $10 million per quarter, which as planned, will offset the first half overspent. In closing, the resilience and highly cash-generative nature of our business model continues to shine. Despite a softer rep par environment this year, we remain squarely on track to deliver our adjusted EBITDA target. Our ability to grow our net room count, our ancillary revenue stream, and our royalty rates propels our business to adjusted EBITDA growth of 6% to 8%, even in a softer domestic rep par environment than we initially expected.

Michelle: In closing the resilience and highly cash generative nature of our business model continues to shine. Despite a softer revpar environment. This year, we remain squarely on track to deliver our adjusted EBITDA targets, our ability to grow our net room count our ancillary revenue streams and our royalty rates.

Michelle: Our business to adjusted EBITDA growth of six 8% even in a softer domestic revpar environment than we initially expected.

Michele Allen: In the presentation we posted last evening, you will see that we also reaffirmed our multiyear outlook through 2026, including an adjusted EBITDA CAGR of 7 to 10 percent and a potential adjusted EPS CAGR in the mid-teens after capital deployment. We view these levels of organic performance as best in class for our industry, and we are committed to continuing to operate our business in a manner that significantly enhances shareholder value. With that, Geoff and I would be happy to take your questions. Operator?

Michelle: In the presentation, we posted last evening, you will see that we also reaffirmed our multiyear outlook through 2026, including an adjusted EBITDA CAGR of 7% to 10% and a potential adjusted EPS CAGR in the mid teens after capital deployment.

Michelle: We view these levels of organic performance as best in class for our industry and we are committed to continuing to operate our business in a manner that significantly enhances shareholder value.

Michelle: With that Jeff and I would be happy to take your questions operator.

Operator: Thank you, Ms. Allen. Ladies and gentlemen, at this time, the floor is now open to your questions. At this time, if you have a question or comment, please press star 1 on your telephone keypad. If at any point your question has been answered, you may remove yourself from the queue by pressing star 2.

Operator: Again, we do ask that you limit yourself to one question and one follow-up. We'll go first today to Joe Greff with JPMorgan. Good morning, guys.

Geoffrey Ballotti: Thanks, Joe. I'll let Michelle talk about developer advance notes and know it's not the floor. We are seeing lots of deals out there on the horizon, which is what has us excited. And which is why Michele has taken a guidance up by 20 million on the key money. We saw a phenomenal opening, execution, and pipeline growth in the quarter. I think owners to your last two calls, first questions are much more receptive in sitting down with us now, that the uncertainty is behind us.

Speaker Change: To your last two calls first questions are much more receptive and sitting down with US now that the uncertainty is behind us in next week or two senior Vice Presidents Jared method, David Wilner.

Geoffrey A. Ballotti: And next week our two senior vice presidents, Jared Mavid, David Wilner, and our Chief Development Officer, a mystery pathion. I have several development meetings with prospects across the country deals that are not yet signed. I'm not sure that'd be sitting down with us a quarter or two ago, but let's start with openings. Our second quarter, 18,000 rooms, was the best Q2 openings that we've had on record. And 75% of those openings, as we said in the script, were in the mid-scale and above segments, which we were really pleased by. It was really driven by strong domestic openings.

Speaker Change: And our Chief Development Officer, a mitre Patheon I have had several development meetings with prospects across the country deals that are not yet signed that I'm not sure they'd be sitting down with us a quarter or two ago, but let's start with openings are second quarter 18000 rooms was the best Q2 openings that we've had on record.

Joseph Richard Greff: The first question is on rooms growth. Second quarter in a row of about 4% year-over-year net room growth. And given the continued growth in the pipeline, is this the floor for room growth? And if the answer is no, why isn't it?

Michele Allen: And then with respect to the increase in development advancement notes and just increasing developer capital support, is that for new deals, or is that for existing pipelines and trying to get them out of the pipeline into openings? Thank you. Thanks, Joe. I'll let Michele talk about developer advance notes. And no, it's not the floor.

Geoffrey A. Ballotti: We are seeing lots of deals out there on the horizon, which is what has us excited. And which is why Michele has taken the guidance up by $20 million on the key money. We saw phenomenal opening, execution, and pipeline growth in the quarter. I think owners, on your last two calls, are much more receptive to sitting down with us now that the uncertainty is behind us. Next week, our two senior vice presidents, Jared Mebbitt and David Wilner, and our chief development officer, Amit Shripathy, and I have several development meetings with prospects across the country, deals that are not yet signed that I'm not sure they'd be sitting. Our second quarter's 18,000 rooms was the best Q2 openings that we've had on record. And 75% of those openings, as we said in the script, It was really driven by strong domestic openings.

Michelle: 75% of those openings as we said in the script, we're in the Midscale and above segments, which we're really pleased by it was really driven by strong domestic openings, we had 7000 rooms open up.

Geoffrey Ballotti: We had 7,000 rooms open up. It was up 16% to last year. Solid conversion openings with good growth across the board, new new conversions coming into the system. And international openings came in around 11,000 rooms, and running 8% year over year. I think why 4% is not the floor; we've always said longer term, we're 3% to 5% is what's happening on the executions front.

Geoffrey A. Ballotti: We had 7,000 rooms open. It was up 16% from last year, solid, solid conversion openings, with good growth across the board, new conversions coming into the, and international openings came in around 11,000 rooms and are running 8% year over year. I think why 4% is not the floor; we've always said longer term where 3 to 5% is what's happening on the execution front. We are so incredibly proud of our franchise sales teams and our leadership teams around the world.

Michelle: It was up 16% to last year solid solid conversion openings with good growth across the board, new new new new conversions coming into the system and international openings came in around 11000 rooms are running 8% year over year I think why 4% is not the floor we've always.

Michelle: Said longer term, where 3% to 5% is what's happening on the execution front. We are so incredibly proud of our franchise sales teams and our leadership teams around the world.

Geoffrey Ballotti: We are so incredibly proud of our franchise sales teams and our leadership teams around the world. You know, we've talked a lot about year-to-date transaction volumes being down. And those are a big driver, Joe, in terms of conversions for us. They're still 25% below where they were last year. They're still below where they were by about the same amount back in 2019. But despite all of that, we executed 96 deals domestically, which was 30% more than last year. And our new construction prototype brands are continuing to sell well. And we have 84 deals internationally that year to date, up about 11%.

Geoffrey A. Ballotti: You know, we've talked a lot about year-to-date transaction volumes being down, and those are a big driver, Joe. In terms of conversions for us, they're still 25% below where they were last year, and they're still below where they were by about the same amount back in 2019. But despite all of that, we executed 96 deals domestically.

Michelle: We've talked a lot about year to date transaction volumes being down and those are a big driver Joe in terms of conversions for US there is still 25% below where they were last year and they're still below where they were by about the same amount back in 2019, but despite all of that.

Joe: We executed 96 deals domestically, which was 30% more than last year.

Geoffrey A. Ballotti: 30% more than last year. And our new construction prototype brands are continuing to sell well, and we have 84 deals internationally that are up about 11% year-to-date. So this was the 16th consecutive quarter of sequential pipeline growth. We're up to a record 245,000 rooms across 60 countries, and we are very optimistic about what net room growth looks like going forward. Michele, maybe you'd touch upon that. Sure, happy to.

Geoffrey Ballotti: So this was the 16 consecutive quarters of sequential pipeline growth. We're up to a record 245,000 rooms across 60 countries. And we are very optimistic about what net room growth looks like going forward.

Michele Allen: But, Michelle, maybe you'll touch upon the dance question. Sure, happy to. I think Joe, you mentioned, is it for deals that came into the system, or is it for an increase in the pipeline. And the increase of $20 million really represents the pipeline deals. There are a number of investment opportunities that have recently presented themselves in higher, but we're really excited about and we look forward to sharing specifics as these hotels come into the system. We've always said our first priority for free cash flow is to invest in the business, and the fact that we're seeing incremental demand for our brands, especially in top markets, is something we view very positively.

Michele Allen: I think, Joe, you mentioned, is it for deals that came into the system, or is it for an increase in the pipeline? And the increase of $20 million really represents pipeline deals. There are a number of investment opportunities that have recently presented themselves in higher-reputational markets that we're really excited about, and we look forward to sharing specifics as these hotels come into the system. We've always said our first priority for free cash flow is to invest in the business, and the fact that we're seeing incremental demand for our brands, especially in top markets, is something we view very positively.

Michele Allen: Great. And then my follow-up question relates, Michele, to your updated REFPAR outlook. Specifically, in the second half, what's now assumed for the U.S., specifically the economy, the mid-scale, and then China? And then maybe, again, more specifically, can you bridge the reduction in REFPAR growth versus the prior outlook, yet you're keeping, maintaining the prior cushion, prior conservatism between Rep. Barbro and EBIDTA generation a quarter ago? And that's all for me.

