In Strategic Move, Wyndham to Spin Off Hotel Unit
Wyndham Worldwide will spin off its hotel business into a new publicly traded company, a strategic move Wyndham said would “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 hotel unit, Wyndham Hotel Group, is set to become a publicly traded company by the first half of next year. Based in Parsippany, New Jersey, it operates or franchises more than 8,100 hotels across several brands, including Ramada, Days Inn and Baymont Inn & Suites. The company’s timeshare unit, Orland-based Wyndham Vacation Ownership, will be joined with Wyndham Destination Network, which includes the RCI timeshare exchange network.
“A spinoff 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,” Stephen Holmes, chairman and CEO of Wyndham Worldwide, said in a statement. “We will work with the leadership of our European rental organizations, which have outstanding brands in their regional markets, to explore options to fully realize their future growth potential.”
Geoff Ballotti, current CEO of Wyndham Hotel Group, will continue to lead the hotel company as president and CEO.
Last month Wyndham announced plans to acquire Minnesota-based AmericInn hotel and its management company, Three Rivers Hospitality, for $170 million.