Wyndham Hotels & Resorts, Inc. (WH): Business Model Canvas [Dec-2025 Updated]

As an analyst who has seen countless business models, I can tell you Wyndham Hotels & Resorts, Inc. (WH) has a sharp, focused blueprint centered on franchising the economy and midscale segments, which is why their 'OwnerFirst' approach is delivering real results. Honestly, when you see a franchisee retention rate near 96% and a development pipeline swelling to 257,000 rooms by Q3 2025, you know the value proposition is hitting home for their primary customer-the owner. This asset-light structure is set to generate between \$1.43 billion to \$1.45 billion in fee-related revenue for 2025, fueled by their 121 million loyalty members and smart tech investments like Wyndham Connect PLUS; you need to see the full nine blocks of this engine to understand how they manage risk while driving growth, so check out the detailed canvas below.

Wyndham Hotels & Resorts, Inc. (WH) - Canvas Business Model: Key Partnerships

Independent hotel owners and franchisees (core business model)

Wyndham Hotels & Resorts, as the world's largest hotel franchising company by the number of franchised properties, relies on this partnership structure.

• Approximately 8,300 hotels across approximately 100 countries on six continents as of late 2025.
• Network appeals to the everyday traveler through over 855,000 rooms.

HUB International for tailored, cost-saving insurance solutions for franchisees

This partnership addresses the critical issue of affordable, high-quality insurance for hotel owners.

• HUB International is the 5th largest insurance brokerage firm globally.
• Program offers dedicated claims management and risk service teams at no additional cost.
• Solutions are designed to ensure compliance with Wyndham brand standards, improve coverage, and lower costs.

Barclays for the co-branded credit card

The renewed agreement with Barclays US Consumer Bank solidifies a relationship that began in 2010, driving ancillary revenue and loyalty engagement.

• Expected to add $35 million in incremental revenue in 2025.
• Wyndham Rewards loyalty program serves approximately 112 million enrolled members worldwide.
• Wyndham Hotels & Resorts operates approximately 9,200 hotels across more than 95 countries.

Cygnett Hotels & Resorts for expansion of La Quinta and Registry Collection in South Asia

This alliance, announced in July 2025, targets high-growth markets, capitalizing on India's expanding domestic travel sector, which saw spending reach $186 billion last year.

The partnership is expected to add more than 60 hotels across India, Bangladesh, Sri Lanka, and Nepal over the next 10 years, with first openings planned for 2026.

Key brand rollouts include:

• Exclusive 10-year agreement for over 50 La Quinta by Wyndham hotels.
• Non-exclusive 10-year agreement for 10 Registry Collection Hotels, co-branded under Cygnett's Anamore luxury brand.
• Wyndham currently has more than 70 hotels across the South Asia region.

sbe's Everybody Eats for food and beverage options

This partnership is integrated into the Project HQ Hotels & Residences brand, which is affiliated with Registry Collection Hotels. Everybody Eats is described as the largest premium QSR brand and digital food company.

The Wyndham Rewards program, backed by the Barclays partnership, has approximately 112 million enrolled members globally.

Wyndham Hotels & Resorts, Inc. (WH) - Canvas Business Model: Key Activities

You're looking at the core engine driving Wyndham Hotels & Resorts, Inc.'s fee-based model, which is all about scale and technology deployment for its owners. The first major activity is franchising and brand management across its diverse portfolio. As of late 2024, this portfolio included 25 distinct hotel brands, spanning from value to upscale segments.

Next up is the continuous development and deployment of proprietary technology. You saw the launch of Wyndham Connect PLUS, an AI-powered guest engagement platform, announced at the May 2025 Global Conference. This platform integrates automated text messaging and voice assistance. Qualified franchisees have the option to pilot this new platform at no extra cost through the end of 2025. This tech investment builds on a larger commitment, with Wyndham having invested nearly $350 million in technology, sales, and marketing since its 2018 spin-off.

Driving bookings is the third key activity: global sales and marketing. The company rolled out a new marketing campaign at that same May 2025 conference to boost demand for franchisees. The financial output of these marketing efforts shows up in the marketing fund results; for instance, in Q3 2025, marketing fund revenues exceeded expenses by $18 million. That's a nice lift compared to the $12 million surplus seen in Q3 2024.

Managing the massive Wyndham Rewards loyalty program is central to keeping guests in the system. As of July 2025, the program counted approximately 120 million enrolled members globally. Members earn a guaranteed 1,000 points with every qualified stay. The program's value proposition is reinforced by its recognition as the number one hotel rewards program by USA Today readers.