Michele Allen: Great.

Michele Allen: We're updated ref-par outlook specifically in the second half. What's now assumed for the U.S. specifically the economy to mid-scale and then China. And then maybe more specifically, can you bridge the reduction in ref-par growth versus the prior outlook, yet you're keeping maintaining the EBITDA range? How much of this is incremental. So let's see how much of it is. All right, so part of what I'm getting at is, you know, as we progress through this, you know, these next few years to 2026, it seems as though the ancillary fees, you know, that growth rate is actually accelerating, right, and so when we get to that 2026, it'll be higher than, you know, 8% of just averages because of the cakeer, right; it is the acceleration, you know, similar.

Michele Allen: Yep, sure. So, there is a lot in that question to unpack. I'll take the REPPAR section first. In the U.S., we're expecting similar trends to what we're seeing now in July, with maybe another point coming from the infrastructure ramp-up. That is inclusive of the economy getting to flat, and mid-scale would be up about one to two points. In China, we are also expecting some modest improvement, which is consistent with the last five weeks of performance.

Joe: So not.

Speaker Change: A lot in that question to unpack all I'll take the Revpar section first in the U S. A we're expecting similar trends to what we're seeing now in July with maybe another point coming from the infrastructure ramp up on that that is inclusive economy getting to flat and mid scale.

Joe: L. A would be up about one to two points in in China. We are also expecting some modest improvement which is consistent with the last five weeks of performance second quarter was the toughest comp. So so we see a couple of hundred basis points improvement there in the second half and <unk> and then the rest of international.

Michele Allen: The second quarter was the toughest comp, so we see a couple hundred basis points of improvement there in the second half. And then the rest of international, I would say, is pretty similar to what we saw in Q2.

Speaker Change: I would say, it's pretty similar to what we saw in Q2 with respect to maintaining our EBIT guide on the Revpar reduction there are really three drivers here, Joe all of which add up to a meaningful amount first our business is just getting more efficient, particularly on the technology side.

Michele Allen: With respect to maintaining our EBITDA guide on the REPPAR reduction, there are really three drivers here, Joe, all of which add up to a meaningful amount. First, our business is just getting more efficient, particularly on the technology side. We've integrated our commercial organization. We're leveraging third-party partners and new next-gen type solutions. So, this is showing up really in two places.

Joe: We've integrated our commercial organization, we're leveraging third party partners and a new Nextgen type solution. So this is this is showing up really in two places it's boosting our non revpar revenue. So that's contributing more to our EBITDA and then we're also seeing some benefits in in the G&A line items. So there was a real margin expansion.

Michele Allen: It's boosting our non-REPPAR revenue, so that's contributing more to our EBITDA. And then we're also seeing some benefits in the G&A line item. So, there's real margin expansion here. Next, we've been disciplined with our costs initially in our budget. We matched discretionary investment spend with expected REPPAR growth, and we were able to reprioritize those investments when we saw the REPPAR growth not materialize as we had expected. And so, that helped a few million.

Mansion: Mansion here next we've been disciplined with our cost initially in our budget. We are match discretionary investment spend with expected revpar growth and and we were able to re prioritize those investments.

Mansion: When we saw the revpar growth not materialize as we had expected and so that helped a few million and then on top of that we're getting an extra boost from the insurance recovery.

Michele Allen: And then, on top of that, we're getting an extra boost from the insurance recovery. And can you quantify the insurance recovery in the second half? Sure. Yeah, it's about $4 million.

Joe: So when you put it all together a recovery in the second half sure yeah. It was about $4 million.

Michele Allen: Great. Awesome. Thanks, guys. Thanks. We'll go next now to David Katz with Geoffrey Ballotti. Good morning.

Joe: Right.

Joe: Awesome.

Joe: Yeah.

David Brian Katz: Thanks for taking my question. I was just looking through and, frankly, appreciating some of the pages in the deck this morning with respect to the long-term algorithm and, you know, thinking about it in the context of sort of fees per room, right, and, you know, the degree to which your sort of business drivers, as you have them labeled, are growing your fees, you know, per room and then adding in the ancillary growth. Can you just help us understand or, you know, fully digest the degree to which fees per room in the core business are growing? And, you know, I think the ancillary growth is pretty clear: it's an 8% CAGR. But, you know, help us look at those two drivers of the business for a minute, if you would.

Michele Allen: Sure. With respect to ancillary fees, our long-term growth model is projecting fee growth of about 8%, and we are currently tracking at 6% in 2024 and expecting to get up to about 7% on a full-year basis. And that includes a number of different initiatives. On the royalty rate, we've seen a five-basis point improvement in the U.S. and international on average, and so we are expecting to see continued improvement on that side of the business over the long term. It should accumulate to about 15 basis points, and in 2026, we think that would generate an incremental $15 million in EBITDA.

Michele Allen: So part of what I'm getting at is, you know, as we progress through these next few years to 2026, it seems as though the ancillary fees, you know, that growth rate is actually accelerating, right? And so when we get to 2026, it'll be higher than, you know, 8%, it just averages because of the CAGR.

Joe: Is.

Joe: That growth rate is actually accelerating right and so when we get to that 2026 it'll be higher then.

Joe: 8% of just averages because of the CAGR.

Michele Allen: Is the acceleration, you know, similar, right, when you think about sort of the core business, right? Obviously, it's going to depend on RevPAR, but is your assumption, right, that the core business fees are going to accelerate also at the same rate, or is one growing faster than the other? Well, the ancillary fees are definitely growing faster, and they do compound as we get through the plan because different initiatives start to ramp up and have a larger impact. We also see that kind of same dynamic with royalty fees, right?

Joe: Right as the acceleration similar right when you think about sort of the core business.

Michele Allen: Right, when you think about sort of the core business, right, obviously is going to depend on rev power, but is your assumption, right, that the core business fees are going to accelerate also at the same rate, or is one growing faster than the other. Well, the ancillary fees are definitely growing faster, and they do compound as we get through, as we get through the plan because different initiatives start to ramp and have a larger impact. We also see that kind of same dynamic with royalty fees, right? They compound every year, so as we increase in one year, then we're just building increases on top of that, so that's compounding. And then we are also expecting some net room growth acceleration, so there will be increased growth over the plan in the core business as well as in the ancillary fees, and then.

Speaker Change: Obviously, it's going to depend on Revpar, but is your assumption right that the core business fees are going to accelerate also at the same rate is one growing faster than the other.

Speaker Change: Well the ancillary fees are definitely growing faster and debut compound as we get as we get through the as we get through the plan because different initiatives start to ramp and have a larger impact. We also see that kind of theme.

Michele Allen: They compound every year. So as we increase in one year, then we're just building increases on top of that. So that's compounding.

Speaker Change: That dynamic with royalty fees right. They compound every year. So as we increase in one year than they were just building increases on top of that so thats compounding and then we are also expecting.

Michele Allen: And then we are also expecting some net room growth acceleration. So there will be increased growth over the plan in the core business as well as in the ancillary fees. Got it.

Speaker Change: Net room growth acceleration. So so there will be increased growth over the plan and in the core business as well as in the ancillary fees and then.

Michele Allen: Got it. Helpful, thank you very much.

Speaker Change: Got it helpful. Thank you very much.

Michele Allen: Thank you.

Joe: <unk>.

Patrick Sholes: Thank you. We go next now to Patrick Sholes of Truist. Thank you. Good morning, Jeff and Michelle. A little bit more questions on that slide 10 talking about the increases in royalty rate. I think it's very interesting.

Speaker Change: Thank you we'll go next now to Patrick Scholes Truest.

David Brian Katz: Helpful. Thank you very much. Thank you. Thank you. We go next to Patrick Scholes.

Charles Patrick Scholes: Thank you. Good morning, Geoff and Michele. A little bit more questions on slide 10, talking about the increases in royalty rates. I think it's very interesting. Historically, royalty rates were not something you really ever discussed, and now it seems to be much more front and center. A little bit more color, please, on what's driving that. Is that going on, driven primarily by new brands entering, such as Echo, that have an above average royalty rate?

Charles Patrick Scholes: Thank you good morning, Jeff and Michelle.

Speaker Change: We'll get more questions on that slide 10 talking about the increases in royalty rate I think it is very interesting.

Michele Allen: Historically, royalty rates was not something you really ever discussed, and now it seems to be much more front and center. You know, a little bit more color, please, on what's driving that. Is that going to be? Given primarily by, you know, new brands entering such as Echo that have an above average royalty rate or do you see yourselves on contract or combination of contract renewals raising royalty rates on legacy brands. A little bit more color; that's it, thank you. Sure, the royalty rate improvement we're seeing today and that we're seeing in the pipeline, and it's so expected to see over the plan period, really reflects the great work our franchise sales and development team.

