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About Wyndham Destinations, Inc.

Wyndham Destinations (formerly Wyndham Worldwide) is one of the world's largest timeshare vacation companies. Its portfolio includes more than 220 vacation ownership resorts offered under the Club Wyndham, WorldMark by Wyndham, Margaritaville Vacation Club by Wyndham, and Shell Vacations Club brands. The company also manages some 4,300 affiliated vacation exchange and rental properties through Resort Condominiums International (RCI). All told, Wyndham Destinations is present in more than 110 countries. In 2018 the company spun off its hotel business, including top franchise brands Days Inn, Howard Johnson, Ramada, and Super 8. Its Wyndham Vacation Rentals (900 rental properties) business is up for sale. 

Change in Company Type

In 2018 Wyndham Worldwide split into two separate publicly traded companies, Wyndham Destinations, a timeshare firm, and Wyndham Hotels and Resorts, a hotel franchisor. The action was a strategic move to allow the two separate companies to focus on their strengths and find more financing opportunities.

 

 

Operations

Wyndham Destinations is organized in two operating segments: Vacation Ownership, which accounts for more than three quarters of revenues, and Exchange & Rentals, which accounts for the remaining 25%. 

Through its Vacation Ownership segment, the company develops and markets Vacation Ownership Interests (VOIs) to individual consumers. It also provides consumer financing in connection with the sale of VOIs, and provides property management services at resorts. The majority of Vacation Ownership revenues come from timeshare sales; additional revenues come from consumer financing and property management.

Under Exchange & Rentals, the company maintains business relationships with over 4,300 vacation ownership resorts located in approximately 110 countries and territories. The unit includes vacation exchange network Resort Condominiums International (RCI). Its vacation exchange business derives the majority of revenues from annual membership dues and fees for facilitating vacation exchanges and rentals.

By products and services, vacation ownership interest accounts for around 45% of sales, while service and membership fees for more than 40%. Consumer financing accounts for more than 10%.

 

Geographic Reach

Wyndham Destinations is headquartered in Orlando, Florida. Its vacation ownership business leases approximately 160 marketing and sales offices. Of these offices, more than 130 are located throughout the US and more than 15 are in Australia; the remaining offices are in the Caribbean, Mexico, Thailand, Fiji, New Zealand, and the Philippines. 

The company's exchange and rentals business owns more than 20 properties, most of which are located in the US. Others are in the UK, Canada, and Mexico. It has about 110 leased offices throughout the globe.

Collectively, the company generates 89% of revenues in the US and 11% outside the US.  

 

Sales and Marketing

Wyndham Destinations uses a variety of marketing programs to attract prospective owners, including sponsored contests that offer vacation packages or gifts, targeted mailings, and outbound and inbound telemarketing efforts. Its marketing and sales activities are often facilitated through alliances with other travel, hospitality, entertainment, gaming, and retail companies. 

The company also partners with Wyndham Hotel Group, a separate publicly traded company, by sharing the Wyndham Rewards loyalty program -- a key area of focus for Wyndham Destinations. The two companies have license agreements to jointly run their loyalty programs, Wyndham Rewards, and cross-sell each other's properties, whether they be vacation rental, timeshare, or hotel stays.

Advertising costs were $27 million, $25 million and $31 million in 2018, 2017, and 2016, respectively.

Financial Performance

Disposable income of the average American has been on the rise in recent years, enabling revenue growth in the for travel and leisure space. Wyndham's vacation ownership, exchange, and rental operations revenue grew steadily between 2014 and 2018. Net income mostly posted increases during this time range, though it recently dropped from a 2017 high thanks to a tax break it received that year.

Revenue from continuing operations grew 3.3% in 2018 versus the prior year to reach $3.9 billion. Wyndham reported higher revenues from its vacation ownership business, primarily due to an increase in net Vacation Ownership Interest (VOI) sales, consumer financing, and property management revenues.

In 2018, net income from continuing operations dropped to $266 million, down from $646 million in 2017. The year-over-year decrease was due to a $407 million tax benefit in 2017 due to the U.S. Tax Cuts and Jobs Act. Total full-year 2018 adjusted EBITDA from continuing operations increased 7% to $942 million, primarily driven by an increase in gross VOI sales and cost savings initiatives.

