Wyndham Hotels & Resorts Announces \$650 Million Senior Notes Offering

Key Points for Investors

• Wyndham Hotels & Resorts, Inc. (NYSE: WH) has announced its intention to offer \$650 million in aggregate principal amount of Senior Notes due 2033.
• The proceeds from this offering will be used to repay all outstanding borrowings under its term loan A and revolving credit facility, pay related fees and expenses, and for general corporate purposes.
• The Senior Notes will be guaranteed by certain domestic restricted subsidiaries that currently guarantee its outstanding credit facilities and existing notes.
• The Notes and associated guarantees are unregistered securities under the Securities Act of 1933 and will be offered only to “qualified institutional buyers” via Rule 144A and to certain non-U.S. persons under Regulation S.

Important Information for Shareholders

• This debt offering is a significant financial move, as it refinances existing debt, potentially improving the company’s debt maturity profile and liquidity position.
• The use of proceeds to repay borrowings under term loan A and revolving credit facility could impact interest expenses and financial leverage.
• Any changes in Wyndham’s capital structure, debt servicing, or liquidity could be price sensitive and may affect share values.
• The offering is not open to retail investors; it targets institutional buyers, which may signal confidence in the company’s creditworthiness and future prospects.
• The announcement includes forward-looking statements about the Notes offering, the use of proceeds, and Wyndham’s financial outlook, cautioning investors about risks including economic conditions, interest rates, potential recessions, global trade disputes, and industry-specific risks.

Company Overview

Wyndham Hotels & Resorts is the world’s largest hotel franchising company by number of franchised properties, with over 8,300 hotels in approximately 100 countries on six continents. The company operates a portfolio of 25 hotel brands, including Super 8®, Days Inn®, Ramada®, Microtel®, La Quinta®, Baymont®, Wingate®, AmericInn®, ECHO Suites®, Registry Collection Hotels®, Trademark Collection®, and Wyndham®. Its network comprises approximately 869,000 franchised and affiliated rooms, catering to everyday travelers and maintaining a leading presence in the economy and midscale segments.

Wyndham’s award-winning Wyndham Rewards loyalty program has millions of enrolled members with the ability to redeem points at thousands of hotels, vacation club resorts, and vacation rentals globally.

Forward-Looking Statements and Risks

• The press release contains forward-looking statements, including expectations regarding the Notes offering and use of proceeds.
• Risks highlighted include:
  • General economic conditions such as inflation, higher interest rates, and recessionary pressures, potentially impacting travel demand.
  • Global trade disputes (including with China), performance of financial and credit markets, and the hospitality industry’s economic environment.
  • Operating risks related to hotel franchising, franchisee relationships, and ability of franchisees to repay loans.
  • Impact of impairment charges related to franchisee credit.
  • Risks from war, terrorist activity, political instability, and global or regional health crises (e.g., pandemics).
  • Ability to satisfy debt obligations, obtain financing, and manage liquidity and capital needs.
  • Risks related to future share repurchases and/or dividend plans.
  • Additional risks as described in Wyndham’s most recent Annual Report on Form 10-K and subsequent SEC filings.
• Wyndham does not undertake any obligation to update forward-looking statements except as required by law.

Investor and Media Contacts

• Investors: Matt Capuzzi, Senior Vice President, Investor Relations, 973 753-6453, [email protected]
• Media: Maire Griffin, Senior Vice President, Global Communications, 973 753-6590, [email protected]

Potential Share Price Impact

The announcement of a \$650 million senior notes offering and planned debt refinancing is a significant event that could affect share price. Investors should monitor:

• Changes in Wyndham’s debt profile and liquidity.
• Potential improvements in interest expense and credit metrics.
• Market reaction to Wyndham’s efforts to strengthen its balance sheet amidst challenging economic and industry conditions.

These developments may be interpreted positively if they lead to better financial flexibility, but risks remain due to broader economic and industry uncertainties.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should review all relevant filings and consult with financial professionals before making any investment decisions. The information is derived from official company disclosures and may be subject to change.

View WYNDHAM HOTELS & RESORTS, INC. Historical chart here