Wyndham Worldwide To Spin Off Hotel Business In Two Publicly Traded Companies

(RTTNews) - Wyndham Worldwide (WYN) announced plans to spin off the company's hotel business resulting in two separate, publicly traded companies. Wyndham Hotel Group, with headquarters in Parsippany, NJ, will become a new, publicly traded pure-play hotel company with a portfolio of renowned 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 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 expects the transaction to be completed in the first half of 2018.

"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 Holmes, Chairman and CEO, Wyndham Worldwide. The company will also explore strategic alternatives for its European rental brands.

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. David Wyshner will assume the role of Wyndham Worldwide CFO and will become CFO of the hotel company upon spin. Michael Hug will serve as CFO of the timeshare company.