Wyndham to spin off its hotel business
Wyndham Worldwide Corp., owner of the Ramada and Days Inn brands, said it will spin off its hotel unit into a new publicly traded company and consolidate its timeshare business while exploring strategic alternatives for its European rental brands.
The company will split into Wyndham Hotel Group, based in Parsippany, N.J., and Wyndham Vacation Ownership, headquartered in Orlando, Fla., the company said Wednesday. The latter will be combined with Wyndham Destination Network, which includes the RCI timeshare exchange network. The names of the post-split companies haven’t been decided.
Wyndham Worldwide shares fell $2.71, or 2.7 percent, to close Thursday at $97.60.
Wyndham is following a path taken by other large hotel operators. Hilton Worldwide Holdings Inc. in January spun off its real estate into Park Hotels & Resorts Inc. and its timeshare business into Hilton Grand Vacations Inc. Marriott International Inc. took similar steps in 1993, when it created what is now Host Hotels & Resorts Inc., the largest U.S. hotel real estate investment trust.