Wyndham Worldwide Corp.’s transformation is continuing, the company said, as the board of directors approved the spinoff of the company’s hotel business and it completed the sale of its European vacation rentals business.
The Parsippany-based hospitality company said the spinoff of wholly-owned subsidiary Wyndham Hotels & Resorts Inc. will take place after the market close on May 31, with Wyndham Worldwide shareholders of record as of May 18 receiving stock in the new company.
Wyndham Worldwide — the world’s largest vacation ownership and exchange company — will adopt the name Wyndham Destinations Inc., while the spinoff — the world’s largest franchisor, with more than 8,300 affiliated hotels — will retain the Wyndham Hotels & Resorts name.
“For more than a decade, Wyndham Worldwide has been focused on providing great experiences for millions of guests around the world, while delivering value and return on capital for our stockholders,” Chairman and CEO Stephen P. Holmes said in a prepared statement. “Throughout this journey, we have been guided by a fundamental commitment to reliable growth in a disciplined and responsible way.
“We’re confident that, as two independent companies, Wyndham Hotels & Resorts and Wyndham Destinations have the right focus and strategic flexibility to unlock significant long-term value for stockholders. Each of the new companies will have significant scale and a leadership position within its industry, strong cash flows and a rich portfolio of trusted brands.”
Wyndham Hotels will start trading under the symbol WH after the spinoff, with Wyndham Detinations retaining the WYND ticker symbol.
Meanwhile, Wyndham has wrapped up the $1.3 billion sale of its European vacation rental unit, first announced in February.
The buyer is an affiliate of Platinum Equity LLC.
The unit is largest manager of holiday rentals in Europe, handling more than 110,000 units in more than 600 destinations in more than 25 countries. It will pay a royalty fee for continued use of the “by Wyndham Vacation Rentals” brand.
“The completion of this transaction is a major milestone toward our becoming two strong, independent public companies leading the way in vacation ownership and hospitality,” Holmes said. “We are confident that the European vacation rentals brands will continue to succeed with the support of Platinum Equity, and we are proud to continue our partnership with these customer-focused brands.”