Moody's upgrades Wyndham Hotels' guaranteed debt rating to Baa3

Investing.com - Moody’s today confirmed Wyndham Hotels & Resorts’ Ba1 corporate family rating and Ba2 senior unsecured rating, while upgrading the company’s senior secured bank credit facilities from Ba1 to Baa3. The rating agency assigned a Ba2 rating to the newly issued senior unsecured notes and maintained the company’s SGL-2 speculative-grade liquidity rating with a stable outlook.

The upgrade of the senior secured bank credit facilities reflects changes in Wyndham’s debt capital structure, following the company’s announcement to issue $650 million of senior unsecured notes. The proceeds from this issuance will refinance Wyndham’s existing senior secured A-term loan and repay the outstanding balance of its senior secured revolving credit facility. This refinancing is neutral to leverage and will increase the proportion of unsecured debt in the capital structure.

The Ba1 corporate family rating reflects Wyndham’s status as one of the world’s largest hotel companies, with over 8,300 affiliated hotels in approximately 100 countries, totaling about 869,000 rooms, operating 25 brands. The company has approximately 259,000 rooms in pipeline projects, which Moody’s views positively, as unit growth is an important component of future revenue expansion.

In 2025, industry-wide RevPAR (Revenue Per Available Room) is expected to decline, particularly in Wyndham’s two main segments—midscale and economy hotels. Wyndham’s RevPAR is projected to decrease by 3% for the full year 2025, due to softness in both average daily rate and occupancy, compared to the company’s global outlook of +2% to +3% growth announced in February 2025.

Wyndham’s liquidity is supported by $64 million in cash and $776 million in committed revolving credit facilities, as of December 31, 2025. Drawdowns of $224 million from the revolving credit facility will be used to repay proceeds from the new senior unsecured notes, increasing the total revolving credit capacity to $1 billion.

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