Finally, the forward-looking activity is expanding the development pipeline, which is the lifeblood of a franchisor. This hit a record level in Q3 2025, reaching 257,000 rooms across approximately 2,180 hotels. This represented a 4% year-over-year growth for the pipeline. The total system size also grew, with system-wide rooms increasing 4% year-over-year to 855,400 rooms as of September 30, 2025. The company awarded 204 new development contracts globally in that quarter, a 24% increase year-over-year.

Here's a quick look at some of the key operational metrics supporting these activities in Q3 2025:

The focus on technology deployment is also evident in the pilot program structure. You should note the specific terms for owners:

• Wyndham Connect PLUS pilot available at no extra cost.
• Pilot availability runs through the end of the year (2025).
• The original Wyndham Connect launched in July 2024.

The company's overall financial health supports these activities, with Adjusted EBITDA reported at $213 million for the quarter. You also see the cash generation supporting ongoing investment, with $97 million in free cash flow generated in Q3 2025. Finance: draft 13-week cash view by Friday.

Wyndham Hotels & Resorts, Inc. (WH) - Canvas Business Model: Key Resources

You're looking at the core assets that make Wyndham Hotels & Resorts, Inc. the world's largest hotel franchisor by property count. These aren't just buildings; they are the scale and the systems that drive the fee-based model.

The physical footprint is massive, giving the company unparalleled reach for the everyday traveler. As of late 2025, this resource base includes approximately 8,300 hotels spread across about 100 countries on six continents. This global network is anchored by a substantial inventory of over 855,000 rooms, with a heavy concentration in drive-to destinations, which make up 90% of the portfolio.

The loyalty program, Wyndham Rewards, is a critical resource for driving repeat business and owner value. As of mid-2025, this program boasts over 115 million enrolled members globally. This scale is a key differentiator, as it's noted as the #1 hotel rewards program by USA TODAY readers. The generosity of the program is a tangible asset, with free nights starting at just 7,500 points per night. Furthermore, the program is a growing ancillary revenue generator, bringing in $200 million annually, which was a 12% increase in 2025.

Here's a quick look at the scale of the loyalty engine:

• Membership Base (as of May 2025): 115 million members
• Free Night Redemption Start: 7,500 points
• Annual Ancillary Revenue (2025 Est.): $200 million
• Program Ranking: #1 by USA TODAY readers

The proprietary technology stack is increasingly vital, especially as the company focuses on operational efficiency for owners. Since going public in 2018, Wyndham Hotels & Resorts has invested nearly $350 million in technology, sales, and marketing innovations. Key components announced at the 2025 Global Conference include:

• Wyndham Connect PLUS: An AI-powered upgrade to the guest engagement platform, offering automated messaging and integrated self-service check-in. Qualified franchisees can pilot this at no additional cost through the end of the year.
• Wyndham Gateway: A centralized guest Wi-Fi login system designed to improve user experience and unlock new revenue streams via tiered access.

The intellectual property and brand equity are embodied in the diverse portfolio, which, as of 2025, spans 25 brands. This portfolio covers the spectrum from economy to upscale, which is a deliberate strategy to capture the everyday traveler. The strength of this brand equity is directly reflected in owner sentiment, evidenced by the global franchisee retention rate hitting 95.6% in Q2 2025, or nearly 96% as of June 2025. This high retention rate demonstrates significant owner satisfaction with the partnership model.

The brand portfolio breakdown by tier provides context for the asset base:

The ability to maintain such high owner satisfaction, with a retention rate of 95.6%, is a key intangible resource that supports future growth, as evidenced by a record development pipeline of approximately 255,000 rooms as of Q2 2025.

Finance: draft 13-week cash view by Friday.

Wyndham Hotels & Resorts, Inc. (WH) - Canvas Business Model: Value Propositions

For Franchisees: OwnerFirst™ approach providing tools to lower costs and increase operational efficiency

You're looking at how Wyndham Hotels & Resorts, Inc. supports its owners; the OwnerFirst™ philosophy shapes every decision. This means delivering technology and operational support to help you run a tighter ship. Since going public in 2018, the company has invested nearly $350 million in best-in-class technology to drive business for you. This focus on owner success is reflected in a high franchisee retention rate of 96%.

