Wyndham Hotels & Resorts has nudged its full-year 2026 RevPAR guidance to flat to 1% growth, from a previous range of down 1% to up 1%. It reported a 1% year-over-year decline in second-quarter revenue per available room across its global system.

The revision came as President and CEO Geoff Ballotti pointed to U.S. consumer strength. He cited U.S. Travel Association estimates that about 10% of the $60 billion in tax refunds circulating through the economy will be spent on travel.

"Middle-income guests are going to be spending," Ballotti said on the earnings call. He added that wage growth is "robust enough certainly to support increased leisure spending."

What happened to European performance?

International results dragged the global figure. Domestic U.S. RevPAR grew 2% in the quarter, while non-U.S. RevPAR fell 6%.

Ballotti attributed the international decline to weakness in "Europe, by Latin America and by the Caribbean." He flagged "continued softness in Mexico" as the main Latin American pressure point, though said Wyndham is more optimistic about Mexico in the second half.

Stripping out two specific drag factors changes the regional picture sharply. "Excluding the Middle East and Revo, our performance in [Europe, the Middle East and Africa] was up 5%," Ballotti said.

He singled out Spain: "We saw strength this summer, and continue to see it in Spain, which was up in the quarter 26%."

How large is the Revo fallout?

Berlin-based Revo Hospitality Group filed for German-court insolvency in January. It controlled more than 38,125 rooms across approximately 260 hotels in 12 European countries at the time of filing.

Wyndham excluded the Revo portfolio from reported metrics in its latest quarter. It identified the insolvency as a major contributor to its European outlook reduction, alongside Middle East conflicts.

CFO Amit Sripathi said Wyndham has taken possession of two Revo properties. He said the company expects the insolvency process is "nearing conclusion."

Wyndham plans to retain part of the portfolio and "enter into franchise agreements with the new operators," Sripathi added.

How is Wyndham reshaping its portfolio?

The company is pruning lower-quality assets while expanding selectively. In the first half of the year, Wyndham removed roughly 27,200 rooms from its system. More than two-thirds of the removals sat in the U.S.

Additions reached 31,700 rooms in the same period. System-wide rooms grew 4% year-over-year in the second quarter. U.S. rooms were flat while international rooms grew 10%.

"We're very focused on replacing those lower-quality, lower [fees per available room] rooms with higher-quality and higher FeePAR rooms and accretive markets," Ballotti said. He pointed to "record franchisee owner satisfaction" and "record guest satisfaction."

Q2 openings included the Wyndham Jacksonville Hotel and Conference Center, the Winfield Lofts in Los Angeles, and the Hotel Troy, Trademark Collection by Wyndham, near the company's New Jersey headquarters.

What did the financials show?

Adjusted EBITDA reached $212 million, up 9% year-over-year. Net income rose 17% to $102 million.

Wyndham returned $86 million to shareholders through $54 million in buybacks and a $0.43 quarterly cash dividend.

Shares traded at $73.40 at press time, down 2.5% year to date. The NYSE composite was up 7.5% over the same period.

What happens next?

Wyndham held full-year rooms growth guidance at 4% to 4.5%. Third-quarter results will test whether the EMEA recovery Ballotti described holds once the Revo exclusion lapses. The German insolvency proceeding and the conversion of retained hotels to direct franchise agreements are likely to reshape Wyndham's European room count before year-end 2026.