Wyndham Worldwide (NYSE: WYN) became the latest hospitality firm to spin off separate business units in a bid to boost shareholder value.
The company announced that Wyndham Hotel Group, based in Parsippany, NJ, will become a new, publicly traded pure-play hotel company, while Orlando-based Wyndham Vacation Ownership, one of largest publicly traded timeshare companies, will be combined with Wyndham Destination Network, home to timeshare exchange company RCI, as a separate time-share firm.
The corporate names of the post-spinoff public companies have not yet been decided. Wyndham also announced it plans to shop its European hotel brands separately.
Wyndham's brands range from the budget Knights Inn, Super8 and Travellodge to the upscale Wyndham Grand and Dolce Hotels and Resorts.
"After a comprehensive review process, the board of directors has determined that a spin-off of the hotel business and the combination of Wyndham Vacation Ownership with RCI is the best structure to unlock shareholder value and enable strong growth across the businesses," said Stephen P. Holmes, chairman and CEO, Wyndham Worldwide.
The transaction, which is expected to be tax-free to Wyndham Worldwide and its shareholders, will be made via a pro rata distribution of the new hotel company's stock to existing Wyndham Worldwide shareholders. Wyndham Worldwide expects the transaction to be completed in the first half of 2018.
As two separate public companies, the vacation ownership company and the hotel company will have separate boards of directors. Holmes will serve as non-executive chairman of the board for both companies.
Geoff Ballotti, current CEO of Wyndham Hotel Group, will continue to lead the hotel company as president and CEO. Michael Brown, current CEO of Wyndham Vacation Ownership, will continue to lead the timeshare company as president and CEO.
Wyndham Hotel Group has a global portfolio of 18 hotel brands and more than 8,100 hotels with approximately 705,700 rooms. The company posted 2016 revenues of $1.3 billion.
Wyndham Vacation Ownership has more than 220 time-share properties located throughout the U.S, Canada, Mexico, the Caribbean, South America and the South Pacific. It generated more than $2 billion in gross timeshare sales in 2016. The RCI timeshare exchange network has more than 4,300 affiliated properties.
The company announced that Wyndham Hotel Group, based in Parsippany, NJ, will become a new, publicly traded pure-play hotel company, while Orlando-based Wyndham Vacation Ownership, one of largest publicly traded timeshare companies, will be combined with Wyndham Destination Network, home to timeshare exchange company RCI, as a separate time-share firm.
The corporate names of the post-spinoff public companies have not yet been decided. Wyndham also announced it plans to shop its European hotel brands separately.
Wyndham's brands range from the budget Knights Inn, Super8 and Travellodge to the upscale Wyndham Grand and Dolce Hotels and Resorts.
"After a comprehensive review process, the board of directors has determined that a spin-off of the hotel business and the combination of Wyndham Vacation Ownership with RCI is the best structure to unlock shareholder value and enable strong growth across the businesses," said Stephen P. Holmes, chairman and CEO, Wyndham Worldwide.
The transaction, which is expected to be tax-free to Wyndham Worldwide and its shareholders, will be made via a pro rata distribution of the new hotel company's stock to existing Wyndham Worldwide shareholders. Wyndham Worldwide expects the transaction to be completed in the first half of 2018.
As two separate public companies, the vacation ownership company and the hotel company will have separate boards of directors. Holmes will serve as non-executive chairman of the board for both companies.
Geoff Ballotti, current CEO of Wyndham Hotel Group, will continue to lead the hotel company as president and CEO. Michael Brown, current CEO of Wyndham Vacation Ownership, will continue to lead the timeshare company as president and CEO.
Wyndham Hotel Group has a global portfolio of 18 hotel brands and more than 8,100 hotels with approximately 705,700 rooms. The company posted 2016 revenues of $1.3 billion.
Wyndham Vacation Ownership has more than 220 time-share properties located throughout the U.S, Canada, Mexico, the Caribbean, South America and the South Pacific. It generated more than $2 billion in gross timeshare sales in 2016. The RCI timeshare exchange network has more than 4,300 affiliated properties.
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