This chain promises lodgings wherever the winds may blow you. One of the world's largest hospitality firms, Wyndham Worldwide includes a portfolio of some 7,200 franchised hotels worldwide through its lodging segment, which includes 15 familiar brands, such as Days Inn, Howard Johnson, Ramada, and Super 8. The company also operates a vacation exchange and rentals segment, which has a relationship with some 4,000 vacation exchange and rental properties in some 100 countries. In addition, its Wyndham Vacation Ownership operates vacation ownership resorts in North America, the Caribbean, and the South Pacific. Revenues primarily come from franchise and hotel management fees, membership dues, and timeshare sales.
While the hospitality industry targets both business and leisure travelers, most of Wyndham's customers come from the leisure market. The company's timeshare and vacation rentals businesses (which target the leisure market) generate more than 80% of the company's total revenue. Its lodging segment (which targets both business and leisure travelers) accounts for about 20%.
Nearly 30% of the company's revenues come from outside the US. A concentration of international business (some 12% of total revenues) comes from the UK and the Netherlands.
In 2011 Wyndham Worldwide posted increases in revenues (from $3.85 billion to $4.25 billion ) and net income (from $379 million to $417 million). The company benefitted from growth in the hotel industry, thanks to a recovering economy and increased consumer confidence. That year demand for rooms continued to increase, as more vacations were booked.
Wyndham continues to expand its vacation holdings through acquisitions in this market. In 2012 it purchased Myrtle Beach, South Carolina-focused Oceana Resorts, UK-centric Cumbrian Cottages, and Kaiser Realty, which caters to travelers seeking properties in Myrtle Beach and Gulf Shores. In 2012 Wyndham also acquired Shell Vacations, an independent vacation ownership club and property management group serving approximately 115,000 members and 19 managed resorts in North America. The purchase price was some $102 million in cash, plus the assumption of $153 million of debt.
In 2011 the company purchased The Resort Company (TRC), which operates about 30 mountain vacation resorts in Colorado (Beaver Creek, Breckenridge, Steamboat, and Vail). The deal added approximately 1,000 rental units to Wyndham Vacation Rentals, part of its exchange and rentals business.
The TRC deal was a continuation of the previous year's expansion strategy. In 2010 Wyndham acquired ResortQuest, a provider in full-service vacation rentals in the US. It paid some $56 million for the company, which it added to its exchange and rentals segment. Later that year Wyndham acquired James Villa Holidays. The deal, worth about $76 million, added another 2,300 villas and vacation rental properties in more than 50 destinations, primarily in the Mediterranean.
A third purchase for the year was Hoseasons Holdings Ltd, a UK-based vacation company. Wyndham made the acquisition for about $59 million in cash. Also in 2010 the company acquired the Tryp brand from Sol Meliá for some $43 million. The deal added about 90 properties in Europe and South America to Wyndham's holdings. – less