New tools are designed to unlock operational efficiencies and lower your costs. For instance, the newly launched Wyndham Connect PLUS embeds AI across the guest journey, offering automated AI text messaging and voice assistance, plus integrated self-service check-in solutions to help hotels free up critical staffing resources. Qualified franchisees can pilot this new platform at no additional cost through the end of the year.

For Franchisees: Simplified sourcing via Wyndham Marketplace and PriceIQ for negotiated rates

Tackling procurement inefficiencies, a core financial challenge, is handled through simplified sourcing tools. Wyndham Marketplace, combined with the new Wyndham PriceIQ, makes it faster for you to find, compare, and purchase brand-approved products at deeply negotiated rates. Leveraging the company's scale helps secure better rates than you could alone. Furthermore, a partnership with HUB International, the 5th largest insurance brokerage globally, offers tailored solutions designed to improve coverage and lower costs for insurance, which has become increasingly burdensome across the industry.

Here are some key figures showing the scale of the system supporting these value propositions:

For Guests: Wide range of economy and midscale accommodations for the value-conscious traveler

Wyndham Hotels & Resorts commands a leading presence in the economy and midscale segments, appealing directly to the everyday traveler. You have access to a portfolio of 25 unique brands, offering options for nearly every market segment, from budget-friendly to upscale and extended stay. The company's global network included approximately 2,180 hotels as of September 30, 2025, across six continents. This broad footprint means where there's a need for value-driven lodging, there's usually a Wyndham option available.

For Guests: Simple, generous loyalty program with points redeemable for free nights or unique experiences

The Wyndham Rewards program is positioned as simple and generous, boasting approximately 120 million enrolled members globally. This vast base drives significant direct bookings, with 50% of guests checking in being loyalty members. Members stay and spend nearly twice as much as non-members. The simplicity is evident in the redemption structure:

• Free nights start at just 7,500 points, one of the fastest paths to a free night in the industry.
• Members can redeem discounted nights for as low as 750 points + cash, allowing redemption after just one stay.
• Members reach Gold status in only five nights, one of the fastest paths to status.
• Redemption options total more than 60,000 hotels, vacation club resorts, and vacation rentals worldwide.

The program also connects members to unique experiences beyond stays through partnerships, including those with Madison Square Garden and Applebee's Neighborhood Grill + Bar. The company's financial strength supporting these value propositions included paying a common stock dividend of $0.41 per share during the second quarter of 2025.

Wyndham Hotels & Resorts, Inc. (WH) - Canvas Business Model: Customer Relationships

You're looking at how Wyndham Hotels & Resorts, Inc. (WH) builds and maintains its connection with guests and, critically, its hotel owners. For a franchisor of this scale, customer relationships are split between the end consumer-the traveler-and the business customer-the franchisee. The data shows a clear focus on digital engagement and loyalty to drive direct bookings and owner satisfaction.

Loyalty program management (Wyndham Rewards) to foster direct, repeat bookings

The Wyndham Rewards loyalty program remains central to driving direct relationships. As of mid-2025, the program boasts approximately 120 million enrolled members globally. This scale allows for significant ancillary revenue generation; in 2025, loyalty program fees and co-branded credit card revenue contributed to an ancillary revenue figure of $200 million, marking a 12% increase year-over-year for 2025. The program is positioned as the most generous in the industry, offering members redemption opportunities at more than 60,000 hotels, vacation club resorts, and vacation rentals worldwide. Furthermore, Wyndham launched Wyndham Rewards Experiences, allowing members to bid points on premier live events, leveraging partnerships like Madison Square Garden and Radio City Music Hall. The Net Promoter Score (NPS) for Wyndham Hotels & Resorts stood at 48 in the first quarter of 2025, ahead of the industry average of 44.

The key metrics for this relationship pillar look like this:

Dedicated on-the-ground operations support for franchisees

Wyndham Hotels & Resorts reinforces its relationship with its business customers-the franchisees-through its OwnerFirst approach. This commitment is reflected in a high franchisee retention rate, which reached nearly 96%. To support these owners, the company has made substantial technology investments, totaling nearly $350 million since its public debut in 2018. This investment funds the tools that help owners succeed today and innovate for the future. The company also awarded 229 new development contracts globally in Q2 2025, a 40% increase year-over-year, showing owners are actively choosing the partnership.

