Wyndham Hotels & Resorts has reported net income of $86m in the second quarter (Q2) of fiscal year 2024 (FY 2024), marking a 22.8% increase from the $70m in the same quarter of the previous year.

The increase in net income was attributed to a combination of factors, including a rise in adjusted EBITDA, a reversal of a spin-off-related matter, and a reduced effective tax rate. These positive impacts were partially offset by an uptick in interest expense and restructuring costs.

Adjusted net income for the quarter stood at $91m, up 14% from the second quarter of 2023.

Adjusted EBITDA saw a 13% growth, reaching $178m compared to $158m in the prior year's same quarter. This growth included a $10m favourable impact from marketing fund variability. Excluding this, adjusted EBITDA increased by 6%, driven by higher fee-related and other revenues, disciplined cost management, and insurance recoveries.

The company's net revenue for the latest quarter ending 30 June was $367m, a slight increase from $362m in the same period of the previous year.

Fee-related and other revenues were $366m, up from $358m in the second quarter of 2023. This increase was supported by a 4% global net room growth and a 6% rise in ancillary revenue streams, despite a $3m decrease in management fees due to the company's exit from the US management business.

Diluted earnings per share (EPS) for Q2 2024 experienced a notable increase to $1.07 from $0.82 in the same quarter of the previous year, reflecting the higher net income and the benefit of a reduced share count from share repurchases.

Operating income for the quarter was reported at $145m, up from $123m in Q2 2023.

Globally, the company's RevPAR (revenue per available room) increased by 2% in constant currency during the second quarter, with stagnant growth in the US and a 7% increase internationally.

In terms of expansion, Wyndham's system-wide rooms grew by 4% year-over-year (YOY), with over 18,000 rooms opened globally, including more than 7,000 in the US. The quarter also saw the launch of the first ECHO Suites Extended Stay by Wyndham in the US.

The company awarded 180 new development contracts worldwide, with 96 of those in the US, representing a 33% increase from the previous year. The development pipeline expanded by 1% sequentially and 7% YOY to a record 245,000 rooms.

For the first half of FY 2024, net income was reported at $102m, a decrease from $137m in the first half of FY 2023. Net revenue for the first six months of this year was $671m, slightly down from $674m in the previous year's first half. Diluted EPS for H1 2024 was $1.26 compared to $1.59 in the same period last year, and operating income decreased to $195m from $236m in H1 2023.

Meanwhile, the company has updated its full-year 2024 outlook. It expects adjusted net income to be in the range of $338m-$348m from the prior outlook of $341m-$351m and adjusted diluted EPS to be in the range of $4.20-$4.32 from the earlier outlook of $4.18-$4.30.

Wyndham Hotels & Resorts president and chief executive officer Geoff Ballotti said: "Amid a normalising domestic RevPAR environment, we delivered strong adjusted EBITDA driven by net room and ancillary fee growth. We awarded 33% more hotel contracts domestically which grew our development pipeline to a record 245,000 rooms, and drove significant increases in our US, international and global royalty rates. Year-to-date, we've returned over $250m to shareholders, representing 4% of our beginning market capitalisation this year."