Speaker Change: Historically royalty rates was not something you really ever discussed it now.

Speaker Change: It seems to be much more front and center.

Speaker Change: Yeah, a little bit more color. Please on what's driving that is that going to be.

Speaker Change: Driven primarily by.

Speaker Change: New brands entering such as echo that have been above average royalty rate or do you see yourselves on contract.

Speaker Change: Combination of contract renewals raising royalty rates on legacy brands, a little bit more color there. Thank you sure.

Charles Patrick Scholes: Or do you see yourselves on contract or combination of contract renewals? Sure. The royalty rate improvement we're seeing today, and that we're seeing in the pipeline, and so expect to see over the planned period, really reflects the great work our franchise sales and development teams are doing in bringing in higher fee deals for our brands, both here domestically and around the world as well. As we said in the last few quarters, our goal is to make sure that we're signing deals that are accretive to the region or to the brand average royalty rate.

Speaker Change: The royalty rate improvement, we're seeing today and that we're seeing in the pipeline. So expect to see over the plan period really reflects the great work our franchise sales and development teams.

Michele Allen: Bringing in higher feed deals for our brands both here domestically and around the world, as well as we said for the last. New quarters our goal is to make sure that we're signing deals that are creative to the region or to the brand average royalty rate and the growth we've seen this quarter and really the growth we've seen since 2019 on that slide. Is that a testament to that effort, so you should expect to continue to see improvement in new deals being signed.

Speaker Change: Bringing in higher fee deals for our brands, both here domestically and around the world as well as we said for the last few quarters. Our goal is to make sure that we're signing deals that are accretive to the region.

Speaker Change: Or to the brand average royalty rate and it broke we've seen this quarter and really the growth we've seen since 2019 on that slide.

Charles Patrick Scholes: And the growth we've seen this quarter, and really the growth we've seen since 2019 on that slide, is a testament to that effort. So you should expect to continue to see improvement in new deals being signed. Okay, thank you. We'll go next to Steve Pizzella. Hey, good morning, everybody.

Speaker Change: Is that is a testament to to that effort. So you should expect to continue to see improvement in new deals being signed.

Steve Zellett: Okay, thank you. We'll go next now to Steve Zellett with. and Richard Bank.

Speaker Change: Okay. Thank you.

Steven Donald Pizzella: We'll go next now to Steve <unk> with Deutsche Bank.

Geoffrey A. Ballotti: And thanks for taking our questions. You've noted the value you see in the stock and potential returns from the incremental key money. What do you need to see to go towards the high end of the target leverage? That is really a board decision, I would say.

Steven Donald Pizzella: Hey, good morning, everybody and thanks for taking our questions.

Michele Allen: Hey, good morning, everybody, and thanks for taking our questions. You've noted the value you see in the stock and potential returns from the incremental key money. What do you need to see to go towards the high end of the target leverage? That is really a board decision. And I would say, and at this point, we are targeting three and a half times leverage for the end of the year, which does give us amounts of capital to either repurchase shares or to invest further in the business. If we were looking at a sizable M&A, then that is something we've always said we are comfortable going above the three and a half times.

Speaker Change: You've noted the value you see in the stock.

Steve: Potential returns from the incremental key money, what do you need to see to go towards the high end of the targeted leverage.

Speaker Change: Yeah.

Speaker Change: So that is really a board decision I would say and at this point, we are targeting three and a half time leverage or the end of the year with does give us.

Michele Allen: And at this point, we are targeting three and a half times leverage for the end of the year, which does give us, against this macro backdrop, three and a half times is a good leverage target absent any really compelling investment opportunity. Okay, thanks. And then you continue to note the improvement in retention rates, which has been pretty nice as we look compared to historical data. What's driving that right now, and how high do you think that can get?

Speaker Change: The amount of capital to to either repurchase shares or to or to invest further in the business. If we were looking at a sizeable M&A then that is something we've always said we are comfortable going above the three five times. So long as we had a plan to get back within our range within within 12 to 18.

Michele Allen: It's the ones we had a plan to get back within range within 12 to 18 months. Certainly, we see the stock as a compelling investment opportunity given where it's been trading. But against this macro backdrop, three and a half times is a good leverage target, absent any really compelling investment opportunity.

Speaker Change: <unk> months certainly.

Speaker Change: We see the stock as a as a compelling investment opportunity, given where where it's been trading.

Speaker Change: But against this macro backdrop three five times is is a good leverage target absent.

Speaker Change: Any really compelling investment opportunity.

Geoffrey Ballotti: Okay, thanks. And then you continue to note the improvement and the retention rates, which has been pretty nice as we will compare to historical. What's driving that right now, and how high do you think that can get? Yeah. Steve, we've always said that our longer term goal is to get to 96, and we're moving that way. We were at 93-ish when we spun; we moved it to 95-95 and a half. And I think as we grow our system and we manage our quality and portfolio, that number can certainly continue to go up on a last 12-month basis, which is the way we look at it.

Speaker Change: Okay. Thanks, and then you continue to note the improvement in the retention rates.

Speaker Change: <unk>, which has been pretty nice.

Speaker Change: I was really low compared to historical.

Speaker Change: What's driving that right now and how high do you think that can get done.

Speaker Change: Yeah.

Michele Allen: Yeah, Steve, we've always said that our longer-term goal is to get to 96, and we're moving that way. We were at 93-ish when we spun, and we moved it to 95, 95 and a half.

Speaker Change: Steve We've always said that.

Steve: Our longer term goal is to get to 96 and were moving that way. We were at 93 ish. When we spun we moved it to $95 95 and a half.

Geoffrey A. Ballotti: And I think as we grow our system and we manage our quality and portfolio, that number can certainly continue to go up. On a last 12-month basis, which is the way we look at it, retention has improved 50 basis points globally. We had some good movement internationally. I think we can continue to make progress, both domestically and internationally.

Speaker Change: And I think as we grow our system and we manage our quality and portfolio that that number can certainly continue to go up on a last 12 month basis, which is the way we look at it retention has improved 50 basis points globally.

Geoffrey Ballotti: Retention has improved 50 basis points globally. We had some good, good movement internationally. I think we continue to make progress both domestically and internationally. What's really exciting about the international growth is the ability to successfully swap out those lower valuation master license rooms and countries with lower royalties and replace them with direct franchise rooms that are coming in at three times the license fee. So we're happy with our progress. We're going to continue to focus on that, and we think it can continue to go higher.

Speaker Change: We had a we had some some good good movement internationally I think we can continue to make progress both domestically.

Speaker Change: And internationally and what's what's really exciting about the international growth is the ability to successfully swap out those lower valuation master license rooms in countries with lower royalties and replace them with direct franchise rooms that are.

Geoffrey A. Ballotti: And what's really exciting about the international growth is the ability to successfully swap out those lower valuation master license rooms in countries with lower royalties and replace them with direct franchise rooms that are coming in at three times the license fee. So we're happy with our progress. We're going to continue to focus on that, and we think it could continue to go higher. Okay, great.

Speaker Change: That are coming in at three times the license fee. So we're happy with our progress.

Steve: We're going to continue to focus on that and we think it can continue to go higher.

Geoffrey Ballotti: Okay, great. Thank you. Thanks, Steve.

Speaker Change: Okay, great. Thank you.

Steve: Thanks, Steve.

Brent Montour: We'll go next now to Brent Montour of Barclays.

Brendan Metrill: Well go next now to rent them on tour of Barclays.

Steven Donald Pizzella: Thank you. Thanks, Steve. We'll go next to Brandt Montour of Barclays. Good morning, everybody.

Brent Thill: Hey, good morning, everybody. Thanks for taking my question I, just wanted to circle back on the second half.

Michele Allen: Good morning, everybody. Thanks for taking my question. So I just want to circle back on the second half guidance and outlook, and Michelle or Jeff. Maybe if you could just put a finer point on Michelle, your comments on what you're implying for U.S. Ref park roads, I thought it was really helpful. The comments you gave, I think it's really tough for us with the looking at this year on a one year basis because cops get much easier. We can kind of make our own assumptions there, but if you could just maybe put a qualitative point on there, do you, are you baking in any sort of rebound at all, or is there some conservatism in terms of the U.S.

Brandt Antoine Montour: Thanks for taking my question. I just wanted to circle back on the second half guidance and outlook, Michele or Geoff. Maybe if you could just put a finer point on your comments on what you're implying for U.S. REV park growth, it would be really helpful.

Speaker Change: Our guidance and outlook Michel or Jeff, maybe if you could just put a finer point on Michelle your comments on what you are implying for U S. Revpar growth I thought it was really helpful. The comments you gave I think it is really tough for us with the looking at this year on a one year basis, because comps get much easier.

