Profile: Wyndham Worldwide Corp (WYN.N)
14 Mar 2014
Wyndham Worldwide Corporation, incorporated on May 30, 2003, is a hospitality company. The Company offers individual consumers and business customers an array of hospitality services and products across various accommodation alternatives and price ranges through its portfolio of brands. The Company operates in three segments of the hospitality industry: lodging, vacation exchange and rentals and vacation ownership. The Company’s 30 brands include Wyndham Hotels and Resorts, Tryp by Wyndham, Ramada, Days Inn, Super 8, Howard Johnson, Wyndham Rewards, Wingate by Wyndham, Microtel Inns & Suites, RCI, The Registry Collection, Landal GreenParks, Novasol, Hoseasons, cottages4you, James Villa Holidays, ResortQuest by Wyndham Vacation Rentals, The Resort Company by Wyndham Vacation Rentals, Wyndham Vacation Resorts and WorldMark by Wyndham. In September 2012, its subsidiary, Wyndham Vacation Ownership, acquired Shell Vacations LLC (Shell) and its subsidiaries. In October 2012, the Company’s Wyndham Hotel Group announced the opening of the newly constructed, 250-room TRYP by Wyndham Bogota Embajada, the newest TRYP by Wyndham(SM) hotel in Colombia.
WYNDHAM HOTEL GROUP
The Company’s lodging business, Wyndham Hotel Group, is a hotel company based on the number of properties, franchising in the upper upscale, upscale, upper midscale, midscale, economy and extended stay segments of the lodging industry and providing hotel management services globally for full-service hotels. Wyndham Hotel Group comprises 15 brands, with 7,205 hotels representing over 613,000 rooms on six continents and another nearly 850 hotels representing approximately 111,900 rooms in the development pipeline as of December 31, 2011.
Days Inn is a global brand in the economy segment with approximately 1,865 properties worldwide. Days Inn hotels offer consumers high-speed Internet, upgraded bath amenities and the Wyndham Rewards loyalty program. Most hotels also offer Daybreak breakfast, restaurants and meeting rooms.
Super 8 Worldwide is a global brand in the economy segment with approximately 2,250 properties in the United States, Canada and China, making Super 8 a chain of economy hotels in the world. Super 8 hotels offer SuperStart breakfast, high speed Internet access, upgraded bath amenities, free in-room coffee, kids under 17 stay free and free premium cable or satellite television (TV), as well as the Wyndham Rewards loyalty program.
Microtel Inns & Suites is an economy chain of 315 properties predominantly located throughout North America. Microtel is also a construction brand in the economy segment. Positioned in the upper-end of the economy segment, all properties offer continental breakfast, free wired and wireless Internet access, free local and long distance calls and the Wyndham Rewards loyalty program.
As of December 31, 2011, Howard Johnson had over 450 hotels in North America, Latin America, Asia and other international markets. In North America, the brand operates in the midscale and economy segments while internationally the brand includes midscale and upscale hotels. The Howard Johnson brand target families and leisure travelers, providing continental Rise and Dine breakfast and high-speed Internet access, as well as the Wyndham Rewards loyalty program.
Travelodge is a hotel chain with 440 properties located across North America. The brand operates primarily in the economy segment in the United States and in the midscale segment in Canada. Using its Sleepy Bear brand ambassador, Travelodge targets leisure travelers and offers guests complimentary Bear Bites continental breakfast and free high-speed Internet access, as well as the Wyndham Rewards loyalty program.
Knights Inn is an economy hotel chain with approximately 350 locations across North America. Knights Inn hotels provide basic overnight accommodations and complimentary breakfast, as well as the Wyndham Rewards loyalty program.
Ramada Worldwide is a global midscale hotel chain with 845 properties located in 53 countries worldwide. Ramada hotels feature free wireless high-speed Internet access, meeting rooms, business services, fitness facilities, upgraded bath amenities and the Wyndham Rewards loyalty program. Most properties have an on-site restaurant/lounge, while other sites offer a complimentary continental breakfast with food available in the Ramada Mart.
