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 7,400 franchised hotels worldwide through its lodging segment, which includes 15 familiar brands, such as Days Inn, Howard Johnson, Ramada, and Super 8. Wyndham also operates a vacation exchange and rentals segment, which has a relationship with some 100,000 vacation exchange and rental properties in about 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.
All of Wyndham's businesses have both domestic and international operations. About 25% of the company's revenues come from outside the US.
Sales and Marketing
The company's advertising expenses were $105 million in fiscal 2012. Wyndham markets its properties through several marketing channels including direct mail, email, telemarketing, online distribution channels, brochures, magazines, and travel agencies. Additionally, it promotes its offerings to owners of resorts and vacation homes through trade shows.
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%.
Wyndham has committed to an organizational realignment initiative at its vacation exchange and rentals business, primarily focused on consolidating existing processes and optimizing its structure partially due to a shift by members to transact online.
Wyndham is strategically focused on two objectives that it believes are essential to its business: increasing system size and strengthening customer value proposition. To increase its system size, the company intends to acquire more properties, add new rooms to existing properties, and spur new construction by developing new and existing properties.
Mergers and Acquisitions
Wyndham continues to expand its vacation holdings through acquisitions. In 2013 it acquired 27 whole-ownership units and 196 fractional interests (collectively 59 whole units) at the Seventh Mountain Resort in Bend, Oregon from INNspired, LLC. The acquisition gave the company the opportunity to expand its presence in one of the most desirable vacation destinations on the West Coast. Also in 2013 Wyndham expanded its presence in Washington with the acquisition of The Lake House at Chelan, the company’s ninth resort in the state.
In 2012 Wyndham 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.