Michele Allen: The comments you gave me, I think it's really tough for us to look at this year on a one-year basis because comps get much easier. We can kind of make our own assumptions there, but if you could just maybe put a qualitative point on there. Are you baking in any sort of rebound at all, or is there some conservatism in terms of U.S. consumer behavior applied there?

Speaker Change: We can kind of make our own assumptions there, but if you could just maybe put a qualitative point on there do you are you baking in any sort of rebound at all or is there some conservatism in terms of the U S consumer.

Michele Allen: Consumer behavior? Implied there. We are expecting some occupancy improvement in the US, consistent with what we're now seeing in July, and then we are expecting another point on top of that to reflect the continued ramping of infrastructure spend. So in the second half, the US, I think, is expected to be in our guide, is expected to be up one percent, and that improvement from the first half is really driven by occupancy expectations.

Speaker Change: Behavior.

Speaker Change: Implied there.

Speaker Change: We are expecting some occupancy improvement in the U S consistent with them with what we're now seeing in July and then we are expecting another point on top of that.

Brandt Antoine Montour: We are expecting some occupancy improvement in the U.S. consistent with what we're now seeing in July, and then we are expecting another point on top of that to reflect the continued ramping of infrastructure spend. So, in the second half, the U.S., I think, is expected to be, in our guide, expected to be up 1%, and that improvement from the first half is really driven by occupancy expectations. That's really helpful.

Speaker Change: To reflect the continued ramping of infrastructure spend.

Speaker Change: In the second half the U S. I think is expected to be and our guide is expected to be up 1% and that improvement from the first half is really driven by occupancy.

Speaker Change: Expectations.

Speaker Change: That's really helpful. Thank you for that and then just a follow up on on the Echo pipeline. It's been a few quarters now since some of your larger peers rolled out extended stay brands and it's not necessarily maybe maybe I'll tell me, they're not direct directly competing with which is which is an answer.

Michele Allen: And then just a follow-up on the ECHO pipeline. You know, it's been a few quarters now since some of your larger peers have rolled out extended-stay brands. And, you know, it's not necessarily – maybe you'll tell me they're not directly competing, which is an answer.

Michele Allen: That's really helpful. Thank you for that.

Geoffrey Ballotti: And then just follow up on the Echo Pipeline. You know, it's been a few quarters now since some of your larger peers rolled out, extended maybe will tell me they're not directly competing, which is an answer. But just curious if you're seeing any incremental hesitation at the sort of franchise-y signing table with developers that are might be looking at those brands or the owners just different and you're not seeing any competitive pressure there. We are not in that this is an extended-stay economy new construction product, which there's not much competition for out there today in terms of what these developers are looking for.

Brandt Antoine Montour: But I'm just curious if you're seeing any incremental hesitation at the sort of franchisee signing table with developers that might be looking at those brands, or are the owners just different, and you're not seeing any competitive pressure there? But we are not in the position that this is an extended stay economy new construction product. There's not much competition for it out there today in terms of what these developers are looking for.

Speaker Change: But I'm just curious if youre seeing any incremental hesitation at this sort of franchisee signing table with developers that are might be looking at those brands or are the owners just different and.

Speaker Change: And you're not seeing any competitive pressure there.

Speaker Change: We are not in that this is an extended stay economy, new construction product, which there's not much competition for out there today in terms of what these developers are looking for we have executed.

Geoffrey Ballotti: We have executed this quarter, significant signings and progress for our new Echo suites and markets like Louisville, both at the airport and downtown, Clarksville, Indiana, Lexington, Kentucky, Frankfurt, Kentucky. So we are beginning to see that signing. Pick back up and as we reported from the first page of our IP, we opened the first Spartan Burke in South Carolina and we had not only the entire Echo Development Council with us, we had prospective new developers and tendons, and they were very, very happy with the finished product. Most of those in attendance were developers who have either broken ground or soon will be breaking ground.

Geoffrey A. Ballotti: We have executed this quarter. Significant signings and progress for our new Echo. Markets like Louisville, both at the airport and downtown. Clarksville, Indiana; Lexington, Kentucky; Frankfort, Kentucky.

Speaker Change: This quarter.

Speaker Change: Significant signings and progress for our new Echo suites and.

Speaker Change: Markets like Louisville, both at the airport and downtown Clarksville, Indiana, Lexington, Kentucky Frankfort, Kentucky.

Geoffrey A. Ballotti: So we are beginning to see that sign pick back up, and uh... And as reported on the first page of our IP, we opened the first Spartanburg, South Carolina, and we had not only the entire ECHO Development Council with us, but we had prospective new developers. They were very, very happy, and soon they would be breaking ground. They're developers who've built hundreds of competitive, economy, mid-scale, upper mid-scale, extended stay products, and they were absolutely, Brandt, thrilled with the finished product. The commentary that was coming back from this new build that not only looks like the prototype but looks better than the prototype is something that they feel rarely happens.

Speaker Change: So we are beginning to see that signing.

Speaker Change: Pick back up and as we reported from the first page of our IP. We opened the first Spartanburg and South Carolina, and we had not only the entire eco development Council with US we had perspective, new developers and attendance and they were very very happy with the with the finished product most most of those in attendance where developers who.

Speaker Change: Who have either broken ground or soon will be breaking ground there developers who've built hundreds of competitive.

Geoffrey Ballotti: Their developers who've built hundreds of competitive economy, mid-scale, upper mid-scale, extended-state products, and they were absolutely rent thrilled with the finished product. The commentary that was coming back from this new bill that not only looks like the prototype but looks better than the prototype is something that they feel rarely happened. So there was a renewed sense of confidence and optimism and commitment among the development community, and with over 33,000 rooms now in our pipeline, it remains our fastest scoring brand, and growth is picking up.

Speaker Change: Economy, Midscale upper mid scale extended stay products and they were absolutely Brent thrilled with the finished product.

Speaker Change: The commentary that was coming back from from this newbuild that not only looks like the prototype it looks better than the prototype is something that they feel rarely happens. So there was a renewed sense of confidence and optimism and commitment.

Geoffrey A. Ballotti: So there was a renewed sense of confidence and optimism and commitment among the development community, and with over 33,000 rooms now in our pipeline, it remains our fastest-growing brand, and growth is. Perfect. Thanks so much. We'll go next to Dany Asad with Bank.

Speaker Change: Among the development community and with over 33000 rooms now in our pipeline it remains our fastest growing brand.

Speaker Change: And growth is picking up.

Geoffrey Ballotti: Perfect, thanks so much.

Speaker Change: Perfect. Thanks, so much thanks Brent.

Speaker Change: Yeah.

Dany Asad: Who next now to Danny Assad with Bank of America? Hi, good morning, Jeff and Michelle. Just when I started super high level, if you've seen, you've quantified a lot on the domestic side, on repar, how we're moderating. But is there any insight as to what's actually going on on the ground behaviorally domestically? We still have some points of occupancy. Why are people not showing up? Is there pockets of the country that are behaving differently? There's outside's performance in one way, one direction or another? Or what, just any qualitative insight that you can improving? We are seeing positive trends.

Speaker Change: So next now to Danny Assad with Bank of America.

Dany Asad: Hi, good morning, Geoff and Michele. I just want to start, you know, super high level, you know, if you've quantified a lot on the, you know, on the domestic side of RevPAR, how we're moderating, but is there any insight as to what's actually going on on the ground behaviorally, domestically? Do we still have some points of occupancy? Why are people not showing up?

Dany Asad: Hi, good morning, Jeff and Michelle.

Dany Asad: I just wanted to start.

Speaker Change: Super high level.

Speaker Change: If you have seen.

Speaker Change: You've quantified a lot on the on the domestic side on Revpar, our moderating but does.

Speaker Change: Is there any insight as to what's actually going on on the ground behavioral Lee domestically is to we still have some points of occupancy why are people not showing up.

Geoffrey A. Ballotti: Are there pockets of the country that are, you know, behaving differently? There's outsized performance in one way, one direction or another, or kind of what, you know, just any qualitative insight that you can give us on that front. Thanks, Danny. Our teams are seeing demand improving. We are seeing positive trends. RevPAR growth, as we noted, improved 500 basis points from the first quarter to up 30 basis points in the second.

Speaker Change: Is there are pockets of the country that are behaving differently, there's outsized performance in one way one direction or another.

Speaker Change: What just.

Speaker Change: Any qualitative insight that you can give us on that front. Thanks Danny.

Speaker Change: Teams are seeing demand improving we are seeing positive trends, our revpar growth as we noted improved 500 basis points from the first quarter to up 30 basis points in the second our teams on the ground continue to see gains in our domestic brands and market share with strong share gain midweek pointing to.