Baymont Inn & Suites is a midscale hotel chain with approximately 260 properties located across North America. The guests are offered fresh baked cookies, complimentary breakfast and high-speed Internet access as well as the Wyndham Rewards loyalty program. Most hotels also offer swimming pools and fitness centers.
Wyndham Hotels and Resorts is an upscale, full service brand of 100 properties located in key business and vacation destinations around the world. Business locations feature meeting space for large and small meetings, as well as business centers and fitness centers. The brand is tiered as follows: Wyndham Grand Collection, consisted primarily of 4+Diamond hotels in resort or urban destinations, offer a guest experience, sophisticated design and distinct dining options; Wyndham Hotels and Resorts offers customers amenities, such as golf, tennis, beaches and/or spas, and Wyndham Garden Hotels, generally located in corporate or suburban areas, provide space for small to midsize meetings and relaxed dining options. Each tier offers the Wyndham Rewards loyalty program.
Wingate by Wyndham is a prototypical design hotel chain in the upper end of the midscale segment with over 160 properties in North America. Its each room is equipped with a flat screen TV, high-speed Internet access, in-room microwave and refrigerator. The brand also offers hot breakfast, a round the clock business center with free printing, copying and faxing and free access to a gym facility and the Wyndham Rewards loyalty program.
Tryp by Wyndham is a select-service, mid-priced hotel brand consisted of over 90 hotels located predominantly throughout Europe and South America in key center city, airport and business center markets. This brand caters to both business and leisure travelers with varying accommodations suited for different travel needs and preferences. Guests enjoy free Internet in all rooms, free breakfast buffet with a special emphasis on healthy, fresh ingredients and the Wyndham Rewards loyalty program.
Hawthorn Suites by Wyndham is an extended stay brand that provides an ideal atmosphere for multi-night visits at approximately 75 properties predominantly in the United States. Each hotel offers an inviting and practical environment for travelers with well appointed, spacious one and two-bedroom suites and fully-equipped kitchens. Guests enjoy free Internet in all rooms and common areas, breakfast buffets and evening social hours, as well as the Wyndham Rewards loyalty program.
Planet Hollywood is a 4+Diamond, full-service, entertainment-based hotel brand that will be located in key destination cities globally. All hotels will offer multiple food and beverage outlets, flexible meeting space, entertainment-based theming and the Wyndham Rewards loyalty program. As of December 31, 2011, it had no properties franchised or managed by us under this affiliation arrangement.
Dream is a full-service, light-hearted brand with trend-setting design for gateway cities and resort destinations. This brand was added to its portfolio of offerings in January 2011, when the Company entered into a 30 year affiliation relationship with Chatwal Hotels & Resorts, LLC to franchise this brand and provide management services globally for branded hotels. As of December 31, 2011, it had five properties franchised by us under this affiliation arrangement.
Night brand was added to its portfolio of offerings in January 2011 when it entered into a 30 year affiliation relationship with Chatwal Hotels & Resorts, LLC to franchise this brand and provide management services globally for branded hotels. These hotels offer services, such as guest deejays in lounges, discounts for green motorists with hybrid and electric cars, gourmet quick-serve food and beverage options and the Wyndham Rewards loyalty program. As of December 31, 2011, it had one property franchised by the Company under this affiliation arrangement.
The Company’s franchising business is designed to generate revenues for its hotel owners through the delivery of room night bookings to the hotel, the promotion of brand awareness among the consumer base, global sales efforts, ensuring guest satisfaction and providing service to hotel guests and its hotel owners. Its management business offers hotel owners the benefits of a global brand and a range of management, marketing and reservation services. In addition to the standard franchise services, its hotel management business provides full-service hotel owners with professional oversight and operations support services, such as hiring, training and supervising the managers and employees who operate the hotels, as well as annual budget preparation, financial analysis and food and beverage services. Economy and midscale hotels are typically located on highway roadsides for business and leisure travelers. As of December 31, 2011, it had approximately 850 hotels and 111,900 rooms pending opening in its development pipeline, of which 60% were international and 57% were new construction.
