WaterWalk Franchise

Financial Health Notes

WaterWalk Extended Stay by Wyndham's financial health is represented by its parent company, Wyndham Hotels & Resorts, Inc., which is a publicly traded company with audited financial statements. As of December 31, 2024, the company reported net income of $289 million. Its liabilities include $105 million for the Wyndham Rewards loyalty program and $2,463 million in long-term debt. The company also provides significant credit support guarantees related to a former parent's business sale, totaling $127 million. The independent auditors issued an unqualified opinion on the financial statements, indicating they present fairly, in all material respects, the financial position and results of operations. A critical audit matter was identified related to the Wyndham Rewards loyalty program's deferred revenues and liability due to the judgment involved in estimating redemption rates and costs per point, but this did not result in a qualified opinion. The company has $538 million of remaining availability under its stock repurchase program as of December 31, 2024.

Ongoing Support

After opening, WaterWalk Extended Stay by Wyndham franchisees receive continuous support through ongoing access to the confidential Standards of Operation and Design Manual, which is regularly updated. They can attend Chain conferences, held approximately every 18 to 24 months, and periodic regional summits. The franchisor conducts announced and unannounced inspections and offers operational support via email, telephone, and the System's internal online platform, supplemented by periodic field team visits. Franchisees also gain access to a proprietary online platform with brand-specific information, tools for site and industry reporting, bill payment, marketing, global sales, loyalty, revenue management resources, and customer ratings/reviews. The franchisor provides information about Approved Suppliers and a computerized Central Reservation System (CRS) for furnished units. Mandatory services include a call handling service, and optional comprehensive revenue management programs (Standard, Premium, Premium Plus RMS) for furnished units are available. The franchisor provides access to a customer experience software platform (Medallia) for review aggregation and responds to certain customer surveys and online reviews. An optional Remote Sales Service provides a designated representative to respond to sales leads and solicit new business. WaterWalk Extended Stay by Wyndham also provides a designated guest engagement platform (Wyndham Connect) for mobile text communication with guests. For ongoing learning, a comprehensive curriculum of hotel operations training is available for $1,200 per year, which includes tuition for one regional workshop, access to Wyndham University, and service culture support.

Territory Size Requirements

WaterWalk Extended Stay by Wyndham does not offer an exclusive territory. The standard Franchise Agreement does not provide a protected territory, and there is no minimum protected territory offered. Franchisees may face competition from other WaterWalk Extended Stay by Wyndham facilities, other Wyndham brands, and other lodging facilities operated by the franchisor's affiliates, even if they are adjacent or proximate to the franchisee's location. While the franchisor may, in its discretion, agree to some measure of territorial protection for a defined area (e.g., a radius from the facility, an area bounded by streets or natural boundaries, or by latitude and longitude), this is not a standard offering and is subject to negotiation based on factors like market characteristics and demand generators. Such protection would not include competition from other brands owned, managed, or franchised by the franchisor or its affiliates.