Wyndham Worldwide is spinning off its hotel business to make its Orlando-based vacation ownership company the largest publicly-traded timeshare business in the world.
Wyndham Vacation Ownership will be joined with Wyndham Destination Network, home to RCI, the world’s largest timeshare exchange company, according to the company’s statement. The company will also explore strategic alternatives for its European rental brands.
The corporate names of the post-spin public companies have not yet been decided.
The two public companies will retain their affiliation with Wyndham Rewards and continue inventory sharing and customer cross-sell initiatives.
Wyndham Vacation Ownership is the world’s largest developer and marketer with more than 220 vacation ownership resorts throughout the world and reported $2 billion in gross sales last year.
Stephen P. Holmes, chairman and CEO of Wyndham Worldwide, said the spin-off will unlock shareholder value and enable strong growth across the businesses.
“With this strong platform in place, our businesses are now able to move forward individually, each positioned for a very strong future, based on a shared history and culture and an ongoing affiliation with Wyndham Rewards.”
Holmes will serve as non-executive chairman of the board of directors for both companies.
The transaction, which is expected to be tax-free to Wyndham Worldwide and its shareholders, will be achieved through a pro rata distribution of the new hotel company’s stock to existing Wyndham Worldwide shareholders.
The transaction should be completed in the first half of 2018.