Automated, AI-powered guest engagement via Wyndham Connect PLUS

The relationship with the guest is being digitized through new technology. Wyndham Connect PLUS, an enhancement to the existing platform launched in May 2025, embeds Artificial Intelligence across the guest journey. This platform offers automated AI text messaging and voice assistance, allowing guests to easily book stays and get tailored recommendations. The CEO noted that hoteliers not using the original Wyndham Connect were missing out on "thousands and thousands of dollars" every month. The broader AI suite has already managed more than half a million customer interactions, improving direct contribution by nearly 300 basis points for hotels using the tools fully. Qualified franchisees were offered a pilot of the new Connect PLUS platform at no additional cost through the end of 2025.

Self-service check-in solutions to streamline the guest experience and free up hotel staff

A key feature integrated into the new digital offerings is the self-service check-in solution within Wyndham Connect PLUS. This directly addresses operational friction for both guests and staff. To give you context on technology adoption, nearly two-thirds (61%) of hotel owners surveyed in early 2025 had already invested in, or were considering investing in, technologies like self-service kiosks. Over 90% of hotel owners are leveraging AI in some capacity, with more than 70% deploying it for operations support. The goal here is clear: reduce employee workload and allow staff to focus on higher-value interactions. The platform also enables hotels to effortlessly charge for early check-ins, late check-outs, and upgrades, creating incremental revenue streams.

• Automated AI voice agents are deployed to save employee time.
• The platform allows for effortless charging for early check-ins and upgrades.
• The original Wyndham Connect helped reduce average handle time for customer interactions by 25 percent.

Finance: draft 13-week cash view by Friday.

Wyndham Hotels & Resorts, Inc. (WH) - Canvas Business Model: Channels

You're looking at how Wyndham Hotels & Resorts, Inc. gets its services-room nights and associated ancillary services-to the customer, which is primarily through a vast, franchised network supported by centralized digital tools. This is the backbone of their asset-light model.

The core of the distribution is the sheer scale of the physical footprint. As of the second quarter of 2025, Wyndham Hotels & Resorts, the world's largest hotel franchising company, maintained approximately 8,300 hotels across about 25 brands in around 100 countries. By the third quarter of 2025, the global system size was reported with over 855,400 rooms. This network is the primary point of sale for the end consumer.

Direct booking channels are heavily supported by technology investments aimed at capturing demand before it hits third-party sites. Wyndham Hotels & Resorts' websites and mobile apps serve as the preferred digital storefront, aiming to drive direct bookings to maximize fee capture and control the guest experience. The company has been actively embedding technology to enhance this direct path.

For instance, the Wyndham Connect platform, introduced in 2024, is a key enabler for direct engagement, offering features like AI-generated messaging, upsells, and mobile check-in/out. Approximately 2,000 hotels in North America are regularly using this tool and seeing significant incremental revenue. This focus on direct digital interaction is crucial, as ancillary revenues, which include technology fees, surged 18% in the third quarter of 2025 compared to the prior year.

The global network of approximately 8,300 franchised hotel properties is the physical manifestation of the channel strategy. These properties, appealing to the everyday traveler, command a leading presence in the economy and midscale segments. The company's strategy is to leverage this scale to capture more demand at lower costs for its franchisees.

Online Travel Agencies (OTAs) and Global Distribution Systems (GDS) remain necessary components of the overall channel mix, though Wyndham's strategy emphasizes driving traffic to its owned channels. The company is contractually obligated to spend marketing and reservation fees collected from franchisees on these programs. While specific booking mix percentages aren't explicitly stated for 2025, the focus on direct technology adoption suggests a strategic effort to optimize the cost of acquisition across all channels.

A new, specific revenue-generating channel initiative rolled out in 2025 is the Wyndham Gateway Wi-Fi portal. This provides a consistent, centralized login experience for guests. Critically, this portal unlocks a new hotel revenue stream through Wi-Fi upsell opportunities while simultaneously eliminating the requirement for loyalty enrollment for hotels using the platform. This positions a staple guest utility as a high-impact upgrade for owners.

Here's a look at the scale and recent financial impact related to these distribution and technology channels:

The push through technology is clearly translating into financial results, as fee-related and other revenues increased 4% year-over-year in the first quarter of 2025, reaching $316 million. The overall channel strategy relies on this massive physical network being digitally optimized.

You can see the strategic emphasis on direct and ancillary revenue capture through these key technology and distribution points:

• Direct Digital Channels: Wyndham Websites and Mobile Apps.
• Franchisee Network: Global footprint of roughly 8,300 properties.
• Third-Party Channels: Online Travel Agencies (OTAs) and GDS.
• New Revenue Channel: Wyndham Gateway Wi-Fi portal for upsells.
• Technology Integration: Wyndham Connect platform adoption by 2,000+ hotels.

