A manager-run, 99-room Wingate by Wyndham hotel may produce roughly $378,000 to $723,000 of annual EBITDA available to ownership under the three scenarios below. The base scenario is about $538,000. These are pre-tax operating estimates before interest, depreciation, amortization, capital expenditures, financing principal, and personal income taxes—not disclosed owner income and not guaranteed cash distributions.
This range is an independent analytical scenario, not an Item 19 financial performance representation by Wingate Inns International, Inc. It combines identified facts from the 2026 Franchise Disclosure Document with a U.S. hotel-industry EBITDA benchmark and explicit modeling assumptions. Actual results can differ materially by location, room count, property format, rate, occupancy, labor, occupancy costs, channel mix, financing, owner involvement, capital needs, and execution.
- Legal franchisor
- Wingate Inns International, Inc., a subsidiary of Wyndham Hotel Group, LLC, which is owned by Wyndham Hotels & Resorts, Inc.
- Disclosure document
- 2026 U.S. FDD, issued March 31, 2026; Item 19 pages 84–88, Item 6 pages 30–43, Item 7 pages 43–51, Item 15 page 77, and Item 20 pages 88–95.
- Item 19 status
- Official ADR, Occupancy Rate, RevPAR, RevPAR Index, and reservation-contribution metrics; no Gross Sales, Operating Profit, EBITDA, Net Income, Cash Flow, Owner Compensation, or distributions.
- Applicable cohort
- Franchisee-operated Wingate facilities in the United States and Canada; the model cannot isolate U.S.-only Item 19 performance.
- External benchmarks
- CoStar/STR 2024 U.S. hotel P&L metrics and U.S. Bureau of Labor Statistics May 2025 Lodging Managers wages.
- Date checked
- July 18, 2026.
What does Wingate Item 19 actually measure?
Item 19 measures hotel room-rate and demand performance, not owner earnings. For January 1 through December 31, 2025, the official disclosure reports Average Daily Room Rate, Occupancy Rate, and RevPAR for 109 “Qualified Chain Facilities.” All were franchisee-operated, but the cohort combines the United States and Canada.
The central figures were $108.52 average ADR versus $102.31 median ADR, 61.6% average occupancy versus 61.7% median occupancy, and $66.89 average RevPAR versus $60.13 median RevPAR. Only 43 of 109 facilities, or 39.4%, met or exceeded the average RevPAR. That gap matters: an average is not a typical-outlet guarantee, and the median provides the more conservative central revenue anchor for this model.
- ADR is gross room revenue divided by occupied guest rooms. It is a price measure, not annual revenue or profit.
- Occupancy Rate is occupied rooms divided by available rooms. It shows demand utilization, not margin.
- RevPAR is gross room revenue per available room. Multiplying RevPAR by available room-nights estimates room revenue, not total hotel revenue or owner income.
- Qualified Chain Facilities opened before January 1, 2025, received at least ten aggregated social reviews during 2025, and averaged at least 4.0 out of 5.0.
Item 19 excludes facilities that left the system during 2025 and does not provide U.S.-only ADR, occupancy, or RevPAR. It also excludes newer facilities and properties below the review threshold. The disclosed cohort therefore should not be treated as a complete distribution of every U.S. Wingate hotel.
Item 20 provides a separate U.S.-only system view: franchised outlets increased from 189 at the start of 2025 to 194 at year-end, while company-owned outlets remained at zero. Because there were no company-operated Wingate outlets, there is no same-brand company P&L proxy to fill the earnings gap.
How is the annual earnings range calculated?
For the 99-room new-construction format, the model converts the 2025 Item 19 median RevPAR into annual room revenue and applies a separately sourced 2024 U.S. hotel EBITDA margin. The result is estimated EBITDA available to ownership, not a franchisor-reported profit figure and not after-debt cash flow.
- The Conservative and Upside revenue anchors equal 80% and 120% of the FDD median RevPAR. This spread is analytical and is not reported in Item 19.
- The Conservative and Upside margins are three percentage points below and above the 24.74% benchmark: 21.74% and 27.74%.
- Because Wingate Item 19 reports room revenue but not total revenue, the model assumes room revenue approximates total revenue for a midscale property. Ancillary revenue may make this denominator too low.
- The CoStar/STR margin is an all-U.S.-hotel proxy rather than a Wingate-only or midscale-only EBITDA result. The model does not subtract the FDD's 8.5% base recurring fee burden a second time because the public benchmark definition does not establish that franchise fees are excluded from Total Operating Expenses.
| Scenario | Modeled room revenue | EBITDA margin | Manager-run earnings proxy | Owner-operator benefit |
|---|---|---|---|---|
| Conservative | $1.74M | 21.7% | $378,000 | $457,000 |
| Base | $2.17M | 24.7% | $538,000 | $616,000 |
| Upside | $2.61M | 27.7% | $723,000 | $802,000 |
What does the three-scenario earnings range look like?
Estimated manager-run annual EBITDA available to ownership, rounded to the nearest $1,000.
Interpretation: the range widens because revenue and margin move together in the scenarios. It is not a probability forecast, and the midpoint is not presented as the most likely outcome.
Sources: 2026 Wingate FDD, Item 19 pages 84–88; CoStar/STR 2024 U.S. hotel P&L results; STR metric definitions. Calculations are independent and rounded after using full-precision inputs.
How does owner involvement change the result?
In the 99-room, 2025-anchored scenarios, an active owner who personally performs the qualified general-manager role may add about $78,740 of May 2025 labor value. This creates an estimated owner-operator benefit of approximately $457,000 to $802,000, but the added amount compensates the owner for work performed; it is not passive business profit.