Cash at the end of 2018 was $218 million. Operating activities (from continuing operations) provided $292 million in cash, compared to $500 million in the prior year. Cash used in investing activities (continuing operations) was $99 million. Financing activities (continuing operations) used $1.79 billion.

 

Strategy

Wyndham's decision to spin off its hotel business follows similar moves in recent years by its competitors, Marriott International and Starwood Hotels and Resorts Worldwide. Before the Wyndham Hotel spinoff, the company's timeshare unit's sales had grown at a faster rate than its hotel business, and the company made the separation to build on this momentum. Part of this strategy was to bring value to shareholders; from the spin-off date in mid 2018 through the end of that year it returned $385 million of capital to shareholders through dividends and share repurchases.

The company is also focused on growing its portfolio by adding more locations and making updates to its products and services. Wyndham faces intense competition from Airbnb, VRBO, and other vacation rental providers. In response, it is investing more than $1 billion to grow its portfolio of timeshare properties in US cities such as Austin, New Orleans, and Portland, Oregon, destinations that are proving popular with millennial vacation-goers. In 2019 CEO Michael Brown announced that over the next five years, the company expects to spend up to $300 million annually on growing their property offerings, as much as $25 million on modernizing sales centers and $10 million on new customer relations tools.

 

 

Company Background

The company's history can be traced back to the formation of Hospitality Franchise Systems (HFS) in 1990. HFS initially began as a hotel franchisor that later expanded to include the addition of the vacation exchange business. In 1997, HFS merged with CUC International to form Cendant Corporation, which later expanded through the addition of vacation rentals and vacation ownership businesses. In 2006, Cendant distributed all the shares of its subsidiary, Wyndham Worldwide, to the holders of Cendant common stock. Later that year it began trading on the New York Stock Exchange under the symbol WYN.

Vacation exchange business RCI was established in 1974. Vacation ownership brands began operations in 1978 with Shell Vacations Club, followed by Wyndham Vacation Resorts (formerly known as Fairfield Resorts) in 1980, and WorldMark by Wyndham (formerly known as Trendwest Resorts) in 1989.

On May 31, 2018, Wyndam Worldwide completed the spin-off of its hotel business into a separate publicly traded company, Wyndham Hotels & Resorts. It then changed its name to Wyndam Destinations.

Wyndham Destinations, Inc.

6277 SEA HARBOR DR
Orlando, FL 32821-8043
Phone: 1 (407) 626-5200

Stats

Employer Type: Publicly Owned
Stock Symbol: WYND
Stock Exchange: , NYSE
Director, President and Chief Executive Officer: Michael D. Brown
Chairman: Stephen P. Holmes
Chief Operating Officer, Wyndham Vacation Clubs: Geoff Richards
Employees (This Location): 800
Employees (All Locations): 24,500

