Wyndham Worldwide, which operate brands such as Travelodge, Ramada and Days Inn, has announced plans to spin off its hotel business and combine its timeshare businesses, a strategic move to allow the two separate companies to focus on their core business and growth opportunities.
Wyndham Hotel Group, based in Parsippany, will become a new publicly traded pure-play hotel company; while Wyndham Vacation Ownership, with headquarters in Orlando, Florida, will be combined with Wyndham Destination Network, home to RCI, the world’s largest timeshare exchange company.
The two public companies intend to enter into long-term exclusive license agreements to retain their affiliation with Wyndham Rewards, as well as continued collaboration on key inventory sharing and customer cross-sell initiatives.
The transaction is expected to be completed in 1H2018. The corporate names of the post-spin public companies have not yet been decided.
Following the separation, both companies will have significant scale and leadership positions within their industries, strong cash flows, rich portfolios of brands, and existing relationships in place to drive attractive growth and shareholder value.
The transaction will be effected through a pro rata distribution of the new hotel company’s stock to existing shareholders.
The two companies will have separate boards of directors, both of which will be helmed by Wyndham Worldwide CEO and chairman Stephen Holmes as non-executive chairman.
Wyndham Hotel Group CEO Geoff Ballotti and Wyndham Vacation Ownership CEO Michael Brown will each continue to lead the respective companies as president and CEO, and Gail Mandel, CEO of Wyndham Destination Network, will also retain his post.
