Vacasa agrees to purchase Wyndham Vacation Rentals
Portland: Vacation rental management platform Vacasa and Wyndham Destinations have announced an agreement for the former to purchase Wyndham Vacation Rentals for around $162 million.
The prospective transaction is expected to be completed in the autumn, subject to customary closing conditions.
The purchase, which is complementary to Vacasa’s current inventory, will grow the company’s portfolio to over 23,000 homes, spanning North America, Central and South America, Europe and Africa. The signature Wyndham Vacation Rentals regional and local brands under the new Vacasa umbrella will include Hatteras Realty, ResortQuest, ResortQuest Whistler, Smoky Mountains Property Management, Kaiser Realty, Corolla Classic Vacations and Vacation Palm Springs.
During their 30 years of combined experience, Wyndham Vacation Rentals and Vacasa have developed their multi-destination vacation rental companies with local teams in the communities where they operate. Wyndham Vacation Rentals’ homeowners will continue to benefit from dynamic pricing, partnerships with industry-leading OTAs and preferred regional and local brands.
Wyndham Destinations CEO and president, Michael D. Brown, said: “After conducting a rigorous strategic review process that generated strong interest from multiple parties, we are confident that Vacasa is the ideal buyer.
“In the past decade, we grew our vacation rental business to prominent leadership in North America. We determined that selling Wyndham Vacation Rentals is the best option to return value to shareholders and enable the long-term growth of our company through vacation ownership and exchange.
“We remain so confident in the future of this business and the benefits of a long-term relationship with Vacasa, that we will have an equity interest in Vacasa after the sale,” he added.
In the next 12 months, Vacasa expects to achieve more than $1 billion in gross bookings and in excess of $500 million in net revenue.
Vacasa founder and CEO, Eric Breon, said: “We are excited to partner with the pioneering company in the short-term rental industry that helped make vacation homes popular for so many families around the world. Combining Wyndham Vacation Rentals’ decades of operational excellence with Vacasa’s next-generation technology will deliver the industry’s best vacation rental experiences.”
Vacasa will finance the acquisition through a combination of capital and equity.
The sale will be comprised of funds of $45 million at closing, up to $30 million of Vacasa equity, and the remaining balance in either seller financing or funds at closing.
Vacasa expects to complete the full integration with Wyndham Vacation Rentals by next autumn.
PJT Partners acted as financial advisor and Weil, Gotshal & Manges LLP acted as legal advisor to Wyndham Destinations in connection with the transaction. Meanwhile, Wilson Sonsini Goodrich & Rosati acted as legal advisor to Vacasa.
For more information, visit the Vacasa website here and the Wyndham Vacation Rentals website here.