Geoffrey Ballotti: The repar growth is, as we noted, improved 500 basis points from the first quarter to up 30 basis points in the second. Our teams on the ground continue to see gains in our domestic brands and market share, with strong share gain midweek, pointing to that increased infrastructure. Pick up that we know can accelerate with continued strength in our group.

Geoffrey A. Ballotti: Our teams on the ground continue to see gains in our domestic brands and market share, with strong share gains mid-week, pointing to that increased infrastructure pickup that we know can accelerate with continued strength in our bookings. Look, we're confident in the continued recovery of our segments here in the United States. Pricing power is still strong. The second quarter was up 17% to 19%. As Michele just noted, domestic occupancy was up 1%, but it was up for the first time since the second quarter.

Speaker Change: That increased infrastructure pick up that we know can accelerate with continued strength in our booking pace.

Geoffrey Ballotti: Dean Pace. Look, work confident in the continued recovery of our segments here in the United States. Pricing power is still strong. Second quarter was up 17% to 19, as Michele just noted. Domestic occupancy was up 1%, but it was up for the first time since the second quarter of 2022 versus prior year, which is important. Domestic occupancy also improved 3% versus 19% for where it was in the first quarter. So, if you think about it, it was down 10 in the first quarter. It was down only 7 in occupancy in the second quarter. And I think we all need to remember that 19 was the peak of the longest running industry cycle that the industry has ever seen.

Speaker Change: Look we're confident in the continued recovery of our segments here in the United States pricing power is still strong.

Michelle: Second quarter was up 17% to 19 as Michelle just noted domestic occupancy was up 1%, but it was up for the first time since the second quarter of 2022 versus versus prior year, which is important domestic occupancy also improved 3% versus 19 from where it was in the first quarter. So if you think about.

Geoffrey A. Ballotti: 2022 versus the prior year, which is important. Domestic occupancy also improved 3% versus 19% from where it was in the first quarter. So if you think about it, it was down 10% in the first quarter.

Speaker Change: It was down 10 in the first quarter it was down only seven in occupancy.

Geoffrey A. Ballotti: It was down only 7% in occupancy in the second quarter, and I think we all need to remember that 19 was the peak. We have the longest running industry cycle that the industry has ever seen and that our brands were the very first to recover from COVID, and that demand will continue to come back over the next few years. Continued growth, as Michele noted, in the back half. We saw last week demand being up 30 basis points in the economy and 60 in the mid-scale. And we know that the industry is projecting growth next year. I think it's 100 to 200 base points of economic, or mid-scale, red part growth in 2025.

Speaker Change: In the in the second quarter and I think we all need to remember that 19 was the peak of the longest running industry cycle that the industry has ever seen and that our brands were the very first recover from Covid and that demand will continue to come back over the next few years with continued growth as Michelle noted in the back half we saw loss.

Geoffrey Ballotti: And that our brands were the very first to recover from COVID, and that demand will continue to come back over the next few years. With continued growth as Michele noted in the back half, we saw last week demand being up 30 basis points in the economy and 60 in the mid-scale. And we know that the industry is projecting growth next year. I think it's 100 to 200 basis points of economy or mid-scale. Red part growth in 25. And we think back to the last four lodging cycles, select service domestic red part, his grown as we noted in the script 3% on a KG basis and that will eventually materialize.

Michelle: Weak demand being up 30 basis points in the economy and 60 in the Midscale.

Speaker Change: And we know that the industry is projecting growth next year I think it is 100 to 200 basis points of economy or Midscale revpar growth in 'twenty, five and we think back to the last four lodging cycles select service domestic Revpar has grown as we noted in the script, 3% on a CAGR basis and that will event.

Geoffrey A. Ballotti: And we think back to the last four lodging cycles. Select Service Domestic RevPAR has grown, as we noted in the script, 3% on a Kager-based basis, that will eventually materialize. In terms of all of our important consumer leading indicators that we continue to look at, leisure travel sentiment continues to improve. It's up now by 400 basis points from where it was at the end of last June. We're not seeing any difference in who's checking into our hotels.

Speaker Change: Really materialize.

Geoffrey A. Ballotti: In terms of all of our important consumer leading indicators, that we continue to look at, leisure travel sentiment continues to improve. It's up now 400 basis points from where it was at the end of last June. We're not seeing any difference in who's checking into our hotels; our middle-income guests are still both more employed. Higher wages and savings than they had back in 2019. Our booking windows are up there up now 6% to last year. And we're seeing longer lengths of stay. To your back part of the question in terms of across the country, we did see some normalization in those first or a covered beach and mountain destination markets like Florida or California or Colorado, which were all down a little bit.

Speaker Change: In terms of all of our important consumer leading indicators that are that we continue to look at our leisure travel sentiment continues to improve its up now 400 basis points from where it was at the end of last June.

Speaker Change: We're not seeing any any difference in and who's checking into our hotels are middle income guests are still both more employed.

Geoffrey A. Ballotti: Our middle-income guests are still both more employed and have higher wages and savings than they had back in 2019. Our booking windows are up. They're up now 6% compared to last year. And we're seeing longer lengths of stay. Back to the question in terms of across the country, we did see some normalization in those first to recover beach and mountain destination markets like Florida, California, or Colorado, which were all down a little bit.

Speaker Change: Higher wages and savings and they had back in 2019, our booking windows are up they're up now 6% to last year.

Speaker Change: And we're seeing longer lengths of stay.

Speaker Change: To your back.

Speaker Change: Back part of the question in terms of.

Speaker Change: Across the country, we did see some normalization in those first to recover beach in mountain destination markets like Florida.

Speaker Change: Or California, or Colorado, which were all down a little bit, but we saw demand continue to increase in oil and gas markets like Texas, New Mexico, and Ohio, which were up mid single digits to where they were last year and and in other markets like Louisiana, and West, Virginia, and North Dakota.

Geoffrey A. Ballotti: But we saw demand continue to increase in oil and gas markets like Texas, New Mexico, and Ohio, which were up mid-single digits from where they were last year, and other markets like Louisiana, West Virginia, and North Dakota, important states for us, saw double-digit growth in REPPAR. And we would expect that growth to continue in the second half of the year. We're seeing crews continue to come back into these markets, and natural gas continues to recover with production in many of those states back where it was at its peaks. So we're feeling good about it. That's great!

Geoffrey A. Ballotti: We did see some of the major challenges to where they were last year. And other markets like Louisiana, West Virginia, North Dakota, important states for us, saw double digit growth and rep part. And we would expect that growth to continue in the second half. We were seeing crews continue to come back into these markets, and natural gas continues to recover, with production in many of those states back where it was back at their peaks. So we're feeling good about the second half.

Speaker Change: Important states for us saw double digit growth in Revpar, and we would expect that growth to continue in the second half we.

Speaker Change: We were seeing crews continue to come back into these markets.

Speaker Change: And natural gas continues to recover with production.

Speaker Change: And in many of those states are back to where they were it was back at their peaks. So we're we're feeling good about the second half.

Speaker Change: Okay.

Geoffrey A. Ballotti: That's great. Thank you for that. And for my follow up, just thinking about how nicely your, you know, rooms growth and the pipeline has accelerated. But can you help us think about how long it typically takes for a property to stabilize? We're just trying to think about, you know, how long does it take for that 3 to 4% rooms growth that we're seeing today to translate to a full freight, you know, 3 to 4% feed growth. And kind of what you're putting up on the score. Work. Again, once the property opens in our system, it's typically ramping during the first full year, and really during the first nine months.

Dany Asad: Thank you for that. And for my follow-up, just thinking about, you know, how nicely your growth and the pipeline have accelerated. But can you help us think about how long it typically takes for a property to stabilize?

Speaker Change: Great. Thank you for that and then for my follow up.

Speaker Change: Just thinking about you know how nicely your rooms growth and the pipeline has accelerated but can you help us think about how long. It typically takes for a property stabilized. We're just trying to think about how long does it take for that 3% to 4% rooms growth that we're seeing today the trans.

Speaker Change: Late to a full freight 3% to 4% fee growth.

Speaker Change: And kind of what you're putting up on the scoreboard.

Speaker Change: Yeah.

Michele Allen: We're just trying to think about, you know, how long does it take for that three to 4% room growth that we're seeing today to translate to a full freight, you know, three to 4% fee growth in kind of what you're putting up on the scoreboard? Again, once a property opens in our system, it's typically ramping up during the first full year and really during the first nine months. So when they come into the system, I think you can expect to see within a year that they will be at full royalty production for us. Great. Thank you very much.

Speaker Change: Yeah that was the property opens in our system. It's typically ramping during the first full year and and and really during the first for the first nine months. So when when they come in for the system. I think you can expect to see within within a year. They would be at full they would be at full royalty production.

Michele Allen: So when they come into the system, I think you can expect to see within a year they would be at full royalty production for us. Great.

Speaker Change: For us.