Item 15 says personal participation is not required, although the franchisor recommends it. A non-managing owner must hire an experienced individual manager or management company, and the franchisor may require an approved third-party manager when the owner lacks significant hotel-management experience or receives a Development Incentive.
What is the modeled value of replacing a paid manager?
Manager-run EBITDA versus owner-operator benefit after adding the May 2025 U.S. mean Lodging Managers wage.
Interpretation: active ownership changes compensation composition more than underlying hotel economics. The labor component disappears if the owner hires a manager, and actual employer cost may exceed the wage because payroll taxes, benefits, recruiting, and management-company fees are not included.
Source: U.S. Bureau of Labor Statistics, May 2025 national wage data. Lodging Managers: $78,740 mean annual wage and $33.29 median hourly wage. The model uses the mean annual wage as a labor-value proxy.
Which obligations can move owner earnings most?
Under the 2026 FDD, revenue, labor, and distribution mix are the largest modeled drivers, while recurring charges create a substantial fixed percentage burden on room revenue. The Royalty and System Assessment Fee total 8.5% of Gross Room Revenues before other reservation, loyalty, technology, training, and optional service charges.
| FDD obligation | Official amount | Annual treatment in this analysis |
|---|---|---|
| Royalty | 5.5% of Gross Room Revenues | Part of the official 8.5% base burden; not subtracted again from the all-in EBITDA proxy. |
| System Assessment Fee | 3% of Gross Room Revenues | Part of the official 8.5% base burden; subject to future change under Item 6. |
| Loyalty Program Charge | 4.25%–5.5% of qualifying member spend | Unmodeled because Item 19 does not disclose the chargeable revenue base for each facility. |
| Digital pay-for-performance commission | Currently 7%, up to 10%, on qualifying consumed reservations | Unmodeled because booking-channel mix is undisclosed. |
| PMS support and service | $734–$1,050 per month, or $13.25 per room per month for OPERA Premium | Expected operating expense; exact system choice is unknown. |
| Co-op and continuing education | $1 per room per month plus $1,200 per year | Approximately $2,388 annually for a 99-room property before future increases. |
At modeled room revenue of $1.74 million to $2.61 million, the 8.5% Royalty-plus-System-Assessment burden alone equals about $148,000 to $222,000 annually. This calculation is useful for P&L verification, but it is not an additional deduction from the published scenario because double-charging an all-in margin would understate the result.
Startup investment is also separate from annual earnings. Item 7 estimates a 99-room new-construction investment of $11.35 million to $16.30 million and a 100-room conversion investment of $406,611 to $4.20 million, excluding land. Those amounts are capital requirements, not one-year operating expenses, and are not subtracted from annual revenue.
How much confidence should a buyer place in the range?
Evidence confidence is LIMITED because the earnings result depends materially on external margin data and editorial scenario spreads. The FDD provides a strong same-brand RevPAR anchor, but it does not disclose a hotel P&L, total revenue, owner compensation, capital reserves, or U.S.-only performance.
What could make the estimate too high?
The estimate may overstate distributable cash when property taxes, insurance, replacement reserves, management-company fees, owner overhead, deferred maintenance, renovation obligations, and franchise-specific variable fees exceed the industry proxy. Interest expense, financing principal, and capital expenditures can materially reduce cash available to the owner even when hotel EBITDA is positive.
What could make the estimate too low?
The model uses room revenue as an approximation for total revenue because Item 19 does not disclose ancillary sales. Meeting-room rental, parking, vending, pet fees, and other property revenue could increase the denominator, while an experienced owner-operator could retain part of the manager labor value.
Why is debt service separate?
Debt structure varies by acquisition price, equity contribution, lender, rate, amortization, and renovation financing. The FDD does not provide a single broadly applicable financing package, so this article does not assume a loan. Operating EBITDA should be compared with a buyer's actual annual interest, principal, and required reserve schedule before estimating owner cash flow.
What should a prospective owner verify before relying on this estimate?
A buyer should reconstruct a property-level P&L from written substantiation and comparable franchisee records rather than rely on the scenario midpoint. Item 19 states that written substantiation is available on reasonable request, and the FTC recommends scrutinizing the assumptions behind financial performance representations.
- Request Item 19 substantiation and ask whether U.S.-only, room-count, location-type, property-age, and ownership-role cuts are available.
- Ask current and former franchisees for room revenue, total revenue, payroll, occupancy costs, franchise charges, management fees, replacement reserves, capital expenditures, and actual owner distributions.
- Separate manager-run business EBITDA from owner salary, draw, distributions, retained earnings, and labor performed by an active owner.
- Reconcile every Item 6 charge against the property's booking mix, Wyndham Rewards participation, technology stack, revenue-management service, and agency commissions.
- Model property taxes, insurance, utilities, repairs, renovation cycles, and required reserves for the specific market and building—not a national average.
- Apply the actual loan's interest and principal schedule after operating earnings, then evaluate personal taxes with qualified legal and tax advisers.
What is the strongest defensible annual earnings view?
The strongest defensible range is approximately $378,000 to $723,000 of manager-run annual EBITDA for the modeled 99-room property, with a base scenario near $538,000. It is scenario-based, not official owner earnings. An active qualified owner replacing a paid manager raises modeled owner-operator benefit to about $457,000 to $802,000, but the incremental amount is compensation for labor.
The most important earnings driver is the combination of RevPAR and labor efficiency. The largest unresolved uncertainty is the absence of a same-brand property P&L showing total revenue, complete operating costs, replacement reserves, management expense, and franchise-specific variable charges. Before making a decision, verify Item 19 substantiation, obtain comparable franchisee P&Ls, and reconcile actual debt service and capital needs to the specific hotel.