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Performance was anchored by the vacation ownership business, where management converted high owner engagement into recurring demand and predictable cash flow.
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The company achieved 8% gross vacation ownership sales growth, driven by a 6% increase in Volume Per Guest (VPG) and accelerating tour flow that peaked in the fourth quarter.
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Management attributed sustained consumer demand to a deliberate shift toward higher-quality demographics, with average FICO scores rising above 740 and household incomes exceeding $100,000.
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The multi-brand strategy, including Sports Illustrated and Eddie Bauer, is designed to broaden the addressable market and reach new travel segments beyond the legacy Wyndham and WorldMark brands.
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The Resort Optimization Initiative was launched to remove 17 aged, low-demand resorts, replacing them with newer, high-demand locations to improve system-wide financial health.
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Travel and Membership segment performance was impacted by ongoing exchange headwinds, prompting management to implement tight cost controls to align expenses with the current revenue profile.
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Full-year 2026 EBITDA guidance of $1.03 billion to $1.055 billion assumes a net benefit of $15 million to $25 million from the resort optimization program.
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Management expects a deliberate mix shift toward new owners to cause a modest year-over-year decline in VPG to a range of $3,175 to $3,275.
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The company anticipates bending the owner count curve back to a positive trajectory as new brands like Sports Illustrated Resorts scale and reach higher new-owner mixes.
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Capital allocation will prioritize organic growth and shareholder returns, with a new $750 million share repurchase authorization viewed as a high-return use of capital.
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Loan loss provisions are expected to trend lower toward 20% in 2026, driven by higher down payments and improved collections efficiency.
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A non-cash inventory write-down and impairment of $216 million was recorded in 2025 related to the strategic closure of select resorts.
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The resort optimization initiative creates a $120 million revenue headwind but is offset by $70 million in expense savings, yielding a net EBITDA benefit.
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Exchange rate volatility remains a persistent headwind for the Travel and Membership segment, with management modeling 2026 based on 2025 trend lines.
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Management flagged that while the core business is resilient, the ‘law of large numbers’ makes 6% to 8% growth in legacy brands increasingly difficult, necessitating the multi-brand expansion.