Speaker Change: Great. Thank you very much.

Michele Allen: Thank you very much.

Speaker Change: Well go next now to Stephen Grambling of Morgan Stanley.

Stephen White Grambling: We'll go next now to Stephen Grambling of Morgan Stanley. Hey, thanks. Maybe as a follow-up to Dany's question on Repart Trends, you mentioned share gains. Are there any brands specifically that are leading these Repart Index premium gains? And is there any way to quantify, maybe, the ones that are taking the most share?

Stephen Grambling: We'll go next now to Stephen Grambling of Morgan Stanley. Hey, thanks. Maybe as a follow-up to Dany's question, Repartrans mention share games. Are there any brands specifically that are leading the, you know, these Repartindex premium games? And is there any way to quantify maybe the, you know, the ones that are taking the most share and you see development actions, you know, typically meeting like there is a more development going on within those brands? There is, Stephen, our domestic large brands that are very important to us, like Days Inn, Super 8, La Quinta, they're all over indexing.

Speaker Change: Yeah.

Stephen White Grambling: Hey, Thanks, maybe as a follow up to Dan's question on Revpar trends, you mentioned share gains are there any brand specifically that are leading.

Speaker Change: These revpar index premium gains and is there any way to quantify maybe the you know the ones that are that are taking the most share and are you seeing development actions.

Geoffrey A. Ballotti: And are you seeing development actions typically, meaning like, is there more development going on within those brands? Uh... they're steven our domestic large brands that are very important to us, like Days and Super Eight, looking for their all-over index. And we publish every April, as our competitors do, in the April Franchise Disclosure Documents. La Quinta is now well over its fair share.

Speaker Change: Typically meaning like are there is there more development going on within those brands.

Speaker Change: Are they there is Steven our domestic large brands that are very important to us are like days Inn Super eight la Quinta there all over indexing.

Geoffrey Ballotti: And we publish every April as our competitors do in the April Franchise Disclosure Documents. Lequinta is now well over. It's, it's fair share of Hawthorne's sweets. Is Microtel a Days Inn? Is one of our stronger performing brands too, to your point that those, that brand perform very well during the downturn and developers are looking for conversion opportunities, which is why it's important that that transaction market continue to pick up. But what's driving it is the, is the wind and rewards program in, in our developers mind, the share of occupancy in the quarter was up 250 basis points globally, and it's up a good nearly 800 basis points from where it was in 2019.

Speaker Change: And we publish every April as our competitors do and in the April franchise disclosure documents Laquita is now well over its a its fair share of Hawthorn suites is microtel is a days inn is one of our stronger performing brands to to your point that those that brand performed very well.

Geoffrey A. Ballotti: Hawthorne Suites, Microtel, and Days Inn are one of our stronger-performing brands. To your point, that brand performed very well during the downturn, and developers are looking for conversion opportunities, which is why it's important that the transaction market continues to pick up. But what's driving it is the Wyndham Rewards program. In our developers' minds, the share of occupancy, in the quarter was up 250 basis points globally, and it's up a good nearly 800 basis points from where it was in 2019.

Speaker Change: During the downturn and developers are looking for conversion opportunities, which is why it's important that that transaction market continue to pick up but what's driving it is the is the Wyndham rewards program in our developers mind the share of occupancy.

Speaker Change: In the quarter was up 250 basis points globally, and it's up a good nearly 800 basis points from where it was in 2019 and these are brands that performed very well in those infrastructure markets, where those 1.8 million companies who are contracting for their workers are looking for recognize.

Geoffrey Ballotti: And these are brands that perform very well in those infrastructure markets where those 1.8 million companies who are contracting for their workers are looking for recognizable brands that are clean and well maintained. And we believe that we could continue to drive that share gain, especially midweek.

Geoffrey A. Ballotti: And these are brands that perform very well in those infrastructure markets where those 1.8 million companies who are contracting for their workers are looking for recognizable brands that are clean and well-maintained. And we believe that we could continue to drive that share gain, especially midway.

Speaker Change: <unk> brands that are clean and well maintained and and and.

Speaker Change: We believe it that we could continue to drive that share gain especially midweek.

Michele Allen: Great, and then maybe one clarification on operating expenses. Michelle, I think you mentioned you know, taking out some costs and some projects that maybe were put off as red par. Slowed, are those things that we should anticipate if red par re accelerate routes with the expectations those will come back quickly, or is there a little bit of a longer lead time there. I think I think it really is at our discretion, and it, what we have with respect to the cost of discipline. And we have really reprioritized the investment spend. So, at this point in time, what we would do is just look at it again and determine whether or not it fits this strategic pillars of our long term growth.

Speaker Change: Great and then maybe one clarification on operating expenses.

Michele Allen: And then maybe one clarification on operating expenses. Michele, I think you mentioned taking out some costs and some projects that maybe were put off as REBPAR slowed. Are those things that we should expect if REBPAR re-accelerates relative to the expectations? Will those come back quickly, or is there a little bit of a longer lead time?

Speaker Change: I think you mentioned taking out some costs and some projects that may be where were put off as revpar slowed or those things that we should anticipate if revpar reaccelerate relative to the expectations that those will come back quickly or is there a little bit of a longer lead time there.

Speaker Change: I think I think it really is at our discretion and it what we have with respect to the cost of discipline.

Michele Allen: I think it really is at our discretion. With respect to the cost of discipline, we have really reprioritized the investment spend. So at this point in time, what we would do is just look at it again and determine whether or not it fits the strategic pillars of our long-term growth and if that's something that we need to invest in. So it's hard to say.

Speaker Change: We.

Speaker Change: I have really re prioritize the investment spend so at this point in time, what we would do is just look at it again and determine whether or not that's the strategic.

Speaker Change: Pillars of our long term growth and if that's something that we need to invest and so it's hard to say we would go line by line item, there's no silver bullet and there. It was just a bunch of small a small type of exploratory projects you can call them that.

Michele Allen: And if that's something that we need to invest in. So it's hard to say we would go line by line item. There's no silver bullet in there. There's just a bunch of small, small type of exploratory projects. You can call them that, that we are eliminating at this point in time. Got it. I guess the takeaway there is there's flexibility. Thank you. Thanks, Stephen.

Michele Allen: We will go line by line item. There's no silver bullet in there. There are just a bunch of small types of exploratory projects, you can call them, that we are eliminating at this point in time. Got it. I guess the takeaway here is there's flexibility. Thank you. Thank you. We'll next now go to Michael Bellisario with Baird. Thanks. Good morning, everyone.

Speaker Change: That we are eliminating at this point in time.

Speaker Change: Got it I guess the takeaway there is there's flexibility. Thank you.

Stephen White Grambling: Thank you thanks Stephen.

Michael Bellisario: We're next now to Michael Bellisario with Baird. Thanks. Good morning, everyone. First for Michele, I just want to clarify one thing on the key money. How much of the 110 million is for Echo this year? And then when you're spending the key money, are those hotels opening up right away and you'd be seeing in the immediate cash on cash return? Are you funding some of those dollars pre or during development? Yeah, about 10 million dollars for Echo this year, and the key money is generally funded at opening, so we would see immediate royalty improvements to the PNL.

Stephen White Grambling: Go next now to Michael Bellisario with Baird.

Michael Joseph Bellisario: Thanks, Good morning, everyone.

Michael Joseph Bellisario: First, for Michelle, I just want to clarify one thing on the key money. How much of the $110 million is for Echo this year? And then when you're spending the key money, are those hotels opening up right away, and you would be seeing an immediate cash on cash return? Or are you funding some of those dollars before or during development? Yeah, about $10 million for ECHO this year, and key money is generally funded at opening, so we would see immediate royalty improvements on the P&L.

Michael Joseph Bellisario: First for Michele I, just wanted to clarify one thing on the key money how much of the 110 million is for Echo This year and then when Youre spending the key money or those hotels opening up right away and you'd be seeing an immediate cash on cash return how are you funding some of those dollars.

Speaker Change: Pre or during development.

Speaker Change: Yeah, Ken about $10 million for Echo this year and key money is generally funded at opening so we would see immediate royalty improvements to the P&L.

Michele Allen: Thank you for clarifying that. And then, Geoffrey, kind of a bigger picture question, just broadly on the economy segment. Over the long run, not a ton of room growth domestically. Your U.S. economy room count has trended downward. Maybe your thoughts there, how much of that is due to new brand introductions, yours included? How much of that is due to the fact that the economy product is becoming older, more obsolete? So, Lee, I would just kind of appreciate your thoughts there and, sort of just on the longer term trajectory of the economy chain scale more broadly.

Michele Allen: Got it. Thank you for clarifying that.

Stephen White Grambling: Got it thank you for clarifying that and then Jeffrey.