Major Office Locations

Orlando, FL

Other Locations

Birmingham, AL
Homewood, AL
Hoover, AL
Huntsville, AL
Mobile, AL
Pelham, AL
Tuscaloosa, AL
Bryant, AR
Clinton, AR
Little Rock, AR
North Little Rock, AR
Springdale, AR
Casa Grande, AZ
Flagstaff, AZ
Kingman, AZ
Lake Havasu City, AZ
Mesa, AZ
Peoria, AZ
Phoenix, AZ
Pinetop, AZ
Scottsdale, AZ
Sedona, AZ
Tempe, AZ
Tucson, AZ
Willcox, AZ
Yuma, AZ
Anaheim, CA
Angels Camp, CA
Auburn, CA
Bakersfield, CA
Berkeley, CA
Burbank, CA
Chatsworth, CA
Chowchilla, CA
Chula Vista, CA
Costa Mesa, CA
Dixon, CA
Eureka, CA
Fremont, CA
Fresno, CA
Gilroy, CA
Indio, CA
Irvine, CA
King City, CA
La Palma, CA
Lawndale, CA
Los Angeles, CA
Monterey, CA
Ontario, CA
Palmdale, CA
Palm Springs, CA
Paso Robles, CA
Rancho Cordova, CA
Redding, CA
Sacramento, CA
San Clemente, CA
San Diego, CA
San Dimas, CA
San Francisco, CA
Santa Ana, CA
Santa Rosa, CA
South San Francisco, CA
Stockton, CA
Sunnyvale, CA
Thousand Oaks, CA
Ventura, CA
Vista, CA
Alamosa, CO
Aurora, CO
Colorado Springs, CO
Denver, CO
Durango, CO
Estes Park, CO
Golden, CO
Grand Junction, CO
Greenwood Village, CO
Gunnison, CO
Henderson, CO
Lakewood, CO
Louisville, CO
Manitou Springs, CO
Pagosa Springs, CO
Pueblo, CO
Westminster, CO
New Haven, CT
Plainfield, CT
Stamford, CT
Windsor Locks, CT
Harrington, DE
Selbyville, DE
Altamonte Springs, FL
Brandon, FL
Brooksville, FL
Clearwater, FL
Clearwater Beach, FL
Coral Springs, FL
Cutler Bay, FL
Deerfield Beach, FL
Destin, FL
Doral, FL
Fort Lauderdale, FL
Fort Myers, FL
Gainesville, FL
Hawley, FL
Hollywood, FL
Jacksonville, FL
Lake Buena Vista, FL
Lakeland, FL
Lake Mary, FL
Manassas, FL
Melbourne, FL
Miami, FL
Miami Lakes, FL
Miami Springs, FL
Miramar, FL
Naples, FL
North Charleston, FL
Ocala, FL
Orlando, FL
Panama City, FL
Panama City Beach, FL
Pensacola, FL
Pensacola Beach, FL
Pinellas Park, FL
Plantation, FL
Pomona, FL
Pompano Beach, FL
Sarasota, FL
Spring Hill, FL
Sunrise, FL
Tallahassee, FL
Tampa, FL
West Palm Beach, FL
Alpharetta, GA
Atlanta, GA
Augusta, GA
Brunswick, GA
Columbus, GA
Conyers, GA
Dalton, GA
Decatur, GA
Dublin, GA
Kennesaw, GA
Macon, GA
Norcross, GA
Ringgold, GA
Roswell, GA
Savannah, GA
Stockbridge, GA
Suwanee, GA
Villa Rica, GA
Princeville, HI
Waikoloa, HI
Ames, IA
Davenport, IA
Des Moines, IA
Dyersville, IA
Muscatine, IA
Osceola, IA
Red Oak, IA
Stuart, IA
Blackfoot, ID
Mccall, ID
Pocatello, ID
Bannockburn, IL
Beardstown, IL
Carbondale, IL
Champaign, IL
Chicago, IL
Collinsville, IL
Des Plaines, IL
East Peoria, IL
Effingham, IL
Gurnee, IL
Harrisburg, IL
Moline, IL
Mount Vernon, IL
Oakbrook Terrace, IL
Pekin, IL
Peoria, IL
Springfield, IL
Tinley Park, IL
Willowbrook, IL
Anderson, IN
Carmel, IN
Indianapolis, IN
Merrillville, IN
Andover, KS
Hesston, KS
Lenexa, KS
Mcpherson, KS
Wichita, KS
Lexington, KY
Louisville, KY
Mayfield, KY
Pikeville, KY
Richmond, KY
Alexandria, LA
Baton Rouge, LA
Bossier City, LA
Kenner, LA
Lafayette, LA
Metairie, LA
New Orleans, LA
Shreveport, LA
Slidell, LA
Terrytown, LA
Andover, MA
Auburn, MA
Milford, MA
Somerset, MA
Somerville, MA
Baltimore, MD
College Park, MD
Hagerstown, MD
Jessup, MD
Linthicum, MD
North East, MD
Oxon Hill, MD
Suitland, MD
