US: Wyndham Worldwide Corporation has agreed to sell its European vacation rental business to Platinum Equity for around $1.3 billion.
The European vacation rental business has entered into a 20-year agreement under which it will pay a royalty fee of one per cent of net revenue to Wyndham’s hotel business for the right to use the “by Wyndham Vacation Rentals” brand.
The transaction is expected to close in the second quarter of 2018, and will see Platinum Equity see off reported interest from CVC Capital Partners and Blackstone.
Wyndham’s European vacation rental business features more than 110,000 properties in over 600 destinations across more than 25 countries. It will continue to feature in the Wyndham Rewards loyalty programme following the deal.
It operates more than two dozen local brands, including cottages.com, James Villa Holidays, Landal GreenParks, Novasol and Hoseasons and generates around $750 million in annual revenue and approximately $130 million of pre-tax profits including allocated costs.
Stephen P. Holmes, chairman and chief executive of Wyndham Worldwide said: “This is another important step in the evolution of our company. Our European vacation rental brands deliver a great consumer experience, have high brand recognition in their markets and have delivered strong, consistent results. Our goal has always been to position them for continued long-term growth.”
“We conducted a rigorous strategic review process that generated strong interest from multiple parties, and we were pleased to find the right buyer. We are confident that as part of Platinum Equity’s portfolio, these businesses will have a bright future and will provide significant opportunities for their associates and business partners,” he added.
Geoff Cowley, managing director of Wyndham Vacation Rentals UK, said: “WVR UK is proud to have been part of the Wyndham family. At the same time, we are excited to move into Platinum Equity ownership upon the successful completion of the sale. We are confident Platinum Equity will provide our business with a positive outlook for growth and will enable us to continue delivering the same exceptional service to our accommodation owners and their guests. In the meantime, we are continuing to focus on delivering outstanding holidays and great service for all our partners throughout 2018.”
Platinum Equity partner Louis Samson said: “We have worked closely with Wyndham Worldwide to craft a divestiture solution that creates value for all sides and puts the European vacation rental business on a path for long-term success as a standalone business. We are excited to partner with the management team to ensure a seamless transition while preparing our plans to drive additional growth, both organically and through prospective add-on acquisitions.”