Geoffrey Ballotti: And then, Geoff, for you, kind of a bigger picture question, just broadly on the economy segment, over the long run, not a ton of rooms growth domestically. Your US economy room count has trended downward. Maybe your thoughts there, how much of that is due to new brand introductions, yours included, how much of that is economy product is becoming older, more obsolete, just kind of would appreciate your thoughts there and sort of just on the longer term trajectory of the economy chain feel more broadly. Thanks. Sure, thanks, Mike. I think it's more of the ladder of that statement that you have older legacy economy hotels being repurposed for other uses that really began coming out of COVID. And if you look at the economy supply over the last few years, I think it's down between 1% and 2%, as those older legacy hotels move out of the system, and many of them are in urban downtown areas.

Stephen White Grambling: Geoff for you kind of a bigger picture question.

Geoff: Broadly on the economy segment.

Geoff: Over the long run not a ton of rooms growth domestically. Your U S economy room count has trended downward maybe your thoughts there how much of that is due to new brand introductions yours included how much of that is economy product is becoming.

Geoff: Older more obsolete just kind of would appreciate your thoughts there and sort of just on a longer term trajectory of the economy chain scale more broadly thanks.

Michele Allen: Thanks. Sure. Thanks, Mike. I think it's more of the latter of that statement that you have older legacy economy hotels being repurposed for other uses that really began coming out of COVID. And if you look at the economy supply over the last few years.

Speaker Change: Sure. Thanks, Mike I think it's more of the latter of that statement that you have older legacy economy hotels are being repurposed for other uses that really began coming out of Covid and if you look at the economy supply them over the last few years I think its down between one and 2%.

Geoffrey A. Ballotti: I think it's down between 1% and 2% as those older legacy hotels move out of the system, and many of them are in urban downtown areas. But look, in 2023, to the point that Stephen was just asking about, we experienced the highest average rate for an economy ad. A lot of those were days in and super 8s since before we went public, again because of how well those brands performed in the downturn of COVID, in terms of cash on cash return. Our gross additions for the second quarter were up about 3%.

Geoff: As those older legacy hotels.

Speaker Change: Move out of the system and many of them are in urban downtown areas, but are in look in 2023 to the point that Stephen was just asking about we experienced the highest economy AD rate a lot of those were days inns and super eights since before.

Geoffrey Ballotti: But in look in 2023 to the point that Steven was just asking about, we experienced the highest economy ad rate. A lot of those were daisons and super rates since before we went public, again because of how well those brands performed in the downturn of COVID in terms of the cash-on-cash returns. Our gross additions for the second quarter were up about 3%, and we are running right now in terms of if you look at the industry retention rates that are really best in class of over 95%, pushing 96% in the economy space. So we're very pleased that our economy retention rate continues to improve.

Speaker Change: Before we went public again because of how well those brands performed in the downturn of Covid in terms of the cash on cash returns are gross additions for the second quarter were up about 3%.

Geoffrey A. Ballotti: And we are running right now in terms of, if you look at the industry retention rates that are really best in class of over 95%, pushing 96% in the economy space. So we're very pleased that our economy retention rate continues to improve. It's up 90 basis points on a last 12 month basis.

Speaker Change: And we are running right now in terms of if you look at the industry retention rates that are really best in class of over 95% pushing 96% and the economy space. So we're very pleased that our economy retention rate continues to improve.

Geoffrey Ballotti: It's up 90 basis points in the last 12 months' basis. We're pleased that we're experiencing a higher economy ad rate. We know that as transaction volumes return, there are going to be economic opportunities for us to grow and that those will present themselves. I would just add to that, you know, this isn't a surprise or new trend. Just mentioned the segment has had limited supply, new supply for many years, but the portion that is growing is extended today projected to grow 6% per year over the next several years. And that's where our growth strategy has been focused for the economy segment, with more than 33,000 rooms in our pipeline.

Speaker Change: It's up 90 basis points on a last 12 month basis. We're pleased that we're experiencing a higher economy AD rate, we know that as transaction volumes return there are going to be economy opportunities for us to grow.

Geoffrey A. Ballotti: We're pleased that we're experiencing a higher economic ad rate. We know that as transaction volumes return, there are going to be opportunities for us to grow. And I would just add to that, you know, this isn't a surprise or a new trend. Jeff mentioned the segment has had limited supply and new supply for many years, but the portion that is growing is extended stay, projected to grow 6% per year over the next several years, and that's where our growth strategy has been focused for the economy segment with more than 33,000 rooms in our pipeline. And then, of course, we're focused on the mid-scale and above segment with net portfolios growing 3% year over year.

Speaker Change: And that those are those will present themselves.

Speaker Change: Yes.

Speaker Change: Just add to that this isn't a surprise or a new trend. Jeff mentioned the segment has had limited supply new supply for for many years, but the portion that is growing is extended stay projected to grow 6% per year over the next several years and that's where our growth strategy has been focused for them for the economy segment with more than.

Speaker Change: <unk> 3000 rooms in our pipeline and then of course, we're focused on the Midscale and above segment with them and that portfolio has grown 3% year over year.

Geoffrey Ballotti: And then, of course, we're focused on the mid-scale and above-statement, with net portfolios grown to 3% year over year. Thank you. Thanks, Mike.

Speaker Change: Thank you.

Mike: Thanks, Mike.

Meredith Jensen: We'll go next now to Meredith Jensen at HS. I think one of the things that make Wyndham Awards now for six years in a row, USA Today's number one loyalty program, top loyalty program with U.S. News and World Report. It is that what you refer to, uh, earned and burn opportunity. I mean, we are heralded as the best program in the fastest track to earn a free night. At over 9200 hotels, but at 60,000 hotels and resorts and vacation rental opportunities through partnerships we have with, with that really aspirational, check-in redemption opportunities like the cause of members are, are looking for that vacation opportunity right now.

Speaker Change: We go next now to Meredith Jensen at HSBC.

Michele Allen: Thank you. Thank you. We go next to Meredith Jensen at HS now.

Meredith Jane Prichard Jensen: Good morning, I was hoping you might speak a little bit more about the Wyndham for business portal I know a lot of the.

Meredith Jane Prichard Jensen: Good morning. I was hoping you might speak a little bit more about the Wyndham for Business portal. I know a lot of companies in the sector have added sort of managed travel programs to attract SMEs, and I was wondering what might distinguish Wyndham for Business and how Wyndham Connect might fit in with that. I know the presentation also flags some alternative payment solutions, so if you could just help me sort of put the pieces together and where we might see this go in the near and longer term, thanks. Sure.

Meredith Jane Prichard Jensen: Companies in this sector have added sort of manage travel programs and to attract a S. Emmys and I was wondering what might distinguish wyndham for business and how Wyndham connect might fit in with that I know the presentation also flag some alternative payment solutions. So if you could just help me sort of put the.

Meredith Jane Prichard Jensen: The pieces together and where we might see this go in the near and longer term. Thanks sure. Thanks.

Geoffrey A. Ballotti: Thanks for your interest in Wyndham Business, Meredith. I know you asked about it last time, and we're very excited about it. I mean, our new Wyndham business, which was launched right before we reported it on our last call in April, has seen a weekly pace of applications doubled. As he said on last quarter's call, it's now running 60% ahead of where it was with the previous program we had out there.

Speaker Change: Thanks for your interest in Windows business Meredith I know you asked about it last time and we're very excited about it I mean, our new window business, which was launched right before I. We reported on our last call in April has seen a weekly pace of applications, which has doubled since then it's.

Speaker Change: We said on last quarter's call, it's not running 60% ahead of where it was with the previous program, we had out there and when combined with the Wyndham rewards credit card, it's a big driver for what are <unk>.

Geoffrey A. Ballotti: When combined with the Wyndham Reward credit card, it's a big driver for what global sales and field sales sellers are selling. It's important to have those tools, especially as we increase our field sales teams to go after those SMEs that you reference, a big tool in their hands to help when they're talking to an account, manage that account's company's travel needs, those planners to have that sort of one-stop solution, allowing them to instantly book without needing to RFP or contact the hotel, allowing them to really, as they go out, leverage those tools So our teams are excited about it.

Speaker Change: Global sales our field sales sellers are selling them, it's important to to have those tools.

Meredith Jane Prichard Jensen: Especially as we increase our field sales teams to go after those Smes that you reference winning business was a big a big tool in their hands to help when they're talking to an account managed there that that accounts companies travel needs, allowing.

Meredith Jane Prichard Jensen: Those are those planners to have that that that sort of one stop solution, allowing them to instantly book without needing to RFP or contact the hotel and.

Meredith Jane Prichard Jensen: Allowing them to really as they go out and leverage those tools with third parties, who are contracting really across America for that for that business. So our teams are excited about it you mentioned Wyndham connect I'll tell you all of us that checked into the echo suites opening in Spartanburg, where served up.