Finance: draft 13-week cash view by Friday.

Wyndham Hotels & Resorts, Inc. (WH) - Canvas Business Model: Customer Segments

You're looking at the core groups Wyndham Hotels & Resorts targets to fuel its asset-light, fee-based franchise growth as of late 2025. The focus is clearly on attracting and retaining hotel owners while serving the high-volume, drive-to traveler.

Independent Hotel Owners/Developers (primary customer for the franchise model)

This group represents the primary customer for Wyndham Hotels & Resorts' franchise model. The value proposition here is brand strength and operational support over independent status. In a June 2025 survey, virtually all surveyed owners, specifically 98%, stated they are currently open to exploring new branded offerings, showing the pull of the brand system over remaining independent. Furthermore, the company's success in retaining these partners is evident, with the franchisee retention rate growing to nearly 96%. This high retention, especially within the economy brands, is a key indicator of owner satisfaction with the partnership.

The interest in new branding is segmented:

• Seeking traditional or hard brands: 55%.
• Seeking soft brand opportunities: Just under half, 45%.

Economy and Midscale Leisure Travelers (core guest segment)

Wyndham Hotels & Resorts' portfolio is fundamentally structured around the economy and midscale segments, which cater heavily to leisure demand. The company's overall portfolio remains heavily weighted toward drive-to destinations, which account for 90% of properties, and leisure travelers, who make up 70% of the guest base. The strategy involves expanding these core brands while layering in upscale and lifestyle offerings. The focus on higher FeePAR (Fee Per Available Room) segments and markets is driving growth in royalty rates across these core areas.

Business Travelers, especially those tied to infrastructure and construction projects

While leisure is dominant, specific business segments are strategically targeted for incremental growth, particularly in the U.S. The company has been positioning its brands, such as La Quinta, in infrastructure-rich markets like Dallas, Austin, and San Antonio. For 2025, management projected that infrastructure-related bookings would contribute between 150 to 200 basis points to U.S. RevPAR growth. Owners surveyed in June 2025 also indicated that 100% of them anticipate an increase in new business over the next five years due to rising multi-year infrastructure spend.

Extended-Stay Guests, a growing segment with 17% of the development pipeline

The extended-stay segment is a key area of growth and diversification, moving into upscale offerings with brands like WaterWalk Extended Stay by Wyndham and Wyndham Residences. This segment is a significant focus for future supply. As of the third quarter of 2025, the extended stay segment comprised approximately 17% of Wyndham Hotels & Resorts' global development pipeline. This focus is supported by the fact that the ECHO Suites Extended Stay by Wyndham brand alone represented 14% of the development pipeline as of early 2025. The overall pipeline is heavily skewed toward higher-quality assets, with approximately 70% of the pipeline in the midscale and above segments.

Here's a quick look at the development pipeline as of Q3 2025, which shows where future customer segments will be housed:

The company's global system size as of September 30, 2025, included approximately 2,180 hotels across six continents. To provide context on the existing base, the company maintains approximately 8,300 hotels with 847,000 rooms across about 25 brands in around 100 countries.

Wyndham Hotels & Resorts, Inc. (WH) - Canvas Business Model: Cost Structure

You're looking at the expenses Wyndham Hotels & Resorts, Inc. (WH) carries to run its global franchise operation as of late 2025. It's a mix of heavy tech spending, ongoing corporate overhead, and managing the loyalty ecosystem.

Technology Investment and Development Costs

Wyndham Hotels & Resorts has been pouring capital into its technology stack to support franchisees and enhance the guest journey. Since going public in 2018, the company has invested nearly $350 million in best-in-class technology. This investment is designed to deliver innovations across sales, marketing, and digital platforms.

Here's a quick look at the scale of that tech commitment:

• Since going public in 2018, nearly $350 million invested in technology.
• Prior announcements indicated an investment of $275 million in technology upgrades.
• The goal includes consolidating systems onto a single central reservation system globally.
• New platforms like Wyndham Connect PLUS embed AI across the guest journey.

General and Administrative Expenses for Corporate Oversight and Franchise Support

Corporate oversight and the support structure for thousands of franchisees represent a significant fixed cost base. While a precise G&A figure for the full year 2025 isn't immediately clear from the latest filings, we know that operating costs are being managed against revenue softness. For instance, in the third quarter of 2025, Adjusted EBITDA remained flat on a comparable basis, partly due to elevated costs associated with insurance, litigation defense, and employee benefits, which are part of the broader operating environment that feeds into G&A and other operating expenses.