Brunswick, ME
Portland, ME
Westbrook, ME
Calumet, MI
Canton, MI
Charlotte, MI
Southgate, MI
Utica, MI
Austin, MN
Bloomington, MN
Lakeville, MN
Long Lake, MN
Minneapolis, MN
Rochester, MN
Rogers, MN
Blue Springs, MO
Branson, MO
Carthage, MO
Columbia, MO
Kansas City, MO
Poplar Bluff, MO
Saint Louis, MO
Springfield, MO
Kosciusko, MS
Meridian, MS
Bozeman, MT
Helena, MT
Kalispell, MT
Asheville, NC
Cary, NC
Charlotte, NC
Durham, NC
Greensboro, NC
Greenville, NC
Lake Lure, NC
Morrisville, NC
New Bern, NC
Raleigh, NC
Sapphire, NC
Winston Salem, NC
Bowman, ND
Williston, ND
Grand Island, NE
Holdrege, NE
Ogallala, NE
Omaha, NE
Valentine, NE
Manchester, NH
Salem, NH
Carlstadt, NJ
Clifton, NJ
Fairfield, NJ
Galloway, NJ
Middlesex, NJ
Newark, NJ
Parsippany, NJ
Voorhees, NJ
Albuquerque, NM
Farmington, NM
Las Cruces, NM
Santa Fe, NM
Taos, NM
Las Vegas, NV
Reno, NV
Winnemucca, NV
Armonk, NY
Bath, NY
Bohemia, NY
Brooklyn, NY
Garden City, NY
Geneva, NY
Halfmoon, NY
Long Island City, NY
New York, NY
Nyack, NY
Oneida, NY
Plattsburgh, NY
Seneca Falls, NY
Sidney, NY
Webster, NY
Cincinnati, OH
Cleveland, OH
Dublin, OH
Lima, OH
Macedonia, OH
Mansfield, OH
Perrysburg, OH
Reynoldsburg, OH
Norman, OK
Oklahoma City, OK
Sayre, OK
Tulsa, OK
Gleneden Beach, OR
Wilsonville, OR
Bartonsville, PA
Brookville, PA
Chambersburg, PA
Coraopolis, PA
Harrisburg, PA
Mechanicsburg, PA
Reading, PA
Warwick, RI
Charleston, SC
Columbia, SC
Greenville, SC
Myrtle Beach, SC
North Myrtle Beach, SC
Santee, SC
Walterboro, SC
Aberdeen, SD
Sturgis, SD
Caryville, TN
Chattanooga, TN
Franklin, TN
Jackson, TN
Jonesborough, TN
Kingsport, TN
Memphis, TN
Murfreesboro, TN
Nashville, TN
Sevierville, TN
Abilene, TX
Addison, TX
Alice, TX
Amarillo, TX
Arlington, TX
Austin, TX
Baytown, TX
Clute, TX
College Station, TX
Corpus Christi, TX
Dallas, TX
Denison, TX
Eagle Pass, TX
El Paso, TX
Fort Stockton, TX
Fort Worth, TX
Galveston, TX
Garland, TX
Houston, TX
Humble, TX
Huntsville, TX
Irving, TX
Killeen, TX
La Porte, TX
Laredo, TX
Lubbock, TX
Lufkin, TX
Mcallen, TX
Midland, TX
Odessa, TX
Orange, TX
Plano, TX
Round Rock, TX
San Angelo, TX
San Antonio, TX
San Marcos, TX
Sherman, TX
South Padre Island, TX
Stafford, TX
Temple, TX
Tyler, TX
Victoria, TX
Wichita Falls, TX
Blanding, UT
Eden, UT
Garden City, UT
Layton, UT
Logan, UT
Midvale, UT
Nephi, UT
Orem, UT
Salt Lake City, UT
Alexandria, VA
Chesapeake, VA
Danville, VA
Hampton, VA
Norfolk, VA
North Chesterfield, VA
Richmond, VA
Roanoke, VA
Salem, VA
South Chesterfield, VA
Stafford, VA
Tappahannock, VA
Virginia Beach, VA
Waynesboro, VA
Williamsburg, VA
Burlington, VT
Saint Albans, VT
South Burlington, VT
Blaine, WA
Ephrata, WA
Kirkland, WA
Port Townsend, WA
Redmond, WA
Seatac, WA
Seattle, WA
Tacoma, WA
Walla Walla, WA
Appleton, WI
Baldwin, WI
Baraboo, WI
Beaver Dam, WI
Brookfield, WI
Chetek, WI
Delafield, WI
Glendale, WI
Madison, WI
Manitowoc, WI
Milwaukee, WI
New Berlin, WI
Oak Creek, WI
Oshkosh, WI
Pleasant Prairie, WI
Sheboygan, WI
Stevens Point, WI
Wausau, WI
West Salem, WI
Bridgeport, WV
Dunbar, WV
Cheyenne, WY
Fredericton, Canada
Saint John, Canada
Whistler, Canada
Cannes, France
Ciudad De Buenos Aires, Argentina