Geoffrey A. Ballotti: You mentioned Wyndham Connect. I'll tell you, all of us that checked into the Echo Suite opening in Spartanburg were served up, do we want that? early check-in, and given that just about all the developers that were coming into town were coming in before that 3 o'clock check-in, they bought that extra $20, $30, $40, I think in that case, it was a $20 upsell fee.

Meredith Jane Prichard Jensen: Do we want that.

Meredith Jane Prichard Jensen: Early check in and given that just about all of the developers that were coming in to town, we're coming in before that three o'clock check in they they bought that extra 2030 $40 I think in that case. It was $20 upsell fee. It was a it was a no brainer to anybody checking in early.

Meredith Jane Prichard Jensen: It was a no-brainer for anybody checking in early to the hotel, and it was money in that developer's pocket. So we're going to continue to be rolling out tools like that as our teams go after them. Now 4,000 of the 40,000 projects across the country that are getting allocated, the infrastructure spending that is around markets where we have multiple hotels in those. Super, thanks. One quick follow-up on the all-inclusive sector. I was wondering if you could just provide a little bit more color in terms of sort of the brand strategy as you continue to roll out and the Wyndham Rewards members can burn some of those points between trademark, registry, and ultra and sort of as you continue to grow there. Sure, I think one of the things that make Wyndham Rewards now, for six years... In a row, USA Today's number one.

Meredith Jane Prichard Jensen: To the hotel and it was it was money and that developers pockets. So we're going to continue to be rolling out tools like that as we are as our teams go after those.

Speaker Change #101: Now 4000 of the 40000 projects across the country that are getting allocated.

Meredith Jane Prichard Jensen: The.

Meredith Jane Prichard Jensen: Infrastructure spending that are aligned around markets, where we have multiple hotels in.

Meredith Jane Prichard Jensen: And.

Meredith Jane Prichard Jensen: And in those markets.

Speaker Change #100: Super Thanks, one one quick follow up.

Speaker Change: On the all inclusive sector I was wondering if you could just provide a little bit more color in terms of sort of the brand strategy as you continue to roll out and the Wyndham rewards.

Speaker Change: Members can burn some of those points between trademark in registry and I'll try and sort of as you continue to grow there with the folks might be.

Speaker Change #104: Sure I think one of the things that make Wyndham rewards now for six years.

Speaker Change: In a row USA today's number one loyal.

Speaker Change: Loyalty program.

Geoffrey A. Ballotti: Loyalty Program, uh... top loyalty program with U.S. News and World Reports... it is that what you refer to as an "earn and burn" opportunity, and we are heralded as the best program in the fastest track to earn a free night at not only our 9,200 hotels but 60,000 hotels and resorts and vacation rental opportunities through partnerships we have, with really aspirational check-in redemption opportunities like Vacasa Members are looking for that vacation opportunity right now. You referenced Altra by Wyndham, which is an organic brand that we launched a few years ago with Playa, and we continue to grow that brand.

Speaker Change #107: Top loyalty program with U S News and World reports is that what you referred to earn and burn opportunity. I mean, we are heralded as the best program and the fastest track to earn a free night at over <unk>.

Speaker Change: Not only are 9200 hotels, but 60000 hotels and resorts and vacation rental opportunities through partnerships, we have with <unk>.

Speaker Change: With that really aspirational check in redemption opportunities like like because of members are looking for that vacation opportunity right. Now you referenced altra by Wyndham, which is an organic brand that we launched a few years ago with Playa and we continue to grow that brand we recently.

Meredith Jensen: Your reference Ultra by Wyndham, which is an organic brand that we launched a few years ago with Playa, and we continue to grow that brand. We recently opened a resort in the Dominican Republic with Playa, which will later this year be available for, uh, earn, burn along with another hotel of the Wyndham Ultra Punta Conno, which will be managed by Playa, which will, will join Ultra Resorts and Cancún Free Port Bridge Town on Tigo Bay. We've had new executions with over a dozen hotels, uh, on the all-inclusive space and various stages of discussion and, uh, are working with, with Playa across the Caribbean, Mexico, and Central America, and that, that ability to, uh, it's a great value to your question for our Wyndham Rewards members, which is what keeps Wyndham Rewards, uh, top of mind for, uh, for those 110 million members, which are up, uh, 7% year on year, and 42% since, uh, 2019.

Geoffrey A. Ballotti: We recently opened a resort in the Dominican Republic with Playa, which will later this year be available for Earn Burn, along with another hotel, the Wyndham Altra Punta Cano, managed by Playa, which will join Alta Resorts in Cancun, Freeport, Bridgetown, Montego Bay. We've had new executions with over a dozen hotels on the all-inclusive space and various stages of discussion and our work, supply across Central American, and that ability to, it's a great value to your question for our Wyndham Award members.

Speaker Change: And a resort in the Dominican Republic, with Playa, which will later this year be available for earn burn along with another hotel the Wyndham Altra, Puente, Tucano, which will be managed by Playa, which will will will join altra resorts in Cancun, Freeport Bridgetown Montego Bay.

Speaker Change: We've had new executions with over a dozen hotels.

Speaker Change #105: The all inclusive space in various stages of discussion and are working with with Playa across the Caribbean, Mexico and in Central American and that that ability to it's of great value to your question for our Wyndham reward members, which is what keeps Wyndham rewards our top.

Meredith Jane Prichard Jensen: Wyndham Rewards is top of mind for... million members, which are up 7% year on year. That's great. Super helpful.

Speaker Change #105: Top of mind for for those 110 million members, which are up.

Speaker Change #105: 7% year on year and 42% since 2019.

Speaker Change #108: That's great Super helpful. Thank you.

Meredith Jensen: That's great.

Meredith Jensen: Super helpful.

Meredith Jensen: Thank you.

Meredith Jensen: Thanks, Meredith.

Speaker Change: Meredith.

Speaker Change #102: And Mr. <unk>. It appears we have no further questions. This morning, So I'll turn things back to you for any closing comments, okay. Thanks, Bo and thank you all for your questions and your interest in Wyndham hotels, and resorts, Michele Matt and I look forward to talking to and hopefully seeing many of you in the weeks and months ahead and in the meantime, we would like to remind all of you Golf Institute in.

Geoffrey A. Ballotti: Thank you. And Mr. Ballotti, it appears we have no further questions this morning, sir. I'll turn things back to you for any.

Geoffrey Ballotti: And Mr. Blobby, it appears we have no further questions this morning, so I'll turn things back to you for any closing comments.

Geoffrey A. Ballotti: Okay, thanks, Bo, and thank you all for your questions and your interest in Wyndham Hotels and Resorts. Michele, Matt, and I look forward to talking to you and, hopefully, seeing many of you in the weeks and months ahead. And in the meantime, we'd like to remind all of you golf fans to tune in to the Wyndham Championship, the final tournament of the PGA TOUR's regular season before the playoffs, where coverage begins on August 8th on the Golf Channel and continues over the weekend on CBS.

Geoffrey Ballotti: Okay. Thanks, Bo, and thank you all for your questions and your interest in Wyndham Hotels and Resorts.

Geoffrey Ballotti: Michelle, Matt, and I look forward to talking to, and hopefully seeing many of you in the weeks and months ahead, and in the meantime, would like to remind all of you golf fans to tune into the Wyndham Championship, the final tournament of the PGA Tour's regular season before the playoffs, where coverage begins on August 8th over on the Golf Channel, and it continues over the weekend on CBS.

Speaker Change #106: The Wyndham Championship the final tournament of the PGA towards regular season before the playoffs.

Speaker Change #103: Our coverage begins on August 8th over on the golf Channel and continues over the weekend on CBS have a great summer everyone and thanks again for joining us today.

Geoffrey A. Ballotti: Have a great summer, everyone, and thanks again for joining us today. Thank you, Mr. Bellotti. Ladies and gentlemen, this does conclude today's Wyndham Hotels and Resorts second quarter earnings conference. Please disconnect your line at this time, and again, have a wonderful day. Goodbye.

Geoffrey Ballotti: Have a great summer, everyone, and thanks again for joining us today.

Speaker Change #109: Thank you Mr. Bloody ladies and gentlemen, this does conclude today's Wyndham hotels <unk> resorts second quarter earnings conference. Please disconnect. Your line at this time and again have a wonderful day goodbye.

Operator: Thank you, Mr. Blobby.

Operator: Ladies and gentlemen, this does conclude today's Hotels and Resorts second quarter earnings conference. Please disconnect your line at this time, and again, have a wonderful day. Goodbye. David Katz, Ian Zaffino, Michael Bellisario, David Katz, Ian Zaffino, Michael Bellisario, David Katz, Ian Zaffino, Michael Bellisario, David Katz.

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