Marketing and Advertising Fund Expenses

The marketing fund is a key cost component, often tied to system-wide revenues to drive brand awareness and bookings. For the full-year 2025 outlook, Wyndham Hotels & Resorts projected an intentional overspend in this area, expecting marketing fund expenses to exceed revenues by approximately $5 million. The company views this as an investment it expects to recover in future periods. Still, the quarterly results show variability; in the third quarter of 2025, marketing fund revenues actually exceeded expenses by $18 million, which provided a favorable impact of $0.06 per share to adjusted diluted EPS.

Costs Associated with the Wyndham Rewards Loyalty Program Reimbursement Model

The Wyndham Rewards loyalty program is a major key resource, but it carries associated reimbursement costs that impact the P&L. The structure involves reimbursing franchisees for points redeemed by guests. While specific reimbursement outlay figures for 2025 aren't itemized separately in the high-level summaries, the program's value proposition-with award redemptions starting at 7,500 points per night-is central to driving direct bookings, which helps control overall cost of acquisition.

Interest Expense on Debt

Financing the business involves carrying debt, and the associated interest expense is a direct cost that offsets earnings growth. For the full-year 2025 outlook, Wyndham Hotels & Resorts projected net interest expense to be in the range of $138 - $140 million. This higher interest cost was explicitly noted as a factor partially offsetting earnings growth when comparing third quarter 2025 adjusted diluted EPS to the prior year period.

Here's a snapshot of some key 2025 financial metrics impacting the cost side:

The company's net debt leverage ratio stood at 3.5 times at September 30, 2025, which is within its stated target range of 3 to 4 times, showing debt management is aligned with expectations.

Wyndham Hotels & Resorts, Inc. (WH) - Canvas Business Model: Revenue Streams

You're looking at the core money-makers for Wyndham Hotels & Resorts, Inc. as of late 2025. The model is heavily weighted toward recurring fees from its massive franchise base, which provides stability even when RevPAR (revenue per available room) fluctuates.

Royalty Fees are the primary engine. This is the ongoing fee paid by franchisees, typically set at 5% of gross room revenues (GRR) from each franchised hotel. This stream benefits directly from system-wide room growth, which stood at 4% year-over-year as of Q3 2025, totaling 855,400 rooms globally.

New business signings feed the future revenue pipeline. In the third quarter of 2025, Wyndham Hotels & Resorts awarded 204 new development contracts globally, marking a 24% increase compared to Q3 2024. The total development pipeline reached a record 257,000 rooms worldwide. Initial Franchise Fees and Development Fees are recognized as revenue over the initial non-cancellable period of the franchise agreement, usually commencing when the hotel opens for business.

Ancillary Revenues are showing strong momentum, driven by credit card programs, technology access, and reservation services. These revenues jumped 18% in Q3 2025 compared to the third quarter of 2024. On a year-to-date basis through Q3 2025, this segment grew 14%. This growth helped offset a decline in other fee areas; Q3 2025 fee-related and other revenues were $382 million, down from $394 million in Q3 2024.

Looking at the full picture for the year, Wyndham Hotels & Resorts projects full-year 2025 fee-related and other revenues to land between $1.43 billion to $1.45 billion. That's the top-line expectation for the core business model.

Marketing and Reservation Fund Fees are collected to cover centralized costs, but they can create variability in reported revenue. For Q3 2025, the company reported that its marketing fund revenues exceeded expenses by $18 million. This compares to an excess of $12 million in Q3 2024. The company expects marketing fund expenses to exceed revenues by approximately $5 million for the full-year 2025, viewing it as an intentional investment.

Here's a breakdown of some of the specific fees franchisees pay, which feed into the overall revenue structure. Honestly, this detail shows you where the money is coming from beyond just the base royalty.

The revenue streams also include fees related to the Wyndham Rewards loyalty program, charged to franchised or managed hotels based on a percentage of room revenues from a member's stay, intended to cover redemption and marketing costs. Furthermore, the management business generates revenue through base fees, typically a specified percentage of gross revenues, and sometimes incentive fees based on gross operating profit.

You should track the development pipeline closely; it's a leading indicator for future royalty revenue growth. Finance: draft 13-week cash view by Friday.