WYNDHAM EXCHANGE & RENTALS
The Company’s vacation exchange and rentals business, Wyndham Exchange & Rentals, is a member-based vacation exchange network based on the number of vacation exchange members and marketer of professionally serviced vacation rental properties based on the number of vacation rental properties marketed. Through this business, it provides vacation exchange services and products and access to distribution systems and networks to resort developers and owners of intervals of vacation ownership interests, and it markets vacation rental properties primarily on behalf of independent owners, vacation ownership developers and other hospitality providers. Wyndham Exchange & Rentals is a fee-for-service business that provides vacation exchange services and products to developers, managers and owners of intervals of vacation ownership interests, and markets and services vacation rental properties. Its vacation exchange and rentals business has access for specified periods, in a majority of cases on an exclusive basis, to approximately 100,000 vacation properties, which are consisted of over 4,000 vacation ownership resorts worldwide through its vacation exchange business, and over 95,000 vacation rental properties with approximately 88,000 properties located in Europe and over 7,000 located in the United States.
The Company’s vacation exchange and rentals business provides more than five million leisure-bound families with vacation exchange and rentals services and products. The properties available to leisure travelers through its vacation exchange and rentals business include vacation ownership condominiums, homes, villas, cottages, bungalows, campgrounds, city apartments, fractional private residences, luxury destination clubs, boats and yachts. The Company offers leisure travelers flexibility (subject to availability) as to time of travel and a choice of lodging options in regions to which such travelers may not typically have such ease of access, and it offers property owners marketing, booking and quality control services. Additionally, some of its brands offer property management services ranging from key-holding to full property maintenance for such properties. Its vacation exchange and rentals business has over 150 worldwide offices.
The Company has over 3.7 million vacation exchange members, and generates fees from members for both annual membership subscriptions and transaction based services. RCI operates three worldwide exchange programs that have a member base of vacation owners who are generally well-traveled and who want flexibility and variety in their travel plans each year. Its vacation exchange business’ three exchange programs, which serve owners of intervals at affiliated resorts are RCI Weeks, RCI Points and The Registry Collection.
The RCI Weeks exchange program is a vacation ownership exchange network and generally provides members with the ability to exchange week-long intervals in units at their resorts for week-long intervals at comparable resorts. During the year ended December 31, 2011, RCI also launched RCI Weeks Platinum membership, a premium level of membership that offers exclusive exchange and lifestyle benefits to subscribing members. The RCI Points exchange program, launched in 2000, is a global points-based exchange network, which allocates points to intervals that members cede to the exchange program. Under the RCI Points exchange program, members may redeem their points for the use of vacation properties in the exchange program or for discounts on other services and products which may change from time to time, such as airfare, car rentals, cruises, hotels and other accommodations. The luxury vacation accommodations in The Registry Collection network include higher-end vacation ownership resorts, fractional ownership resorts, condo-hotels and yachts. The Registry Collection program allows members to exchange their intervals for the use of other vacation properties within the network for a fee and also offers access to other services and products, such as cruises, yachts, adventure travel, hotels and other accommodations. The members of The Registry Collection exchange program often own greater than two-week intervals at affiliated resorts.
The Company’s vacation rentals business, Wyndham Vacation Rentals, markets vacation rental properties including privately-owned villas, homes, cottages, bungalows, campgrounds, apartments and condominiums that generally belong to independent property owners in more than 500 destinations. The Company markets inventory from its vacation exchange business and from other sources. The Company generate fee income from marketing and renting these properties to consumers. The Company makes over 1.3 million vacation rental bookings a year. It markets vacation rental properties under brand names, such as Landal GreenParks, Hoseasons, Villas4You, cottages4you, James Villa Holidays, Novasol, Dansommer, Cuendet and Canvas Holidays, as well as ResortQuest by Wyndham Vacation Rentals, Steamboat Resorts by Wyndham Vacation Rentals and The Resort Company by Wyndham Vacation Rentals. Additionally, it markets vacation rental properties through select private-label arrangements. Its vacation rentals business has over 95,000 properties with approximately 88,000 properties in Europe and over 7,000 properties in the United States. Its United States vacation exchange business’ member loyalty program is RCI Elite Rewards, which offers a branded credit card, the RCI Elite Rewards credit card.
