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In news from the States, we’ve heard that Wyndham Worldwide has announced plans to separate its timeshare business from its hotel business. This means that it will divide into two separate, publicly-traded companies.

Wyndham Vacation Ownership (the timeshare aspect of the business) will be headquartered in Orlando, whilst New Jersey will be home to the Wyndham Hotel Group HQ.

The split makes Wyndham Vacation Ownership the world’s largest publicly traded timeshare company, which will join with Wyndham Destination Network (home to RCI – the largest timeshare exchange company in the world).

So why have they done this?

The aim of the transaction is the improvement of strategist flexibility for both of the companies post-separation. Each will be able to maintain focus on its core business and growth opportunities, as well as facilitate the raising of future capital where needed, and to position each to respond better to developments unique to their separate markets.

“After a comprehensive review process, the Board of Directors has determined that a spin-off of the hotel business and the combination of Wyndham Vacation Ownership with RCI is the best structure to unlock shareholder value and enable strong growth across the businesses,” said Stephen Holmes, chairman and CEO of Wyndham Worldwide. “We will work with the leadership of our European rental organizations, which have outstanding brands in their regional markets, to explore options to fully realize their future growth potential.”

The transaction, which is due to finalise in early 2018, is predicted to be tax-free to Wyndham Worldwide. Shareholders will receive pro rata distribution of the new hotel company’s stock to existing shareholders in Wyndham Worldwide.

Each side of the two Wyndham companies will have a separate board of directors each, and the expectation is that new leadership positions will arise as a result of the split, providing great career opportunities.

Wyndham Vacation Ownership develops and operates a portfolio of more than 220 resorts throughout the United States, Canada, Mexico, the Caribbean, South America, and the South Pacific, managing vacation ownership sales, marketing, consumer financing operations, and property management. RCI is the world’s largest vacation exchange network, with around 4,300 affiliated properties in more than 100 countries.

Joining forces with RCI means that better timeshare contracts may arise for new members and existing members alike. With plenty of money and units to go around, there may be less fear of people leaving causing a drop in profits for the company (one of the principal reasons why people find themselves stuck in contracts they cannot leave).

Though both Wyndham and RCI have a past peppered with poor perceptions, this joining of forces is predicted to spell only good news for timeshare consumers. However, time will tell. We’ll be keeping a close eye on this merger and will let you know how RCi/Wyndham timeshare holders are getting on under the new model.

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