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 7,000 franchised hotels worldwide through Wyndham Hotel Group, which includes 15 familiar brands, such as Days Inn, Howard Johnson, Ramada, and Super 8. The company also operates Wyndham Exchange & Rentals, 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 clientel comes from the leisure market. The company's timeshare and vacation rentals businesses (which target the leisure market) generate about 80% of the company's total revenue. At its hotel division, a minority of its customers are business travelers (about one-third all customers). Because the recent rebound in the hospitality industry is due to an uptick in business travel, Wyndham is recovering from the recession at a slower pace than its competitors who service more business travel. Despite its focus on vacations, in 2010 Wyndham posted a slight bump in revenues and net income.
In order to acheive this growth in earnings, Wyndham refocused its vacation ownership sales and marketing efforts on targeting consumers with higher credit quality. It also expanded its vacation holdings through the 2011 acquisition of The Resort Company (TRC), which operates about 30 mountain vacation resorts in Colorado (in Beaver Creek, Breckenridge, Steamboat, and Vail). The deal adds approximately 1,000 rental units to Wyndham Vacation Rentals, part of Wyndham Exchange & Rentals.
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 & Rentals business. 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 year was Hoseasons Holdings Ltd, a UK-based vacation company. Wyndham made the acquisition for about $59 million in cash.
Wyndham has also taken steps to expand its hotel portfolio. It has about 900 hotels in its development pipeline. 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. A previous major hotel acquisition was the company's 2008 purchase of U.S. Franchise Systems from Global Hyatt for about $150 million. The deal added nearly 300 budget hotels under the Microtel Inns & Suites brand, and gave the company a foothold in the all-suites segment with the addition of more than 90 Hawthorn Suites locations. Hyatt had owned U.S. Franchise Systems since 2000.
Formerly operated by Wyndham International, the brand was acquired by hospitality and travel services giant Cendant Corporation in 2005. Cendant acquired the Wyndham brand and franchise system from investment firm Blackstone Group for $101 million. (Blackstone had taken Wyndham International private earlier that year for $3.25 billion.) Then, Cendant spun off Wyndham in 2006. (Cendant subsequently became Avis Budget Group.)