Wyndham Hotel Group spins off from parent company
Wyndham Hotel Group is set to become a new, publicly traded pure-play hotel company
Wyndham Worldwide is set to spin off the company’s hotel business resulting in two separate, publicly traded companies: Wyndham Hotel Group and Wyndham Vacation Ownership.
Wyndham Hotel Group, with headquarters in Parsippany, New Jersey, will become a new, publicly traded pure-play hotel company with a portfolio of brands. Wyndham Vacation Ownership, with headquarters in Orlando, Florida, will be the world’s largest publicly traded timeshare company and will be joined with Wyndham Destination Network, home to RCI, the world’s largest timeshare exchange company.
The company also intends to explore strategic alternatives for its European rental brands.
The two public companies intend to enter into long-term license agreements to retain their affiliation with loyalty programme, Wyndham Rewards, as well as continued collaboration on key inventory sharing and customer cross-sell initiatives. The corporate names of the post-spin public companies have not yet been decided.
The transaction is expected to increase the fit and focus and strategic flexibility of the two post-spin companies, allow each company to maintain a sharper focus on its core business and growth opportunities, facilitate future capital raising as needed for the two companies, and position each to be better able to make the changes necessary to respond to developments in its markets.
The transaction, which is expected to be tax-free to Wyndham Worldwide and its shareholders, will be effected through 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. Stephen P. Holmes, chairman and CEO of Wyndham Worldwide, will serve as non-executive chairman of the board of directors for both companies.
Geoff Ballotti, current CEO of Wyndham Hotel Group, will continue to lead the hotel company as president and CEO. With more than 30 years’ experience, Ballotti is tasked with advancing Wyndham’s leadership in the economy and mid-scale hotel segments, while growing the company’s upscale portfolio.
Wyndham Hotel Group is one of the world’s largest and most diverse hotel businesses, with a global portfolio of 18 brands and over 8,100 hotels with approximately 705,700 rooms in over 80 countries and 2016 revenues of US$1.3 billion.