The Hoseasons Group operates brands within the vacation rental market, including Hoseasons, cottages4you and James Villa Holidays, and offers unparalleled access to over 44,000 properties across the United Kingdom and Europe. Novasol is a continental Europe’s rental companies, featuring properties in more than 20 European countries, including holiday homes in Denmark, Norway, Sweden, France, Italy and Croatia, with approximately 30,000 exclusive holiday homes available for rent through established brands, such as Novasol, Dansommer and Cuendet. Landal GreenParks is a Holland’s holiday park companies, with over 70 holiday parks offering approximately 11,000 holiday park bungalows, villas and apartments in the Netherlands, Germany, Belgium, Austria, Switzerland and the Czech Republic. Canvas Holidays is a tour operator offering luxury camping holidays in Europe at 90 of the European campsites with over 2,500 accommodation units. It has a choice of luxury accommodations.
ResortQuest by Wyndham Vacation Rentals is a provider of full-service, wholly owned vacation condominiums and home rentals in the United States. ResortQuest represents a portfolio of approximately 6,000 vacation rental properties, marketed through established brands, in resort destinations across the United States, such as Colorado, Utah, South Carolina, Florida and Delaware. The Resort Company operates under the The Resort Company by Wyndham Vacation Rentals and Steamboat Resorts by Wyndham Vacation Rentals brands and provides full-service management through hotel-type services to owners and guests. Their portfolio of approximately 1,000 vacation properties is concentrated in the Colorado Rocky Mountains in world class resorts.
WYNDHAM VACATION OWNERSHIP
The Company’s vacation ownership business, Wyndham Vacation Ownership, is a vacation ownership business based on the number of resorts, units, owners and revenues. Through its vacation ownership business, it develops and markets vacation ownership interests to individual consumers, provide consumer financing in connection with the sale of vacation ownership interests and provide property management services at resorts.
Wyndham Vacation Ownership includes marketing and sales of vacation ownership interests, consumer financing in connection with the purchase by individuals of vacation ownership interests, property management services to property owners’ associations and development and acquisition of vacation ownership resorts. As of December 31, 2011, it had developed or acquired over 160 vacation ownership resorts in the United States, Canada, Mexico, the Caribbean and the South Pacific that represent approximately 20,800 individual vacation ownership units and over 813,000 owners of vacation ownership interests. The Company operates its vacation ownership business through its two primary brands, Wyndham Vacation Resorts and WorldMark by Wyndham.
During 2011, Wyndham Vacation Ownership expanded its portfolio with the addition of resorts in Waikiki, Hawaii; North Myrtle Beach, South Carolina; Destin, Florida; and Smugglers’ Notch, Vermont and added additional inventory at locations in Orlando, Florida; Australia; and New Zealand. Its primary vacation ownership brands, Wyndham Vacation Resorts and WorldMark by Wyndham, operate vacation ownership programs through which vacation ownership interests can be redeemed for vacations through points- or credits-based internal reservation systems that provide owners with flexibility (subject to availability) as to resort location, length of stay, unit type and time of year. The points-or credits-based reservation systems offer owners redemption opportunities for other travel and leisure products. As of December 31, 2011, over 523,000 owners held interests in Wyndham Vacation Resorts resort properties. Wyndham Vacation Resorts properties are located primarily in the United States and, as of December 31, 2011, consisted of 76 resorts (six of which are shared with WorldMark by Wyndham) that represented approximately 13,300 units. Wyndham Vacation Resorts uses a points-based internal reservation system called Club Wyndham Plus to provide owners with flexibility (subject to availability) as to resort location, length of stay, unit type and time of year. The Clubs provide owners of vacation credits with flexibility (subject to availability) as to resort location, length of stay, unit type and time of year. Depending on the number of vacation credits an owner has purchased, the owner may use the vacation credits for one or more vacations annually.
Wyndham Worldwide Corp
22 SYLVAN WAY
PARSIPPANY NJ 07054