PARSIPPANY, N.J., May 9, 2018 /PRNewswire/ -- Wyndham Worldwide
Corporation (NYSE: WYN) today announced the successful completion
of its previously announced sale of its European vacation rentals
business to an affiliate of Platinum Equity, LLC, a leading global
private equity firm, for approximately $1.3
billion.
The industry-leading European vacation rentals business is the
largest manager of holiday rentals in Europe, with more than 110,000 units in over
600 destinations across more than 25 countries. The business
operates more than two dozen local brands, including cottages.com,
James Villa Holidays, Landal GreenParks, Novasol and
Hoseasons. In conjunction with the sale, the European
vacation rentals business entered into a 20-year agreement under
which it will pay a royalty fee of 1% of net revenue to Wyndham's
hotel business for the right to use the "by Wyndham Vacation
Rentals®" endorser brand. The European vacation rentals
business will also participate as a redemption partner in the
award-winning Wyndham Rewards® loyalty program.
"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," said Stephen P. Holmes, Chairman and Chief Executive
Officer of Wyndham Worldwide. "We are confident that the
European vacation rental brands will continue to succeed with the
support of Platinum Equity, and we are proud to continue our
partnership with these customer-focused brands, underscored by the
Wyndham Vacation Rentals® endorsement and participation in our
award-winning Wyndham Rewards® loyalty program."
Wyndham Worldwide intends to use the net proceeds from the sale
primarily to reduce its existing indebtedness.
Deutsche Bank and Goldman Sachs served as financial advisors,
and Kirkland & Ellis International LLP and Dechert LLP served
as legal advisors to Wyndham Worldwide.
ABOUT WYNDHAM WORLDWIDE
Wyndham Worldwide Corporation
(NYSE: WYN) is one of the largest global hospitality companies,
providing travelers with access to a collection of trusted
hospitality brands in hotels, vacation ownership and unique
accommodations including vacation exchange and managed vacation
rentals. With a collective inventory of over 22,000 places to stay
across 110 countries on six continents, Wyndham Worldwide and its
39,000 associates welcome people to experience travel the way they
want. This is enhanced by Wyndham Rewards®, the Company's
award-winning guest loyalty program across its businesses, which is
making it simpler for members to earn more rewards and redeem their
points faster. For more information, please visit
www.wyndhamworldwide.com.
FORWARD-LOOKING STATEMENTS
This press release contains
"forward-looking statements" within the meaning of Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. Forward-looking
statements are those that convey management's expectations as to
the future based on plans, estimates and projections at the time
Wyndham Worldwide makes the statements and may be identified by
words such as "will," "expect," "believe," "plan," "anticipate,"
"intend," "goal," "future," "target," "estimate" and similar words
or expressions, including the negative version of such words and
expressions. Forward-looking statements involve known and unknown
risks, uncertainties and other factors, which may cause the actual
results, performance or achievements of the European vacation
rentals business, Wyndham Worldwide, Wyndham Hotels & Resorts,
Inc., Wyndham Destinations, Inc. or their respective subsidiaries
to be materially different from any future results, performance or
achievements expressed or implied by such forward-looking
statements. The forward-looking statements contained in this press
release include statements related to Wyndham Worldwide's current
views and expectations with respect to the sale and the use of
proceeds therefrom. You are cautioned not to place undue reliance
on these forward-looking statements, which speak only as of the
date of this press release. Factors that could cause actual results
to differ materially from those in the forward-looking statements
include, but are not limited to, general economic conditions; the
performance of the financial and credit markets; the economic
environment for the hospitality industry; the impact of war,
terrorist activity or political strife; operating risks associated
with the hotel, vacation exchange and rentals and vacation
ownership businesses; uncertainties that may delay or negatively
impact the planned spin-off of Wyndham Hotels or the planned
acquisition of La Quinta's hotel franchising and management
businesses or cause the spin-off or the La Quinta acquisition to be
delayed or to not occur at all; uncertainties related to Wyndham
Worldwide's and Wyndham Hotels' ability to realize the anticipated
benefits of the spin-off, the La Quinta acquisition or the
divestiture of the European vacation rentals business;
uncertainties related to Wyndham Worldwide's ability to
successfully complete the spin-off on a tax-free basis within the
expected time frame or at all; uncertainties related to Wyndham
Worldwide's and Wyndham Hotels' ability to obtain financing or the
terms of such financing, including in connection with the spin-off
and the La Quinta acquisition; unanticipated developments related
to the impact of the spin-off, the La Quinta acquisition and the
divestiture of the European vacation rentals business, and in each
case related transactions on Wyndham Worldwide's and Wyndham
Hotels' relationships with their respective customers, suppliers,
employees and others with whom they have relationships;
unanticipated developments resulting from possible disruption to
the operations of Wyndham Worldwide and Wyndham Hotels resulting
from the proposed spin-off, the proposed La Quinta acquisition and
the divestiture of the European vacation rentals business; the
potential negative effects of the spin-off, the La Quinta
acquisition, the divestiture of the European vacation rentals
business and related transactions on the credit ratings of Wyndham
Worldwide and Wyndham Hotels; uncertainties related to the
successful integration of Wyndham Worldwide's and Wyndham Hotels'
business with La Quinta's hotel franchising and management
businesses; the timing and amount of future share repurchases and
dividends; as well as those risks described in Wyndham Worldwide's
Annual Report on Form 10-K, filed with the SEC on February 16, 2018, and subsequently filed
Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. We
undertake no obligation to release publicly any revisions to any
forward-looking statements, to report events or to report the
occurrence of unanticipated events.
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SOURCE Wyndham Worldwide Corporation